#1Investor Presentation Scoti You're rek nk First Quarter, 2014 March 4, 2014 Scotiabank Caution Regarding Forward-Looking Statements 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 United States 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 include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2013 Annual Report under the headings "Overview - Outlook", for Group Financial Performance "Outlook", for each business segment "Outlook" and in other statements regarding 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 forwardlooking 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 financial performance, including uncertainties associated with critical accounting assumptions and estimates (see "Controls and Accounting Policies - Critical accounting estimates" in the Bank's 2013 Annual Report); the effect of applying future accounting changes (see "Controls and Accounting Policies - Future accounting developments" in the Bank's 2013 Annual Report); 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 r 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 "Risk Management" section starting on page 60 of the Bank's 2013 Annual Report. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2013 Annual Report under the headings "Overview - Outlook", and for each business segment "Outlook". These "Outlook" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. 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. 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. Scotiabank 1#2Overview Scoti nk Brian Porter President & Chief Executive Officer Scotiabank Q1 2014 Overview Good results to begin the year Net income of $1.7 billion, up 6.5% from last year - Diluted EPS up 6.5% to $1.32 - ROE: 15.4% Revenue growth of 9% from last year Capital position continues to be very strong Quarterly dividend increased by 2 cents or 3% to $0.64 per share Investments in stable LatAm economies are important to long-term growth 4 Scotiabank 2#3Strategic Priorities Canadian Banking International Banking Global Wealth & Insurance Global Banking & Markets • Deepen existing relationships within targeted customer segments Build on the strength of our expertise in payments • Leverage commercial banking platform to achieve greater market penetration •Extend ING Direct's "savings" value proposition to meet the banking needs of self-directed customers • Leverage expertise in key markets with a focus on becoming the primary bank to our customers ⚫ Optimize our operating model to maximize efficiency to best serve our customers ⚫ Make it easier for our customers to do business with us ⚫ Drive growth and scale in our priority regions of Latin America and Asia ⚫ Focus on acquiring and building loyal and profitable client relationships ⚫ Expand international capabilities in key wealth and insurance businesses Continue to build scale in global asset management ⚫ Drive growth in Global Transaction Banking through integrated cash management, payments and trade finance solutions • Strengthen customer relationships and product capabilities to enhance profitability Optimize our coverage model to drive cross-sell • Grow our business in regions that capitalize on the Bank's existing geographic footprint Financial Review Scoti You' Sean McGuckin Chief Financial Officer 5 Scotiabank Scotiabank 3#4Q1 2014 Financial Performance $ millions, except EPS Q1/14 Q/Q Y/Y Revenues $5,725 5% 9% Expenses $3,105 4% 10% Net Income $1,709 2% 6% Diluted EPS $1.32 2% 6% ROE 15.4% (40 bps) (140 bps). Productivity Ratio 54.2% Basel III CET1 Ratio 9.4% 20 bps 30 bps (30 bps) 120 bps Dividends Per Common Share +$0.02 +$0.02 +$0.03 $0.62 $0.62 $0.60 $0.60 $0.57 Highlights ■ Solid EPS growth Y/Y Canadian Banking & GWI had strong results, with more moderate performances from International Banking & GBM ■ Revenue growth of 9% Y/Y Higher core banking margin and asset growth Increased banking and wealth management fees Positive impact of FX Lower trading revenues offset by higher securities gains ■ Expenses up 10% Y/Y Excluding FX and acquisitions, expenses up 7% Higher costs to support business growth ■ Basel III CET1 ratio of 9.4% Good start to the year Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Announced dividend increase 7 Scotiabank Capital Basel III Common Equity Tier 1 (%) Highlights 8.2 8.6 8.9 9.1 9.4 Q1/14 internal capital generation of $860 million Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Risk-Weighted Assets ($B) 280 281 282 288 302 ■ Risk-weighted assets up $14 billion or 5% from previous quarter to $302 billion FX and underlying business growth Basel III CVA phase-in ■ Continuing to redeploy capital into our four business lines ■ DRIP discount eliminated effective for Q2 dividend Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Capital position remains strong 8 Scotiabank +#5Canadian Banking Net Income ($MM) 575 550 555 539 507 Q3/13 Q4/13 Q1/14 Net Interest Margin (%) Q1/13 Q2/13 Average Assets ($B) 267 273 274 276 277 2.02 2.02 2.05 2.06 2.07 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Highlights ■ Good quarter, net income up 7% Y/Y ■ Solid loan growth of 5% Y/Y Particularly strong growth in credit cards and consumer auto loans Reported growth suppressed by ING mortgage run-down ■ Good deposit growth of 5% Y/Y ■ Credit performance remains stable - Increase in PCLs due to modest shift in product mix ■NIM up 1 bp Q/Q ■ Positive operating leverage of 1.1% Y/Y Solid volume growth and positive operating leverage (1) Attributable to equity holders of the Bank International Banking 1 Net Income ($MM) Net one-time benefit in International Banking 9 Highlights Scotiabank 411 490 415 90 410 401 IHT 400 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Average Assets ($B) Net Interest Margin (%) ■ Stable quarter, net income down 2% Y/Y 137 122 122 126 4.18 4.24 4.14 " 115 3.90 3.93 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Strong double-digit loan growth of 17% Y/Y Broad-based growth in LatAm & Asia Very good deposit growth of 13% Y/Y ■ Credit performance remains stable PCL ratio unchanged at 87 bps Small rebound in NIM, up 3 bps Q/Q ■ Expenses up 11% Y/Y Negative FX impact Higher remuneration & inflation Strong asset growth offset by lower margins, higher expenses and PCLS (1) Attributable to equity holders of the Bank 10 Scotiabank 5#6Global Wealth & Insurance 1 Net Income ($MM) 327 " 310 310 285 302 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 AUM ($B) AUA ($B) 153 326 338 145 304 313 311 131 135 135 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 (1) Attributable to equity holders of the Bank 11 Highlights 1 Very good quarter, net income up 15% Y/Y Strong broad-based results Recent acquisitions Double-digit AUM & AUA growth Y/Y New client acquisitions Improved market conditions Acquisition of AFP Horizonte in Peru ■ Positive operating leverage of 0.4% Y/Y Global Banking & Markets 1 Net Income ($MM) 388 378 352 337 339 Very good results across all businesses Scotiabank Highlights ■ Net income down 13% Y/Y Continuing market challenges in certain capital market businesses & U.S. lending Higher investment banking fees Results stable Q/Q ■ Modest loan growth of 2% Y/Y ■ NIM up 4 bps Q/Q ■ Credit performance remains strong Expenses up 12% Y/Y Higher remuneration, technology and support costs Q1/13 Q2/13 Q3/13 Average Loans² ($B) Q4/13 Q1/14 Net Interest Margin³ (%) 2.46 39 40 40 2.36 2.39 39 38 2.10 2.14 - Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 (1) Attributable to equity holders of the Bank (2) Average Business & Government Loans & Acceptances (3) Global Corporate & Investment Banking only 12 Strong corporate & investment banking results partly offsetting weaker capital markets Scotiabank 60#7Other Segment 2 Net Income ($MM) (1) (2) Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 16 13 Highlights ■ Net income up Y/Y Higher revenues from asset/liability management Increased securities gains Higher taxes (37) (62) (77) Includes Group Treasury, smaller operating segments, and other corporate items which are not allocated to a business line. The results primarily reflect the net impact of asset/liability management activities. Attributable to equity holders of the Bank Risk Review Scoti You' Stephen Hart Chief Risk Officer 13 Scotiabank Scotiabank 7#8Credit Quality Credit fundamentals remain strong - - Modest increase in PCL ratio - up 3 bps Q/Q to 34 bps Loss rates in Canadian Banking up slightly from historical lows International Banking loss rates stable GBM credit performance exceptionally strong Increase in net formations of impaired loans to $408 million - Retail growth in Peru & Mexico Lower commercial recoveries in Colombia Market risk remains well-controlled - - Average 1-day All-Bank VaR: $19.8MM vs. $17.9MM in Q4/13 Two trading loss days in Q1/14 15 Provisions for Credit Losses Scotiabank ($ millions) Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Canadian Retail 108 106 103 106 118 Canadian Commercial 10 30 5 10 16 118 136 108 116 134 International Retail 171 180 177 170 187 International Commercial 15 14 17 37 32 186 194 194 207 219 Global Wealth & Insurance 1 1 1 Global Banking & Markets 5 12 11 (2) 3 Total 310 343 314 321 356 PCL ratio (bps) on impaired loans 32 35 31 31 34 Note: International Banking's total includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See page 28 of the 2013 Annual Report. 16 Scotiabank 00 8#9Canadian Residential Mortgage Portfolio ($ billions, as at January 31, 2014) 32 (1) (2) $94 $9 Total Portfolio: $189 billion Insured Uninsured 55% 45% Average LTV of uninsured mortgages is 57%¹ $85 $30 $29 $5 -$3 $16 $25 $26 -$1 $12 -$0 $8 $14 $12 -$0 $7 Ontario B.C. & Territories Alberta Quebec Atlantic Manitoba & Provinces Saskatchewan Condos $19B Freehold - $170B LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet and CREA data Some figures on bar chart may not add due to rounding Appendix Scoti You' 17 Scotiabank Scotiabank 9#10Core Banking Margin (TEB)¹ 2.29% 2.30% 2.33% 2.31% 2.35% Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 (1) Quarter-over-Quarter ■ Margin expansion in International Banking and Canadian Banking Lower interest cost in Other segment Higher volumes of DWBs Represents net interest income (TEB) as a % of average earning assets excluding bankers acceptances and total average assets relating to the Global Capital Markets business within Global Banking and Markets. 19 Scotiabank Canadian Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) Average loan & acceptances ($ billions) 5% Y/Y 7% 30 31 31 Y/Y 51 55 56 21 21 19 1,791 1,837 1,720 398 160 166 168 407 422 Q1/13 Q4/13 Residential mortgages Personal & credit cards Q1/14 ING mortgage run-off Business Average deposits ($ billions) 1,322 1,384 1,415 Q1/13 Q4/13 5% Y/Y 53 55 54 Q1/14 128 135 135 ■Commercial Banking ■Retail & Small Business 20 Q1/13 Personal Q4/13 ■Non-personal Q1/14 Scotiabank 10#11International Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) 6% Y/Y Average loan & acceptances ($ billions) 17% Y/Y 1,753 1,821 1,853 60 64 54 15 17 17 18 19 20 Q1/13 Q4/13 Q1/14 Residential mortgages Personal & credit cards Business Average deposits ($ billions) 13% Y/Y 43 38 41 Q1/13 Q4/13 Q1/14 22 23 24 Q1/13 Q4/13 Q1/14 Personal Non-personal 21 Scotiabank International Banking - Regional Growth Revenues (TEB) ($ millions) Average loan & acceptances ($ billions) 17% Y/Y 6% Y/Y 21 23 17 25 25 26 169 183 178 45 50 52 473 499 492 Q1/13 Q4/13 Q1/14 Latin America Caribbean & Central America Asia 1,083 1,179 1,171 Constant FX Volume growth Y/Y Retail Commercial Total Latin America 16% 10% 13% C&CA 2% -3% -1% Q1/13 Asia Q4/13 Q1/14 Asia N/A 28% 28% Caribbean & Central America Latin America Total 10% 13% 12% (1) Excludes bankers acceptances 22 Scotiabank 11#12Global Wealth & Insurance - Revenues & Volumes Revenues (TEB) ($ millions) 15% Mutual Fund Market Share in Canada (% vs. Schedule 1 Banks) 1 Y/Y 1,090 1,025 32.9% 946 178 164 18.4% 17.6% 15.7% 11.6% 162 3.9% RBC TD Scotia CIBC BMO National Bank Average deposits ($ billions) 861 912 784 14% Y/Y Q1/13 Q4/13 Wealth Management Insurance Q1/14 18 17 16 Q1/13 Q4/13 Q1/14 Scotiabank (1) Source: IFIC member firms as of December 2013. Excludes Scotiabank's investment in CI Financial and ING Direct. May not add due to rounding. 23 Global Banking & Markets - Revenues & Volumes Revenues (TEB) ($ millions) Average loan & acceptances ($ billions) 2% Y/Y -1% Y/Y 932 924 39 38 40 854 407 448 370 Q1/13 525 484 476 Q1/13 Q4/13 Q1/14 ■Global Corporate & Investment Banking Global Capital Markets 24 Q4/13 Business & Government Q1/14 All-Bank Trading Revenue (TEB, $ millions) 424 376 390 407 402 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Scotiabank 12#13Economic Outlook in Key Markets Real GDP (Annual % Change) 2000-12 Country 2013F 2014F 2015F Avg. Mexico 2.4 1.1 2.7 3.7 Peru 5.7 5.1 5.4 5.6 Chile 4.5 4.0 4.1 4.5 Colombia 4.2 4.1 4.5 4.5 Costa Rica 4.3 3.0 3.9 4.1 Dominican Republic 5.2 2.7 3.5 3.8 Thailand 4.2 2.8 3.5 4.5 2000-12 2013F 2014F 2015F Avg. Canada U.S. 2.2 2.0 2.2 2.5 1.9 1.9 2.8 3.0 Source: Scotia Economics, as of February 28, 2014 25 PCL Ratios Scotiabank (Total PCL as % of average loans & BAs) Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Canadian Banking Retail 0.18 0.18 0.17 0.17 0.19 Commercial 0.14 0.42 0.06 0.13 0.20 Total 0.18 0.21 0.16 0.17 0.19 International Banking Retail 2.12 2.15 2.06 1.93 2.08 Commercial 0.12 0.10 0.11 0.25 0.20 Total 0.87 0.87 0.84 0.87 0.87 Global Wealth & Insurance 0.04 0.10 0.05 Global Banking & Markets Corporate Banking 0.05 0.13 0.12 (0.02) 0.03 All Bank 0.32 0.35 0.31 0.31 0.34 Note: International Banking's total includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See page 28 of the 2013 Annual Report. 26 Scotiabank 13#14Net Formations of Impaired Loans¹ ($ millions) 477 408 500 394 400 372 353 349 315 293 295 300 ابلس Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q1/12 Q2/12 0 200 100 (1) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans related to the acquisition of R-G Premier Bank of Puerto Rico 1 Gross Impaired Loans¹ ($ billions) 27 Scotiabank 3.9 1.05% 3.8 1.00% 3.7 3.6 0.95% 3.5 3.4 0.90% 3.3 3.2 0.85% 3.1 3.0 0.80% Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 GILS Q2/13 Q3/13 Q4/13 Q1/14 -GILS as % of Loans & BAS (1) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans related to the acquisition of R-G Premier Bank of Puerto Rico 28 Scotiabank 14#15Canadian Banking Retail: Loans and Provisions $189 (Spot Balances at Q1/14, $ billions) Total Portfolio = $246 billion¹; 94% secured $31 $22 $4 % secured Mortgages 100% Lines of Credit 62% Personal Loans Credit Cards 98% 7% PCL Q1/14 Q4/13 Q1/14 Q4/13 Q1/14 Q4/13 Q1/14 Q4/13 $ millions 3 5 41 40 45 32 29 29 % of avg. loans (bps) 1 1 53 52 80 60 304 316 1) Includes ING DIRECT balances of $24 billion 29 International Retail Loans and Provisions (Spot Balances at Q1/14, $ billions) $14.3 $1.1 $2.9 Scotiabank Total Portfolio = $38.3 billion; 68% secured Credit Cards ($4.5B) ■Personal Loans ($10.9B) ■Mortgages ($22.4B) $7.1 $6.7 <<$0.6 $1.8 $2.1 $10.3 <<$0.2 $5.0 $4.7 $0.7 $1.9 $2.7 $4.7 $4.4 $1.4 $1.6 $1.4 C&CA Mexico Chile Peru Colombia¹ PCL Q1/14 Q4/13 Q1/14 Q4/13 Q1/14 Q4/13 Q1/14 Q4/13 Q1/14 Q4/13 $ millions 19 21 54 42 17 18 65 59 14 24 23 % of avg. 54 61 314 255 104 111 535 491 211 214 loans (bps) Note: Excludes non-material portfolios (1) Purchased portfolio recorded at fair value, which includes a discount for expected credit losses. The bank expects to see increased provisions as the purchased portfolio in Colombia rolls over and reaches a steady state. 30 Scotiabank 15#16International Banking Commercial Lending Portfolio Q1/14 = $64 billion Asia 36% (Average Balances) " Latin America 45% Portfolios in Latin America, Asia and Central America: Performing well Well secured Closely managing Caribbean portfolio Caribbean & Central America 20% " Strong pipeline growth Y/Y " Solid client growth in the mid-market segment 31 Scotiabank Q1 2014 Trading Results and One-Day Total VaR ($ millions) 20 15 10 5 0 (5) (10) (15) (20) བླླ ཐྭ བྷཱུ n 。  དྷྱ ཤྩ ཌྜྷྱ ཤྩ 8 Минимал -Actual P&L -1-Day Total VaR (25) (30) Average 1-Day Total VaR Q1/14: $19.8MM Q4/13: $17.9MM Q1/13: $17.4MM 32 Scotiabank 16#17Q1 2014 Trading Results and One-Day Total VaR 11 (# days) 10 9 8 7 6 5 4 3 2 1 0 (1) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 15 18 Two trading loss days in Q1/14 33 Scotiabank 17