#1Investor Presentation Fourth Quarter, 2011 December 2, 2011 Our strategy in action Scotiabank Caution Regarding Forward-Looking Statements Scotiabank 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. All such statements are made pursuant to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include comments with respect to the Bank's objectives, strategies to achieve those objectives, expected financial results (including those in the area of risk management), and the outlook for the Bank's businesses and for the Canadian, United States and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intent," "estimate," "plan," "may increase," "may fluctuate, and similar expressions of future or conditional verbs, such as "will," "should," "would" and "could." By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not prove to be accurate. Do not unduly rely on forward-looking statements, as a number of important factors, many of which are beyond our control, could cause actual results to differ materially from the estimates and intentions expressed in such forward- looking statements. These factors include, but are not limited to: the economic and financial conditions in Canada and globally; fluctuations in interest rates and currency values; liquidity; significant market volatility and interruptions; the failure of third parties to comply with their obligations to us and our affiliates; the effect of changes in monetary policy; legislative and regulatory developments in Canada and elsewhere, including changes in tax laws; the effect of changes to our credit ratings; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions and liquidity regulatory guidance; operational and reputational risks; the risk that the Bank's risk management models may not take into account all relevant factors; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services in receptive markets; the Bank's ability to expand existing distribution channels and to develop and realize revenues from new distribution channels; the Bank's ability to complete and integrate acquisitions and its other growth strategies; changes in accounting policies and methods the Bank uses to report its financial condition and the results of its operations, including uncertainties associated with critical accounting assumptions and estimates; the effect of applying future accounting changes, including International Financial Reporting Standards; global capital markets activity; the Bank's ability to attract and retain key executives; reliance on third parties to provide components of the Bank's business infrastructure; unexpected changes in consumer spending and saving habits; technological developments; fraud by internal or external parties, including the use of new technologies in unprecedented ways to defraud the Bank or its customers; consolidation in the Canadian financial services sector; competition, both from new entrants and established competitors; judicial and regulatory proceedings; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including terrorist acts and war on terrorism; the effects of disease or illness on local, national or international economies; disruptions to public infrastructure, including transportation, communication, power and water; 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. For more information, see the discussion starting on page 63 of the Bank's 2011 Annual Report. The preceding list of important factors is not exhaustive. 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. 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. The "Outlook" sections in this document are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. 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. 1#2Overview Rick Waugh President & Chief Executive Officer Scotiabank 2011 Overview • • • Record earnings Net income: $5,268 million - EPS: $4.62, up 18% vs. prior year Record revenues Total revenue of $17,575 million, up 11% vs. prior year Overall quality improving based on sustainability and diversification Strong ROE: 18.8% Credit conditions continued to be favourable; loan loss provisions decreased by 16% to $1,046 million • Capital ratios remain strong Scotiabank 2#3Met or Exceeded 2011 Targets Metric Target 2011 Actual¹ EPS Growth 7-12% 18.2% ROE 16-20% 18.8% Productivity Ratio <58% 54.4% Capital Maintain strong ratios TCE: 9.6% Tier 1: 12.2% (1) Excluding the impact of acquisition related gains in Q2/11, EPS growth would have been 11.4% and ROE 17.7%. Scotiabank Financial Review Luc Vanneste Executive Vice-President & Chief Financial Officer Scotiabank 3#4Fundamentals Delivering Positive Results Scotiabank Q4/11 Q3/11 Q/Q Q4/10 Y/Y $1,240 $1,285 (4%) Net Income ($MM) $1,115 11% $1.07 $1.11 (4%) EPS $1.00 7% 16.6% 17.8% (120) bps ROE 17.9% (130) bps 57.0% 54.5% (250) bps Productivity Ratio 54.4% (260) bps Year-over-Year Comparison Q4 earnings benefited from... Partly offset by... • Impact of acquisitions • Growth in earning assets • Stronger securitization revenues Record Revenue 4,012 Revenue (TEB) ($ millions) 4,373 4,420 1,942 1,948 1,699 . Higher operating expenses • Lower trading revenues due to weak market conditions • Lower margin Scotiabank Year-over-Year Net interest income up 7% + Asset growth - Margin compression Other income up 15% + Impact of acquisitions - Lower trading revenue in fixed income and institutional equity 2,313 2,431 2,472 Q4/10 Q3/11 Q4/11 Net Interest Income (TEB) Other Income • Quarter-over-Quarter Net interest income up 2% + Growth in assets - Lower margin Other income up modestly + Stronger securitization revenues -Lower trading revenues - Lower net gains on securities 4#510 Continued Investment in Sustainable Growth Initiatives Non-Interest Expenses ($ millions) 2,519 2,381 2,183 679 588 581 423 458 411 1,370 1,382 1,191 Q4/10 Q3/11 Q4/11 Other Premises & technology ■Salaries & employee benefits Year-over-Year Scotiabank Expenses up 15% - Acquisitions accounted for more than half of increase - Higher expenses from continued business expansion and ongoing growth initiatives + Lower stock-based compensation Quarter-over-Quarter Expenses up 6% - Higher levels of investment in customer acquisition initiatives - Impact of acquisition Continued Strength in Capital Ratios Capital Ratios (%) 12.3 12.2 11.8 11.8 12.0 9.7 9.9 9.3 9.6 9.6 . Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Leverage Ratio 17.0 17.6 17.6 17.0 16.6 Tangible Common Equity Tier 1 • Scotiabank 2011 Summary Internal capital generation of $2,759MM (vs. $2,015MM in 2010) Common shares issued under DRIP: $632MM (vs. $623MM in 2010) • Share issuance for the acquisition of Dundee Wealth - - $1.8B in common shares $409MM in preferred shares Remain committed to common equity Tier 1 ratio under Basel Ill of 7.0% to 7.5% by Q1 2013 5 LO#612 Canadian Banking: Continuing Solid Performance Net Income ($ millions) 461 460 441 Q4/10 Q3/11 Q4/11 • Scotiabank Year-over-Year ⚫ Revenues up slightly • • + Asset growth and higher transaction-based fees and card revenues in retail banking - Lower margin due to higher wholesale funding costs PCLs down $37MM to $135MM Expenses up 4% - Higher merit, pension and premises costs Quarter-over-Quarter Revenues down modestly - Lower margin + Solid asset growth, higher credit fees and card revenues in commercial banking ⚫ PCLs down $10MM Expenses up 1% - Higher costs associated with seasonality International Banking: Strong and Diversified Asset Growth Scotiabank Net Income ($ millions) 373 • 338 350 • Q4/10 Q3/11 Q4/11 • • Year-over-Year Revenues up 11% + Broad based organic growth and positive impact of acquisitions - Negative impact of foreign currency translation PCLs up $24MM to $152MM Expenses up 16% - Higher compensation costs to support growth initiatives + Approximately 40% of expense increase due to acquisitions Quarter-over-Quarter Revenues up 8% + Impact of Uruguay acquisition + Strong broad-based organic loan and deposit growth - Lower margin PCLs up $32MM to $152MM Expenses up 9% - Seasonal expense growth + Impact of Uruguay acquisition CO 6#713 14 Global Wealth Management: Good Quarter 188 Net Income ($ millions) 256 250 Q4/10 Q3/11 Q4//11 • Year-over-Year Scotiabank • Revenues up 44% • + Impact of DundeeWealth acquisition and solid organic AUM / AUA growth + Strong insurance revenue Expenses up 54% - Consolidation of DundeeWealth operations - Higher volume related expenses Quarter-over-Quarter Revenues down 2% - Weak markets impacting AUM / AUA + Strong insurance revenues Expenses up 1% - Higher remuneration costs + Lower volume related expenses Scotia Capital: Challenging Market Conditions Continuing Scotiabank Net Income ($ millions) 289 273 230 Q4/10 Q3/11 Q4/11 • Year-over-Year Revenues down 13% - Lower trading revenue in fixed income and institutional equity + Lending volume growth PCLs of $14MM vs. $8MM recovery Expenses up 9% - Higher staffing costs supporting expansion initiatives Quarter-over-Quarter • Revenues down 14% • Challenging market conditions for fixed income and equities businesses + Higher net interest income on trading assets PCLs up modestly Expenses up 13% - Higher performance-based compensation - Higher technology costs 7#8Other Segment¹ 15 Scotiabank ($ millions) Q4/10 Q3/11 Q4/11 Funding Net Interest Income (98) (54) (32) Net Securitization Revenues² (38) (78) (4) AFS Securities Writedowns (15) (12) (3) Financial Instruments 25 11 27 General Provisions 40 30 30 Expenses & Net Other Items (47) 32 (45) TEB Offset (70) (73) (74) Taxes 78 73 28 Total (125) (71) (73) (1) Includes Group Treasury and other corporate items which are not allocated to a business line (2) Represents the impact on the Other segment of CMB securitization revenues recognized in other income, and the reduction in mortgage net interest income earned as a result of removing the mortgages from the balance sheet Rob Pitfield Group Head and Chief Risk Officer Risk Review Scotiabank 80#918 Q4 2011 Risk Overview • • Risk in credit portfolios continues to be well-managed Overall credit quality of loan portfolios continues to improve Specific provisions have stabilized Reduced general allowance by $30 million Continued reduction in net impaired loan formations Exposures to certain European countries not material • Market risk remained low and well controlled Average 1-day VaR: $9.5MM vs. $11.8MM in Q3/11 Stable Specific Provisions Scotiabank Scotiabank ($ millions) Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Canadian Retail 138 134 123 103 106 Canadian Commercial 34 31 22 42 172 165 145 145 International Retail 129 110 116 116 International Commercial (1) (3) (10) 4 ༄& 8° 29 135 129 23 128 107 106 120 152 Global Wealth 2 1 Management Scotia Capital Total PCL ratio (bps) 294 ༅།$ * (8) (3) 269 262 38 ༄། 8 10 8 273 ༄སྟྲ 14 302 38 38 40 9#1019 Exposure to Certain European Countries Not Significant (Funded credit exposure at Q4/11, $ millions) 1.2 Country Sovereign Bank Corporate³ Total Greece 340 340 Ireland 1144 46 25 185 Italy 9765 66 1,042 Portugal 103 - 103 Spain 113 367 480 Total 114 1,238 798 2,150 (1) Includes loans (recorded on an accrual basis) and credit exposure related to derivatives, repurchase agreements, and securities lending and borrowing transactions which are net of collateral. Excludes trading securities exposure, which is not significant. (2) Total unfunded commitments amounted to $375 million, which were to corporations ($302 million) and banks ($73 million), as at October 31, 2011. (3) Includes financial institutions that are not banks. (4) Central bank deposits arising from regulatory reserve requirements to support the Bank's operations in Ireland. (5) Mostly short-dated precious metals activities in both trading and lending. Other European Exposures 1,2,3 (Funded credit exposure at Q4/11, $ millions)" Country U.K.5 Sovereign Bank Corporate4 Total 1,202 2,483 2,845 6,530 Germany 417 1,161 1,231 2,809 France 248 690 570 1,508 Netherlands 179 741 458 1,378 Switzerland 626 703 1,329 Other 6 186 342 1,097 1,625 Total 2,232 6,043 6,904 15,179 Scotiabank Scotiabank 20 (1) Includes loans (recorded on an accrual basis), deposits with banks and credit exposure related to derivatives, repurchase agreements, and securities lending and borrowing transactions which are net of collateral. (2) Excludes trading securities totaling $1.1 billion as at October 31, 2011. (3) Total unfunded commitments were $4.3 billion to corporations and $3.4 billion to banks as at October 31, 2011. (4) Includes financial institutions that are not banks. (5) Sovereign exposure includes $844 million in short-term deposits with the Bank of England. Bank exposure includes $898 million in short-term deposits with banks. (6) Remaining European exposure is distributed across 15 countries, each of which has a net exposure below $1 billion as at October 31, 2011. 10#11Risk Outlook • Asset quality remains strong Retail and Commercial portfolios stable and performing well Continued strength in Corporate portfolios Scotiabank • Expect 2012 provisions to be in line to slightly higher than 2011 Canadian Retail provisions stable International Retail provisions may grow due to acquisitions and growth in portfolios Corporate and Commercial provisions returning to more normal levels 21 Anatol von Hahn Group Head, Canadian Banking Canadian Banking 2012 Outlook Scotiabank 11 11#1223 Canadian Banking: 2012 Outlook Scotiabank • • • Continue to invest in Deposits and Payments business and to build on our existing partnership with Global Wealth Management Asset growth expected to moderate in Retail but Commercial Banking stronger Small Business Banking expected to grow and take market share • Continued pressure on the margin PCL's expected to remain stable • Expense management remains a key priority Brian Porter Group Head, International Banking International Banking 2012 Outlook Scotiabank 12#13International Banking: 2012 Outlook • • • • Scotiabank Positive outlook for loan growth, despite economic uncertainty: Commercial: Solid growth expected, with good pipeline of transactions Retail: Expect momentum from the past 8 quarters to continue building - As growth initiatives gain more traction and expenses are carefully managed, expect positive operating leverage for 2012 Margins are expected to remain relatively stable M&A/Integrations: ― 2011 was an active year: Uruguay, Chile & Brazil (closed); Colombia & China (pending) Puerto Rico & Thailand integrations were completed Still opportunistic, looking at selective acquisitions that are complementary to our footprint Focus will be on organic growth; good opportunities to leverage existing platform Global Wealth Management 2012 Outlook Scotiabank Chris Hodgson Group Head, Global Wealth Management 13#14Global Wealth Management: 2012 Outlook • Good organic growth across our diversified businesses Scotiabank • • • Strong sales momentum and higher AUM/AUA base will drive Wealth Achieved 6% organic AUM growth in 2011 - Continue to build global asset management capabilities on Dundee Wealth cornerstone DundeeWealth integration going well Increased cross-sell and investments in product and service will drive growth of insurance business • Continue to hold strategically important investment in Cl • Increased scrutiny on expense growth and new initiatives Capitalize on strong partnerships with Canadian Banking, International Banking and Scotia Capital Scotia Capital 2012 Outlook Scotiabank Steve McDonald Group Head, Global Corporate & Investment Banking & Co-CEO, Scotia Capital 14#1529 Scotia Capital: 2012 Outlook • • • . • Challenging markets are expected to continue in the near term, but diversification of businesses is mitigating negative impact Modest incremental growth in core businesses and products Execution of Global Wholesale Banking and other priority growth initiatives Cautiously optimistic on future loan growth Loan volumes increasing moderately since Q2/11 Margins will remain pressured by market conditions Quality of loan portfolio remains strong Loan loss provisions expected to remain modest Expenses are being closely managed Rick Waugh President & Chief Executive Officer Scotiabank 2012 Outlook Scotiabank 15#1631 32 2012 Outlook • • • • . Global prospects continue to be pressured by financial market volatility, however windows of opportunity available given our diversified footprint Moderate organic asset growth, together with the full-year impact of acquisitions, will drive growth in net interest income Margin expected to remain stable Expect increases in most Other Income categories Focus on expense control, while balancing select investments in new products and services Continue to have a leading productivity ratio Risk management continues to be a core competency and priority, especially in credit and market risk 2012 Targets Metric Target EPS Growth 5-10%¹ ROE 15-18% Productivity Ratio <58% Maintain Capital strong ratios (1) Excluding $286 million of acquisition related gains reported in Q2/11 Scotiabank Scotiabank 16#1734 Net Interest Margin 1.75% 1.75% 1.68% 1.67% 1.63% Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Appendix Scotiabank Scotiabank • Q4 margin impacted by Higher volumes of non-interest earning assets • Higher volumes of low spread deposits with banks 17#1835 Canadian Banking: Steady Performance Revenues (TEB) ($ millions) 1,568 1,577 1,573 397 390 364 1,171 1,187 1,209 Q4/10 Q3/11 Commercial Banking Retail & Small Business Q4/11 Scotiabank • Year-over-Year Retail & Small Business + Residential mortgage growth + Higher card revenue, reflecting customer acquisition and higher transaction based fees - Lower margin Commercial Banking - Shift in automotive portfolio mix to higher quality, lower yielding loans + Higher credit fees + Growth in SME market share Quarter-over-Quarter Retail & Small Business + Growth in fixed rate residential mortgages - Lower margin Commercial Banking - Shift in automotive portfolio mix to higher quality, lower yielding loans + Higher credit fees Canadian Banking: Volume Growth Scotiabank Q4/11 Q3/11 Q/Q Average Balances ($ billions) Q4/10 Y/Y 142.2 139.2 3.0 Residential Mortgages¹ 133.4 8.8 37.9 37.2 0.7 Personal Loans 36.6 1.3 8.9 8.8 0.1 Credit Cards² 9.0 (0.1) Business Loans & 25.8 25.6 0.2 24.1 1.7 Acceptances 101.2 100.6 0.6 Personal Deposits 98.6 2.6 42.6 41.4 1.2 Non-Personal Deposits 39.2 3.4 (1) Before securitization (2) Includes ScotiaLine VISA 18#1938 Canadian Banking: Market Share Market Share (%) Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Residential Mortgages¹ 20.5 20.5 20.5 20.3 20.3 Total Personal Lending¹ 18.3 18.2 18.1 18.1 18.1 Total Personal Deposits1 18.0 18.1 18.2 18.1 17.8 Small Business Lending² 15.8 16.0 16.0 15.3 16.2 (1) Market share statistics are issued on a one-month lag basis (Q4/11: September 2011) and are based on a comparison of the "Big-6" banks (2) Small Business statistics are on a four-months lag basis (Q4/11: June 2011) Sources: Personal Lending and Personal Deposits - Bank of Canada; Small Business Lending - CBA International Banking: Strong Performance Revenues (TEB) ($ millions) 1,442 1,339 1,294 287 263 307 463 488 461 692 543 571 • Q4/10 Q3/11 Q4/11 ■Mexico Caribbean & Central America Latin America & Asia • Mexico Year-over-Year Scotiabank Scotiabank + Underlying mortgage and commercial volume growth + Higher trading and transaction based revenues ⚫ Caribbean & Central America + Mortgage volume growth - Lower contribution from affiliated corporations • Latin America & Asia + Solid broad-based loan growth, particularly in Asia and Peru + Contribution of Uruguay acquisitions + Negative goodwill from recent acquisition Quarter-over-Quarter Mexico + Asset growth - Negative impact of foreign currency translation Caribbean & Central America + Retail and commercial loan and deposit growth Latin America & Asia + Strong organic retail and commercial loan growth + Contribution of Uruguay acquisition + Negative goodwill from recent acquisition 19#20Global Wealth Management: Growth in Challenging Markets Scotiabank 39 Revenues (TEB) ($ millions) Year-over-Year • Wealth Management 818 801 • 121 131 556 113 697 670 443 Q4/10 Q3/11 Q4/11 Insurance + Impact of DundeeWealth acquisition + Higher brokerage commissions and mutual fund fees Insurance + Strong insurance sales + Higher cross-sell Quarter-over-Quarter • Wealth Management - Decline in investment management, trust and mutual fund fees + Higher online brokerage revenue Insurance + Good growth in global insurance revenues Wealth Management Global Wealth Management: Key Metrics 40 Scotiabank ($ billions) Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Assets Under Administration 195 203 280 276 271 Assets Under Management Mutual Funds Market Share in Canada vs. Schedule 1 Banks1 54 56 107 105 103 9.2% 9.3% 18.7% 18.7% 18.4% (1) Excludes Scotiabank's investment in CI Financial. As of Q2/11, includes DundeeWealth. Source: IFIC 20 20#21Scotia Capital: Challenging Markets Scotiabank Revenues (TEB) ($ millions) 724 731 385 363 " 630 307 339 368 323 Year-over-Year Global Capital Markets - Lower revenue in fixed income, primarily in new issues, and lower performance in institutional equity + Stronger precious metals revenues Global Corp. and Investment Banking + Higher loan volumes, syndication and acceptance fees - Lower margin Q4/10 Q3/11 Q4/11 ■Global Capital Markets Global Corporate & Investment Banking Quarter-over-Quarter Global Capital Markets - Lower institutional equity revenues + Higher interest earned on trading assets + Higher revenues in energy, foreign exchange and precious metals Global Corp. and Investment Banking - Lower underwriting and advisory fees + Higher Scotia Waterous revenue Economic Outlook in Key Markets Scotiabank Real GDP (Annual % Change) 2000-10 Country 2011F 2012F 2013F Avg. Mexico 2.1 3.9 2.9 3.7 Peru 5.5 6.9 5.5 5.6 Chile 3.8 6.5 4.7 5.8 Jamaica 0.8 2.0 1.5 n/a Trinidad & Tobago 5.9 (1.5) 1.5 n/a Costa Rica 4.1 4.2 4.0 n/a Dominican Republic 5.4 4.8 5.2 n/a Thailand 4.4 2.8 3.5 4.5 2000-10 2011F 2012F 2013F Avg. Canada U.S. 2.2 2.3 1.8 2.4 1.8 1.8 1.8 2.2 42 Source: Scotia Economics, as of December 1, 2011 21 24#2243 44 Unrealized Securities Gains ($ millions) Q4/10 Q3/11 Q4/11 Emerging Market Debt 379 335 341 Other Debt 763 551 681 Equities 275 352 233 1,417 1,238 1,255 Net Fair Value of Derivative Instruments (228) (165) (227) Total 1,189 1,073 1,028 Stable PCL Ratios Scotiabank Scotiabank (Specific PCL as % of average loans & BAS) Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Canadian Banking Retail Commercial Total 0.31 0.29 0.28 0.22 0.22 0.56 0.51 0.36 0.65 0.45 0.34 0.32 0.29 0.27 0.25 International Banking Retail 2.02 1.76 1.94 1.84 1.98 Commercial (0.01) (0.03) (0.10) 0.04 0.20 Total 0.77 0.65 0.67 0.71 0.85 Scotia Capital Corporate Banking (0.11) (0.04) 0.15 0.12 0.19 All Bank 0.41 0.38 0.38 0.38 0.40 22#23Improving Trend in Net Impaired Loan Formations ($ millions) 1,200 1,000 45 Scotiabank 800 600 400 200 0 all ...... m Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Improving Trend in Gross Impaired Loans Scotiabank ($ billions) 6.0 - 2.0% 1.8% 5.0 1.6% 1.4% 4.0 1.2% 3.0 1.0% 0.8% 2.0 0.6% 0.4% 1.0 0.2% 0.0 0.0% Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 GILS ex. R-G GILs as % of Loans & BAs ex. R-G IR-G Premier Bank GILS as % of Loans & BAS 46 (1) Decline in R-G Premier Bank's GILs in Q4/10 reflects purchase price allocation that reduced carrying value to its estimated fair value 23 23#24Canadian Banking Retail: Loans and Provisions 143 23 Scotiabank (Balances at Q4/11, $ billions) Total = $188B; 92% secured 13 % secured Mortgages 100% 1 Lines of Credit 66% Personal Loans 97% Credit Cards 2 36% PCL Q4/11 Q3/11 Q4/11 $ millions 7 5 28 Q3/11 28 Q4/11 Q3/11 Q4/11 Q3/11 22 27 49 43 % of avg. 2 1 49 48 62 89 221 192 loans (bps) (1) Before securitizations of $19 billion & mortgages converted to MBS of $22 billion; 50% insured (including -$15 billion portfolio insurance); LTV in mid-50s for the uninsured portfolio (2) Includes $6 billion of Scotialine VISA 48 International Banking Retail: Loans and Provisions 13.5 0.8 Total Portfolio = $27B 76% secured 2.9 Scotiabank (Balances at Q4/11, $ billions) Credit Cards ($2B) Personal Loans ($8B) ■Mortgages ($17B) 4.8 9.8 4.6 0.9 <<0.1 <<<0.3 1.7 3.6 0.7 2.0 3.4 3.0 0.9 C&CA Mexico Chile Peru (Other) % of total 51% 17% 18% 14% PCL Q4/11 Q3/11 Q4/11 $ millions 47 33 32 Q3/11 41 Q4/11 Q3/11 Q4/11 Q3/11 14 12 36 28 % of avg. 143 106 264 326 114 101 385 355 loans (bps) 24 24#25International Commercial: Lending Portfolio Q4/11 = $40 billion Peru 13% 49 Other 9% Mexico 11% Chile 14% • Well secured Asia/Pacific -(10 countries) 28% Caribbean & Central America 25% Scotiabank . Portfolios in Asia/Pacific, Mexico, Chile, Peru and Central America performing well • Closely managing Caribbean hospitality portfolio Q4 2011 Trading Results Within One-Day VaR ($ millions) 50 15 10 250 5 0 (5) (10) (15) - Actual P&L -1-Day VaR Scotiabank my (20) Average 1-Day VaR Q4/11: $9.5MM Q3/11: $11.8MM Q4/10: $9.3MM 45 25#26Q4 2011 Trading Revenue Distribution (# days) 51 8 6 4 2- Scotiabank 0 (14) (12) (10) (8)(7)(6)(5)(4)(3)(2)(1) 0 1 2 3 4 5 6 7 8 9 101112131415161718192021 ($ millions) • 79% of days had positive results in Q4/11 26 26