Bank of Nova Scotia : Documént Financiére

Supplementary

Financial Information

Q1 2022

For the period ended: January 31, 2022

For further information, contact Scotiabank Investor Relations:

John McCartney - [e-mail]

Sophia Saeed - [e-mail]

Mark Michalski - [e-mail]

Rene Lo - [e-mail]

Supplementary Financial Information (SFI)	Page
For the period ended: January 31, 2022
Notes - Non-GAAP Measures
Enhanced Disclosure Task Force (EDTF) Recommendations
Highlights	1
Common Share and Other Information	2
Consolidated Statement of Income	3
Business Segment Performance
• Canadian Banking	4
• International Banking	5
• International Banking (Constant Dollar)	6
• Global Wealth Management	7
• Global Banking and Markets	8
• Other	9
Non-Interest Income	10
Revenue from Trading-Related Activities and Assets Under Administration and Management	11
Operating Expenses	12
Consolidated Statement of Financial Position - Assets (Spot Balances)	13
Consolidated Statement of Financial Position - Liabilities and Equity (Spot Balances)	14
Average Balance Sheet	15
Consolidated Statement of Changes in Equity	16
Consolidated Statement of Changes in Equity (Continued)	17
Credit-Related Information
• Loans and Acceptances by Type of Borrower	18
• Impaired Loans by Business Segment	19
• Changes in Gross Impaired Loans by Business Segment	20
• Allowance for Credit Losses & Other Reserves	21
• Impaired Loans by Type of Borrower	22
• Provision for Credit Losses by Business Line	23
• Provision for Credit Losses by Type of Borrower	24
Cross-Border Exposures To Select Countries	25
Financial Investments - Unrealized Gains (Losses)	26
Regulatory Capital Highlights	27
Appendix 1: Global Banking and Markets (Reported Including LatAm)	28
Appendix 2: International Banking by Region
• Latin America	29
• Caribbean & Central America (C&CA) and Asia	30

Note: The supplementary financial information package contains comparative figures that have been reclassified in prior periods, where applicable, to conform with the current reporting period presentation.

Supplementary Financial Information

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Notes

This document is not audited and should be read in conjunction with our Q1 2022 Quarterly Report to Shareholders and 2021 Annual Report.

Non-GAAP Measures: The Bank uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these or similar measures. The Bank believes that certain non-GAAP measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-GAAP measures are used throughout this report and defined below.

Adjusting Items (1): Adjusted results exclude the following items:
($ millions)	2022		2021				2020			Full Year
Adjusting Items (Pre-Tax)	Q1	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	2021	2020
Acquisition-Related Costs
Integration Costs	-	-	-	-	-	20	40	41	76	-	177
Canadian Banking	-	-	-	-	-	-	-	-	-	-	-
International Banking	-	-	-	-	-	16	34	33	71	-	154
Global Wealth Management	-	-	-	-	-	4	6	8	5	-	23
Amortization of Intangibles(2)	25	25	24	26	28	26	26	27	27	103	106
Canadian Banking	6	6	5	5	6	6	5	6	5	22	22
International Banking	10	10	11	11	13	11	12	12	12	45	47
Global Wealth Management	9	9	8	10	9	9	9	9	10	36	37
Other										-	-
Allowance for Credit Losses - Additional Scenario	-	-	-	-	-	-	-	-	155	-	155
Canadian Banking	-	-	-	-	-	-	-	-	71	-	71
International Banking	-	-	-	-	-	-	-	-	77	-	77
Global Wealth Management	-	-	-	-	-	-	-	-	1	-	1
Global Banking and Markets	-	-	-	-	-	-	-	-	6	-	6
Derivative Valuation Adjustment	-	-	-	-	-	-	-	-	116	-	116
Global Banking and Markets	-	-	-	-	-	-	-	-	102	-	102
Other	-	-	-	-	-	-	-	-	14	-	14
Net (Gain)/Loss on Divestitures(3)	-	-	-	-	-	8	(44)	-	(262)	-	(298)
Impairment Charge on Software Asset(3)	-	-	-	-	-	-	-	-	44	-	44
Restructuring and oher provisions(3)	-	188	-	-	-	-	-	-	-	188	-
Total (Pre-Tax)	25	213	24	26	28	54	22	68	156	291	300
Adjusting Items (After-Tax, NCI)
Acquisition-Related Costs
Integration Costs	-	-	-	-	-	15	24	20	41	-	100
Canadian Banking	-	-	-	-	-	-	-	-	-	-	-
International Banking	-	-	-	-	-	12	19	15	37	-	83
Global Wealth Management	-	-	-	-	-	3	5	5	4	-	17
Amortization of Intangibles (2)	18	18	18	19	20	19	18	20	20	75	77
Canadian Banking	4	4	4	4	4	4	4	4	4	16	16
International Banking	7	7	7	9	9	8	8	9	9	32	34
Global Wealth Management	7	7	7	6	7	7	6	7	7	27	27
Other										-	-
Allowance for Credit Losses - Additional Scenario	-	-	-	-	-	-	-	-	108	-	108
Canadian Banking	-	-	-	-	-	-	-	-	52	-	52
International Banking	-	-	-	-	-	-	-	-	51	-	51
Global Wealth Management	-	-	-	-	-	-	-	-	1	-	1
Global Banking and Markets	-	-	-	-	-	-	-	-	4	-	4
Derivative Valuation Adjustment	-	-	-	-	-	-	-	-	85	-	85
Global Banking and Markets	-	-	-	-	-	-	-	-	75	-	75
Other	-	-	-	-	-	-	-	-	10	-	10
Net (Gain)/Loss on Divestitures(3)	-	-	-	-	-	5	(43)	-	(316)	-	(354)
Impairment Charge on Software Asset(3)	-	-	-	-	-	-	-	-	32	-	32
Restructuring and oher provisions(3)	-	129	-	-	-	-	-	-	-	129	-
Total (After-Tax, NCI)	18	147	18	19	20	39	(1)	40	(30)	204	48

1. Refer to non-GAAP measures on page 4 of the Q1 2022 Quarterly Report to Shareholders, available on http://www.sedar.com.
2. Excludes amortization of intangibles related to software.
3. Recorded in Other operating segment.

Supplementary Financial Information

Notes (Cont'd)

		For the three months ended
($ millions)	January 31, 2022	October 31, 2021	January 31, 2021
Reported Results
Net interest income	4,344	4,217	4,351
Non-interest income	3,705	3,470	3,721
Total revenue	8,049	7,687	8,072
Provision for credit losses	222	168	764
Non-interest expenses	4,223	4,271	4,208
Income before taxes	3,604	3,248	3,100
Income tax expense	864	689	702
Net income	2,740	2,559	2,398
Net income attributable to non-controlling interests in subsidiaries (NCI)	88	70	90
Net income attributable to equity holders	2,652	2,489	2,308
Preferred shareholders and other equity instrument holders	44	78	43
Net income attributable to common shareholders	2,608	2,411	2,265
Diluted earnings per share (in dollars)	2.14	1.97	1.86
Adjustments
Amortization of Acquisition-related intangible assets, excluding software (1)	25	25	28
Restructuring and other provisions (1)	-	188	-
Adjustments (Pre-tax)	25	213	28
Income tax expense/(benefit)	(7)	(56)	(8)
Adjustments (After-tax)	18	157	20
Adjustment attributable to NCI	-	(10)	-
Adjustments (After-tax and NCI)	18	147	20
Adjusted Results
Net interest income	4,344	4,217	4,351
Non-interest income	3,705	3,470	3,721
Total revenue	8,049	7,687	8,072
Provision for credit losses	222	168	764
Non-interest expenses	4,198	4,058	4,180
Income before taxes	3,629	3,461	3,128
Income tax expense	871	745	710
Net income	2,758	2,716	2,418
Net income attributable to NCI	88	80	90
Net income attributable to equity holders	2,670	2,636	2,328
Preferred shareholders and other equity instrument holders	44	78	43
Business Segment Performance: Global Wealth Management	2,626	2,558	2,285
Adjusted diluted earnings per share
Adjusted net income attributable to common shareholders	2,626	2,558	2,285
Dilutive impact of share-based payment options and others	24	7	42
Adjusted net income attributable to common shareholders (diluted)	2,650	2,565	2,327
Weighted average number of basic common shares outstanding ($ millions)	1,211	1,215	1,212
Dilutive impact of share-based payment options and others ($ millions)	19	9	25
Adjusted weighted average number of dilutive common shares outstanding ($ millions)	1,230	1,224	1,237
Adjusted diluted earnings per share (in dollars) (2)	2.15	2.10	1.88
Impact of adjustments on diluted earnings per share (in dollars)	0.01	0.13	0.02

(1) Recorded in non-interest expenses.

(2) Earnings per share calculations are based on full dollar and share amounts.

Supplementary Financial Information

Enhanced Disclosure Task Force (EDTF) Recommendations

The Enhanced Disclosure Task Force (EDTF) of the Financial Stability Board published its report, "Enhancing the Risk Disclosure of Banks" on October 29, 2012. The report sets forth recommendations around improving risk disclosures and identifies existing leading practice risk disclosures. The Bank provided these disclosures in its 2014 Annual report and continues its efforts to provide further disclosures with the objective of enhancing and aligning with evolving industry practices associated with the 32 recommendations in the EDTF report. Below is the index of all these recommendations to facilitate easy reference in the Bank's public disclosure documents available on www.scotiabank.com/investor relations.

January 31, 2022 Reference Table for EDTF
Recommendation					Q1/22		2021 Annual Report
Type of Risk	Number	Disclosure	Quarterly Report		Supplementary Regulatory		MD&A	Financial Statements
					Capital Disclosures
General	1	The index of risks to which the business is exposed.				14
	2	The Bank's risk to terminology, measures and key parameters.				82-85
	3	Top and emerging risks, and the changes during the reporting period.				87-88,92-98
	4	Discussion on the regulatory development and plans to meet new regulatory ratios.	42-45			61-64,106-109,122-124
Risk Governance,	5	The Bank's Risk Governance structure.				79-81
Risk Management and	6	Description of risk culture and procedures applied to support the culture.				82-85
Business Model
	7	Description of key risks from the Bank's business model.				86
	8	Stress testing use within the Bank's risk governance and capital management.				82-83
Capital Adequacy and	9	Pillar 1 capital requirements, and the impact for global systemically important banks.	42-43		3	61-64	216
Risk-Weighted Assets	10	a) Regulatory capital components.	42,70		18-21	65
		b) Reconciliation of the accounting balance sheet to the regulatory balance sheet.			15-16
	11	Flow statement of the movements in regulatory capital since the previous reporting period,			70	66-67
		including changes in common equity tier 1, additional tier 1 and tier 2 capital.	42
	12	Discussion of targeted level of capital, and the plans on how to establish this.				61-64
	13	Analysis of risk-weighted assets by risk type, business, and market risk RWAs.			5,34,36-47,55-57,61,73,79	69-73, 86, 131	185, 240
	14	Analysis of the capital requirements for each Basel asset class.			13-14,34-48,54-57,61,66-69	69-73	185, 233-240
	15	Tabulate credit risk in the Banking Book.	74		13-14,34-48,66-69	69-73	235
	16	Flow statements reconciling the movements in risk-weighted assets for each risk-weighted asset type.			49,60,72	69-73
	17	Discussion of Basel III Back-testing requirement including credit risk model performance and validation.			77	70-72
Liquidity Funding	18	Analysis of the Bank's liquid assets.	33-36			104-109
	19	Encumbered and unencumbered assets analyzed by balance sheet category.	33-36			106
	20	Consolidated total assets, liabilities and off-balance sheet commitments analyzed by remaining contractual maturity at the	40-41			110-112
	balance sheet date.
	21	Analysis of the Bank's sources of funding and a description of the Bank's funding strategy.	38-39			109-110
Market Risk	22	Linkage of market risk measures for trading and non-trading portfolios and the balance sheet.	32-33			103
	23	Discussion of significant trading and non-trading market risk factors.	75			99-104	239-240
	24	Discussion of changes in period on period VaR results as well as VaR assumptions, limitations, backtesting and validation.	32, 75			99-104	239-240
	25	Other risk management techniques e.g. stress tests, stressed VaR, tail risk and market liquidity horizon.				99-104	240
Credit Risk	26	Analysis of the aggregate credit risk exposures, including details of both personal and wholesale lending.			5, 34, 36-47,55-57	92-98,125-131	194-196,236-238
	27	Discussion of the policies for identifying impaired loans, defining impairments and renegotiated loans, and explaining loan						163-165, 196
	forbearance policies.
	28	Reconciliations of the opening and closing balances of impaired loans and impairment allowances during the year.	60		31, 32	94, 125-126,128-129	196
	29	Analysis of counterparty credit risk that arises from derivative transactions.	44, 73-74		78	90-91	183-186
	30	Discussion of credit risk mitigation, including collateral held for all sources of credit risk.	73-74			90-91, 95
Other Risks	31	Quantified measures of the management of operational risk.	75			73, 113
	32	Discussion of publicly known risk items.	44			78

Supplementary Financial Information