Live audio Web broadcast of the Bank’s analysts’ conference call. See page 95 for details.		Quarterly Report to Shareholders     Scotiabank reports third quarter results   TORONTO, August  26, 2025 – The Bank of Nova Scotia (“Scotiabank”) (TSX: BNS; NYSE: BNS) reported third quarter net income of $2,527 million compared to $1,912 million in the same period last year. Diluted earnings per share (EPS) were $1.84, compared to $1.41 in the same period a year ago.   Adjusted net income (1) for the third quarter was $2,518 million and adjusted diluted EPS (1) was $1.88, up from $1.63 last year. Adjusted return on equity (1) was 12.4% compared to 11.3% a year ago.   “I want to thank all Scotiabankers for delivering a very strong quarter as we continue to execute on our strategy,” said Scott Thomson, President and Chief Executive Officer of Scotiabank. “We reported improving revenue growth which helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year. We did this all while maintaining a strong balance sheet and buying back shares.”   Canadian Banking delivered adjusted earnings (1) of $959 million, up 56% compared to the prior quarter and down 2% compared to the prior year. The continued focus on personal demand deposits contributed to quarter-over-quarter margin expansion.   International Banking generated adjusted earnings (1) of $716 million, up 7% year-over-year. Solid revenue generation and strong expense management resulted in another quarter of positive operating leverage reflecting the continued impact of productivity initiatives. Key measures of profitability also improved year-over-year.   Global Wealth Management adjusted earnings (1) were $427 million, up 13% year-over-year driven by strong revenue growth from higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. Additionally, assets under management (2) of $407 billion grew 12% year-over-year.   Global Banking and Markets reported earnings of $473 million, up 29% compared to the prior year. The results were supported by strong performance in our capital markets business as well as higher fee revenue.   The Bank reported a Common Equity Tier 1 (CET1) capital ratio (3) of 13.3%.         (1)     Refer to Non-GAAP Measures section starting on page 5. (2)     Refer to Glossary on page 57 for the description of the measure. (3)     The regulatory capital ratios are based on Basel III requirements as determined in accordance with OSFI Guideline – Capital Adequacy Requirements (November 2023).

Reference Table for EDTF
								Q3 2025												2024 Annual Report
Type of risk		Number				Disclosure		Quarterly Report				Supplementary Regulatory Capital Disclosures								MD&A				Financial Statements
General			1			The index of risks to which the business is exposed.															16
			2			The Bank’s risk to terminology, measures and key parameters.															75-78
			3			Top and emerging risks, and the changes during the reporting period.			37-38												80-81, 85-91
			4			Discussion on the regulatory development and plans to meet new regulatory ratios.			52-55												55-58, 100-103, 116
Risk governance, risk management and business model			5			The Bank’s Risk Governance structure.															72-74
			6			Description of risk culture and procedures applied to support the culture.															75-78
			7			Description of key risks from the Bank’s business model.															79
			8			Stress testing use within the Bank’s risk governance and capital management.															75-76
Capital Adequacy and risk-weighted assets			9			Pillar 1 capital requirements, and the impact for global systemically important banks.			52-54				4-5								55-58				205
			10			a) Regulatory capital components.			52-54, 82				21-23								59
						b) Reconciliation of the accounting balance sheet to the regulatory balance sheet.							18-19
			11			Flow statement of the movements in regulatory capital since the previous reporting period, including changes in common equity tier 1, additional tier 1 and tier 2 capital.			52-54				93								60-61
			12			Discussion of targeted level of capital, and the plans on how to establish this.															55-58
			13			Analysis of risk-weighted assets by risk type, business, and market risk RWAs.							6, 36-39, 43-60, 69-74, 78, 90, 96, 102								63-68, 79, 123				174
			14			Analysis of the capital requirements for each Basel asset class.							16-17, 36-61, 67-74, 78, 83-86								63-68				174, 223-229
			15			Tabulate credit risk in the Banking Book.			86-87				16-17, 36-61,78, 83-86								63-68				224
			16			Flow statements reconciling the movements in risk-weighted assets for each risk-weighted asset type.							62, 77, 95								63-68
			17			Discussion of Basel III Back-testing requirement including credit risk model performance and validation.							100								64-66
Liquidity Funding			18			Analysis of the Bank’s liquid assets.			44-47												98-103
			19			Encumbered and unencumbered assets analyzed by balance sheet category.			44-47												100
			20			Consolidated total assets, liabilities and off-balance sheet commitments analyzed by remaining contractual maturity at the balance sheet date.			51-52												104-106
			21			Analysis of the Bank’s sources of funding and a description of the Bank’s funding strategy.			49-50												103-104
Market Risk			22			Linkage of market risk measures for trading and non-trading portfolios and the balance sheet.			43												97
			23			Discussion of significant trading and non-trading market risk factors.			87-88												92-98				228-229
			24			Discussion of changes in period on period VaR results as well as VaR assumptions, limitations, backtesting and validation.			42, 88												92-98				228-229
			25			Other risk management techniques e.g. stress tests, tail risk and market liquidity horizon.															92-98				228
Credit Risk			26			Analysis of the aggregate credit risk exposures, including details of both personal and wholesale lending.							6, 36-39, 43-60, 69-74								85-91, 118-123				184-185, 224-227
			27			Discussion of the policies for identifying impaired loans, defining impairments and renegotiated loans, and explaining loan forbearance policies.																			154-156, 185
			28			Reconciliations of the opening and closing balances of impaired loans and impairment allowances during the year.			70				33-34								88, 118-121				185
			29			Analysis of counterparty credit risk that arises from derivative transactions.			54, 86-87				101								82-84				172-175
			30			Discussion of credit risk mitigation, including collateral held for all sources of credit risk.			86-87												83-85, 89
Other risks			31			Quantified measures of the management of operational risk.															67, 107-108
			32			Discussion of publicly known risk items.			54												71

From time to time, our public communications 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 (SEC), 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 2024 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,” “aim,” “achieve,” “foresee,” “forecast,” “anticipate,” “intend,” “estimate,” “outlook,” “seek,” “schedule,” “plan,” “goal,” “strive,” “target,” “project,” “commit,” “objective,” and similar expressions of future or conditional verbs, such as “will,” “may,” “should,” “would,” “might,” “can” and “could” and positive and negative variations thereof.

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 and globally; 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, including relating to the care and control of information, and other risks arising from the Bank’s use of third parties; 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; geopolitical risk (including the potential impact of new or elevated tariffs); changes to our credit ratings; the possible effects on our business and the global economy of war, conflicts or terrorist actions and unforeseen consequences arising from such actions; technological changes, including the use of data and artificial intelligence in our business, and technology resiliency; 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; anti-money laundering; disruptions or attacks (including cyberattacks) on the Bank’s information technology, internet connectivity, network accessibility, or other voice or data communications systems or services, which may result in data breaches, unauthorized access to sensitive information, denial of service and potential incidents of identity theft; increased competition in the geographic and in business areas in which we operate, including through internet and mobile banking and competitors; exposure related to significant litigation and regulatory matters; environmental, social and governance risks, including climate change, our ability to implement various sustainability-related initiatives (both internally and with our clients and other stakeholders) under expected time frames, and our ability to scale our sustainable-finance products and services; the occurrence of natural and unnatural catastrophic events and claims resulting from such events, including disruptions to public infrastructure, such as transportation, communications, power or water supply; inflationary pressures; global supply-chain disruptions; Canadian housing and household indebtedness; the emergence or continuation of widespread health emergencies or pandemics, including their 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 2024 Annual Report, as may be updated by quarterly reports.

Measures

The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a basis and 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 and therefore might not be comparable to similar financial measures and ratios disclosed by other issuers. The Bank believes that measures and ratios are useful as they provide readers with a better understanding of how management assesses performance. These measures and ratios are used throughout this report and defined below.

The following tables present a reconciliation of GAAP reported financial results to adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, expenses, income taxes and interests. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance.

On January 6, 2025, the Bank entered into an agreement to sell its banking operations in Colombia, Costa Rica and Panama in exchange for an approximately 20% ownership stake in the newly combined entity of Davivienda. On that date, the Bank recognized an impairment loss of $1,362 million ($1,355 million as the banking operations that are part of the transaction were classified as Subsequently, in Q2 2025, the Bank recognized an additional impairment loss of $26 million ($8 million and in Q3 2025 recognized a partial reversal of the impairment loss of $23 million ($29 million These subsequent changes represent changes in the carrying value of the assets being sold, as well as changes in foreign currency. These amounts were recorded in expenses – other. For further details, please refer to Note 20 of the Condensed Interim Consolidated Financial Statements.

In Q2 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana). The Bank recognized an additional loss of $9 million in income – other upon closing. In Q3 2024, the Bank had recognized an impairment loss of $143 million in income – other and a recovery of expenses of $7 million in expenses – salaries and employee benefits (collectively $90 million the majority of which related to goodwill. For further details, please refer to Note 20 of the Condensed Interim Consolidated Financial Statements.

In Q4 2023, the Bank sold its 20% equity interest in Canadian Tire’s Financial Services business (CTFS) to Canadian Tire Corporation. The sale resulted in a net gain of $367 million ($319 million and was recorded in income – other. For further details, please refer to Note 37 of the Consolidated Financial Statements in the 2024 Annual Report to Shareholders.

These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. These costs are recorded in expenses – depreciation and amortization for the Canadian Banking, International Banking and Global Wealth Management operating segments, and income – net income from investments in associated corporations for the Other operating segment.

In Q4 2024, the Bank recorded severance provisions of $53 million ($38 million related to the Bank’s continued efforts to streamline its organizational structure and support execution of the Bank’s strategy. In Q4 2023, the Bank recorded a restructuring charge and severance provisions of $354 million ($258 million related to workforce reductions and changing business needs, as well as ongoing efforts to streamline operational processes and optimize distribution channels. For further details, please refer to Note 24 of the Consolidated Financial Statements in the 2024 Annual Report to Shareholders.

e) Impairment of assets

In Q4 2024, the Bank recorded impairment charges of $343 million ($309 million related to its investment in associate, Bank of Xi’an Co. Ltd. in China, driven primarily by the continued weakening of the economic outlook in China and whose market value has remained below the Bank’s carrying value for a prolonged period (Q4 2023 – $185 million and $159 million In Q4 2024, the Bank recorded an impairment of software intangible assets of $97 million ($70 million In Q4 2023, the Bank recorded an impairment of software and other intangible assets of $161 million ($114 million For further details, please refer to Notes 18 and 19 of the Consolidated Financial Statements in the 2024 Annual Report to Shareholders.

In Q4 2023, the Bank recorded costs of $87 million ($63 million related to the consolidation and exit of certain real estate premises, as well as service contract termination costs, as part of the Bank’s optimization strategy.