Mr. Meny Grauman reports

SCOTIABANK ANNOUNCES INTEREST RATE RESET ON FIXED RATE RESETTING LIMITED RECOURSE CAPITAL NOTES, SERIES 1

The Bank of Nova Scotia has set the interest rate for its $1.25-billion principal amount of 3.70-per-cent fixed rate resetting limited recourse capital notes, Series 1 (non-viability contingent capital (NVCC)) for the five-year period commencing on July 27, 2026.

In accordance with the terms of the trust indenture dated June 15, 2021 (the LRCN indenture), governing the notes, the interest rate on the notes for the period from and including July 27, 2026, to, but excluding, July 27, 2031, will be 5.987 per cent per annum.

The interest rate on the notes was calculated as the interest rate per annum equal to the government of Canada yield (as defined in the LRCN indenture) on the business day prior to the interest reset date of July 27, 2026, plus 2.761 per cent.

Interest on the notes will continue to be payable quarterly in arrears on Jan. 27, April 27, July 27 and Oct. 27 of each year, with the first such payment occurring on Oct. 27, 2026.

The notes were issued pursuant to a prospectus supplement dated June 10, 2021, to the bank's short form base shelf prospectus dated July 21, 2020, and are scheduled to mature on July 27, 2081.

In connection with the issuance of the notes, the bank also issued $1.25-billion principal amount fixed rate resetting perpetual subordinated additional Tier 1 capital notes (NVCC) (subordinated indebtedness) (the AT1 notes) held by Computershare Trust Company of Canada as trustee (the LRT trustee) of Scotiabank LRCN trust. In accordance with the terms of the trust indenture dated June 14, 2021, governing the AT1 notes, the interest rate on the AT1 notes for the period from and including July 27, 2026, to, but excluding, July 27, 2031, will be 5.987 per cent per annum. The interest rate on the AT1 notes was calculated on the same basis as the notes. In case of non-payment of interest or principal of the notes when due, the noteholder's sole recourse in respect of such claim will be limited to such noteholder's proportionate share of the assets held by the LRT trustee in respect of the limited recourse trust, which consist of AT1 notes except in limited circumstances.

The notes may be redeemed by the bank in whole or in part during the period from June 27 to and including July 27, 2031, and every five years thereafter. Such optional redemption is subject to the prior approval of the Superintendent of Financial Institutions (Canada) and on not less than 10-day and not more than 60-day notice to each noteholder, and the bank shall redeem such aggregate principal amount of AT1 notes that is equal to the aggregate principal amount of notes redeemed or purchased for cancellation by the bank, in accordance with the terms of such AT1 notes.

About Bank of Nova Scotia

Scotiabank's vision is to be our clients' most trusted financial partner and deliver sustainable, profitable growth. Guided by its purpose: "for every future," the bank helps its clients, their families and their communities achieve success through a broad range of advice, products and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. With assets of approximately $1.5-trillion (as at April 30, 2026), Scotiabank is one of the largest banks in North America by assets, and trades on the Toronto Stock Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS).

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