#1Scotiabank Strategy in Action August 27, 2013 Investor Presentation Third Quarter, 2013 Scotiabank 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 2012 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 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 2012 Annual Report, as updated in this document); the effect of applying future accounting changes (see "Controls and Accounting Policies - Future accounting developments" in the Bank's 2012 Annual Report, as updated in this document); 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 "Risk Management" section starting on page 55 of the Bank's 2012 Annual Report. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2012 Annual Report under the headings "Overview - Outlook", as updated in this document; 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 www.sec.gov. Scotiabank#2Overview Rick Waugh Chief Executive Officer Scotiabank Q3 2013 Overview Solid Q3 results Net income: $1,768 million Diluted EPS: $1.37 vs. $1.69 in Q3/12 ➤ Excluding non-recurring items, $1.30 this quarter vs. $1.16 in Q3/12, an increase of 12% ROE: 17.0% Revenue growth of 12% from last year, excluding non-recurring items • Stable credit conditions reflected in lower loan loss ratio Capital strength continuing . Announced a quarterly dividend increase of two cents to $0.62 • Expect to meet 2013 full year targets Scotiabank#3Strong YTD Earnings and Revenue Growth Business Line Net Income Revenue Canadian Banking 18% 13% International Banking² 6% 12% Global Wealth Management 12% 14% Global Banking and Markets 5% 4% All Bank³ 16% 13% (1) Net income attributable to equity holders of the Bank (2) (3) Q3/13 excludes gain on sale of a subsidiary by an associated corporation in Thailand and two other non-recurring charges in International Banking. See page 7 of the Q3/13 Report to Shareholders. Excludes real estate gains in Q1 and Q3, 2012 as well as non-recurring items in Q3/13. Revenue on a taxable equivalent basis Scotiabank Financial Review Sean McGuckin Chief Financial Officer Scotiabank#4Diversification Contributing to Positive Results Q3/131 Q2/13 Q/Q Q3/12¹ Y/Y $1,678 $1,601 5% Net Income ($MM) $1,437 17% $1.30 $1.23 6% Diluted EPS $1.16 12% 16.1% 16.2% (10 bps) ROE 17.0% (90 bps) 53.4% 53.6% 20 bps (1) Productivity Ratio Q3/13 excludes the gain on sale of a subsidiary by an associated corporation in Thailand as well as a valuation adjustment and restructuring charge in International Banking. Q3/12 excludes the gain on sale of Scotia Plaza Year-over-Year Comparison 53.9% 50 bps Q3 earnings benefited from... Partly offset by... . Higher net interest income, particularly from ING . Higher operating expenses • Increased banking and wealth management fees • Lower trading revenue . Higher tax rate • Higher gains on investment securities Lower loan loss provisions Scotiabank • Gain on sale of non-strategic leasing business in Q3/12 Revenue Growth Across All Business Lines 5,589 Revenue (TEB) ($ millions) 5,602 5,304 2,668 2,517 2,290 2,572 2,787 2,934 Q3/12 Q2/13 Real estate gain Q3/13 Non-Interest Revenue (TEB) Net Interest Income (TEB) Scotiabank Year-over-Year flat (+12% excluding non-recurring items) Net interest income up 14% + Asset growth, particularly in Canadian mortgages + Diversified loan growth internationally + Stable margin Non-interest revenues down 12% + Excluding non-recurring items, 10% growth + Impact of acquisitions + Stronger wealth management revenues - Gain on sale of leasing business in Q3/12 - Lower trading revenues Quarter-over-Quarter +6% (+3% excluding non-recurring items) Net interest income up 5% + Asset growth, improved margin + Longer quarter Non-interest revenues up 6% + Longer quarter - Lower net gains on investment securities - Lower contribution from associated corporations (ex-gain)#5Solid Expense Control: Positive Operating Leverage Non-Interest Expenses ($ millions) 2,984 2,841 2,618 919 818 734 452 453 408 • • 1,476 1,571 1,612 Q3/12 Q2/13 Q3/13 Other Premises & technology Remuneration Scotiabank 9 10 Year-over-Year Expenses up 14% - Expenses up 11% excluding non-recurring items - Impact of acquisitions - Higher remuneration expenses - Increase in pension and benefit costs + Lower stock-based compensation Quarter-over-Quarter Expenses up 5% - Expenses up 2% excluding non-recurring items - Higher remuneration expenses due to longer quarter + Lower stock-based compensation Operating Leverage¹ Year-to-Date: +1.3% (1) Excluding 2012 real estate gains Strong and High Quality Capital Ratios Basel III Common Equity Tier 1 (%) 8.9 8.6 8.2 . 7.7 Q4/121 Q1/13 Q2/13 Q3/13 (1) Proforma adjusted for the ING DIRECT acquisition Scotiabank YTD internal capital generation of $2,524MM (vs. $2,832MM in 2012) ⚫ YTD stock issued under DRIP: $801MM (vs. $573MM in 2012) ⚫ Risk weighted assets up $1.6 billion from previous quarter to $282 billion ⚫ All-in Basel III capital ratios are strong and well above regulatory requirements#6Canadian Banking: Strong Quarter Net Income ($ millions) 1 590 547 520 اس Q3/12 Q2/13 Q3/13 (1) Attributable to equity holders of the Bank Scotiabank 11 12 • Year-over-Year Revenue up 11% + Excluding ING and gain on sale of leasing business in Q3/12, revenue up 6% + Strong organic asset and deposit growth PCLs down $10MM to $108MM Expenses up 13% - Excluding ING, expenses up 5% - Higher pension and volume related expenses Quarter-over-Quarter Revenue up 3% + Longer quarter + Solid asset growth PCLs down $28MM to $108MM Expenses up 3% - Longer quarter International Banking: Solid Quarter Net Income ($ millions) 1 494 419 392 Q3/12 Q2/13 Q3/13 (1) Attributable to equity holders of the Bank Scotiabank Year-over-Year Revenue up 18% + Excluding Thailand gain, revenue grew 7% + Solid loan growth, particularly in LatAm - Lower margin PCLs up $26MM to $194MM Expenses up 16% + Excluding noted non-recurring items, expenses up 9% - Impact of Credito Familiar acquisition + Remaining growth in line with inflation and business growth Quarter-over-Quarter Revenue up 8% - Excluding Thailand gain, revenue declined 2% - Lower gains on investment securities - Lower underlying contributions from associated corporations PCLs unchanged at $194MM Expenses up 6% + Underlying expenses down 1%#7Global Wealth Management: Good Quarter Net Income ($ millions) 326 327 278 Q3/12 Q2/13 Q3/13 (1) Attributable to equity holders of the Bank Year-over-Year Revenue up 18% + Higher mutual fund fees and brokerage revenues + Colfondos and AFP Horizonte acquisitions + Higher insurance revenues + Change in Dynamic funds administration fee + Higher contribution from Cl investment Expenses up 21% - Higher volume-related expenses - Colfondos and AFP Horizonte acquisitions - Change in Dynamic funds administration fee Quarter-over-Quarter Revenue up 3% + Higher mutual fund fees and brokerage revenues + Impact of AFP Horizonte acquisition - Lower insurance revenues Expenses up 4% - Lower legal recoveries and higher volume-related expenses - Impact of AFP Horizonte acquisition Scotiabank 13 14 Global Banking & Markets: Stable Performance Net Income ($ millions) 397 386 361 Q3/12 Q2/13 Q3/13 (1) Attributable to equity holders of the Bank • Year-over-Year Revenue up 1% + Higher credit and underwriting fees - Ongoing market challenges in fixed income and commodities PCLs down $4MM to $11MM Expenses up 5% - Higher salaries and benefits - Higher technology and support costs + Lower performance-related compensation Quarter-over-Quarter Revenue up 2% + Investment banking + Capital markets, mostly fixed income PCLs down $1MM to $11MM Expenses down modestly + Lower remuneration - Higher support costs. Scotiabank#8Other Segment' Net Income² ($ millions) 414 Year-over-Year • Net loss increased $508MM + Excluding the real estate gain in Q3/12, net loss declined $106 million + Higher gains on investment securities + Impact of asset / liability management activities + $74 million (after-tax) increase in collective allowance against performing loans in Q3/12 Quarter-over-Quarter Net loss decreased $25MM Q3/12 Q2/13 Q3/13 + Impact of asset / liability management activities (94) (119) Scotiabank 15 (1) Includes Group Treasury, smaller operating segments, and other corporate items which are not allocated to a business line. The results primarily reflect the impact of asset/liability management activities. (2) Attributable to equity holders of the Bank. Risk Review Rob Pitfield Chief Risk Officer Scotiabank#917 18 • Risks Continue to be Well-Managed Risk in credit portfolios remains well-managed - - - Overall credit quality continues to be strong Credit risk in Canadian residential real estate portfolio remains stable. Loss estimate for real estate portfolio impacted by Alberta flooding is not significant Retail provisions in International Banking in line with growth and product mix All-Bank PCL ratio declined to 31 basis points Net impaired loan formations up $152 million to $478 million this quarter Primarily driven by Colombia acquisition Market risk remains low and well-controlled Average 1-day all-bank VaR: $17.4MM vs. $16.8MM in Q2/13 Scotiabank Credit Provisions ($ millions) Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Canadian Retail 103 99 108 106 103 Canadian Commercial 15 33 10 30 5 118 132 118 136 108 International Retail 151 159 171 180 177 International Commercial 17 17 15 14 17 168 1761 1861 1941 1941 Global Wealth Management 1 2 1 1 1 Global Banking & Markets 15 11 5 12 11 Collective allowance on performing loans 100 Total 402 321 310 343 314 PCL ratio (bps) ex. collective allowance 34 36 32 35 31 PCL ratio (bps) on performing loans 46 36 32 35 31 Scotiabank (1) Includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with 1the maturity of the acquired portfolio. See Pg. 11 of the Third Quarter Report to Shareholders.#10Canadian Banking: Residential Mortgage Portfolio ($ billions, as at July 31, 2013) $95 $9 Total Portfolio: $189 billion Average LTV of Insured Uninsured 56% uninsured mortgages is 44% 56%¹ $86 $30 $28 $5 -$3 $16 $25 $25 -$1 $12 -$0 $8 $15 $12 -$0 $7 Ontario B.C. & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan Scotiabank 19 20 Freehold $170B Condos $19B (1) LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet and CREA data (2) Some figures on bar chart may not add due to rounding Risk Outlook Remains Stable • Asset quality remains high - Retail and commercial portfolios performing as expected Corporate portfolios continue to demonstrate strength Increase in provisions resulting from growth in portfolios and changes in product mix should start to moderate Canadian Retail provisions stable - International Retail provisions as expected - Corporate and Commercial provisions remain in good shape Scotiabank#1122 2013 Outlook Brian Porter President Scotiabank 2013 Outlook Canadian Banking Solid asset and deposit growth ■Growing footprint in automotive lending ■Margin remaining stable due to favorable changes in product mix, offset by competitive pricing ■Continued focus on deposits, payments and wealth management ■Commercial pipeline remains strong ■ING DIRECT transition progressing well; contribution in line with expectations ■Managing expenses remains a key priority Global Wealth Management Continue to benefit from business mix and geographic diversification ■Strong AUM/AUA base driving wealth management revenues ■Capitalizing on recent acquisitions ■Investing to drive high net worth market share Global Insurance outlook is good but moderating ■Solid growth in deposits in Global Transaction Banking Scotiabank International Banking ■Continue to leverage growth opportunities in high growth markets ■Expect high single to low double digit asset growth Good retail momentum in Latin America, but moderating ■Solid growth in commercial portfolio including strong deposits generation ■Margin pressure continues but expected to remain at current levels ■■Portfolios performing as expected and PCLs will increase in line with expectations ■Managing expenses in line with revenues is a priority Global Banking & Markets ■Continued good performance expected across our diversified business platform ■Economic uncertainty persists and will continue to impact client activity. This should be mitigated by our continued emphasis on diversification by business mix and focus on cross-sell to produce low volatility earnings growth ■Solid business pipeline should allow for continued good performance in the fourth quarter ■Moderate loan growth expected with stable margins. PCLs to remain modest#1224 Appendix Stable Core Banking Margin (TEB) 1 2.33% 2.35% 2.30% 2.31% 2.34% Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Scotiabank Quarter-over-Quarter Lower subordinated debenture costs and improved spreads in Canadian retail portfolios Lower margin in International Banking (1) 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. Scotiabank#13Canadian Banking: Strong Organic Asset Growth Revenues (TEB) ($ millions) Year-over-Year Retail & Small Business +18% + Solid asset growth 1,746 1,800 + Impact of ING 1,620 413 403 444 1,343 1,387 1,176 Q3/12 Q2/13 ■Commercial Banking Retail & Small Business Q3/13 + Higher margin (ex ING) Commercial Banking -7% - Gain on sale of non-strategic leasing business in Q3/12 - Lower margin + Good asset growth Quarter-over-Quarter Retail & Small Business +3% + Higher margin + Longer quarter + Modest asset growth Commercial Banking +2% + Longer quarter + Solid asset growth Scotiabank 25 26 Canadian Banking: Volume Growth Excluding Q3/13 Q2/13 Q/Q Average Balances ($ billions) Q3/12 Y/Y ING Y/Y 186 186 0% Residential Mortgages 150 24% 6% 53 53 Personal Loans and 52 3% 48 10% Credit Cards Business Loans & 31 30 2% 28 9% Acceptances 135 54 54 134 1% Personal Deposits 104 30% 53 2% Non-Personal Deposits 44 24% ៖ ៖ ៖ ៖ 9% 6% 2% 6% Scotiabank#1427 28 International Banking: Continued Revenue Growth Revenues (TEB) ($ millions) Year-over-Year + Strong retail and commercial volume growth + Higher retail and commercial banking fees 2,005 • Latin America +8% 1,848 364 1,692 219 165 485 503 475 1,052 1,144 1,138 Q3/12 Asia Q2/13 Q3/13 Caribbean & Central America Latin America Scotiabank - Lower contribution from associated corporations Caribbean & Central America +6% + Higher retail and commercial fees Asia +121% - Down 2% excluding Thailand gain - Margin compression + Strong trade finance loan growth Quarter-over-Quarter Latin America relatively flat + Higher retail and commercial banking fees - Lower securities gains ⚫ Caribbean & Central America +4% + Higher fee revenues ⚫ Asia +66% + Gain in Thailand + Strong trade finance loan growth - Foreign exchange gains in Q2/13 Global Wealth Mgmt: Improved Market Conditions Revenues (TEB) ($ millions) 1,014 1,049 161 886 142 172 Year-over-Year Wealth Management +19% + Higher mutual fund fees and brokerage revenues + Colfondos and AFP Horizonte acquisitions Insurance +13% + Higher global insurance revenues 888 842 744 Q3/12 Q2/13 Q3/13 Insurance Wealth Management Scotiabank • Quarter-over-Quarter Wealth Management +5% + Higher mutual fund and brokerage revenues + Prior quarter impact of writedown of investment securities + AFP Horizonte acquisition Insurance -7% - Less favourable reserve experience#15Global Wealth Management: Key Metrics ($ billions) Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Assets Under Administration¹ 272 283 304 313 311 Assets Under Management' 109 115 131 135 135 Mutual Funds Market Share in Canada vs. Schedule 1 Banks² 18.3% 18.3% 18.3% 18.1% 17.9% (1) Excludes Scotiabank's investment in CI Financial คล (2) Excludes Scotiabank's investment in CI Financial. Includes ING Scotiabank 29 30 Global Banking & Markets: Resilient Platform Revenues (TEB) ($ millions) 922 910 901 511 496 504 Year-over-Year Global Capital Markets -1% - Ongoing market challenges; lower precious metals and commodities revenues Global Corp. & Investment Banking +5% + Loan origination fees and loan growth + Higher credit fees 399 405 418 Q3/12 Q2/13 Q3/13 Global Capital Markets Global Corporate & Investment Banking Quarter-over-Quarter Global Capital Markets +2% + Higher commodities, fixed income and foreign exchange revenues - Lower equities and precious metals revenues Global Corp. & Investment Banking +3% + Higher underwriting and advisory revenues + Higher loan origination fees Scotiabank#1631 32 Economic Outlook in Key Markets Real GDP (Annual % Change) 2000-11 Country 2012 2013F 2014F Avg. Mexico 2.2 3.9 2.9 4.2 Peru 5.6 6.3 5.7 6.0 Chile 4.7 5.6 4.6 4.4 Colombia 4.2 4.0 4.2 4.7 Costa Rica 4.2 5.1 3.5 4.2 Dominican Republic 4.5 4.0 3.0 3.8 Thailand 4.0 6.5 4.5 4.2 2000-11 2012 2013F 2014F Avg. Canada 2.2 1.8 1.7 2.3 U.S. 1.8 2.2 1.5 2.6 Scotiabank Unrealized Securities Gains Source: Scotia Economics, as of August 1, 2013. ($ millions) Q3/13 Q2/13 Canadian and U.S. Sovereign Debt 76 166 Bonds of Designated Emerging Markets 36 65 Other Foreign Governement Debt 69 111 Other Debt 213 245 Common and Preferred Shares 638 675 1,032 1,262 Net Fair Value of Derivative Instruments (106) (188) and Other Hedge Amounts Total 926 1,074 Scotiabank#17PCL Ratios (Total PCL as % of average loans & BAs) Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Canadian Banking Retail 0.21 0.20 0.18 0.18 0.17 Commercial 0.22 0.46 0.14 0.42 0.06 Total 0.21 0.23 0.18 0.21 0.16 International Banking Retail 1.99 2.03 2.12 2.15 2.06 Commercial 0.13 0.13 0.12 0.10 0.11 Total 0.81 0.841 0.871 0.87 0.84 Global Wealth Management 0.09 0.08 0.04 0.10 0.05 Global Banking and Markets Corporate Banking 0.16 0.12 0.05 0.13 0.12 All Bank (ex. collective allowance 0.34 0.36 0.32 0.35 0.31 on performing loans) All Bank 0.46 0.36 0.32 0.35 0.31 Scotiabank 33 (1) Includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See Pg. 11 of the Third Quarter Report to Shareholders. Net Impaired Loan Formations ($ millions) 500 1 394 400 374 355 349 326 295 300 241 216 200 100 0 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Q1/13 Q2/13 478 Q3/13 (1) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans related to the acquisition of R-G Premier Bank of Puerto Rico Scotiabank 34#1835 Canadian Banking Retail: Loans and Provisions $189 (Spot Balances at Q3/13, $ billions) Total Portfolio = $243 billion; 94% secured $30 $21 $3 % secured Mortgages 100% Lines of Credit 1 63% Personal Loans 98% Credit Cards 7% PCL Q3/13 Q2/13 Q3/13 Q2/13 Q3/13 Q2/13 Q3/13 Q2/13 $ millions 8 5 38 40 34 40 23 23 % of avg. loans (bps) 2 1 49 53 70 90 259 269 1) Includes $6 billion of ScotiaLine VISA re-allocated from Credit Cards to Lines of Credit in Q2/13 Scotiabank Gross Impaired Loans ($ billions) 3.7 3.6 3.5 3.4 =4 3.3 3.2 3.1 3.0 Q2/11 Q3/11 Q4/11 Q1/12 Q3/12 Q4/12 I GILS Q1/13 1.15% 1.10% 1.05% 1.00% 0.95% 0.90% 0.85% 0.80% 2 Q2/13 Q3/13 -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 Scotiabank (2) Decline in ratio in Q1/13 primarily due to ING DIRECT acquisition 36#19International Retail Loans and Provisions (Spot Balances at Q3/13, $ billions) $14.1 Total Portfolio = $36.5 billion; 68% secured $1.1 $2.8 Credit Cards ($4.4B) Personal Loans ($10.5B) ■Mortgages ($21.1B) $6.5 $6.4 <0.6 < 0.2 $4.8 $10.2 $1.6 $2.2 $4.2 $0.8 $1.7 $2.6 $4.3 $4.0 $1.3 $1.4 $1.2 C&CA % of total 39% Mexico 18% Chile Peru Colombia 18% 13% 12% PCL Q3/13 Q2/13 Q3/13 Q2/13 Q3/13 Q2/13 Q3/13 Q2/13 Q3/13 Q2/13 $ millions 29 33 36 27 23 24 59 60 25 27 % of avg. 84 100 219 194 141 159 491 527 233 277 loans (bps) Scotiabank 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. 37 38 International Banking Commercial Lending Portfolio Q3/13 $58 billion (Average Balances) Asia 34% Latin America 45% Caribbean & Central America 21% Portfolios in Latin America, Asia and Central America: Performing well Well secured Closely managing Caribbean hospitality portfolio Scotiabank#2039 YTD International Loan Growth By Region¹ (Year-to-date, average balances using constant FX rates) 40 23% Retail Loans 19% 5% 11% 15% 6% 14% 9% 12% 4% Latin America Caribbean & Total Central America Commercial Loans 8% 2% 6% 1% Latin America 0% Caribbean & Central America Asia Total (1) Colpatria and Credito Familiar Calculated as average year-to-date balances as at July 31, 2012 vs. average year-to-date balances as at July 31, 2013. Asia retail loan growth has been excluded as these loans are predominately within Thanachart Bank, which is not consolidated Scotiabank Q3 2013 Trading Results and One-Day Total VaR ($ millions) 25 20 15 10 1250 50 0 (20) (25) NAGOG (5) (10) - (15) - Scotiabank -Actual P&L - 1-Day Total VaR Average 1-Day Total VaR Q3/13: $17.4MM Q2/13: $16.8MM Q3/12: $20.0MM#2141 Q3 2013 Trading Revenue Distribution (# days) 11 10 9 8 7 6 5 4 3 2 1 ........ 0 (2) (1) 1 2 3 4 5 6 7 8 9 10 ($ millions) 11 14 15 16 • Scotiabank 95% of days had positive results in Q3/13