#1Scoti You're rick nk 03:31:41PM 2222 $10000 9210 2726 4000 11.20 18000 APVE TO 30000 10000 25000 Investor Presentation September 2014 Scotiabank#2Scotiabank - Canada's Most International Bank As at Q3, 2014 (C$) Canadian Scotiabank 1 Peer Rank Total Assets $792B 3rd Market Capitalization $87B 3rd Q3/14 Net Income 2 $1.8B 3rd ROE 20.6% 2nd Productivity Ratio 2,3 52.9% 3rd 4 Capital Ratio 10.9% 1st Geographic Footprint >55 countries 86,949 Full range of services in retail, commercial, corporate or trade finance products Selective services in retail, commercial, corporate and investment banking or capital markets businesses # of Employees Scotiabank Credit Ratings 5 Senior Rating Moody's Aa2 Fitch DBRS S&P AA- AA A+ Outlook Negative Stable Stable Negative (1) Canadian Peers include BMO, CIBC, RBC, and TD (2) Excludes notable Cl gain in Q3/14 (3) Taxable Equivalent Basis (4) Basel III "all-in" Common Equity Tier 1 Ratio (5) A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revisions or withdrawals at any time 2#3Sustainable and Profitable Revenue Growth Revenues ($ billions, TEB) CAGR = 12% 9% • Strategic Priorities - Increasing customer focus Enhancing leadership depth, diversity and deployment Organizing to better serve our customers and reduce structural costs 21.4 19.1 17.6 17.5 15.8 16.0 14.7 12.3 Areas of Growth - T T 2008 2009 2010 2011 2012 2013 2 1 2013 YTD 2 2014 YTD - 3 Note: Reflects adoption of IFRS as of fiscal 2011 and IFRS changes effective November 1, 2013 (1) Excludes real estate gains in 2012 (2) Excludes gain on sale of a subsidiary by an associated corporation in Thailand (3) Excludes notable Cl gain in Q3/14 Latin America and Asia Global offering in wealth management Insurance Deposits and payments 3#4Diversified and Growing Businesses Strong Canadian Base Target: 50/50 International 43% 57% Canada Presence in High Growth Markets Focus on Lower Risk P&C Target: 70/30 Caribbean & Central America Latin America Wholesale 28% 72% Asia Diversification creates stability and lowers risk All figures based on YTD Q3, 2014 net income (excludes notable Cl gain in Q3/14) Personal & Commercial#5CANADIAN BANKING Strong Core Canadian Base • Highlights: Contributed 34% of YTD Q3/14 consolidated net income As at Q3 2014 Total Assets (avg.) Total Deposits (avg.) In C $ $281B $188B 1 Q3/14 Net Income $565MM • Double digit growth in personal loans and credit cards Productivity Ratio Branches # of Employees Total Revenue (YTD2014) 1,038 19,899 51.4% Strategic Priorities: • • • Transform retail and deepen relationships within targeted customer segments Build on our expertise in payments and accelerate credit card growth Leverage commercial banking platform to achieve greater market penetration Retail & Small Business Banking C$ millions • Extend Tangerine's offerings to meet banking needs of self-directed customers • Improve operational excellence and deliver sustained cost savings 77% 23% Commercial Banking Net Income¹ $2,151 $1,798 $1,705 CAGR 20% (1) Attributable to equity holders 2012 2013 YTD 2014 5#6Canadian Residential Real Estate Portfolio Uninsured LTV 55% 48% 52% Insured . • Total portfolio: $189B at Q3/14 . $20B $169B Freehold Condominium ● Market features Conservative product offerings; fixed and variable, usually 5 years or less Mandatory insurance on LTV >80%, paid upfront by borrower, coverage for life of mortgage Max 25 year amortization on LTV >80%, max 30 years on uninsured Mortgage interest not tax deductible In most provinces, full lender recourse to borrower and property CMHC insurance not available on homes >$1 million, requiring down payment of at least 20% Banks use "originate and hold" model External broker channel accounts for ~40% of Scotiabank mortgage originations $847 million outstanding to Canadian condo developers as at Q3/14 $19 billion in HELOCS, primarily uninsured#7INTERNATIONAL BANKING Unmatched Presence in Higher Growth Markets Highlights: • Contributed 24% of YTD Q3/14 consolidated net income Strong performances from Latin America and Asia regions Strategic Priorities: • . 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 highest priority markets of Mexico, Peru, Colombia and Chile As at Q3 2014 Total Assets (avg.) Total Deposits (avg.) Q3/14 Net Income 1 Productivity Ratio Branches² 2 # of Employees² Total Revenue (YTD2014) In C $ $139B $69B $410MM 56.3% 1,954 47,022 Asia 3 Latin America 10% 64% 26% Caribbean & Central America C$ millions Net Income¹ $1,726 $1,558 CAGR 11% $1,227 (1) Attributable to equity holders (2) Excludes affiliates (3) Includes Mexico 7 2012 2013 YTD 2014#8Higher Growth Markets Canada / U.S. 2014 Real GDP Growth Forecast Scotiabank's Key International Markets 2.7% 2.8% 2.2% 2.0% 2.0% 5.0% 4.5% Canada U.S. Thailand Mexico Chile Peru Colombia No Significant Exposure to the BRICS Source: Scotia Economics, as of July 31, 2014.#9Broad Diversification in International Banking International Banking Geographic Revenue Split 2003 2013 Caribbean & Other Latin America & Asia Caribbean & Central America Latin America (excl. Mexico) Central 19% America 27% 42% 42% 39% 11% Asia¹ 20% Mexico (1) Mexico Diversification Geographically = Lower Risk Excludes a $150MM gain related to the sale of a subsidiary by an associated corporation in Thailand in Q3/13 9#10GLOBAL WEALTH & INSURANCE Significant Growth in Wealth and Insurance Highlights: • • Contributed 19% of YTD Q3/14 consolidated net income The quarter reflected notable Cl gain of $534MM after tax Strategic Priorities: Focus on acquiring and building loyal and profitable client relationships Expand international capabilities in key wealth and insurance businesses As at Q3 2014 AUM AUA In C$ $165B $365B Q3/14 Net Income 1,2 $312MM Productivity Ratio² 63.5% 7,546 # of Employees Total Revenue² (YTD2014) Wealth Management 84% 16% Insurance • Continue to build scale in global asset management Drive growth in Global Transaction Banking C$ millions through integrated cash management, $1,095 payments and trade finance solutions. Net Income 1,2 $1,207 CAGR 10% $984 (1) Attributable to equity holders 2012 2013 YTD 2014 (2) Excludes notable Cl gain of $534MM after-tax in Q3/14 10#11• GLOBAL BANKING & MARKETS Niche Focus in Select Products, Geographies and Industries Highlights: Contributed 22% of YTD Q3/14 consolidated net income • Record quarter in investment banking, $286B As at Q3 2014 Total Assets (avg.) In C$ Total Deposits (avg.) Q3/14 Net Income¹ Productivity Ratio $49B $408MM 43.6% 2,049 # of Employees Total Revenue (YTD 2014) strong results in equities Strategic Priorities: • Strengthen customer relationships and product capabilities to enhance profitability Optimize our coverage model to drive cross- sell Grow our business in regions that capitalize on the Bank's existing geographic footprint Global Corporate & Investment Banking C$ millions Global Capital 49% 51% Markets Net Income $1,443 $1,455 $1,132 CAGR 1% (1) Attributable to equity holders 2012 2013 YTD 2014 11#12Strong Cost and Risk Culture Productivity Ratio (%) bps 75% 90 80 70% 70 65% 60 Provisions for Credit Losses as % of Average Loans & BAs 60% 55% 50% 40 IN WO 30 20 50 10 45% 0 2009 2010 2011 2012 2013 2014 2009 2010 2011 2012 2013 2014 YTD YTD Scotiabank 4 Canadian bank peers 12#13Capital - very strong position Basel III Common Equity Tier 1 (CET 1) (%) 10.9 9.8 8.9 9.1 9.4 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 CET 1 Risk-Weighted Assets ($B) 302 300 308 282 288 II Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Highlights ■ Cl transaction added 116 bps to CET 1 - - Q3/14 internal capital generation of $900 million Repurchased 2 million shares under NCIB Risk-weighted assets up $8 billion from previous quarter to $308 billion Growth in personal and business lending Impact from sale of CI and carrying value of the remaining investment Partially offset by lower FX Capital position very strong 13#14Leadership is a Competitive Advantage ■ Executive Management Team - - 23 member Executive Management Team led by President & CEO, Brian J. Porter Highly experienced: average Scotiabank tenure of 24 years and average industry experience of 30 years 4 Group Heads lead the Bank's four business lines 16 Executive Vice Presidents - Women represent 35% of the Executive Management Team population ■ Global Talent Pool - - Global business platform provides broad spectrum of talent and opportunities within the organization Approximately 1,400 high potential employees globally at the Director and above level, 32% of whom are women - strong talent pipeline Ongoing commitment to developing customer-focused leaders Significant investment in leadership development at all levels 14#15Solid Track Record of Earnings and Dividend Growth Earnings Per Share $2.34 03 CAGR = 8% In 04 05 06 07 08 80 Note: Reflects adoption of IFRS in Fiscal 2011 Dividend Per Share $0.84 $5.10 $4.16 09 10 11 121 132 YTD 14³ CAGR = 11% 08 80 III $2.39 $1.90 03 04 05 06 07 09 10 11 12 13 YTD '14 (1) Excluding 2012 real estate gains of $0.61 per share. (2) Adjusting for net benefit in Q3/13 of $0.07 per share due to non-recurring items in International Banking (3) Excludes notable Cl gain of $0.45 per share in Q3/14 15#16ROE Compares Favourably to Canadian Peers 5-Year Average Return on Equity (Fiscal 2009 - 2013) 18.7% 18.1% 15.8% 14.1% 12.8% CIBC Scotiabank RBC BMO TD Note: 2009 and 2010 ROE based on CGAAP. Following years under IFRS. 16#17Superior Long-Term Total Shareholder Returns 25-Year Total Shareholder Returns 16.0% 15.1% 14.1% 13.5% 12.1% Scotiabank RBC BMO TD CIBC (1) Compound annual growth rate for a stock, which includes share price appreciation and re-invested dividends. Calculated in Canadian dollars. Source: Bloomberg, as at July 31, 2014. 17 1#18Double-Digit Total Shareholder Returns 32.7% 1 17.2% 16.0% 14.4% 14.9% 11.5% 1 -Year 5-Years 10-Years 15-Years 20-Years 25-Years (1) Compound annual growth rate for a stock, which includes share price appreciation and re-invested dividends. Calculated in Canadian dollars. Source: Bloomberg, as at July 31, 2014. 18#19Medium-Term Financial Objectives Metric Objective EPS Growth 5-10% ROE 15-18% Operating Leverage Positive Capital 19 Maintain strong ratios#20Why Invest in Scotiabank? ◉ A unique, straightforward and successful bank model - Diversified and growing businesses; each provides sustainable and profitable revenue growth Track record of delivering consistent earnings and dividend growth Execution capabilities Well positioned for growth Above average returns, with below average risk 20 20#21Caution 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 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 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 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 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. 21#22Notes 22#23Investor Relations Contact Information Peter Slan Senior Vice President Steve Hung Director 416-933-1273 [email protected] 416-933-8774 [email protected] Charles Lee Director 416-866-5793 [email protected] For further information please visit: www.scotiabank.com/investorrelations 23