Mr. Brian Porter reports

SCOTIABANK PROVIDES DIGITAL BANKING UPDATE

Bank of Nova Scotia is providing a digital banking update today in Toronto to review the bank's digital transformation and discuss how digital will help the bank continue to deliver a superior customer experience and realize benefits from increased efficiency.

In the second quarter of 2016, Scotiabank announced that its structural cost program, which is highly interconnected with the bank's digital transformation, would deliver a 200-to-250-basis-point improvement in its productivity ratio by 2019. Efforts to further digitize the bank are expected to drive an additional 100-basis-point improvement beyond 2019, such that Scotiabank's overall productivity ratio is expected to be approximately 50 per cent for 2021.

Management currently expects the majority of the additional efficiency improvements discussed today relates to lower operating costs and making it easier for the bank's customers to do business with the bank in digital channels. The progress the bank is making toward its digital transformation has also increased management's confidence in the bank's ability to achieve its stated medium-term financial objectives. These productivity gains should contribute to improved profitability over the medium term.

"Our customers want to do more of their banking through digital channels," said Scotiabank president and chief executive officer Brian Porter. "And we want them to conduct more of their business with our bank. Our digital-first mindset should send a clear message to customers, employees and shareholders: when it comes to digital banking, we are positioning Scotiabank to lead. We intend to be a digital leader in the financial services industry not only here in Canada, but also in our key Pacific Alliance markets of Mexico, Peru, Colombia and Chile."

Nacho Deschamps, group head of international banking and digital transformation, who is leading Scotiabank's digital transformation efforts, added: "This digital transformation is a comprehensive effort that extends across the bank -- from sales and marketing to risk and technology. The focus our leaders are bringing to this transformation, when combined with the passion of our teams around the world, has helped us create strong alignment across the bank's geographies and drive scale."

The bank has created a unique, dedicated digital banking organization to give this transformation momentum and velocity, build an agile mindset, attract digital talent, and foster increased collaboration and innovation.

"Banking plays a critical role in people's lives," concluded Shawn Rose, executive vice-president of digital banking. "We have quickly built an organization of leaders who were drawn here for one reason: they are passionate about solving real problems for customers. We have such a wonderful opportunity before us to add real value to our customers' lives. That is incredibly rewarding and motivating."

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