INVESTOR PRESENTATION Q3|19 August 28, 2019 CAUTION REGARDING - PowerPoint PPT Presentation

INVESTOR PRESENTATION Q3|19 August 28, 2019

CAUTION REGARDING FORWARD-LOOKING STATEMENTS From time to time, the Bank makes written and oral forward-looking statements, such as those contained in the Economic Review and Outlook section of the Report to Shareholders - Third quarter 2019 and in the Major Economic Trends section of the 2018 Annual Report, in other filings with Canadian securities regulators, and in other communications, for the purpose of describing the economic environment in which the Bank will operate during fiscal 2019 and the objectives it hopes to achieve for that period. These forward-looking statements are made in accordance with current securities legislation in Canada and the United States. They include, among others, statements with respect to the economy — particularly the Canadian and U.S. economies — market changes, observations regarding the Bank’s objectives and its strategies for achieving them, Bank-projected financial returns and certain risks faced by the Bank. These forward-looking statements are typically identified by future or conditional verbs or words such as “outlook,” “believe,” “anticipate,” “estimate,” “project,” “expect,” “intend,” “plan,” and similar terms and expressions. By their very nature, such forward-looking statements require assumptions to be made and involve inherent risks and uncertainties, both general and specific. Assumptions about the performance of the Canadian and U.S. economies in 2019 and how that will affect the Bank’s business are among the main factors considered in setting the Bank’s strategic priorities and objectives and in determining its financial targets, including provisions for credit losses. In determining its expectations for economic growth, both broadly and in the financial services sector in particular, the Bank primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies. There is a strong possibility that express or implied projections contained in these forward-looking statements will not materialize or will not be accurate. The Bank recommends that readers not place undue reliance on these statements, as a number of factors, many of which are beyond the Bank’s control, could cause actual future results, conditions, actions or events to differ significantly from the targets, expectations, estimates or intentions expressed in the forward- looking statements. These factors include credit risk, market risk, liquidity and funding risk, operational risk, regulatory compliance risk, reputation risk, strategic risk and environmental risk, all of which are described in more detail in the Risk Management section beginning on page 52 of the 2018 Annual Report, and more specifically, general economic environment and financial market conditions in Canada, the United States and certain other countries in which the Bank conducts business, including regulatory changes affecting the Bank’s business; changes in the accounting policies the Bank uses to report its financial condition, including uncertainties associated with assumptions and critical accounting estimates; tax laws in the countries in which the Bank operates, primarily Canada and the United States (including the U.S. Foreign Account Tax Compliance Act (FATCA)); changes to capital and liquidity guidelines and to the manner in which they are to be presented and interpreted; changes to the credit ratings assigned to the Bank; and potential disruptions to the Bank’s information technology systems, including evolving cyber attack risk. The foregoing list of risk factors is not exhaustive. Additional information about these factors can be found in the Risk Management section of the 2018 Annual Report. Investors and others who rely on the Bank’s forward-looking statements should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. 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 it or on its behalf. The forward-looking information contained in this document is presented for the purpose of interpreting the information contained herein and may not be appropriate for other purposes. 2

OVERVIEW Louis Vachon President & Chief Executive Officer

OVERVIEW – Q3|19 ADJUSTED RESULTS (1) Highlights Solid performance in Q3/19 driven by: ▪ Q3 19 Q2 19 Q3 18 QoQ YoY ($MM, TEB) Favorable backdrop in Canadian and - Revenues (2) 1,946 1,850 1,854 5% 5% Québec economies 606 558 569 9% 7% Positive momentum in all Net Income (2) - businesses $1.66 $1.51 $1.52 10% 9% Diluted EPS (2) Effective cost management - 86 84 76 2% 13% PCL Credit quality remains strong across our ▪ 18.6% 17.8% 18.4% portfolios Return on Equity 11.7% 11.5% 11.6% CET1 Ratio ▪ Industry-leading ROE ▪ Strong capital position (1) Excluding specified items (see p.7) 4 (2) Excluding insurance actuarial reserve adjustment (~$14 millions before taxes or ~$0.03 per share), revenues up 4% QoQ and YoY; net income up 7% QoQ and 5% YoY; EPS up 8% QoQ and 7% YoY.

SEGMENT HIGHLIGHTS – Q3|19 P&C Banking ▪ Solid performance with good volume growth NET INCOME ($MM) Q3 19 Q2 19 Q3 18 QoQ YoY and disciplined cost management P&C Banking (1) 277 234 250 18% 11% Higher insurance revenues due to changes - in actuarial reserve 126 118 120 7% 5% Wealth Management ▪ Balancing volume growth, healthy margins and credit quality 182 160 178 14% 2% Financial Markets Wealth Management US Specialty Finance 69 72 54 (4%) 28% Good performance supported by strong ▪ & International AUM/AUA growth ▪ Maintaining double-digit earnings growth target through the cycle Financial Markets Solid performance in Global Markets ▪ Lower ECM underwriting revenues ▪ USSF&I ▪ Strong growth in ABA Bank Disciplined growth at Credigy ▪ 5 (1) Excluding insurance actuarial reserve adjustment, P&C Banking net income was up 14% QoQ and 7% YoY.

FINANCIAL REVIEW Ghislain Parent Chief Financial Officer and Executive Vice-President, Finance

SPECIFIED ITEMS – Q3|19 Highlights Miscellaneous one-time gains & losses ▪ Income which largely offset Before Net Specified Items ($MM) (1) Taxes Income EPS Neutral EPS impact in Q3/19 - Gain on disposal of Fiera 79 68 $0.20 Capital shares ▪ Expected pre-tax savings: Gain on disposal of head 50 43 $0.12 office building - H2/19: $9 millions ($0.02/share) Allowance for future vacant (45) (33) $(0.10) - F2020: $20 millions ($0.04/share) premises - F2021: $12 millions ($0.03/share) Remeasurement of NSIA at (33) (27) $(0.08) fair value Write-off of capitalized (57) (42) $(0.12) ▪ Net positive impact on capital: projects - CET1 ratio: +25 bps Other (10) (7) $(0.02) - Leverage ratio: +7 bps Total impact (16) 2 $0.00 (1) All Specified Items are accounted for under the “Other” heading of segment results (the Gain on disposal of Fiera Capital sha res, the Gain on disposal of head office building and the Remeasurement of NSIA at fair value are reflected in “Non - interest income”; the Write -off of capitalized projects, the Allowance for future vacant 7 premises and Other are reflected in “Non - interest expenses”). Please refer to page 5 of National Bank's Q3 -2019 Report to shareholders for additional information.

TRANSFORMATION DRIVING EFFICIENCY ADJUSTED RESULTS (1) Highlights Significant improvements in all-bank ▪ Total Bank efficiency ratio Q3 19 Q2 19 Q3 18 QoQ YoY ($MM, TEB) Q2 19 1 026 1 850 Revenues Operating Leverage Expenses ($MM, TEB) 2 016 2 052 3,4% 1,8% 0,8% 992 (1,6%) (1,0%) 3 683 3 712 1,8% 1 818 YoY 6M 18 6M 19 YoY Q2 18 Efficiency Ratio 55,5% 54,6% 0,9% 55,3% 54,7% 0,6% Expenses 992 1 026 1,8% 1 818 1 850 Revenues YoY Q2 18 Q2 19 ($MM, TEB) 3,4% 0,8% 1,8% 2 052 2 016 3 712 YoY 6M 18 6M 19 3 683 Operating Leverage 0,9% 54,6% 55,5% (1,6%) Efficiency Ratio (1,0%) 55,3% 54,7% 0,6% 1,946 1,850 1,854 5.2% 5.0% Revenues ▪ Solid operating leverage in Q3/19 1,042 1,026 1,011 1.6% 3.1% Expenses ▪ Continued focus on managing our costs 1.9% Operating Leverage Expenses up 3.1% YoY and 1.6% QoQ - 53.5% 55.5% 54.5% (2.0%) (1.0%) Efficiency Ratio Higher technology investments and ▪ growth-related expenses in Financial Markets Revenue Expense Operating Efficiency Growth Growth Leverage Ratio Business Segments ▪ Targeting positive operating leverage for Q3 19 vs Q3 18 Q3 19 vs Q3 18 Q3 19 (TEB) F2019 4.8% 1.8% 3.0% 51.2% Personal & Commercial 2.8% 1.9% 0.9% 61.1% Wealth Management 6.0% 7.0% (1.0%) 41.5% Financial Markets US Specialty Finance 19.2% 7.8% 11.4% 39.7% & International (1) Excluding specified items (see p.7) 8