#1Investor Presentation Scoti You're rek nk Third Quarter, 2014 August 26, 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 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 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 Q3 2014 Overview Another good quarter Net income of $2.4 billion, or $1.8 billion excluding gain - Diluted EPS of C$1.40, up 9% from last year, excluding gain - and non-recurring items Reported ROE: 20.6% Revenue growth of 9% from last year, excluding gain and non-recurring items Capital position is very strong at 10.9% Repurchased 2 million shares under NCIB Quarterly dividend increased by $0.02 to $0.66 per share 4 Scotiabank 2#3Strategic Priorities Transform retail and deepen relationships within targeted customer segments • Build on our expertise in payments and accelerate credit card growth Canadian Banking • Leverage commercial banking platform to achieve greater market penetration • Extend Tangerine's offerings to meet banking needs of self-directed customers Improve operational excellence and deliver sustained cost savings . 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 International Banking ⚫ Make it easier for our customers to do business with us Global Wealth & Insurance Global Banking & Markets ⚫ Drive growth and scale in our priority region of Latin America ⚫ 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#4Q3 2014 Financial Performance $ millions, except EPS Net Income 2 Q3/14 Q/Q Y/Y $1,796 0% +8% Diluted EPS 2 $1.40 +1% +9% Revenues 1,2 $5,932 +2% +9% Expenses 2 $3,140 +5% +7% Productivity Ratio 2 Basel III CET1 Ratio 52.9% 10.9% +130bps -90bps +110bps +200bps Dividends Per Common Share +$0.02 +$0.02 +$0.02 $0.64 $0.64 $0.62 $0.62 $0.60 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Announced dividend increase (1) Taxable equivalent basis (2) Adjusted for after-tax gain of $555 million in Q3/14 and after-tax net benefit of $90 million from non-recurring items in Q3/13 7 Highlights ■ EPS growth of 9% Y/Y2 Driven by good results across our businesses ■ Revenue growth of 9% Y/Y2 Strong asset growth A higher core banking margin, partly reflecting maturity of higher cost funding Higher underwriting, banking fees and securities gains Positive impact of FX ■ Expenses up 7% Y/Y² Higher volume related and stock-based expenses Higher across most operating expense categories to support planned growth initiatives Negative impact of FX translation Positive operating leverage of 2% YTD² ■ Basel III CET1 ratio of 10.9% Good results across our businesses Scotiabank - Capital very strong position Basel III Common Equity Tier 1 (CET 1) (%) 10.9 9.8 8.9 9.1 9.4 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 CET 1 Risk-Weighted Assets ($B) 308 302 300 282 288 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 $308 billion Growth in personal and business lending Impact from sale of Cl and carrying value of the remaining investment Partially offset by lower FX Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 8 Capital position very strong Scotiabank +#5Canadian Banking Net Income ($MM) 575 565 565 555 550 Q3/13 Q4/13 Q1/14 Q2/14 Average Assets ($B) 274 276 277 278 281 Q3/14 Highlights ■ Good quarter, net income up 3% Y/Y ▪ Loan growth of 3% Y/Y Double digit growth in personal loans and credit cards High single digit business loan growth Mortgage growth largely offset by the Tangerine mortgage run-off ■NIM stable Q/Q, but up 5 bps Y/Y ■ Higher PCLs due mainly to growth in Net Interest Margin (%) card and auto loans, lower commercial 2.05 2.06 2.07 2.10 2.10 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 provision reversals Expenses up 7% Y/Y Volume growth (particularly credit cards), Tangerine brand transition costs, stock- based compensation and business initiatives ■ Positive operating leverage of 1.3% YTD Margin expansion and positive operating leverage (1) Attributable to equity holders of the Bank International Banking 1 Net Income ($MM) 9 Highlights ■ Net income +3% Y/Y2 Scotiabank 490 - 90 410 401 416 410 Strong performances from Latin America and Asia regions 400 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Net after-tax non-recurring gain in IB Average Assets ($B) Net Interest Margin (%) 137 143 139 122 126 4.14 3.90 3.93 4.00 4.05 ■ Strong volume growth, loans up 11% Y/Y and deposits up 12% Y/Y ■NIM down 9 bps Y/Y, up 5 bps Q/Q ■ Lower securities gains Y/Y Higher PCLS Y/Y Lower acquisition benefits in Latin America Higher provisions in the Caribbean Expenses up 4% Y/Y2 Good expense control across all regions Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 (1) Attributable to equity holders of the Bank (2) Excluding non-recurring items 10 Strong asset growth, partly offset by lower margin and higher PCLs Scotiabank LO 5#6Global Wealth & Insurance Net Income ($MM) 846 534 310 302 327 345 312 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Net after-tax notable gain in GWI AUM ($B) AUA ($B) 145 153 159 165 362 365 311 326 338 135 Highlights Q3/14 reflects a net after-tax gain of $534 million related to Cl transaction Adjusting for Cl gain and lower contribution from CI, underlying earnings were up 6% Y/Y ■ Adjusted revenue growth of 10% Y/Y ■ 22% AUM & 17% AUA growth Y/Y Expenses up 13% Y/Y was mostly volume driven and performance based compensation Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 (1) Attributable to equity holders of the Bank Solid performance across all businesses 11 Scotiabank Global Banking & Markets 1 Net Income ($MM) 385 408 378 337 339 mil Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Average Loans² ($B) Net Interest Margin³ (%) Highlights ■ Net income up 8% Y/Y Record quarter in investment banking Strong results in equities Positive impact from FX ■ Loan growth of 6% Y/Y ■NIM down 4 bps Q/Q, 32 bps Y/Y, mainly from lower loan origination fees ■ Credit performance remains very strong 43 41 2.39 39 40 38 2.10 2.14 2.11 2.07 " Expenses up 12% Y/Y Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 (1) Attributable to equity holders of the Bank (2) Average Business & Government Loans & Acceptances (3) Global Corporate & Investment Banking only 12 Due mainly to higher stock-based and performance-related compensation, technology, salaries and support costs Record quarter in investment banking Scotiabank 60#7Other Segment 2 Net Income ($MM) (1) (2) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 31 16 13 72 Highlights ■ Net income up Y/Y - Higher revenues from asset/liability management Higher net gains on investment securities (37) 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 1 bps Q/Q to 37 bps Loss rate in Canadian Banking up slightly Q/Q International Banking loss rate was up Q/Q due to higher retail and commercial provisions in Latin America and the Caribbean and Central America GBM credit performance continues to be strong Decrease in net formations of impaired loans to $477 million - - Lower formations largely across all divisions Market risk remains well-controlled - Average 1-day all-bank VaR: $21.5MM vs. $18.1MM in Q2/14 One trading loss day in Q3/14 15 Scotiabank PCL Ratios (Total PCL as % of average loans & BAs) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Canadian Banking Retail 0.17 0.17 0.19 0.22 0.22 Commercial 0.06 0.13 0.20 0.16 0.18 Total 0.16 0.17 0.19 0.21 0.22 International Banking Retail 2.06 1.93 2.08 2.11 2.16 Commercial 0.11 0.25 0.20 0.21 0.23 Total 0.84 0.87 0.87 0.91 0.95 Global Wealth & Insurance 0.05 0.01 0.07 Global Banking & Markets Corporate Banking 0.12 (0.02) 0.03 0.05 0.01 All Bank 0.31 0.31 0.34 0.36 0.37 Note: International Banking's total includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See page 28 of the 2013 Annual Report. 16 Scotiabank 8#9Canadian Residential Mortgage Portfolio ($ billions, as at July 31, 2014) $94 $9 32 (1) (2) Total Portfolio: $189 billion Insured Uninsured 52% 48% Average LTV of uninsured mortgages is 55%¹ $84 $30 $5 $29 -$3 $16 $25 $26 -$1 $12 -$0 $8 $14 $12 -$0 $8 Ontario B.C. & Territories Alberta Quebec Atlantic Provinces Manitoba & Saskatchewan Condos $20B Freehold - $169B LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet and CREA datal Some figures on bar chart may not add due to rounding Appendix Scoti You' 17 Scotiabank Scotiabank 9#10Core Banking Margin (TEB)¹ 2.42% 2.41% 2.33% 2.35% 2.31% Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 (1) Year-over-Year Increase due mainly to improved margin in Canadian Banking and lower funding and liquidity costs as maturing high-rate debentures and deposits were replaced with funding at lower current rates Represents net interest income (TEB) as a % of average earning assets excluding bankers acceptances and total average assets relating to the Global Capital Markets business within Global Banking & Markets. 19 Scotiabank Canadian Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) Average loans & acceptances ($ billions) +3% Y/Y +7% 31 32 33 Y/Y 53 57 59 -23 19 17 1,883 1,826 1,759 164 168 169 435 430 396 1,363 1,396 1,448 Q3/13 Q2/14 ■Commercial Banking ■Retail & Small Business Q3/13 Business Q2/14 Q3/14 Personal & credit cards Tangerine mortgage run-off Residential mortgages Average deposits ($ billions) +3% Y/Y 49 50 53 Q3/14 135 135 136 20 Q3/13 Personal Q2/14 ■Non-personal Q3/14 Scotiabank 10#11International Banking - Revenue & Volume Growth Revenues (TEB) ($ millions) Average loans & acceptances ($ billions) +11% Y/Y +5% 18 18 Y/Y 16 21 21 1,891 19 1,874 1,800¹ 100 101 97 58 67 65 436 427 443 1,260 1,338 1,363 Q3/13 Q2/14 Q3/14 Business Residential mortgages Personal & credit cards Average deposits 2 ($ billions) 23 +12% Y/Y 25 25 25 25 Q3/13 Q2/14 Q3/14 47 39 44 Income from investments in associated corps Non-interest revenue Q3/13 Q2/14 Q3/14 Net interest income ■Non-personal Personal (1) Excluding non-recurring gain from associated company of $203 million before tax (2) Including deposits from banks 21 Scotiabank International Banking - Regional Growth Revenues (TEB) ($ millions) Average loans & acceptances ($ billions) +11% Y/Y +5% 24 22 Y/Y 20 27 26 25 174 185 1621 48 55 56 482 501 503 Q3/13 Q2/14 Q3/14 Latin America Caribbean & Central America Asia Constant FX Retail Commercial² Total 1,135 1,218 1,205 Loan Volumes Y/Y Latin America 14% 14% 14% C&CA 1% -8% -3% Q3/13 ■ Asia Latin America Q2/14 Q3/14 Asia N/A 8% 8% Caribbean & Central America Total 9% 8% 8% (1) Excluding non-recurring gain from associated company of $203 million before tax (2) Excludes bankers acceptances 22 Scotiabank 11#12Global Wealth & Insurance - Revenue & Volume Growth Revenues (TEB)¹ ($ millions) Mutual Fund Market Share in Canada² +10% Y/Y (% vs. Major Schedule 1 Banks) 1,068 1,049 32.9% 971 161 179 184 18.5% 17.4% 15.7% 11.7% 3.9% RBC TD Scotia CIBC BMO National Bank Spot AUM ($ billions) 870 884 810 Q3/13 Q2/14 Wealth Management +22% Y/Y Q3/14 159 165 135 Insurance (1) Adjusted for Cl gain and lower contribution from Cl for all periods. Q3/13 Q2/14 Q3/14 (2) Source: IFIC member firms as of June 2014. Excludes Scotiabank's investment in Cl Financial and Tangerine. May not add due to rounding. 23 Scotiabank Global Banking & Markets - Revenue & Volume Growth Revenues (TEB) ($ millions) Average loans & acceptances ($ billions) +6% Y/Y +11% Y/Y 1,010 978 43 909 39 41 467 526 407 Q3/13 502 511 484 Q3/13 Q2/14 Q3/14 ■Global Corporate & Investment Banking Global Capital Markets 24 Q2/14 Business & Government Q3/14 All-Bank Trading Revenue (TEB, $ millions) 390 407 402 425 347 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Scotiabank 12#13Economic Outlook in Key Markets Real GDP (Annual % Change) 2000-12 Country 2013 2014F 2015F Avg. Mexico 2.4 1.1 2.7 3.7 Peru 5.5 5.6 4.5 5.8 Chile 4.5 4.1 2.8 3.8 Colombia 4.2 4.7 5.0 5.0 Costa Rica 4.3 3.6 2.8 3.5 Dominican Republic 5.2 4.1 4.5 5.0 Thailand 4.2 2.9 2.0 4.0 2000-12 2013 2014F 2015F Avg. Canada U.S. 2.2 2.0 2.2 2.5 1.9 2.2 2.0 3.2 Source: Scotia Economics, as of July 31, 2014 25 Provisions for Credit Losses Scotiabank ($ millions) Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Canadian Retail 103 106 118 127 137 Canadian Commercial 5 10 16 13 14 108 116 134 140 151 International Retail 177 170 187 196 206 International Commercial 17 37 32 34 38 194 207 219 230 244 Global Wealth & Insurance 1 2 Global Banking & Markets 11 (2) 3 5 1 Total 314 321 356 375 398 PCL ratio (bps) - Total PCL as % of 31 31 34 36 37 average loans and BAS 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#14477 598 408 Net Formations of Impaired Loans¹ ($ millions) 600 295 477 500 394 400 372 349 315 الباس 0 Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 300 200 100 (1) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans related to the acquisition of R-G Premier Bank of Puerto Rico Gross Impaired Loans¹ ($ billions) 27 Scotiabank 4.0 1.05% 3.9 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% Q3/12 Q4/12 Q1/13 Q2/13 Q3/13 GILS Q4/13 Q1/14 Q2/14 Q3/14 -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 Q3/14, $ billions) Total Portfolio = $250 billion¹; 93% secured $31 $26 $4 % secured Mortgages 100% Lines of Credit 62% Personal Loans 99% Credit Cards 7% PCL Q3/14 Q2/14 Q3/14 Q2/14 Q3/14 Q2/14 Q3/14 $ millions 4 3 48 41 51 49 34 Q2/14 34 % of avg. 1 1 61 55 82 87 330 355 loans (bps) 1) Includes Tangerine balances of $21 billion 29 Scotiabank International Banking Retail: Loans and Provisions (Spot Balances at $14.4 Q3/14, $ billions) $1.1 $3.0 Total Portfolio¹ = $40.0 billion; 68% secured Credit Cards ($4.7B) ■Personal Loans ($11.5B) ■Mortgages ($23.3B) $7.6 $7.0 <<$0.7 $0.2 $1.8 $5.3 $2.3 $5.2 $10.3 $0.7 $2.0 $2.8 $5.1 $4.5 $1.6 $1.8 $1.6 C&CA Mexico Chile Peru Colombia² PCL Q3/14 Q2/14 Q3/14 Q2/14 Q3/14 Q2/14 Q3/14 Q2/14 Q3/14 Q2/14 $ millions 37 29 45 54 13 15 67 64 34 25 % of avg. 107 85 238 308 76 91 527 532 277 223 loans (bps) (1) Total Portfolio includes less-material portfolios (2) 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 Q3/14 = $65 billion (Average Balances) Asia 34% " Latin America 48% Portfolios in Latin America, Asia and Central America: Performing well Well secured Caribbean & Central America 18% " Continue to closely manage Caribbean portfolio " Strong pipeline growth Y/Y " Solid client growth in the mid-market segment 31 Scotiabank Q3 2014 Trading Results and One-Day Total VaR ($ millions) 30 1-Day Total VaR -Actual P&L 20 10 0 -10 -20 Average 1-Day Total VaR Q3/14: $21.5MM -30 Q2/14: $18.1MM Q3/13: $17.4MM 32 Scotiabank 16#17Q3 2014 Trading Results and One-Day Total VaR (# days) 1 16 14 12 112 10 8 6 4 2 0 -2 0 1 2 3 4 5 6 7 8 9 10 12 13 14 16 21 ($ millions) " One trading loss day in Q3/14 33 Scotiabank 17