PR Newswire | Nov 30, 2021 06:01AM EST

11/30 05:00 CST

Scotiabank reports fourth quarter and 2021 results TORONTO, Nov. 30, 2021

Scotiabank's 2021 audited annual consolidated financial statements and accompanying Management's Discussion & Analysis (MD&A) are available at www.scotiabank.com along with the supplementary financial information and regulatory capital disclosure reports, which includes fourth quarter financial information. All amounts are in Canadian dollars and are based on our audited annual consolidated financial statements and accompanying MD&A for the year ended October 31, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted. Additional information related to the Bank, including the Bank's Annual Information Form, can be found on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov.

Fiscal 2021 Highlights on a Reported Basis Fourth Quarter 2021 Highlights on a Reported Basis(versus Fiscal 2020) (versus Q4, 2020)

? Net income of $9,955 million, compared to $6,853 million ? Net income of $2,559 million, compared to $1,899 million

? Earnings per share (diluted) of $7.70, compared to $5.30 ? Earnings per share (diluted) of $1.97, compared to $1.42

? Return on equity(1) of 14.7%, compared to 10.4% ? Return on equity of 14.8%, compared to 11.0%

? Annual common dividend per share of $3.60 ? Quarterly dividend increase of 10 cents per common share to $1.00

Fiscal 2021 Highlights on an Adjusted Basis^(2) Fourth Quarter 2021 Highlights on an Adjusted Basis^(2)? ? (versus Q4, 2020) (versus Fiscal 2020)

? Net income of $10,169 million, compared to $6,961 million ? Net income of $2,716 million, compared to $1,938 million

? Earnings per share (diluted) of $7.87, compared to $5.36 ? Earnings per share (diluted) of $2.10, compared to $1.45

? Return on equity of 15.0%, compared to 10.4% ? Return on equity of 15.6%, compared to 11.3%

Fiscal 2021 Performance versus Medium-Term Objectives

The following table provides a summary of our 2021 performance against our medium-term financial performance objectives:

Medium-Term Objectives Fiscal 2021 Results

Reported Adjusted^(2)

Diluted earnings per share growth of 7%+ 45.3% 46.8%

Return on equity of 14%+ 14.7% 15.0%

Achieve positive operating leverage Positive 1.1% Positive 1.5%

Maintain strong capital ratios CET1 capital ratio^(3) of 12.3% CET1 capital ratio^(3) of 12.3%

TORONTO, Nov. 30, 2021 /CNW/ - Scotiabank reported net income of $9,955 million for the fiscal year 2021, compared with net income of $6,853 million in 2020. Diluted earnings per share (EPS) were $7.70, compared to $5.30 in the previous year. Return on equity was 14.7%, compared to 10.4% in the previous year.

Adjusted net income(2) was $10,169 million, up from $6,961 million in the previous year, and EPS was $7.87 versus $5.36 in the previous year.

Reported net income for the fourth quarter ended October 31, 2021 was $2,559 million compared to $1,899 million in the same period last year. Diluted earnings per share were $1.97, compared to $1.42 in the same period a year ago.

Adjusted net income(2) for the fourth quarter ended October 31, 2021 was $2,716 million and EPS was $2.10, up from $1.45 last year. Adjusted return on equity was 15.6% compared to 11.3% a year ago.

"We ended the year with strong fourth quarter earnings and exceeded our medium-term financial targets in fiscal 2021. Our diversified business model demonstrated its resilience through the pandemic, and the Bank is well positioned to achieve its full earnings power in the upcoming year. I am extremely proud of how the Scotiabank team supported our clients, customers and communities as they continued to navigate through the challenges of the pandemic, while also continuing to stay focused on creating long-term sustainable value for our shareholders. As we close out 2021, it is clear that our sharpened footprint and our significant investments in our digital capabilities have positioned the Bank for a very bright future," said Brian Porter, President and CEO of Scotiabank. The Bank was also recently recognized for outstanding leadership in the Global Finance 2021 Sustainable Finance Awards for its efforts to support clients with industry-leading advice and expertise to help achieve strong business growth that is environmentally and socially responsible.

Canadian Banking generated adjusted earnings of $4,171 million in 2021, an increase of 60% compared to the prior year. The increase was due primarily to lower provision for credit losses and higher revenues driven by non-interest income and strong loan growth. During the year, Scotiabank received the #1 ranking in the J.D. Power 2021 Canada Online Banking Satisfaction Study for the second year in a row.

Global Wealth Management reported adjusted earnings of $1,592 million in 2021, up 23% compared to the prior year. The higher earnings were driven by strong results across both Canadian Advisory and Asset Management businesses.

Global Banking and Markets delivered another strong year with earnings of $2,075 million. This performance was driven by solid performance across the business, prudent expense management and lower provision for credit losses.

International Banking earnings improved through 2021 generating adjusted earnings of $1,855 million, an increase of 62% compared to the prior year. This was driven by strong commercial and secured lending loan growth, prudent expense management supported by accelerated customer adoption of digital channels and lower provision for loan losses, driven by improved credit outlook.

With a Common Equity Tier 1 capital ratio of 12.3% the Bank remains well capitalized to support its strategic growth plans and return capital back to shareholders. This quarter we announced a 10 cent increase in the quarterly dividend to $1.00 per common share, 11% higher than a year ago.

"As we look forward to 2022, we expect to deliver strong growth across all our business lines, with optionality and multiple avenues to grow," said Brian Porter, President and CEO, Scotiabank.

______________________________

Refer to page 141 of the Management's Discussion & Analysis in the Bank's(1) 2021 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(2) Refer to Non-GAAP Measures section on page 3.

(3) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018).

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) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Bank believes that 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 press release and defined below.

Adjusted results and diluted earnings per share

The following table presents a reconciliation of GAAP Reported financial results to Non-GAAP Adjusted financial results. The financial results have been adjusted for the following:

1. Adjustments impacting current and prior periods:

Amortization of Acquisition-related intangible assets: A. These costs relate to the amortization of intangibles recognized upon the acquisition of businesses and are recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments.

Restructuring and other provisions, recorded in Q4, 2021: The Bank recorded a restructuring charge of $126 million pre-tax, substantially related to International Banking for the cost of reducing branches and full time employees, driven by the accelerated customer adoption of digital channels and process automation. These efficiencies B. are a result of the Bank's commitment to simplify processes and optimize distribution channels to run businesses more effectively while meeting changing customer needs. This charge was recorded in the Other operating segment.



The Bank recorded settlement and litigation provisions in the amount of $62 million pre-tax in the Other operating segment in connection with the Bank's former metals business.

2. Adjustments impacting prior periods only:

A. Acquisition and divestiture-related amounts, which are defined as follows:

Acquisition-related integration costs - Includes costs that were incurred and related to integrating previously acquired businessess. These costs were recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments. The costs relate to the following acquisitions:

i. * Banco Cencosud, Peru (closed Q2, 2019) * Banco Dominicano del Progreso, Dominican Republic (closed Q2, 2019) * MD Financial Management, Canada (closed Q4, 2018) * Jarislowsky, Fraser Limited, Canada (closed Q3, 2018) * Citibank consumer and small and medium enterprise operations, Colombia (closed Q3, 2018) * BBVA, Chile (closed Q3, 2018)

Net (gain)/loss on divestitures - The Bank announced a number of divestitures in accordance with its strategy to reposition the Bank. The net (gain)/loss on divestitures is recorded in the Other operating segment (refer to Note 37 of the Bank's 2021 Annual Report to Shareholders for further details):

* Operations in British Virgin Islands (closed Q3, 2020) * Equity-accounted investment in Thanachart Bank, Thailand (closed ii. Q1, 2020) * Colfondos AFP, Colombia (closed Q1, 2020) * Operations in Puerto Rico and USVI (closed Q1, 2020) * Insurance and banking operations in El Salvador (closed Q1, 2020) * Banking operations in the Caribbean: Anguilla, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Vincent & the Grenadines (closed Q4, 2019) * Insurance and pension operations in the Dominican Republic (closed Q2, 2019)

Day 1 provision for credit losses on acquired performing financial instruments, as required by IFRS 9. The accounting standard does not differentiate between originated and purchased performing loans and as such, requires the same accounting treatment iii. for both. These credit losses are considered Acquisition-related costs in periods where applicable and are recorded in the International Banking segment. The provision for 2019 relates to Banco Cencosud, Peru and Banco Dominicano del Progreso, Dominican Republic.

Valuation-related adjustments, recorded in Q1, 2020:

The Bank modified its allowance for credit losses measurement methodology by adding an additional, more severe pessimistic scenario, consistent with developing practice among major international banks in applying IFRS 9, and the Bank's prudent approach to expected credit loss provisioning. The modification resulted in an increase in provision for credit losses B. of $155 million which was recorded in Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets operating segments. The Bank enhanced its fair value methodology primarily relating to uncollateralized OTC derivatives which resulted in a pre-tax charge of $116 million. This charge was recorded in the Global Banking and Markets and Other operating segments. The Bank also recorded an impairment loss in the Other operating segment of $44 million pre-tax, related to one software asset.

Reconciliation of reported and adjusted results and diluted earnings per share

For the three months For the year ended ended

October July 31 October October October 31 31 31 31

($ millions) 2021 2021 2020 2021 2020

Reported Results

Net interest income $ 4,217 $ 4,217 $ 4,258 $ 16,961 $ 17,320

Non-interest income 3,470 3,540 3,247 14,291 14,016

Total Revenue 7,687 7,757 7,505 31,252 31,336

Provision for credit losses 168 380 1,131 1,808 6,084

Non-interest expenses 4,271 4,097 4,057 16,618 16,856

Income before taxes 3,248 3,280 2,317 12,826 8,396

Income tax expense 689 738 418 2,871 1,543

Net income $ 2,559 $ 2,542 $ 1,899 $ 9,955 $ 6,853

Net income attributable tonon-controlling interests in 70 81 72 331 75subsidiaries (NCI)

Net income attributable to equity $ 2,489 $ 2,461 $ 1,827 $ 9,624 $ 6,778holders

Preferred shareholders and other equity 78 35 82 233 196instrument holders

Net income attributable to common $ 2,411 $ 2,426 $ 1,745 $ 9,391 $ 6,582shareholders

Diluted earnings per share (in dollars) $ 1.97 $ 1.99 $ 1.42 $ 7.70 $ 5.30

Adjustments

Amortization of Acquisition-relatedintangible assets, excluding

software^(1) $ 25 $ 24 $ 26 $ 103 $ 106

Restructuring and other provisions^(1) 188 - - 188 -

Acquisition-related integration costs^ - - 20 - 177(1)

Net (gain)/loss on divestitures^(2) - - 8 - (298)

Allowance for credit losses - - - - - 155Additional scenario^(3)

Derivatives valuation adjustment^(4) - - - - 116

Impairment charge on software asset^(1) - - - - 44

Adjustments (Pre-tax) 213 24 54 291 300

Income tax expense/(benefit) (56) (6) (15) (77) (192)

Adjustments (After tax) 157 18 39 214 108

Adjustment attributable to NCI (10) - - (10) (60)

Adjustments (After tax and NCI) $ 147 $ 18 $ 39 $ 204 $ 48

Adjusted Results

Net interest income $ 4,217 $ 4,217 $ 4,258 $ 16,961 $ 17,320

Non-interest income 3,470 3,540 3,247 14,291 13,819

Total revenue 7,687 7,757 7,505 31,252 31,139

Provision for credit losses 168 380 1,131 1,808 5,929

Non-interest expenses 4,058 4,073 4,003 16,327 16,514

Income before taxes 3,461 3,304 2,371 13,117 8,696

Income tax expense 745 744 433 2,948 1,735

Net income $ 2,716 $ 2,560 $ 1,938 $ 10,169 $ 6,961

Net income attributable to NCI 80 81 72 341 135

Net income attributable to equity $ 2,636 $ 2,479 $ 1,866 $ 9,828 $ 6,826holders

Preferred shareholders and other equity 78 35 82 233 196instrument holders

Net income attributable to common $ 2,558 $ 2,444 $ 1,784 $ 9,595 $ 6,630shareholders

Adjusted diluted earnings per share

Adjusted net income attributable to 2,558 2,444 1,784 9,595 6,630common shareholders

Dilutive impact of share-based payment 7 9 21 48 38options and others

Adjusted net income attributable to $ 2,565 $ 2,453 $ 1,805 $ 9,643 $ 6,668common shareholders (diluted)

Weighted average number of basic common 1,215 1,215 1,211 1,214 1,212shares outstanding (millions)

Dilutive impact of share-based payment 9 8 35 11 31options and others (millions)

Adjusted weighted average number ofdiluted common shares outstanding 1,224 1,223 1,246 1,225 1,243(millions)

Adjusted diluted earnings per share (in $ 2.10 $ 2.01 $ 1.45 $ 7.87 $ 5.36dollars)^(5)

Impact of adjustments on diluted $ 0.13 $ 0.02 $ 0.03 $ 0.17 $ 0.06earnings per share (in dollars)

(1) Recorded in non-interest expenses.

(2) (Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

(3) Recorded in provision for credit losses.

(4) Recorded in non-interest income.

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

Reconciliation of reported and adjusted results by business line

For the three months ended October 31, 2021^(1)

Global Canadian International Global($ millions) Banking Banking Wealth Banking Other Total Management and Markets

Reported Results

Net interest income $ 2,082 $ 1,589 $ 161 $ 365 $ 20 $ 4,217

Non-interest income 749 728 1,186 812 (5) 3,470

Total Revenue 2,831 2,317 1,347 1,177 15 7,687

Provision for credit losses (96) 314 1 (50) (1) 168

Non-interest expenses 1,251 1,259 824 591 346 4,271

Income before taxes 1,676 744 522 636 (330) 3,248

Income tax expense 438 137 135 134 (155) 689

Net income $ 1,238 $ 607 $ 387 $ 502 $ (175) $ 2,559

Net income attributable to non-controlling interests in subsidiaries (NCI) - 79 2 - (11) 70

Net income attributable to equity holders $ 1,238 $ 528 $ 385 $ 502 $ (164) $ 2,489

Adjustments

Amortization of Acquisition-related intangible assets, excluding

software^(2) $ 6 $ 10 $ 9 $ - $ - $ 25

Restructuring and other provisions^(2) - - - - 188 188

Adjustments (Pre-tax) 6 10 9 - 188 213

Income tax expense/(benefit) (2) (3) (2) - (49) (56)

Adjustments (After tax) 4 7 7 - 139 157

Adjustment attributable to NCI - - - - (10) (10)

Adjustments (After tax and NCI) $ 4 $ 7 $ 7 $ - $ 129 $ 147

Adjusted Results

Net interest income $ 2,082 $ 1,589 $ 161 $ 365 $ 20 $ 4,217

Non-interest income 749 728 1,186 812 (5) 3,470

Total revenue 2,831 2,317 1,347 1,177 15 7,687

Provision for credit losses (96) 314 1 (50) (1) 168

Non-interest expenses 1,245 1,249 815 591 158 4,058

Income before taxes 1,682 754 531 636 (142) 3,461

Income tax expense 440 140 137 134 (106) 745

Net income $ 1,242 $ 614 $ 394 $ 502 $ (36) $ 2,716

Net income attributable to NCI - 79 2 - (1) 80

Net income attributable to equity holders $ 1,242 $ 535 $ 392 $ 502 $ (35) $ 2,636

(1) Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

Reconciliation of reported and adjusted results by business line

For the three months ended July 31, 2021^(1)

Global Canadian International Global($ millions) Banking Banking Wealth Banking Other Total Management and Markets

Reported Results

Net interest income $ 2,030 $ 1,586 $ 160 $ 363 $ 78 $ 4,217

Non-interest income 765 776 1,175 890 (66) 3,540

Total Revenue 2,795 2,362 1,335 1,253 12 7,757

Provision for credit losses 69 339 (1) (27) - 380

Non-interest expenses 1,267 1,299 812 620 99 4,097

Income before taxes 1,459 724 524 660 (87) 3,280

Income tax expense 380 160 132 147 (81) 738

Net income $ 1,079 $ 564 $ 392 $ 513 $ (6) $ 2,542

Net income attributable to non-controlling interests in subsidiaries (NCI) - 78 2 - 1 81

Net income attributable to equity holders $ 1,079 $ 486 $ 390 $ 513 $ (7) $ 2,461

Adjustments

Amortization of Acquisition-related intangible assets, excluding

software^(2) $ 5 $ 11 $ 8 $ - $ - $ 24

Adjustments (Pre-tax) 5 11 8 - - 24

Income tax expense/(benefit) (1) (4) (1) - - (6)

Adjustments (After tax) 4 7 7 - - 18

Adjustment attributable to NCI - - - - - -

Adjustments (After tax and NCI) $ 4 $ 7 $ 7 $ - $ - $ 18

Adjusted Results

Net interest income $ 2,030 $ 1,586 $ 160 $ 363 $ 78 $ 4,217

Non-interest income 765 776 1,175 890 (66) 3,540

Total revenue 2,795 2,362 1,335 1,253 12 7,757

Provision for credit losses 69 339 (1) (27) - 380

Non-interest expenses 1,262 1,288 804 620 99 4,073

Income before taxes 1,464 735 532 660 (87) 3,304

Income tax expense 381 164 133 147 (81) 744

Net income $ 1,083 $ 571 $ 399 $ 513 $ (6) $ 2,560

Net income attributable to NCI - 78 2 - 1 81

Net income attributable to equity holders $ 1,083 $ 493 $ 397 $ 513 $ (7) $ 2,479

(1) Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

Reconciliation of reported and adjusted results by business line

For the three months ended October 31, 2020^(1)

Global Canadian International Global($ millions) Banking Banking Wealth Banking Other Total Management and Markets

Reported Results

Net interest income $ 1,954 $ 1,785 $ 144 $ 350 $ 25 $ 4,258

Non-interest income 612 763 1,021 860 (9) 3,247

Total Revenue 2,566 2,548 1,165 1,210 16 7,505

Provision for credit losses 330 736 3 62 - 1,131

Non-interest expenses 1,186 1,424 726 583 138 4,057

Income before taxes 1,050 388 436 565 (122) 2,317

Income tax expense 272 55 111 105 (125) 418

Net income $ 778 $ 333 $ 325 $ 460 $ 3 $ 1,899

Net income attributable to non-controlling interests in subsidiaries (NCI) - 70 2 - - 72

Net income attributable to equity holders $ 778 $ 263 $ 323 $ 460 $ 3 $ 1,827

Adjustments

Amortization of Acquisition-related intangible assets, excluding

software^(2) $ 6 $ 11 $ 9 $ - $ - $ 26

Acquisition-related integration costs^(2) - 16 4 - - 20

Net (gain)/loss on divestitures^(3) - - - - 8 8

Adjustments (Pre-tax) 6 27 13 - 8 54

Income tax expense/(benefit) (2) (7) (3) - (3) (15)

Adjustments (After tax) 4 20 10 - 5 39

Adjustment attributable to NCI - - - - - -

Adjustments (After tax and NCI) $ 4 $ 20 $ 10 $ - $ 5 $ 39

Adjusted Results

Net interest income $ 1,954 $ 1,785 $ 144 $ 350 $ 25 $ 4,258

Non-interest income 612 763 1,021 860 (9) 3,247

Total revenue 2,566 2,548 1,165 1,210 16 7,505

Provision for credit losses 330 736 3 62 - 1,131

Non-interest expenses 1,180 1,397 713 583 130 4,003

Income before taxes 1,056 415 449 565 (114) 2,371

Income tax expense 274 62 114 105 (122) 433

Net income $ 782 $ 353 $ 335 $ 460 $ 8 $ 1,938

Net income attributable to NCI - 70 2 - - 72

Net income attributable to equity holders $ 782 $ 283 $ 333 $ 460 $ 8 $ 1,866

(1) Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

(3) (Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

Reconciliation of reported and adjusted results by business line

For the year ended October 31, 2021^(1)

Global Canadian International Global($ millions) Banking Banking Wealth Banking Other Total Management and Markets

Reported Results

Net interest income $ 8,030 $ 6,625 $ 628 $ 1,436 $ 242 $ 16,961

Non-interest income 2,868 2,993 4,752 3,587 91 14,291

Total Revenue 10,898 9,618 5,380 5,023 333 31,252

Provision for credit losses 333 1,574 2 (100) (1) 1,808

Non-interest expenses 4,951 5,254 3,255 2,458 700 16,618

Income before taxes 5,614 2,790 2,123 2,665 (366) 12,826

Income tax expense 1,459 635 549 590 (362) 2,871

Net income $ 4,155 $ 2,155 $ 1,574 $ 2,075 $ (4) $ 9,955

Net income attributable to non-controlling interests in subsidiaries (NCI) - 332 9 - (10) 331

Net income attributable to equity holders $ 4,155 $ 1,823 $ 1,565 $ 2,075 $ 6 $ 9,624

Adjustments

Amortization of Acquisition-related intangible assets, excluding

software^(2) $ 22 $ 45 $ 36 $ - $ - $ 103

Restructuring and other provisions^(2) - - - - 188 188

Adjustments (Pre-tax) 22 45 36 - 188 291

Income tax expense/(benefit) (6) (13) (9) - (49) (77)

Adjustments (After tax) 16 32 27 - 139 214

Adjustment attributable to NCI - - - - (10) (10)

Adjustments (After tax and NCI) $ 16 $ 32 $ 27 $ - $ 129 $ 204

Adjusted Results

Net interest income $ 8,030 $ 6,625 $ 628 $ 1,436 $ 242 $ 16,961

Non-interest income 2,868 2,993 4,752 3,587 91 14,291

Total revenue 10,898 9,618 5,380 5,023 333 31,252

Provision for credit losses 333 1,574 2 (100) (1) 1,808

Non-interest expenses 4,929 5,209 3,219 2,458 512 16,327

Income before taxes 5,636 2,835 2,159 2,665 (178) 13,117

Income tax expense 1,465 648 558 590 (313) 2,948

Net income $ 4,171 $ 2,187 $ 1,601 $ 2,075 $ 135 $ 10,169

Net income attributable to NCI - 332 9 - - 341

Net income attributable to equity holders $ 4,171 $ 1,855 $ 1,592 $ 2,075 $ 135 $ 9,828

(1) Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

Reconciliation of reported and adjusted results by business line

For the year ended October 31, 2020^(1)

Global Canadian International Global($ millions) Banking Banking Wealth Banking Other Total Management and Markets

Reported Results

Net interest income $ 7,838 $ 7,603 $ 575 $ 1,435 $ (131) $ 17,320

Non-interest income 2,461 3,207 4,009 3,947 392 14,016

Total Revenue 10,299 10,810 4,584 5,382 261 31,336

Provision for credit losses 2,073 3,613 7 390 1 6,084

Non-interest expenses 4,811 5,943 2,878 2,473 751 16,856

Income before taxes 3,415 1,254 1,699 2,519 (491) 8,396

Income tax expense 879 182 437 564 (519) 1,543

Net income $ 2,536 $ 1,072 $ 1,262 $ 1,955 $ 28 $ 6,853

Net income attributable to non-controlling interests in subsidiaries (NCI) - 92 10 - (27) 75

Net income attributable to equity holders $ 2,536 $ 980 $ 1,252 $ 1,955 $ 55 $ 6,778

Adjustments

Amortization of Acquisition-related intangible assets, excluding

software^(2) $ 22 $ 47 $ 37 $ - $ - $ 106

Acquisition-related integration costs^(2) - 154 23 - - 177

Net (gain)/loss on divestitures^(3) - - - - (298) (298)

Allowance for credit losses - Additional scenario^(4) 71 77 1 6 - 155

Derivatives valuation adjustment^(5) - - - 102 14 116

Impairment charge on software asset^(2) - - - - 44 44

Adjustments (Pre-tax) 93 278 61 108 (240) 300

Income tax expense/(benefit) (25) (78) (16) (29) (44) (192)

Adjustments (After tax) 68 200 45 79 (284) 108

Adjustment attributable to NCI - (32) - - (28) (60)

Adjustments (After tax and NCI) $ 68 $ 168 $ 45 $ 79 $ (312) $ 48

Adjusted Results

Net interest income $ 7,838 $ 7,603 $ 575 $ 1,435 $ (131) $ 17,320

Non-interest income 2,461 3,207 4,009 4,049 93 13,819

Total revenue 10,299 10,810 4,584 5,484 (38) 31,139

Provision for credit losses 2,002 3,536 6 384 1 5,929

Non-interest expenses 4,789 5,742 2,818 2,473 692 16,514

Income before taxes 3,508 1,532 1,760 2,627 (731) 8,696

Income tax expense 904 260 453 593 (475) 1,735

Net income $ 2,604 $ 1,272 $ 1,307 $ 2,034 $ (256) $ 6,961

Net income attributable to NCI - 124 10 - 1 135

Net income attributable to equity holders $ 2,604 $ 1,148 $ 1,297 $ 2,034 $ (257) $ 6,826

(1) Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2) Recorded in non-interest expenses.

(3) (Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

(4) Recorded in provision for credit losses.

(5) Recorded in non-interest income.

Reconciliation of International Banking's reported and adjusted results and constant dollar results

International Banking business segment results are analyzed on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported and adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers in assessing ongoing business performance. The tables below are computed on a basis that is different than the table "Impact of foreign currency translation" on page 16.

For the three months ended For the year ended

($ millions) July 31, 2021 October 31, 2020 October 31, 2020

(Taxable equivalent basis) Reported Foreign Constant Reported Foreign Constant Reported Foreign Constant exchange dollar exchange dollar exchange dollar

Net interest income $ 1,586 $ 11 $ 1,575 $ 1,785 $ 117 $ 1,668 $ 7,603 $ 543 $ 7,060

Non-interest income 776 6 770 763 40 723 3,207 192 3,015

Total revenue 2,362 17 2,345 2,548 157 2,391 10,810 735 10,075

Provision for credit losses 339 4 335 736 62 674 3,613 244 3,369

Non-interest expenses 1,299 4 1,295 1,424 66 1,358 5,943 340 5,603

Income tax expense 160 1 159 55 4 51 182 23 159

Net income $ 564 $ 8 $ 556 $ 333 $ 25 $ 308 $ 1,072 $ 128 $ 944

Net income attributable to

non-controlling interest

in subsidiaries $ 78 $ 2 $ 76 $ 70 $ 6 $ 64 $ 92 $ 5 $ 87

Net income attributable to

equity holders of the Bank $ 486 $ 6 $ 480 $ 263 $ 19 $ 244 $ 980 $ 123 $ 857

Other measures

Average assets ($ billions) $ 191 $ 2 $ 189 $ 202 $ 11 $ 191 $ 206 $ 12 $ 194

Average liabilities ($ billions) $ 146 $ 1 $ 145 $ 153 $ 8 $ 145 $ 155 $ 8 $ 147

For the three months ended For the year ended

($ millions) July 31, 2021 October 31, 2020 October 31, 2020

Foreign Constant Foreign Constant Foreign Constant(Taxable equivalent basis) Adjusted exchange dollar Adjusted exchange dollar Adjusted exchange dollar adjusted adjusted adjusted

Net interest income $ 1,586 $ 11 $ 1,575 $ 1,785 $ 117 $ 1,668 $ 7,603 $ 543 $ 7,060

Non-interest income 776 6 770 763 40 723 3,207 192 3,015

Total revenue 2,362 17 2,345 2,548 157 2,391 10,810 735 10,075

Provision for credit losses 339 4 335 736 62 674 3,536 239 3,297

Non-interest expenses 1,288 3 1,285 1,397 64 1,333 5,742 328 5,414

Income tax expense 164 3 161 62 5 57 260 29 231

Net income $ 571 $ 7 $ 564 $ 353 $ 26 $ 327 $ 1,272 $ 139 $ 1,133

Net income attributable to

non-controlling interest

in subsidiaries $ 78 $ 2 $ 76 $ 70 $ 6 $ 64 $ 124 $ 7 $ 117

Net income attributable to

equity holders of the Bank $ 493 $ 5 $ 488 $ 283 $ 20 $ 263 $ 1,148 $ 132 $ 1,016

Earning assets

Earning assets are defined as income generating assets which include interest-bearing deposits with financial institutions, trading assets, investment securities, investment in associates, securities borrowed or purchased under resale agreements, loans net of allowances, and customers' liability under acceptances.

Non-earning assets

Non-earning assets are defined as cash and non-interest bearing deposits with financial institutions, precious metals, derivative financial instruments, property and equipment, goodwill and other intangible assets, deferred tax assets and other assets.

Core earning assets

Core earning assets are defined as earning assets excluding investments in associates, customers' liability under acceptances, and trading assets, securities borrowed or purchased under resale agreements and other assets related to capital markets businesses.

Core net interest income

Core net interest income is defined as net interest income earned from core earning assets.

Net Interest Margin

Net interest margin is calculated as core net interest income for the business line divided by average core earning assets.

Average earning assets, average total assets, average core earning assets andnet interest margin by business line

Global GlobalFor the three months ended October 31, 2021 ($ millions) Canadian International Wealth Banking Other Total Banking Banking Management and Markets

Deposits with financial institutions $ 160 $ 14,895 $ 691 $ 198 $ 60,691 $ 76,635

Trading assets - 5,981 12 136,525 2,183 144,701

Securities purchased under resale agreements

and securities borrowed - 2,342 - 119,297 1 121,640

Investment securities including investments in associates 1,136 15,816 292 5,806 57,825 80,875

Net loans and acceptances 392,745 137,622 19,042 110,179 (3,868) 655,720

Total earning assets $ 394,041 $ 176,656 $ 20,037 $ 372,005 $ 116,832 $ 1,079,571

Non-earning assets 4,100 15,563 10,440 36,522 26,511 93,136

Total assets $ 398,141 $ 192,219 $ 30,477 $ 408,527 $ 143,343 $ 1,172,707

Total earning assets 394,041 176,656 20,037 372,005 116,832 1,079,571

Less:

Investments in associates 814 1,669 - - 64 2,547

Trading assets - 5,453 - 136,311 2,182 143,946

Securities purchased under resale agreements

and securities borrowed - - - 119,195 - 119,195

Customers' liability under acceptances 17,966 60 4,551 10,660 (15,035) 18,202

Other deductions - 237 - 23,242 11,152 34,631

Core earning assets $ 375,261 $ 169,237 $ 15,486 $ 82,597 $ 118,469 $ 761,050

Net interest margin

Net interest income 2,082 1,589 161 365 20 4,217

Less: Non-core net interest income - 15 - 35 - 50

Core net interest income $ 2,082 $ 1,574 $ 161 $ 330 $ 20 $ 4,167

Net interest margin 2.20% 3.69% 4.13% 1.59% nm^(1) 2.17%

(1) Not meaningful

Average earning assets, average total assets, average core earning assets andnet interest margin by business line

Global GlobalFor the three months ended July 31, 2021 ($ millions) Canadian International Wealth Banking Other Total Banking Banking Management and Markets

Deposits with financial institutions $ 140 $ 15,897 $ 699 $ 392 $ 56,088 $ 73,216

Trading assets - 6,495 17 134,922 1,789 143,223

Securities purchased under resale agreements

and securities borrowed - 3,422 - 117,347 10 120,779

Investment securities including investments in associates 1,098 16,511 298 5,828 62,107 85,842

Net loans and acceptances 378,590 134,232 17,999 106,710 (4,783) 632,748

Total earning assets $ 379,828 $ 176,557 $ 19,013 $ 365,199 $ 115,211 $ 1,055,808

Non-earning assets 4,090 14,141 10,466 35,718 27,874 92,289

Total assets $ 383,918 $ 190,698 $ 29,479 $ 400,917 $ 143,085 $ 1,148,097

Total earning assets 379,828 176,557 19,013 365,199 115,211 1,055,808

Less:

Investments in associates 799 1,611 - - 68 2,478

Trading assets - 6,007 - 134,665 1,788 142,460

Securities purchased under resale agreements

and securities borrowed - - - 117,271 - 117,271

Customers' liability under acceptances 17,394 46 4,329 10,248 (15,610) 16,407

Other deductions - 871 - 23,499 10,801 35,171

Core earning assets $ 361,635 $ 168,022 $ 14,684 $ 79,516 $ 118,164 $ 742,021

Net interest margin

Net interest income 2,030 1,586 160 363 78 4,217

Less: Non-core net interest income - 12 - 36 - 48

Core net interest income $ 2,030 $ 1,574 $ 160 $ 327 $ 78 $ 4,169

Net interest margin 2.23% 3.72% 4.32% 1.63% nm^(1) 2.23%

(1)^ Not meaningful

Global GlobalFor the three months ended October 31, 2020 ($ millions) Canadian International Wealth Banking Other Total Banking Banking Management and Markets

Deposits with financial institutions $ 140 $ 18,547 $ 920 $ 1,552 $ 40,933 $ 62,092

Trading assets - 5,393 10 112,183 2,315 119,901

Securities purchased under resale agreements

and securities borrowed - 3,134 - 117,897 - 121,031

Investment securities including investments in associates 1,013 16,419 262 6,300 94,132 118,126

Net loans and acceptances 357,450 141,610 14,965 108,929 (3,949) 619,005

Total earning assets $ 358,603 $ 185,103 $ 16,157 $ 346,861 $ 133,431 $ 1,040,155

Non-earning assets 4,157 16,911 10,563 41,646 26,717 99,994

Total assets $ 362,760 $ 202,014 $ 26,720 $ 388,507 $ 160,148 $ 1,140,149

Total earning assets 358,603 185,103 16,157 346,861 133,431 1,040,155

Less:

Investments in associates 730 1,612 - - 66 2,408

Trading assets - 4,704 - 111,854 2,314 118,872

Securities purchased under resale agreements

and securities borrowed - - - 117,858 - 117,858

Customers' liability under acceptances 14,330 45 3,158 10,464 (13,565) 14,432

Other deductions - 644 - 20,469 9,476 30,589

Core earning assets $ 343,543 $ 178,098 $ 12,999 $ 86,216 $ 135,140 $ 755,996

Net interest margin

Net interest income 1,954 1,785 144 350 25 4,258

Less: Non-core net interest income - 8 - 33 - 41

Core net interest income $ 1,954 $ 1,777 $ 144 $ 317 $ 25 $ 4,217

Net interest margin 2.26% 3.97% 4.41% 1.46% nm^(1) 2.22%

(1) Not meaningful

Average earning assets, average total assets, average core earning assets andnet interest margin by business line

Global GlobalFor the year ended October 31, 2021 ($ millions) Canadian International Wealth Banking Other Total Banking Banking Management and Markets

Deposits with financial institutions $ 146 $ 16,014 $ 742 $ 237 $ 58,423 $ 75,562

Trading assets - 6,352 14 134,639 1,850 142,855

Securities purchased under resale agreements

and securities borrowed - 2,919 - 116,896 3 119,818

Investment securities including investments in associates 1,080 16,500 302 6,097 68,229 92,208

Net loans and acceptances 375,444 137,121 17,420 106,020 (4,143) 631,862

Total earning assets $ 376,670 $ 178,906 $ 18,478 $ 363,889 $ 124,362 $ 1,062,305

Non-earning assets 4,102 15,218 10,487 37,020 28,081 94,908

Total assets $ 380,772 $ 194,124 $ 28,965 $ 400,909 $ 152,443 $ 1,157,213

Total earning assets 376,670 178,906 18,478 363,889 124,362 1,062,305

Less:

Investments in associates 783 1,646 - - 62 2,491

Trading assets - 5,812 - 134,372 1,849 142,033

Securities purchased under resale agreements

and securities - - - 116,829 - 116,829 borrowed

Customers' liability under acceptances 16,599 42 4,077 10,413 (14,679) 16,452

Other deductions - 642 - 21,681 10,484 32,807

Core earning assets $ 359,288 $ 170,764 $ 14,401 $ 80,594 $ 126,646 $ 751,693

Net interest margin

Net interest income 8,030 6,625 628 1,436 242 16,961

Less: Non-core net interest income - 50 - 138 2 190

Core net interest income $ 8,030 $ 6,575 $ 628 $ 1,298 $ 240 $ 16,771

Net interest margin 2.23% 3.85% 4.36% 1.61% nm^(1) 2.23%

(1)^ Not meaningful

Global GlobalFor the year ended October 31, 2020 ($ millions) Canadian International Wealth Banking Other Total Banking Banking Management and Markets

Deposits with financial institutions $ 153 $ 17,790 $ 1,009 $ 956 $ 46,056 $ 65,964

Trading assets - 4,852 17 119,637 3,614 128,120

Securities purchased under resale agreements

and securities borrowed - 2,412 - 125,741 136 128,289

Investment securities including investments in associates 976 15,573 300 5,730 82,504 105,083

Net loans and acceptances 353,540 147,681 14,109 114,265 (3,957) 625,638

Total earning assets $ 354,669 $ 188,308 $ 15,435 $ 366,329 $ 128,353 $ 1,053,094

Non-earning assets 4,101 18,074 10,601 45,796 28,918 107,490

Total assets $ 358,770 $ 206,382 $ 26,036 $ 412,125 $ 157,271 $ 1,160,584

Total earning assets 354,669 188,308 15,435 366,329 128,353 1,053,094

Less:

Investments in associates 713 1,868 - - 87 2,668

Trading assets - 4,399 - 119,395 1,113 124,907

Securities purchased under resale agreements

and securities borrowed - - - 125,701 - 125,701

Customers' liability under acceptances 13,584 42 2,748 10,669 (10,996) 16,047

Other deductions - 1,194 - 18,296 7,294 26,784

Core earning assets $ 340,372 $ 180,805 $ 12,687 $ 92,268 $ 130,855 $ 756,987

Net interest margin

Net interest income 7,838 7,603 575 1,435 (131) 17,320

Less: Non-core net interest income - 39 - 78 5 122

Core net interest income $ 7,838 $ 7,564 $ 575 $ 1,357 $ (136) $ 17,198

Net interest margin 2.30% 4.18% 4.53% 1.47% nm^(1) 2.27%

(1)^ Not meaningful

Return on equity

Return on equity is a profitability measure that presents the net income attributable to common shareholders as a percentage of average common shareholders' equity.

The Bank attributes capital to its business lines on a basis that approximates 10.5% of Basel III common equity capital requirements which includes credit, market and operational risks and leverage inherent within each business segment.

Return on equity for the business segments is calculated as a ratio of net income attributable to common shareholders of the business segment and the capital attributed.

Adjusted return on equity represents adjusted net income attributable to common shareholders as a percentage of adjusted average common shareholders' equity.

Productivity ratio

Management uses the productivity ratio as a measure of the Bank's efficiency. This ratio represents operating expenses as a percentage of total revenue. A lower ratio indicates improved productivity.

Adjusted productivity ratio represents adjusted operating expenses as a percentage of adjusted total revenue.

Operating leverage

This financial metric measures the rate of growth in total revenue less the rate of growth in operating expenses.

Adjusted operating leverage represents the rate of growth in adjusted total revenue less the rate of growth in adjusted operating expenses.

Provision for credit losses as a % of average net loans and acceptances

The ratio represents provision for credit losses (PCL) expressed as a % of average net loans and acceptances.

Adjusted provision for credit losses as a % of average net loans and acceptances represents adjusted PCL expressed as a % of average net loans and acceptances.

Effective tax rate

The effective tax rate is the overall tax rate paid by the Bank on its earned income. The effective tax rate is calculated by dividing the Bank's income tax expenses by the income before taxes.

Adjusted effective tax rate is calculated by dividing adjusted income tax expenses by the adjusted income before taxes.

Taxable equivalent basis

The Bank analyzes its trading-related revenue on a taxable equivalent basis (TEB). This methodology grosses up tax-exempt income earned on certain securities reported in either net interest income or non-interest income to an equivalent before tax basis. Management believes that this basis for measurement provides a uniform comparability of net interest income and non-interest income arising from both taxable and non-taxable sources and facilitates a consistent basis of measurement. While other banks also use TEB, their methodology may not be comparable to the Bank's methodology.

Financial Highlights

As at and As at and for the year for the three months ended ended

October 31 July 31 October 31 October 31 October 31

2021 2021 2020 2021 2020

Operating results ($millions)

Net interest income 4,217 4,217 4,258 16,961 17,320

Non-interest income 3,470 3,540 3,247 14,291 14,016

Total revenue 7,687 7,757 7,505 31,252 31,336

Provision for credit 168 380 1,131 1,808 6,084losses

Non-interest 4,271 4,097 4,057 16,618 16,856expenses

Income tax expense 689 738 418 2,871 1,543

Net income 2,559 2,542 1,899 9,955 6,853

Net incomeattributable to 2,411 2,426 1,745 9,391 6,582common shareholdersof the Bank

Operatingperformance

Basic earnings per 1.98 2.00 1.44 7.74 5.43share ($)

Diluted earnings per 1.97 1.99 1.42 7.70 5.30share ($)

Return on equity (%) 14.8 15.0 11.0 14.7 10.4^(1)

Productivity ratio 55.6 52.8 54.1 53.2 53.8(%)^(1)

Operating leverage 1.1 0.3(%)^(1)

Net interest margin 2.17 2.23 2.22 2.23 2.27(%)^(2)

Financial positioninformation ($millions)

Cash and depositswith financial 86,323 75,881 76,460institutions

Trading assets 146,312 141,120 117,839

Loans 636,986 627,749 603,263

Total assets 1,184,844 1,163,429 1,136,466

Deposits 797,259 794,386 750,838

Common equity 64,750 64,720 62,819

Preferred shares andother equity 6,052 5,299 5,308instruments

Assets underadministration^(1) 652,924 636,424 556,916(3)

Assets under 345,762 340,853 289,839management^(1)(3)

Capital andliquidity measures

Common Equity Tier 1(CET1) capital ratio 12.3 12.2 11.8(%)^(4)

Tier 1 capital ratio 13.9 13.7 13.3(%)^(4)

Total capital ratio 15.9 15.7 15.5(%)^(4)

Leverage ratio (%)^ 4.8 4.8 4.7(5)

Risk-weighted assets 416,105 414,169 417,138($ millions)^(4)

Liquidity coverage 124 123 138ratio (LCR) (%)^(6)

Net stable funding 110 112 n/aratio (NSFR) (%)^(7)

Credit quality

Net impaired loans 2,801 2,976 3,096($ millions)

Allowance for creditlosses ($ millions)^ 5,731 6,232 7,820(8)

Gross impaired loansas a % of loans and 0.67 0.73 0.81acceptances^(1)

Net impaired loansas a % of loans and 0.42 0.46 0.50acceptances^(1)

Provision for creditlosses as a % ofaverage net loans 0.10 0.24 0.73 0.29 0.98and acceptances^(1)(9)

Provision for creditlosses on impairedloans as a % of 0.31 0.53 0.54 0.53 0.56average net loansand acceptances^(1)(9)

Net write-offs as a% of average net 0.34 0.62 0.41 0.54 0.47loans andacceptances^(1)

Adjusted results^(2)

Adjusted net income 2,716 2,560 1,938 10,169 6,961($ millions)

Adjusted dilutedearnings per share 2.10 2.01 1.45 7.87 5.36($)

Adjusted return on 15.6 15.1 11.3 15.0 10.4equity (%)

Adjustedproductivity ratio 52.8 52.5 53.3 52.2 53.0(%)

Adjusted operating 1.5 (0.6)leverage (%)

Adjusted provisionfor credit losses asa % of average net 0.10 0.24 0.73 0.29 0.95loans andacceptances^(9)

Common shareinformation

Closing share price 81.14 77.87 55.35($) (TSX)

Shares outstanding(millions)

Average - Basic 1,215 1,215 1,211 1,214 1,212

Average - Diluted 1,224 1,223 1,246 1,225 1,243

End of period 1,215 1,215 1,211

Dividends paid per 0.90 0.90 0.90 3.60 3.60share ($)

Dividend yield (%)^ 4.5 4.5 6.4 5.2 5.8(1)

Marketcapitalization ($ 98,612 94,620 67,055millions) (TSX)

Book value per 53.28 53.26 51.85common share ($)^(1)

Market value to book 1.5 1.5 1.1value multiple^(1)

Price to earningsmultiple (trailing 4 10.5 10.8 10.2quarters)^(1)

Other information

Employees (full-time 89,488 90,833 91,447equivalent)^(10)

Branches and offices 2,518 2,555 2,618

Refer to page 141 of the Management's Discussion & Analysis in the Bank's(1) 2021 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(2) Refer to page 3 for a discussion of Non-GAAP measures.

(3) Prior period amounts have been restated to appropriately reflect certain intercompany items.

(4) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018).

(5) This measure has been disclosed in this document in accordance with OSFI Guideline - Leverage Requirements (November 2018).

This measure has been disclosed in this document in accordance with OSFI(6) Guideline - Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Coverage Ratio (April 2015).

This measure has been disclosed in this document in accordance with OSFI(7) Guideline - Net Stable Funding Ratio Disclosure Requirements (January 2021).

Includes allowance for credit losses on all financial assets - loans,(8) acceptances, off-balance sheet exposures, debt securities, and deposits with financial institutions.

(9) Includes provision for credit losses on certain financial assets - loans, acceptances, and off-balance sheet exposures.

(10) Prior year amounts have been restated to conform with current period presentation.

Impact of Foreign Currency Translation

Average exchange rate % Change

October 31 July 31 October 31 October 31, 2021 October 31, 2021

For the three months ended 2021 2021 2020 vs. July 31, 2021 vs. October 31, 2020

U.S. Dollar/Canadian Dollar 0.796 0.814 0.756 (2.2) % 5.2 %

Mexican Peso/Canadian Dollar 16.065 16.265 16.390 (1.2) % (2.0) %

Peruvian Sol/Canadian Dollar 3.239 3.152 2.701 2.8 % 19.9 %

Colombian Peso/Canadian Dollar 3,043 3,050 2,866 (0.2) % 6.2 %

Chilean Peso/Canadian Dollar 631.752 594.658 591.628 6.2 % 6.8 %

Average exchange rate % Change

October 31 October 31 October 31, 2021

For the year ended 2021 2020 vs. October 31, 2020

U.S. Dollar/Canadian Dollar 0.795 0.744 6.9 %

Mexican Peso/Canadian Dollar 16.035 15.832 1.3 %

Peruvian Sol/Canadian Dollar 3.032 2.569 18.0 %

Colombian Peso/Canadian Dollar 2,929 2,722 7.6 %

Chilean Peso/Canadian Dollar 593.123 591.712 0.2 %

For the three months ended For the year ended

October 31, 2021 October 31, 2021 October 31, 2021 Impact on net income^(1) ($ millions except EPS) vs. October 31, 2020 vs. July 31, 2021 vs. October 31, 2020

Net interest income $ (110) $ (10) $ (512)

Non-interest income^(2) (38) (9) (276)

Non-interest expenses 93 - 408

Other items (net of tax) 33 6 203

Net income $ (22) $ (13) $ (177)

Earnings per share (diluted) $ (0.02) $ (0.01) $ (0.14)

Impact by business line ($millions)

Canadian Banking $ (1) $ - $ (6)

International Banking^(2) (36) (13) (130)

Global Wealth Management (2) - (15)

Global Banking and Markets (14) 5 (79)

Other^(2) 31 (5) 53

Net Income $ (22) $ (13) $ (177)

(1) Includes impact of all currencies.

(2) Includes the impact of foreign currency hedges.

Impact of Divested Operations

For the three months ended For the year ended

October 31 July 31 October 31 October 31 October 31

($ millions) 2021 2021 2020 2021 2020

Net interest income $ 1 $ 4 $ 11 $ 23 $ 123

Non-interest income 1 2 5 13 95

Total Revenue 2 6 16 36 218

Provision for credit (1) 2 1 9 27losses

Non-interest expenses 1 3 8 16 96

Income before taxes 2 1 7 11 95

Income tax expense - - 3 4 25

Net income $ 2 $ 1 $ 4 $ 7 $ 70

Net incomeattributable to - - - - -non-controllinginterests (NCI)

Net incomeattributable toequity holders - $ 2 $ 1 $ 4 $ 7 $ 70relating to divestedoperations

For the three months ended For the year ended

October 31, 2021 October 31, 2021 October 31, 2021

Impact on net income ($ millions except EPS) vs. July 31, 2021 vs. October 31, 2020 vs. October 31, 2020

Net interest income $ (3) $ (10) $ (100)

Non-interest income (1) (4) (82)

Total Revenue (4) (14) (182)

Provision for credit losses (3) (2) (18)

Non-interest expenses (2) (7) (80)

Income before taxes 1 (5) (84)

Income tax expense - (3) (21)

Net income $ 1 $ (2) $ (63)

Net income attributable to equity holders $ 1 $ (2) $ (63)

Earnings per share (diluted) $ - $ - $ (0.05)

Group Financial Performance

Net income

Q4 2021 vs Q4 2020

Net income was $2,559 million compared to $1,899 million. Adjusted net income was $2,716 million compared to $1,938 million, up 40%, due mainly to lower provision for credit losses as a result of a more favourable credit and macroeconomic outlook.

Q4 2021 vs Q3 2021

Net income was $2,559 million compared to $2,542 million. Adjusted net income was $2,716 million compared to $2,560 million, up 6%, due mainly to lower provision for credit losses, partially offset by lower revenues.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $7,687 million, an increase of $182 million or 2%, due mainly to higher non-interest income, partially offset by lower net interest income.

Q4 2021 vs Q3 2021

Revenues were $7,687 million, a decrease of $70 million or 1%, due mainly to lower non-interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $4,217 million, a decrease of $41 million or 1%. Strong mortgage and commercial loan growth was more than offset by the 3% negative impact of foreign currency translation, lower corporate and unsecured lending balances, and margin compression.

The net interest margin was down five basis points to 2.17%, driven primarily by lower margins in International and Canadian Banking related to changes in business mix and the impact of central bank rate cuts in 2020, partly offset by decreased levels of high quality, lower-margin liquid assets.

Q4 2021 vs Q3 2021

Net interest income was in line with the prior quarter. Loan growth across all business lines was offset by lower margins and the negative impact of foreign currency translation.

The net interest margin of 2.17% was down six basis points due primarily to a lower contribution from asset/liability management activities, as well as lower margins driven by changes in business mix.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $3,470 million, up $223 million or 7%. This was due mainly to higher banking and wealth management revenues, income from associated corporations, and higher investment gains. These were partly offset by lower fixed income trading revenues.

Q4 2021 vs Q3 2021

Non-interest income was down $70 million or 2%. This was due mainly to lower trading revenues and underwriting and advisory fees, which were partially offset by higher income from associated corporations, wealth management revenues, and insurance income.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $168 million, compared to $1,131 million, a decrease of $963 million or 85%. The provision for credit losses ratio decreased 63 basis points to 10 basis points.

The provision for credit losses on performing loans was a net reversal of $343 million, a decrease of $639 million. Retail provisions decreased by $364 million, while commercial and corporate loan provisions decreased by $275 million across all business lines. These decreases were driven by the more favourable credit and macroeconomic outlook.

The provision for credit losses on impaired loans was $511 million, compared to $835 million, a decrease of $324 million or 39%, due primarily to lower retail provisions driven by lower credit migration across markets. Commercial and corporate loan provisions decreased $96 million across all business lines driven by lower formations. The provision for credit losses ratio on impaired loans was 31 basis points, a decrease of 23 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $168 million, compared to $380 million, a decrease of $212 million. The provision for credit losses ratio decreased 14 basis points to 10 basis points.

The provision for credit losses on performing loans was a net reversal of $343 million, compared to a net reversal of $461 million last quarter. Approximately $320 million of the provision reversals this quarter was due to reduction of allowances built in the prior year, reflecting the improvement in credit quality and more favourable macroeconomic outlook. The remaining reversal of $23 million was due to credit migration, the majority of which was to impaired loans in the retail portfolio, mainly in International Banking.

The provision for credit losses on impaired loans was $511 million, compared to $841 million, a decrease of $330 million or 39%, due primarily to lower retail provisions, mainly in International Banking, driven by lower credit migration. The provision for credit losses ratio on impaired loans was 31 basis points, a decrease of 22 basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $4,271 million, up $214 million or 5% including $188 million related to restructuring and other provisions. Adjusted non-interest expenses of $4,058 million increased 1%. The increase was due to higher performance-based compensation, professional fees, advertising and technology-related costs to support business growth. Partly offsetting were the positive impact of foreign currency translation, lower personnel and premises costs.

The productivity ratio was 55.6% compared to 54.1%. On an adjusted basis, the productivity ratio was 52.8% compared to 53.3%.

Q4 2021 vs Q3 2021

Non-interest expenses were up $174 million or 4% including $188 million related to restructuring and other provisions. Adjusted non-interest expenses were in line with prior quarter. Lower performance-based compensation and other employee benefits expenses were offset by increases in advertising and business development, professional fees and share-based compensation expenses.

The productivity ratio was 55.6% compared to 52.8%. On an adjusted basis, the productivity ratio was 52.8% compared to 52.5%.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate was 21.2% compared to 18.0% in the same quarter last year. On an adjusted basis, the effective tax rate was 21.5% compared to 18.2% due primarily to changes in business and earnings mix across jurisdictions.

Q4 2021 vs Q3 2021

The effective tax rate was 21.2% compared to 22.5% in the previous quarter. On an adjusted basis, the effective tax rate was 21.5% compared to 22.5% in the previous quarter due primarily to changes in business and earnings mix across jurisdictions.

Capital Ratios

The Bank continues to maintain strong, high quality capital levels which position it well for future business growth and strategic initiatives. The CET1 ratio as at October 31, 2021 was 12.3%, an increase of approximately 50 basis points from the prior year due primarily to strong internal capital generation and the impact from the remeasurement of the employee pension and post-retirement obligations, partly offset by growth in risk-weighted assets, primarily retail mortgages, personal and business lending, a lower CET1 inclusion from declines in Stage 1 and Stage 2 expected credit losses (ECL), OSFI's reversal of its temporary reduction in the SVaR multiplier, and the impact from foreign currency translation on capital requirements. At year end, the CET1 ratio included a benefit of six basis points (October 31, 2020 - 30 basis points) from OSFI transitional adjustment for the partial inclusion of increases in Stage 1 and Stage 2 expected credit losses (ECL) relative to their pre-crisis baseline levels as at January 31, 2020.

The Bank's Tier 1 capital ratio was 13.9% as at October 31, 2021, an increase of approximately 60 basis points from the prior year, due primarily to the issuance of $1.25 billion and USD $600 million of Tier 1 qualifying Limited Recourse Capital Notes (LRCN), and the above noted impacts to the CET1 capital ratio, partly offset by the redemptions of $850 million of Basel III compliant NVCC preferred shares, a redemption of $409 million of non-qualifying preferred shares, and other regulatory adjustments.

The Total capital ratio was 15.9% as at October 31, 2021, an increase of approximately 40 basis points from 2020, due primarily to the above noted changes to the Tier 1 capital ratio, partly offset by the redemption of $750 million of subordinated debentures and other regulatory adjustments to Tier 2 capital.

The Leverage ratio was 4.8%, an increase of approximately 10 basis points in 2021 as higher Tier 1 capital was partly offset by growth in the Bank's on and off-balance sheet assets.

The Bank's capital ratios continue to be well in excess of OSFI's minimum capital ratio requirements for 2021 of 10.5%, 12.0% and 14.0% for CET1, Tier 1 and Total Capital, respectively. The Bank was well above the OSFI minimum Leverage ratio as at October 31, 2021.

Business Segment Review

Canadian Banking

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis)^(1) 2021 2021 2020 2021 2020

Reported Results

Net interest income $ 2,082 $ 2,030 $ 1,954 $ 8,030 $ 7,838

Non-interest income^(2) 749 765 612 2,868 2,461

Total revenue 2,831 2,795 2,566 10,898 10,299

Provision for credit losses (96) 69 330 333 2,073

Non-interest expenses 1,251 1,267 1,186 4,951 4,811

Income tax expense 438 380 272 1,459 879

Net income $ 1,238 $ 1,079 $ 778 $ 4,155 $ 2,536

Net income attributable to $ 1,238 $ 1,079 $ 778 $ 4,155 $ 2,536equity holders of the Bank

Other measures

Return on equity^(3) 29.4% 26.1% 18.4% 25.2% 15.1%

Average assets ($ billions) $ 398 $ 384 $ 363 $ 381 $ 359

Average liabilities ($ $ 318 $ 317 $ 295 $ 313 $ 277billions)

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

Includes net income from investments in associated corporations for the three months ended October 31, 2021 - $18 (July 31, 2021 - $23; October(2) 31, 2020 - $15) and for the year ended October 31, 2021 - $87 (October 31, 2020 - $56).

(3) Refer to Non-GAAP measures on page 3.

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis) 2021 2021 2020 2021 2020

Adjusted Results^(1)

Net interest income $ 2,082 $ 2,030 $ 1,954 $ 8,030 $ 7,838

Non-interest income 749 765 612 2,868 2,461

Total revenue 2,831 2,795 2,566 10,898 10,299

Provision for credit losses (96) 69 330 333 2,002^(2)

Non-interest expenses^(3) 1,245 1,262 1,180 4,929 4,789

Income tax expense 440 381 274 1,465 904

Net income $ 1,242 $ 1,083 $ 782 $ 4,171 $ 2,604

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for Allowance for credit losses - Additional scenario of $71 in the first quarter of 2020.

Includes adjustment for Amortization of acquisition-related intangible(3) assets, excluding software for the three months ended October 31, 2021 - $6 (July 31, 2021 - $5; October 31, 2020 - $6) and for the year ended October 31, 2021 - $22 (October 31, 2020 - $22).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $1,238 million, compared to $778 million. Adjusted net income attributable to equity holders was $1,242 million, an increase of $460 million or 59%. The increase was due primarily to lower provision for credit losses and higher revenues, partly offset by higher non-interest expenses.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $159 million or 15%. The increase was due primarily to lower provision for credit losses, higher revenues, and lower non-interest expenses.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $2,831 million, up $265 million or 10%, due to higher non-interest income and net interest income.

Q4 2021 vs Q3 2021

Revenues increased $36 million or 1%, due primarily to higher net interest income partially offset by lower non-interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income of $2,082 million increased $128 million or 7%, due primarily to strong loan growth, partially offset by margin compression. The net interest margin declined six basis points to 2.20%, primarily driven by changes in business mix, mainly from higher residential mortgages and lower personal loans and credit cards.

Q4 2021 vs Q3 2021

Net interest income increased $52 million or 3%, driven by strong loan growth, partially offset by margin compression. The net interest margin declined three basis points to 2.20%, primarily driven by changes in business mix, with residential mortgage growth outpacing credit card and personal loan growth, and lower deposit growth.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income of $749 million increased $137 million or 22%. The increase was due primarily to higher banking revenue and mutual fund distribution fees, and elevated private equity gains.

Q4 2021 vs Q3 2021

Non-interest income decreased $16 million or 2% due primarily to lower private equity gains and income from associated corporations, partially offset by higher banking revenue, insurance income, and mutual fund distribution fees.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was a net reversal of $96 million, compared to a provision of $330 million, a decrease of $426 million. The provision for credit losses ratio decreased 47 basis points to negative 10 basis points.

Provision for credit losses on performing loans was a net reversal of $195 million, a decrease of $287 million of which $148 million was related to retail, driven by the more favourable credit and macroeconomic outlook. Commercial provisions decreased $139 million due primarily to the more favourable macroeconomic outlook.

Provision for credit losses on impaired loans was $99 million, compared to $238 million, a decrease of $139 million due primarily to lower retail provisions driven by lower delinquencies. The provision for credit losses ratio on impaired loans was 10 basis points, a decrease of 17 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was a net reversal of $96 million, a decrease of $165 million. The provision for credit losses ratio decreased 17 basis points to negative 10 basis points.

Provision for credit losses on performing loans was a net reversal of $195 million, compared to a net reversal of $66 million, with a decrease of $86 million in retail provisions and $43 million in commercial provisions. The decrease was driven by the more favourable credit and macroeconomic outlook.

Provision for credit losses on impaired loans was $99 million compared to $135 million, a decrease of $36 million or 27% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans was 10 basis points, a decrease of four basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $1,251 million, up $65 million or 6%, due largely to higher technology and advertising and business development costs to support business growth.

Q4 2021 vs Q3 2021

Non-interest expenses were down $16 million or 1%, driven by lower personnel costs, partly offset by higher advertising and business development costs.

Provision for income taxes

The effective tax rate was 26.2% compared to 26.0% in the prior year and 26.0% in the prior quarter.

Average Assets

Q4 2021 vs Q4 2020

Average assets increased $35 billion or 10% to $398 billion. The growth included $30 billion or 13% in residential mortgages and $7 billion or 11% in business loans and acceptances, partially offset by a decline of $1 billion or 1% in personal loans.

Q4 2021 vs Q3 2021

Average assets increased $14 billion or 4%. The growth included $12 billion or 5% in residential mortgages and $1 billion or 2% in business loans and acceptances.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities increased $23 billion or 8% to $318 billion. The growth included $17 billion or 18% in non-personal deposits and $3 billion or 1% in personal deposits.

Q4 2021 vs Q3 2021

Average liabilities increased $1 billion to $318 billion. The growth of 2% in non-personal deposits was largely offset by a decline of 1% in personal deposits.

International Banking

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis)^(1) 2021 2021 2020 2021 2020

Reported Results

Net interest income $ 1,589 $ 1,586 $ 1,785 $ 6,625 $ 7,603

Non-interest income^(2)(3) 728 776 763 2,993 3,207

Total revenue 2,317 2,362 2,548 9,618 10,810

Provision for credit losses 314 339 736 1,574 3,613

Non-interest expenses 1,259 1,299 1,424 5,254 5,943

Income tax expense 137 160 55 635 182

Net income $ 607 $ 564 $ 333 $ 2,155 $ 1,072

Net income attributable tonon-controlling interests in

subsidiaries 79 78 70 332 92

Net income attributable to $ 528 $ 486 $ 263 $ 1,823 $ 980equity holders of the Bank

Other measures

Return on equity^(4) 12.0% 11.1% 5.6% 10.4% 5.0%

Average assets ($ billions) $ 192 $ 191 $ 202 $ 194 $ 206

Average liabilities ($ $ 146 $ 146 $ 153 $ 149 $ 155billions)

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

Includes net income from investments in associated corporations for the(2) three months ended October 31, 2021 - $52 (July 31, 2021 - $52; October 31, 2020 - $38) and for the year ended October 31, 2021 - $206 (October 31, 2020 - $243).

(3) Includes one additional month of earnings relating to Mexico of $51 (after tax and NCI $37) in the first quarter of 2020.

(4) Refer to Non-GAAP Measures on page 3.

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis) 2021 2021 2020 2021 2020

Adjusted Results^(1)

Net interest income $ 1,589 $ 1,586 $ 1,785 $ 6,625 $ 7,603

Non-interest income 728 776 763 2,993 3,207

Total revenue 2,317 2,362 2,548 9,618 10,810

Provision for credit 314 339 736 1,574 3,536losses^(2)

Non-interest expenses^(3) 1,249 1,288 1,397 5,209 5,742(4)

Income tax expense 140 164 62 648 260

Net income $ 614 $ 571 $ 353 $ 2,187 $ 1,272

Net income attributable tonon-controlling interestsin

subsidiaries 79 78 70 332 124

Net income attributable to $ 535 $ 493 $ 283 $ 1,855 $ 1,148equity holders of the Bank

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for Allowance for credit losses - Additional scenario of $77 in the first quarter of 2020.

(3) Includes adjustment for Integration costs for the three months ended October 31, 2020 - $16 and for the year ended October 31, 2020 - $154.

Includes adjustment for Amortization of acquisition-related intangible(4) assets, excluding software for the three months ended October 31, 2021 - $10 (July 31, 2021 - $11; October 31, 2020 - $11) and for the year ended October 31, 2021 - $45 (October 31, 2020 - $47).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $528 million, compared to $263 million. Adjusted net income attributable to equity holders increased to $535 million from $283 million. This increase was driven by lower provision for credit losses and lower non-interest expenses, partially offset by lower revenues, higher income taxes, and the negative impact of foreign currency translation.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $42 million or 9%. Adjusted net income attributable to equity holders increased by $42 million or 8%. This was due largely to lower non-interest expenses, provision for credit losses and income taxes, partially offset by lower revenues.

Financial Performance on a Constant Dollar Basis

The discussion below on the results of operations is on a constant dollar basis. Constant dollar basis excludes the impact of foreign currency translation, which is a non-GAAP financial measure (refer to Non-GAAP Measures on page 10). The Bank believes that reporting in constant dollar is useful for readers in assessing ongoing business performance. Ratios are on a reported basis.

Reported results on a constant dollar basis

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis) 2021 2021 2020 2021 2020

Net interest income $ 1,589 $ 1,575 $ 1,668 $ 6,625 $ 7,060

Non-interest income 728 770 723 2,993 3,015

Total revenue 2,317 2,345 2,391 9,618 10,075

Provision for credit losses 314 335 674 1,574 3,369

Non-interest expenses 1,259 1,295 1,358 5,254 5,603

Income tax expense 137 159 51 635 159

Net income $ 607 $ 556 $ 308 $ 2,155 $ 944

Net income attributable to non-controlling interests in

subsidiaries 79 76 64 332 87

Net income attributable to equity holders of the Bank $ 528 $ 480 $ 244 $ 1,823 $ 857

Adjusted results on a constant dollar basis

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis) 2021 2021 2020 2021 2020

Net interest income $ 1,589 $ 1,575 $ 1,668 $ 6,625 $ 7,060

Non-interest income 728 770 723 2,993 3,015

Total revenue 2,317 2,345 2,391 9,618 10,075

Provision for credit losses 314 335 674 1,574 3,297

Non-interest expenses 1,249 1,285 1,333 5,209 5,414

Income tax expense 140 161 57 648 231

Net income $ 614 $ 564 $ 327 $ 2,187 $ 1,133

Net income attributable to non-controlling interests in

subsidiaries 79 76 64 332 117

Net income attributable to equity holders of the Bank $ 535 $ 488 $ 263 $ 1,855 $ 1,016

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $528 million, compared to $244 million. Adjusted net income attributable to equity holders increased to $535 million from $263 million. This increase was driven by lower provision for credit losses and lower non-interest expenses, partially offset by lower revenues, and higher income taxes.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $48 million or 10% from $480 million. Adjusted net income attributable to equity holders increased by $47 million or 10%, compared to $488 million last quarter. This was due largely to lower non-interest expenses, lower provision for credit losses and lower income taxes, partially offset by lower revenues.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $2,317 million, a decrease of $74 million or 3%, driven primarily by lower net interest income, partially offset by higher non-interest income.

Q4 2021 vs Q3 2021

Revenues decreased by $28 million, or 1%, driven primarily by lower non-interest income, partially offset by higher net interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $1,589 million, down 5%, driven by margin compression and lower personal loan and credit card balances, partially offset by growth in mortgages and commercial loans. Net interest margin declined by 28 basis points to 3.69% due primarily to changes in business mix from lower credit card balances.

Q4 2021 vs Q3 2021

Net interest income increased $14 million, up 1%, due primarily to an increase in commercial loans and residential mortgages. Net interest margin declined by three basis points to 3.69% due primarily to changes in business mix, mainly from a 2% decline in credit card balances and a 4% increase in commercial loans.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $728 million, up 1%, due to higher banking fees and income from associated corporations, partially offset lower investment gains, and card fees.

Q4 2021 vs Q3 2021

Non-interest income decreased $42 million, or 5% due to lower investment gains, capital market revenues and insurance services income, partially offset by higher banking fees.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $314 million, compared to $674 million, a decrease of $360 million or 53%. The provision for credit losses ratio decreased 116 basis points to 91 basis points.

Provision for credit losses on performing loans was a net reversal of $93 million, a decrease of $246 million of which $194 million related to retail portfolio mainly driven by credit migration and the more favourable macroeconomic outlook this quarter. The remaining decrease was driven by lower commercial provisions due to the more favourable macroeconomic outlook.

Provision for credit losses on impaired loans was $407 million compared to $521 million, a decrease of $114 million or 22% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans was 118 basis points, a decrease of 40 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $314 million, compared to $335 million, a decrease of $21 million or 6%. The provision for credit losses ratio decreased nine basis points to 91 basis points.

Provision for credit losses on performing loans was a net reversal of $93 million, compared to a net reversal of $361 million last quarter. The provision reversals were mainly in the retail portfolio driven by the more favourable macroeconomic outlook and credit migration this quarter.

Provision for credit losses on impaired loans was $407 million compared to $696 million, a decrease of 41% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans decreased 90 basis points to 118 basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $1,259 million compared to $1,358 million last year, down $99 million or 7%. On an adjusted basis, non-interest expenses were $1,249 million, down $84 million or 6%. The decrease was driven by lower salaries and employee benefits, technology costs, premises costs and professional fees.

Q4 2021 vs Q3 2021

Non-interest expenses were $1,259 million compared to $1,295 million. Adjusted non-interest expenses decreased $36 million or 3% from $1,285 million last quarter. The decrease was driven by lower salaries and employee benefits, technology costs, and premises costs, mainly in the Caribbean and Central America region.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate was 18.4%, compared to 14.2% last year. On an adjusted basis, the effective tax rate was 18.6%, compared to 15.0% last year, due primarily to higher provision for credit losses in entities that operate in higher tax rate jurisdictions recorded last year.

Q4 2021 vs Q3 2021

The effective tax rate was 18.4%, compared to 22.1% last quarter due primarily to higher inflationary adjustments in Mexico and Chile.

Average Assets

Q4 2021 vs Q4 2020

Average assets of $192 billion, increased $1 billion. Total loan growth of 2% was driven by a 3% increase in commercial loans and 8% increase in residential mortgages, partially offset by a 9% decrease in personal loans and credit card balances.

Q4 2021 vs Q3 2021

Average assets increased by 2%. Loans grew by 3% driven by a 4% increase in commercial loans and 3% increase in residential mortgages.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities of $146 billion were up 1%, while total deposits were flat.

Q4 2021 vs Q3 2021

Average liabilities increased by $842 million or 1%, while total deposits decreased 1% driven by a decline of non-personal deposits.

Global Wealth Management

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis)^(1) 2021 2021 2020 2021 2020

Reported Results

Net interest income $ 161 $ 160 $ 144 $ 628 $ 575

Non-interest income 1,186 1,175 1,021 4,752 4,009

Total revenue 1,347 1,335 1,165 5,380 4,584

Provision for credit losses 1 (1) 3 2 7

Non-interest expenses 824 812 726 3,255 2,878

Income tax expense 135 132 111 549 437

Net income $ 387 $ 392 $ 325 $ 1,574 $ 1,262

Net income attributable to non-controlling interests in

subsidiaries 2 2 2 9 10

Net income attributable to $ 385 $ 390 $ 323 $ 1,565 $ 1,252equity holders of the Bank

Other measures

Return on equity^(2) 16.3% 16.5% 13.9% 16.7% 13.5%

Assets under administration ($ billions)^(3) $ 597 $ 582 $ 500 $ 597 $ 500

Assets under management ($ billions)^(3) $ 346 $ 341 $ 290 $ 346 $ 290

(1) Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2) Refer to Non-GAAP measures on page 3.

(3) Prior period amounts have been restated to appropriately reflect certain intercompany items.

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis) 2021 2021 2020 2021 2020

Adjusted Results^(1)

Net interest income $ 161 $ 160 $ 144 $ 628 $ 575

Non-interest income 1,186 1,175 1,021 4,752 4,009

Total revenue 1,347 1,335 1,165 5,380 4,584

Provision for credit losses^(2) 1 (1) 3 2 6

Non-interest expenses^(3)(4) 815 804 713 3,219 2,818

Income tax expense 137 133 114 558 453

Net income $ 394 $ 399 $ 335 $ 1,601 $ 1,307

Net income attributable to non-controlling interests in

subsidiaries 2 2 2 9 10

Net income attributable to equity holders of the Bank $ 392 $ 397 $ 333 $ 1,592 $ 1,297

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for Allowance for credit losses - Additional scenario of $1 in the first quarter of 2020.

(3) Includes adjustment for Integration costs for the three months ended October 31, 2020 - $4 and for the year ended October 31, 2020 - $23.

Includes adjustment for Amortization of acquisition-related intangible(4) assets, excluding software for the three months ended October 31, 2021 - $9 (July 31, 2021 - $8; October 31, 2020 - $9) and for the year ended October 31, 2021 - $36 (October 31, 2020 - $37).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $385 million, an increase of $62 million or 20%. Adjusted net income attributable to equity holders increased to $392 million, up $59 million or 18%, due primarily to higher mutual fund fees and brokerage revenues, partially offset by higher volume-related expenses.

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased $5 million or 1%, due primarily to lower brokerage fees from reduced iTrade volumes, partially offset by higher mutual fund fees.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $1,347 million, up $182 million or 16% due primarily to higher fee income driven by growth in client assets from market appreciation and higher net sales, higher brokerage revenues, and higher net interest income from growth in Private Banking loans.

Q4 2021 vs Q3 2021

Revenues were up $12 million or 1% due primarily to higher fee income driven by growth in client assets from market appreciation and higher net sales.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $1 million, a decrease of $2 million from last year. The provision for credit losses ratio was two basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $1 million, an increase of $2 million. The provision for credit losses ratio was two basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses of $824 million were up $98 million or 13%, driven mainly by higher volume-related expenses, primarily performance-based compensation and distribution expenses, along with higher technology costs to support business growth initiatives.

Q4 2021 vs Q3 2021

Non-interest expenses were up $12 million or 1%, due largely to higher technology costs to support business growth initiatives.

Provision for income taxes

The effective tax rate was 25.9% compared to 25.6% in the prior year and 25.2% in the prior quarter.

Assets under management (AUM) and assets under administration (AUA)

Q4 2021 vs Q4 2020

Assets under management of $346 billion increased $56 billion or 19%, while assets under administration of $597 billion increased $97 billion or 19%, due primarily to higher net sales and market appreciation.

Q4 2021 vs Q3 2021

Assets under management increased $5 billion or 1%, and assets under administration increased $15 billion or 2%, due primarily to higher net sales and market appreciation.

Global Banking and Markets

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis)^(1) 2021 2021 2020 2021 2020

Reported Results

Net interest income $ 365 $ 363 $ 350 $ 1,436 $ 1,435

Non-interest income 812 890 860 3,587 3,947

Total revenue 1,177 1,253 1,210 5,023 5,382

Provision for credit losses (50) (27) 62 (100) 390

Non-interest expenses 591 620 583 2,458 2,473

Income tax expense 134 147 105 590 564

Net income $ 502 $ 513 $ 460 $ 2,075 $ 1,955

Net income attributable to equity $ 502 $ 513 $ 460 $ 2,075 $ 1,955holders of the Bank

Other measures

Return on equity^(2) 15.5% 16.1% 14.6% 16.5% 14.8%

Average assets ($ billions) $ 409 $ 401 $ 389 $ 401 $ 412

Average liabilities ($ billions) $ 382 $ 373 $ 387 $ 385 $ 379

Results are presented on a taxable equivalent basis. Refer to Business Line(1) Overview section of the Bank's 2021 Annual Report to

Shareholders.

(2) Refer to Non-GAAP measures on page 3.

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis) 2021 2021 2020 2021 2020

Adjusted Results^(1)

Net interest income $ 365 $ 363 $ 350 $ 1,436 $ 1,435

Non-interest income^(2) 812 890 860 3,587 4,049

Total revenue 1,177 1,253 1,210 5,023 5,484

Provision for credit losses (50) (27) 62 (100) 384^(3)

Non-interest expenses 591 620 583 2,458 2,473

Income tax expense 134 147 105 590 593

Net income $ 502 $ 513 $ 460 $ 2,075 $ 2,034

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for derivatives valuation of $102 in the first quarter of 2020.

(3) Includes adjustment for Allowance for credit losses - Additional scenario of $6 in the first quarter of 2020.

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $502 million, an increase of $42 million or 9%, due mainly to higher net interest income and lower provision for credit losses, partially offset by lower non-interest income, higher non-interest expenses, and the negative impact of foreign currency translation.

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased by $11 million or 2%, due mainly to lower non-interest income, partially offset by higher net interest income, lower provision for credit losses, lower non-interest expenses and the positive impact of foreign currency translation.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $1,177 million, a decrease of $33 million or 3% due primarily to lower trading-related revenues and the negative impact of foreign currency translation, partially offset by an increase in net interest income.

Q4 2021 vs Q3 2021

Revenues decreased by $76 million or 6% due mainly to lower non-interest income including lower trading-related revenue and underwriting and advisory fees, partially offset by higher net interest income and the positive impact of foreign currency translation.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $365 million, an increase of $15 million or 4%, due mainly to higher lending margins, partially offset by lower lending volumes and the unfavourable impact of foreign currency translation.

Q4 2021 vs Q3 2021

Net interest income increased by $2 million or 1%, due mainly to higher lending volumes.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $812 million, a decrease of $48 million or 6%, due mainly to lower fixed income trading-related revenues and the negative impact of foreign currency translation, partially offset by higher equities trading-related revenues and higher advisory fees.

Q4 2021 vs Q3 2021

Non-interest income decreased by $78 million or 9% due mainly to lower underwriting and advisory fees, and lower trading-related revenues primarily fixed income.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was a net reversal of $50 million, a decrease of $112 million. The provision for credit losses ratio was negative 18 basis points, a decrease of 42 basis points.

Provision for credit losses on performing loans was a net reversal of $52 million, a decrease of $80 million due primarily to an improving macroeconomic outlook.

Provision for credit losses on impaired loans was $2 million, a decrease of $32 million due primarily to lower provisions in the Energy portfolio. The provision for credit losses ratio on impaired loans was one basis point, a decrease of 12 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was a net reversal of $50 million, compared to a net reversal of $27 million last quarter, a decrease of $23 million. The provision for credit losses ratio was negative 18 basis points, a decrease of 7 basis points.

Provision for credit losses on performing loans was a net reversal of $52 million compared to a net reversal of $33 million last quarter. The provision reversals were driven primarily due to an improving macroeconomic outlook.

Provision for credit losses on impaired loans was $2 million compared to $6 million, a decrease of $4 million. The provision for credit losses ratio on impaired loans was one basis point, a decrease of two basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $591 million, up $8 million or 1%, due mainly to increases in technology costs to support business development, partially offset by lower personnel costs and impact of foreign currency translation.

Q4 2021 vs Q3 2021

Non-interest expenses decreased $29 million or 5% due mainly to lower personnel costs, partially offset by higher technology costs to support business development.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate for the quarter was 21.0% compared to 18.5% in the prior year. The changes were due mainly to the change in earnings mix across jurisdictions.

Q4 2021 vs Q3 2021

The effective tax rate for the quarter was 21.0% compared to 22.3% in the prior year. The changes were due mainly to the change in earnings mix across jurisdictions.

Average Assets

Q4 2021 vs Q4 2020

Average assets were $409 billion, an increase of $20 billion or 5%, due mainly to an increase in trading securities partially offset by lower loans and the negative impact of foreign currency translation.

Q4 2021 vs Q3 2021

Average assets increased $8 billion or 2%, due mainly to an increase in loans and securities purchased under resale agreements and positive impact of foreign currency translation.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities of $382 billion were lower by $5 billion or 1%, due mainly to lower securities sold under repurchase agreements, decreases in derivative-related liabilities and the negative impact of foreign currency translation, partially offset by growth in deposits.

Q4 2021 vs Q3 2021

Average liabilities increased $9 billion or 2%, due mainly to higher deposits, higher securities sold under repurchase agreements and the positive impact of foreign currency translation.

Other

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis)^(1) 2021 2021 2020 2021 2020

Reported Results

Net interest income $ 20 $ 78 $ 25 $ 242 $ (131)

Non-interest income (5) (66) (9) 91 392

Total revenue 15 12 16 333 261

Provision for credit losses (1) - - (1) 1

Non-interest expenses 346 99 138 700 751

Income tax expense (155) (81) (125) (362) (519)

Net income (loss) $ (175) $ (6) $ 3 $ (4) $ 28

Net income (loss) attributableto

non-controlling interests

in subsidiaries (11) 1 - (10) (27)

Net income (loss) attributableto $ (164) $ (7) $ 3 $ 6 $ 55

equity holders of the Bank

Other measures

Average assets ($ billions) $ 144 $ 143 $ 159 $ 152 $ 158

Average liabilities ($ $ 206 $ 194 $ 195 $ 193 $ 240billions)

Results are presented on a taxable equivalent basis. Refer to Business(1) Line Overview section of the Bank's 2021 Annual Report to

Shareholders.

For the three months ended For the year ended

(Unaudited)($ millions) October 31 July 31 October 31 October 31 October 31

(Taxable equivalent basis) 2021 2021 2020 2021 2020

Adjusted Results^(1)

Net interest income $ 20 $ 78 $ 25 $ 242 $ (131)

Non-interest income^(2)(3) (5) (66) (9) 91 93

Total revenue 15 12 16 333 (38)

Provision for credit losses (1) - - (1) 1

Non-interest expenses^(3)(4) 158 99 130 512 692(5)

Income tax expense (106) (81) (122) (313) (475)

Net income (loss) $ (36) $ (6) $ 8 $ 135 $ (256)

Net income (loss)attributable tonon-controlling interests

in subsidiaries (1) 1 - - 1

Net income (loss)attributable to $ (35) $ (7) $ 8 $ 135 $ (257)equity holders of the Bank

(1) Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2) Includes adjustment for derivatives valuation of $14 in the first quarter of 2020.

Includes adjustment for Net (gain)/loss on divestitures for the three(3) months ended October 31, 2020 - $8 and for the year ended October 31,

2020 - $(298).

(4) Includes adjustment for software impairment charge of $44 in the first quarter of 2020.

(5) Includes adjustment for restructuring and other provisions of $188 in the fourth quarter of 2021.

The Other segment includes Group Treasury, smaller operating segments, Net gain/loss on divestitures and other corporate items which are not allocated to a business line.

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was a net loss of $164 million compared to a net income of $3 million in the prior year. The decrease of $167 million was due primarily to the impact of the restructuring and other provisions of $129 million this quarter. Adjusted net income attributable to equity holders was a loss of $35 million, down $43 million due to higher expenses and higher income taxes.

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased $157 million from the prior quarter, due mainly to the impact of the restructuring and other provisions this quarter. Adjusted net income decreased $28 million, due to higher expenses.

Consolidated Statement of Financial Position

As at

October 31 July 31 October 31(Unaudited) ($ millions) 2021 2021 2020

Assets

Cash and deposits with financial institutions $ 86,323 $ 75,881 $ 76,460

Precious metals 755 759 1,181

Trading assets

Securities 137,148 133,575 108,331

Loans 8,113 6,793 8,352

Other 1,051 752 1,156

146,312 141,120 117,839

Securities purchased under resale agreements and securities borrowed 127,739 129,013 119,747

Derivative financial instruments 42,302 41,904 45,065

Investment securities 75,199 81,734 111,389

Loans

Residential mortgages 319,678 310,370 284,684

Personal loans 91,540 91,544 93,758

Credit cards 12,450 12,194 14,797

Business and government 218,944 219,720 217,663

642,612 633,828 610,902

Allowance for credit losses 5,626 6,079 7,639

636,986 627,749 603,263

Other

Customers' liability under acceptances, net of allowance 20,404 17,023 14,228

Property and equipment 5,621 5,538 5,897

Investments in associates 2,604 2,504 2,475

Goodwill and other intangible assets 16,604 16,703 17,015

Deferred tax assets 2,051 2,108 2,185

Other assets 21,944 21,393 19,722

69,228 65,269 61,522

Total assets $ 1,184,844 $ 1,163,429 $ 1,136,466

Liabilities

Deposits

Personal $ 243,551 $ 247,462 $ 246,135

Business and government 511,348 503,314 464,619

Financial institutions 42,360 43,610 40,084

797,259 794,386 750,838

Financial instruments designated at fair value through profit or loss 22,493 21,961 18,899

Other

Acceptances 20,441 17,085 14,305

Obligations related to securities sold short 40,954 43,276 31,902

Derivative financial instruments 42,203 38,894 42,247

Obligations related to securities sold under repurchase agreements and securities 123,469 112,516 137,763lent

Subordinated debentures 6,334 6,418 7,405

Other liabilities 58,799 56,732 62,604

292,200 274,921 296,226

Total liabilities 1,111,952 1,091,268 1,065,963

Equity

Common equity

Common shares 18,507 18,493 18,239

Retained earnings 51,354 50,044 46,345

Accumulated other comprehensive income (loss) (5,333) (3,986) (2,125)

Other reserves 222 169 360

Total common equity 64,750 64,720 62,819

Preferred shares and other equity instruments 6,052 5,299 5,308

Total equity attributable to equity holders of the Bank 70,802 70,019 68,127

Non-controlling interests in subsidiaries 2,090 2,142 2,376

Total equity 72,892 72,161 70,503

Total liabilities and equity $ 1,184,844 $ 1,163,429 $ 1,136,466

Consolidated Statement of Income

For the three months ended For the year ended

October 31 July 31 October 31 October 31 October 31(Unaudited) ($ millions) 2021 2021 2020 2021 2020

Revenue

Interest income^(1)

Loans $ 5,751 $ 5,648 $ 6,104 $ 23,159 $ 26,977

Securities 343 354 458 1,467 2,035

Securities purchased under resale agreements and securities borrowed 45 49 51 178 286

Deposits with financial institutions 47 50 39 182 414

6,186 6,101 6,652 24,986 29,712

Interest expense

Deposits 1,513 1,540 2,055 6,465 10,731

Subordinated debentures 46 43 50 180 240

Other 410 301 289 1,380 1,421

1,969 1,884 2,394 8,025 12,392

Net interest income 4,217 4,217 4,258 16,961 17,320

Non-interest income

Card revenues 187 177 181 749 789

Banking services fees 414 400 376 1,598 1,540

Credit fees 368 382 345 1,485 1,348

Mutual funds 605 580 506 2,394 1,945

Brokerage fees 265 263 225 1,039 902

Investment management and trust 251 252 238 994 946

Underwriting and other advisory 144 198 152 724 690

Non-trading foreign exchange 179 194 169 787 708

Trading revenues 409 478 498 2,033 2,411

Net gain on sale of investment securities 83 80 182 419 607

Net income from investments in associated corporations 96 73 49 339 242

Insurance underwriting income, net of claims 102 83 120 398 497

Other fees and commissions 153 171 151 677 688

Other 214 209 55 655 703

3,470 3,540 3,247 14,291 14,016

Total revenue 7,687 7,757 7,505 31,252 31,336

Provision for credit losses 168 380 1,131 1,808 6,084

7,519 7,377 6,374 29,444 25,252

Non-interest expenses

Salaries and employee benefits 2,054 2,131 2,071 8,541 8,624

Premises and technology 598 597 607 2,351 2,408

Depreciation and amortization 383 373 407 1,511 1,546

Communications 93 86 93 369 418

Advertising and business development 126 93 96 404 445

Professional 242 211 184 789 753

Business and capital taxes 120 122 123 511 517

Other 655 484 476 2,142 2,145

4,271 4,097 4,057 16,618 16,856

Income before taxes 3,248 3,280 2,317 12,826 8,396

Income tax expense 689 738 418 2,871 1,543

Net income $ 2,559 $ 2,542 $ 1,899 $ 9,955 $ 6,853

Net income attributable to non-controlling interests in subsidiaries 70 81 72 331 75

Net income attributable to equity holders of the Bank $ 2,489 $ 2,461 $ 1,827 $ 9,624 $ 6,778

Preferred shareholders and other equity instrument holders 78 35 82 233 196

Common shareholders $ 2,411 $ 2,426 $ 1,745 $ 9,391 $ 6,582

Earnings per common share (in dollars)

Basic $ 1.98 $ 2.00 $ 1.44 $ 7.74 $ 5.43

Diluted 1.97 1.99 1.42 7.70 5.30

Dividends paid per common share (in dollars) 0.90 0.90 0.90 3.60 3.60

Includes interest income on financial assets measured at amortized cost and FVOCI, calculated using the effective interest method, of $6,080 for the(1) three months ended October 31, 2021 (July 31, 2021 - $5,989; October 31, 2020 - $6,510) and for the year ended October 31, 2021 - $24,547 (October 31, 2020 - $29,173).

Consolidated Statement of Comprehensive Income

For the three months ended For the year ended

October 31 July 31 October 31 October 31 October 31(Unaudited) ($ millions) 2021 2021 2020 2021 2020

Net income $ 2,559 $ 2,542 $ 1,899 $ 9,955 $ 6,853

Other comprehensive income (loss)

Items that will be reclassified subsequently to net income

Net change in unrealized foreign currency translation gains (losses):

Net unrealized foreign currency translation gains (losses) (1,059) (94) (548) (4,515) (2,433)

Net gains (losses) on hedges of net investments in foreign 232 (56) 6 1,307 347operations

Income tax expense (benefit):

Net unrealized foreign currency translation gains (losses) (9) 2 16 (31) 62

Net gains (losses) on hedges of net investments in foreign operations 61 (15) 1 343 91

(879) (137) (559) (3,520) (2,239)

Net change in fair value due to change in debt instruments measured at fair

value through other comprehensive income:

Net gains (losses) in fair value (647) (18) (235) (1,341) 1,495

Reclassification of net (gains) losses to net income 294 (128) 139 522 (1,091)

Income tax expense (benefit):

Net gains (losses) in fair value (189) 11 (59) (346) 387

Reclassification of net (gains) losses to net income 75 (33) 37 127 (276)

(239) (124) (74) (600) 293

Net change in gains (losses) on derivative instruments designated as cash flow

hedges:

Net gains (losses) on derivative instruments designated as cash flow (1,754) 230 (661) (1,267) 2,543hedges

Reclassification of net (gains) losses to net income 830 72 385 176 (2,604)

Income tax expense (benefit):

Net gains (losses) on derivative instruments designated as cash (518) (10) (181) (471) 689flow hedges

Reclassification of net (gains) losses to net income 272 81 106 186 (718)

(678) 231 (201) (806) (32)

Other comprehensive income (loss) from investments in associates 6 4 7 37 (2)

Items that will not be reclassified subsequently to net income

Net change in remeasurement of employee benefit plan asset and

liability:

Actuarial gains (losses) on employee benefit plans 398 (111) 291 1,815 (620)

Income tax expense (benefit) 106 (32) 76 480 (155)

292 (79) 215 1,335 (465)

Net change in fair value due to change in equity instruments

designated at fair

value through other comprehensive income:

Net gains (losses) in fair value 96 84 (44) 532 (122)

Income tax expense (benefit) 25 17 (17) 124 (37)

71 67 (27) 408 (85)

Net change in fair value due to change in own credit risk on financialliabilities

designated under the fair value option:

Change in fair value due to change in own credit risk on financial liabilities

designated under the fair value option (24) 72 (211) (270) (404)

Income tax expense (benefit) (7) 19 (55) (71) (106)

(17) 53 (156) (199) (298)

Other comprehensive income (loss) from investments in associates - - - 5 (8)

Other comprehensive income (loss) (1,444) 15 (795) (3,340) (2,836)

Comprehensive income (loss) $ 1,115 $ 2,557 $ 1,104 $ 6,615 $ 4,017

Comprehensive income (loss) attributable to non-controlling interests (27) 29 - 125 (93)

Comprehensive income (loss) attributable to equity holders of the $ 1,142 $ 2,528 $ 1,104 $ 6,490 $ 4,110Bank

Preferred shareholders and other equity instrument holders 78 35 82 233 196

Common shareholders $ 1,064 $ 2,493 $ 1,022 $ 6,257 $ 3,914

Consolidated Statement of Changes in Equity

Accumulated other comprehensive income (loss)

Preferred Non- Foreign Debt Equity Cash Total Total Common Retained Other shares and attributable controlling(unaudited) ($ millions) currency instruments instruments flow Other^(2) common Total shares earnings^ reserves other to equity interests in (1) translation FVOCI FVOCI hedges equity equity holders subsidiaries instruments

Balance as at October 31, 2020 $ 18,239 $ 46,345 $ (1,328) $ 330 $ (163) $ 639 $ (1,603) $ 360 $ 62,819 $ 5,308 $ 68,127 $ 2,376 $ 70,503

Net income - 9,391 - - - - - - 9,391 233 9,624 331 9,955

Other comprehensive income (loss) - - (3,322) (600) 460 (844) 1,172 - (3,134) - (3,134) (206) (3,340)

Total comprehensive income $ - $ 9,391 $ (3,322) $ (600) $ 460 $ (844) $ 1,172 $ - $ 6,257 $ 233 $ 6,490 $ 125 $ 6,615

Shares/instruments issued 268 - - - - - - (25) 243 2,003 2,246 - 2,246

Shares repurchased/redeemed - - - - - - - - - (1,259) (1,259) - (1,259)

Dividends and distributions paid to equity holders - (4,371) - - - - - - (4,371) (233) (4,604) (123) (4,727)

Share-based payments^(3) - - - - - - - 7 7 - 7 - 7

Other - (11) (59) - (6) (9) - (120)^(4) (205) - (205) (288)^(4) (493)

Balance as at October 31, 2021 $ 18,507 $ 51,354 $ (4,709) $ (270) $ 291 $ (214) $ (431) $ 222 $ 64,750 $ 6,052 $ 70,802 $ 2,090 $ 72,892

Balance as at October 31, 2019 $ 18,264 $ 44,439 $ 800 $ 37 $ (55) $ 650 $ (862) $ 365 $ 63,638 $ 3,884 $ 67,522 $ 2,670 $ 70,192

Net income - 6,582 - - - - - - 6,582 196 6,778 75 6,853

Other comprehensive income (loss) - - (2,128) 293 (81) (11) (741) - (2,668) - (2,668) (168) (2,836)

Total comprehensive income $ - $ 6,582 $ (2,128) $ 293 $ (81) $ (11) $ (741) $ - $ 3,914 $ 196 $ 4,110 $ (93) $ 4,017

Shares/instruments issued 59 - - - - - - (9) 50 1,689 1,739 - 1,739

Shares repurchased/redeemed (84) (330) - - - - - - (414) (265) (679) - (679)

Dividends and distributions paid to equity holders - (4,363) - - - - - - (4,363) (196) (4,559) (148) (4,707)

Share-based payments^(3) - - - - - - - 5 5 - 5 - 5

Other - 17 - - (27) - - (1) (11) - (11) (53)^(4) (64)

Balance as at October 31, 2020 $ 18,239 $ 46,345 $ (1,328) $ 330 $ (163) $ 639 $ (1,603) $ 360 $ 62,819 $ 5,308 $ 68,127 $ 2,376 $ 70,503

Balance as at October 31, 2018 $ 18,234 $ 41,414 $ 1,441 $ (68) $ (126) $ (121) $ (134) $ 404 $ 61,044 $ 4,184 $ 65,228 $ 2,452 $ 67,680

Cumulative effect of adopting IFRS 15 - (58) - - - - - - (58) - (58) - (58)

Balance as at November 1, 2018 18,234 41,356 1,441 (68) (126) (121) (134) 404 60,986 4,184 65,170 2,452 67,622

Net income - 8,208 - - - - - - 8,208 182 8,390 408 8,798

Other comprehensive income (loss) - - (641) 105 71 771 (728) - (422) - (422) (203) (625)

Total comprehensive income $ - $ 8,208 $ (641) $ 105 $ 71 $ 771 $ (728) $ - $ 7,786 $ 182 $ 7,968 $ 205 $ 8,173

Shares issued 255 - - - - - - (37) 218 - 218 - 218

Shares repurchased/redeemed (225) (850) - - - - - - (1,075) (300) (1,375) - (1,375)

Dividends and distributions paid to equity holders - (4,260) - - - - - - (4,260) (182) (4,442) (150) (4,592)

Share-based payments^(3) - - - - - - - 7 7 - 7 - 7

Other - (15) - - - - - (9)^(4) (24) - (24) 163^(4) 139

Balance as at October 31, 2019 $ 18,264 $ 44,439 $ 800 $ 37 $ (55) $ 650 $ (862) $ 365 $ 63,638 $ 3,884 $ 67,522 $ 2,670 $ 70,192

Includes undistributed retained earnings of $60 (2020 - $64; 2019 -(1) $61) related to a foreign associated corporation, which is subject to local regulatory restriction.

(2) Includes Share from associates, Employee benefits and Own credit risk.

(3) Represents amounts on account of share-based payments (refer to Note 26).

(4) Includes changes to non-controlling interests arising from business combinations and related transactions.

Consolidated Statement of Cash Flows

(Unaudited) ($ millions) For the three months ended For the year ended

October 31 October 31 October 31 October 31 Sources (uses) of cash flows 2021 2020 2021 2020

Cash flows from operatingactivities

Net income $ 2,559 $ 1,899 $ 9,955 $ 6,853

Adjustment for:

Net interest income (4,217) (4,258) (16,961) (17,320)

Depreciation and 383 407 1,511 1,546amortization

Provision for credit losses 168 1,131 1,808 6,084

Equity-settled share-based 1 - 7 5payment expense

Net gain on sale of (83) (182) (419) (607)investment securities

Net (gain)/loss on (6) (1) 9 (307)divestitures

Net income from investments (96) (49) (339) (242)in associated corporations

Income tax expense 689 418 2,871 1,543

Changes in operating assetsand liabilities:

Trading assets (6,608) 5,446 (33,995) 9,945

Securities purchased underresale agreements and (80) 5,777 (14,202) 12,781securities borrowed

Loans (15,900) 6,802 (55,748) (25,486)

Deposits 10,470 (12,793) 78,569 27,982

Obligations related to (2,016) (1,799) 10,078 1,195securities sold short

Obligations related tosecurities sold underrepurchase agreements and 12,278 966 (7,709) 11,722

securities lent

Net derivative financial 1,380 (2,580) 2,123 (1,949)instruments

Other, net 3,093 3,465 (5,300) 7,527

Dividends received 284 204 969 824

Interest received 6,128 7,031 25,425 29,572

Interest paid (1,929) (2,406) (8,766) (13,042)

Income tax paid (501) (623) (2,693) (1,962)

Net cash from/(used in) 5,997 8,855 (12,807) 56,664operating activities

Cash flows from investingactivities

Interest-bearing deposits (10,223) (17,490) (15,006) (30,346)with financial institutions

Purchase of investment (21,269) (19,544) (72,259) (147,629)securities

Proceeds from sale andmaturity of investment 26,552 30,207 103,765 119,033securities

Acquisition/divestiture ofsubsidiaries, associatedcorporations or business

units,

net of cash acquired (50) - (717) 3,938

Property and equipment, net (191) (203) (462) (771)of disposals

Other, net (285) (212) (624) (684)

Net cash from/(used in) (5,466) (7,242) 14,697 (56,459)investing activities

Cash flows from financingactivities

Redemption/repurchase of - (3) (750) (9)subordinated debentures

Proceeds from preferredshares and other equity 753 - 2,003 1,689instruments issued

Redemption of preferred - - (1,259) (265)shares

Proceeds from common shares 14 3 268 59issued

Common shares purchased for - - - (414)cancellation

Cash dividends and (1,173) (1,173) (4,604) (4,559)distributions paid

Distributions to (25) (7) (123) (148)non-controlling interests

Payment of lease liabilities (102) (87) (344) (345)

Other, net 1,238 (218) 2,032 4,135

Net cash from/(used in) 705 (1,485) (2,777) 143financing activities

Effect of exchange ratechanges on cash and cash (96) (96) (543) (129)equivalents

Net change in cash and cash 1,140 32 (1,430) 219equivalents

Cash and cash equivalents at 8,553 11,091 11,123 10,904beginning of period^(1)

Cash and cash equivalents at $ 9,693 $ 11,123 $ 9,693 $ 11,123end of period^(1)

(1) Represents cash and non-interest bearing deposits with financialinstitutions (refer to Note 6 in the 2021 Annual Report to Shareholders).

Basis of preparation

These unaudited consolidated financial statements were prepared in accordance with IFRS as issued by International Accounting Standards Board (IASB) and accounting requirements of OSFI in accordance with Section 308 of the Bank Act, except for certain required disclosures. Therefore, these unaudited consolidated financial statements should be read in conjunction with the Bank's audited consolidated financial statements for the year ended October 31, 2021 which will be available today at www.scotiabank.com.

Forward-looking statements

From time to time, our public communications often include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2021 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "foresee," "forecast," "anticipate," "intend," "estimate," "plan," "goal," "project," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would" and "could."

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved.

We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; changes to our credit ratings; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; disruptions in or attacks (including cyber-attacks) on the Bank's information technology, internet, network access, or other voice or data communications systems or services; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; climate change and other environmental and social risks, including sustainability that may arise, including from the Bank's business activities; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; the emergence of widespread health emergencies or pandemics, including the magnitude and duration of the COVID-19 pandemic and its impact on the global economy, financial market conditions and the Bank's business, results of operations, financial condition and prospects; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2021 Annual Report, as may be updated by quarterly reports.

Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2021 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events.

Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.

Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov.

November 30, 2021

Shareholders Information

Direct Deposit Service

Shareholders may have dividends deposited directly into accounts held at financial institutions which are members of the Canadian Payments Association. To arrange direct deposit service, please write to the transfer agent.

Dividend and Share Purchase Plan

Scotiabank's dividend reinvestment and share purchase plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent.

Dividend Dates for 2022

Record and payment dates for common and preferred shares, subject to approval by the Board of Directors.

Record Date Payment Date

January 4, 2022 January 27, 2022

April 5, 2022 April 27, 2022

July 5, 2022 July 27, 2022

October 4, 2022 October 27, 2022

Annual Meeting Date for Fiscal 2021

Shareholders are invited to attend the 190th Annual Meeting of Holders of Common Shares, to be held on April 5, 2022, at Scotiabank Centre, Scotia Plaza, 40 King Street West, 2nd Floor, Toronto, Ontario beginning at 9:00 a.m. Eastern. The record date for determining shareholders entitled to receive notice of and to vote at the meeting will be the close of business on February 8, 2022. Please visit our website at https://www.scotiabank.com/annualmeeting for updates concerning the meeting.

Duplicated Communication

Some registered holders of The Bank of Nova Scotia shares might receive more than one copy of shareholder mailings, such as this Annual Report. Every effort is made to avoid duplication; however, if you are registered with different names and/or addresses, multiple mailings may result. If you receive, but do not require, more than one mailing for the same ownership, please contact the transfer agent to combine the accounts.

Annual Financial Statements

Shareholders may obtain a hard copy of Scotiabank's 2021 audited annual consolidated financial statements and accompanying Management's Discussion & Analysis on request and without charge by contacting the Investor Relations Department at (416) 775-0798 or investor.relations@scotiabank.com.

Website

For information relating to Scotiabank and its services, visit us at our website: www.scotiabank.com.

Conference Call and Web Broadcast

The quarterly results conference call will take place on Tuesday, November 30, 2021, at 8:00 a.m. EST and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 416-641-6104 or 1-800-952-5114 (North America toll-free) using access code 5425716# (please call shortly before 8:00 am EST). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page of www.scotiabank.com.

Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from Tuesday, November 30, 2021 to Thursday, January 6, 2022, by calling 905-694-9451 or 1-800-408-3053 (North America toll-free). The access code is 9929482#. The archived audio webcast will be available on the Bank's website for three months.

Additional Information

Investors:

Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations, Finance Department:

Scotiabank Scotia Plaza, 44 King Street West Toronto, Ontario, Canada M5H 1H1 Telephone: (416) 775-0798 E-mail: investor.relations@scotiabank.com

Global Communications:Scotiabank 44 King Street West, Toronto, OntarioCanada M5H 1H1 E-mail: corporate.communications@scotiabank.com

Shareholders:

For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's transfer agent:

Computershare Trust Company of Canada100 University Avenue, 8th Floor Toronto, Ontario, Canada M5J 2Y1 Telephone: 1-877-982-8767 E-mail: service@computershare.comCo-Transfer Agent (U.S.A.) Computershare Trust Company, N.A.

WHEN SENDING OVERNIGHT: Computershare C/O: Shareholder Services 462 South 4th Street, Suite 1600 Louisville, KY 40202

WHEN SENDING FIRST CLASS, REGISTERED, OR CERTIFIED MAIL: Computershare C/O: Shareholder Services PO Box 505000 Louisville, KY 40233-5000

Tel: 1-800-962-4284 E-mail: service@computershare.com

For other shareholder enquiries, please contact the Corporate Secretary's Department: Scotiabank Scotia Plaza, 44 King Street West Toronto, Ontario, Canada M5H 1H1 Telephone: (416) 866-3672 E-mail: corporate.secretary@scotiabank.com

Rapport trimestriel disponible en franais

Le Rapport annuel et les tats financiers de la Banque sont publis en franais et en anglais et distribus aux actionnaires dans la version de leur choix. Si vous prfrez que la documentation vous concernant vous soit adresse en franais, veuillez en informer Relations publiques, Affaires de la socit et Affaires gouvernementales, La Banque de Nouvelle-cosse, Scotia Plaza, 44, rue King Ouest, Toronto (Ontario), Canada M5H 1H1, en joignant, si possible, l'tiquette d'adresse, afin que nous puissions prendre note du changement.

SOURCE Scotiabank