#1TM ICC Cricket World Cup WEST INDIES 2007 Scotiabank® OFFICIAL SPONSOR Scotiabank Trinidad and Tobago Limited Investor Presentation 29 January 2007 Mello#2Opening Remarks Financials Sales and Service Scotia Life Efficiency Platform Human Resources Closing Remarks Questions AGENDA Richard P Young Adrian Lezama Earl Gill Robert Soverall Mahadeo Seebarath Martin De Gannes Richard P. Young ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Investor Presentation, 29 January 2007 Mello#3Driving sustained, profitable growth SA Sales & Service Complementary Business Efficiency Acquisitions Platform ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR People Investor Presentation, 29 January 2007 Mello#4FINANCIALS Am Close 3935 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Investor Presentation, 29 January 2007 Mello#52006 - A Record Year 2006 Results vs. 2005 ✓ EPS: 178.7¢ - up 38.7% ✓ ROE: 25.05% vs. 20.72% ✓ ROA : 3.70% vs. 3.16% ✓ Productivity: 41.93% vs. 45.55% Another Dividend Increase ✓ + 16.7 cents to 70 cents Strong Capital Ratio - 19.23% Other Achievements ✓ Loan Growth: $1.4B or 26% to $6.9B ✓1 : 2 bonus issue to shareholders ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR FINANCIALS Investor Presentation, 29 January 2007 Mello#6$ Million 320 280 240 200 160 120 80 40 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Consolidated Profit after Tax 9-Year CAGR * : 15.27% '97 '98 '99 '00 * Compounded Annual Growth Rate $315.1M 38.7% '01 '02 '03 '04 '05 '06 FINANCIALS Investor Presentation, 29 January 2007 Mello#7$ Billion Consolidated Assets 10- 9 Year CAGR 10.21% - 6 8 7 60 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR 5 4 3 2- 1 0 '97 '98 '99 '00 ཅ '01 '02 '03 03 FINANCIALS Investor Presentation, 29 January 2007 16.9% '04 '05 65 $9.2B '06 Mello#8$ Billion 40 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 Strong Loan Growth + 20.7% or $650.3M 0.0 00 Retail Loans ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR + 33% or $778.2M Commercial Loans ☐ '05 '06 FINANCIALS Investor Presentation, 29 January 2007 Mello#9Mortgages 35% Oct 31/05 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Group Credit Concentration Consumer 24% Energy / Petro / Finacial Serv 12% Mortgages 38% Construction Manuf 9% Oct 31/06 Transport/Distrib Trades 12% Consumer 25% Business/Pers Serv 8% FINANCIALS Investor Presentation, 29 January 2007 Energy / Petro / Finacial Serv 13% Construction/ Manuf 7% Transport/Distrib Trades 11% Business/Pers Serv 6% Mello#10$ Million 600 500 400 300 200 100 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Net Interest Income 9-Year CAGR - 12.14% 24.2% '97 '98 '99 '00 '01 '02 '03 '04 '05 50 FINANCIALS Investor Presentation, 29 January 2007 $520.5M '00 Mello#11$ Million 200 180- 160- 140- 120 100 Non Interest Revenue 9-Year CAGR - 10.83% 19.05% $193.9M 88822 80 60 40 20 0 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR FINANCIALS Investor Presentation, 29 January 2007 Mello#12Composition of Non Interest Revenue Oct. 31/05 Total NIR $162.9 MM Oct. 31/06 Total NIR $193.9 MM Comm & Corp fees 34.39% ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Foreign Exchange 29.04% Comm & Corp Retail Fees 36.57% fees 37.41% FINANCIALS Investor Presentation, 29 January 2007 Foreign Exchange 28.96% Retail Fees 33.63% Mello#13$ Million 350 300 250 200 150 100 50 50 Total Expenses before Loan Losses 9-Year CAGR - 9.57% '97 '98 '99 '00 00 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR 13.04% $300.0M '01 '02 '03 '04 '05 '06 FINANCIALS Investor Presentation, 29 January 2007 Mello#14Non performing loans as a % of Total Loans (excluding Provision for loan loss) 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 2.78% 2.53% 2.31% 1.69% 1.28% 1.09% 0.0% 2001 2002 2003 2004 2005 2006 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR FINANCIALS Investor Presentation, 29 January 2007 Mello#1545.0% 40.0% 35.0% 30.0% Provision for loan loss as a % of Non performing loans 25.0% 18.74% 20.0% 23.54% 28.05% 42.22% 41.28% 31.59% 15.0% 2001 2002 2003 2004 2005 2006 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR FINANCIALS Investor Presentation, 29 January 2007 Mello#16Times 300% 250% 200% 150% 100% 50% Productivity Ratios Staff Costs 72.26% Total 41.93% 0% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR TOTAL EXPS/TOTAL REV. STAFF COSTS/NIR FINANCIALS Investor Presentation, 29 January 2007 Mello#17100 90 80 Consistent Dividend Growth Bonus 70 4:7 60 60 Cents 50 50 40 40 30 20 20 10 10 9-Year CAGR: 14.72% 35 32 55 27 20 20 0 '97 '98 '99 99 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Bonus 1:2 70 31.3% 53 49 47 43 34 37 '00 '01 '02 '03 '04 '05 '06 90 FINANCIALS Investor Presentation, 29 January 2007 Mello#183.9% Performance Ratios Return on Assets 3.4% 3.16% 3.07% 2.92% 2.85% 2.9% 2.65% 3.70% 2.70% 2.64% 2.4% 2.44% 2.27% 2.30% 2.15% 1.9% 1.4% 2001 2002 2003 2004 2005 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR 2006 Scotiabank Industry Average FINANCIALS Investor Presentation, 29 January 2007 Mello#19Performance Ratios Return on Equity 40.0% 35.0% 30.0% 25.05% 25.0% 24.60% 22.75% 20.72% 24.70% 20.95% 21.54% 20.0% 18.71% 19.41% 19.30% 19.55% 15.70% 15.0% 2001 2002 2003 2004 2005 2006 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Scotiabank Industry Average FINANCIALS Investor Presentation, 29 January 2007 Mello#20200 180 160 140 120 Performance Ratios 100 102.3 80 86.667 80 60 60 40 40 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR 110.4 128.9 115.4 178.7 2001 2002 2003 2004 2005 2006 FINANCIALS Investor Presentation, 29 January 2007 Mello#21300% 250% 200% 150% Return to Shareholders Share price appreciation plus dividends received 5-year CAGR : 23.65% 100% 50% 0% 2001 2002 2003 2004 2005 2006 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR FINANCIALS Investor Presentation, 29 January 2007 Mello#22ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR SALES & SERVICE INTRODUCING SATURDAY BANKING OPEN FOR SAVINGS AND INVESTMENT ACCOUNTS Investor Presentation, 29 January 2007 Mello#23ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Our Vision To create, encourage and maintain a truly customer centric, relationship-focused, sales and service organization. SALES & SERVICE Investor Presentation, 29 January 2007 Mello#24ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Core Purpose To be the best at helping customers become financially better off by providing relevant solutions to their unique needs. SALES & SERVICE Investor Presentation, 29 January 2007 Mello#25✓ Sales & Service Continued reinforcement of discipline Customer Relationship Management Fundamentals of Coaching Excellence ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR SALES & SERVICE Investor Presentation, 29 January 2007 Mello#26ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Sales & Service Customer Connect Market Segmentation Retail Lending Centres Delivery Channels SALES & SERVICE Investor Presentation, 29 January 2007 Mello#27SCOTIALIFE TRINIDAD AND TOBAGO LIMITED ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Love like you've never been hurt Day Aming the man ball bad f The future will come whether you' and ornit. So don't put off planning Chwil Sing like nobody's listening Enjoy towing that for writes wall to find The Batum will come whether you pared or not. So don't put off plancing or The time ScotiaLife d ve kaugh ve love lough Investor Presentation, 29 January 2007 Scotia Life Mello#28Rationale ✓Develop 'bancassurance/ financial' solutions for customers ✓ Enhance value to customer and build brand ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR SCOTIALIFE Investor Presentation, 29 January 2007 Mello#29Fully Integrated Bancassurance Model ✓ Member of Scotia Insurance – the insurance arm of the Scotiabank Group - ✓ Sales are conducted via the bank's distribution network ✓ State-licensed and trained staff ✓ Customer Relationship Management ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR SCOTIALIFE Investor Presentation, 29 January 2007 Mello#30Product Offerings ✓ Two product offerings -Universal life - blend of savings and insurance -Deferred annuity ✓ Group Creditor Life insurance launched in Q3 2006 ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR SCOTIALIFE Investor Presentation, 29 January 2007 Mello#31Performance ✓ Exceeded business case profit projection ✓ Profitable in first fiscal year ✓ Modest but growing profit in second and third fiscal years ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR SCOTIALIFE Investor Presentation, 29 January 2007 Mello#32Going forward ✓ Introduce more products into portfolio to diversify sources of income ✓ Explore alternate delivery channels e.g direct marketing ✓ Continue to build brand awareness ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR SCOTIALIFE Investor Presentation, 29 January 2007 Mello#33ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR EFFICIENCY PLATFORM Investor Presentation, 29 January 2007 Mello#34Overview - Shared Services Concept ✓ Distinct business units (Centres of Excellence) to undertake support/administrative functions that are critical to the overall success of the business. About enabling business units to focus on their key processes thereby enhancing customer and employee experiences. ✓ Provides common management of important support functions/services, increases operational efficiencies and provides more consistent application of controls. ✓ Comprises of two arms - transactional processing and consultative support. ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR EFFICIENCY PLATFORM Investor Presentation, 29 January 2007 Mello#35Initiatives Undertaken ✓Transactional Processing - Centralized Retail Collections Unit - Processing Support Centre/ Cash Processing Unit - Centralized Retail Administrative Clerk ✓ Consultative Support Operational Support Services ✓ Expansion of the model to Guyana and Eastern Caribbean Countries ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR EFFICIENCY PLATFORM Investor Presentation, 29 January 2007 Mello#36Platform Consolidation - What is it? ✓Consolidation of processing into one primary and backup data centre using a consolidated, state of the art, high availability and robust processing platform in Toronto ✓ Allows enhancement of our products and services by delivering new technology and services more quickly to customers ✓Improves capabilities to manage system changes and ensure system availability and reliability standards ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR EFFICIENCY PLATFORM Investor Presentation, 29 January 2007 Mello#37Platform Consolidation Benefits - ✓Improved disaster backup and recovery capabilities ✓ Enhanced network infrastructure thereby increasing branch and system availability ✓ Provision of more robust host infrastructure ✓ Reduced operational cost ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR EFFICIENCY PLATFORM Investor Presentation, 29 January 2007 Mello#38HUMAN RESOURCES ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR Investor Presentation, 29 January 2007 Mello#39Employee Development Strategy ✔Training Workshops ✓ Educational Programmes ✓“Trainee” Programmes ✓ Fundamentals of Coaching Excellence ✓ E-Learning technology ✓ Women's Network ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR HUMAN RESOURCES Investor Presentation, 29 January 2007 Mello#40Employee Relations Strategy ✓Town Hall Meetings ✔Feedback/Satisfaction/Service Surveys ✓Continuous Communication & Morale-Building Strategies ✓ Employee Action Teams ✓ Annual Compensation Review ✓ Women in International (WIN) ✓ Other -Alternative work arrangements -Scotia Care EMPLOYER OF CHOICE ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR HUMAN RESOURCES Investor Presentation, 29 January 2007 Mello#41Total Compensation Programme ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR $ PAY Benefits Learning and Development Work Environment HUMAN RESOURCES Investor Presentation, 29 January 2007 Mello#42Our Leadership Goal To make leadership a competitive advantage for Scotiabank ✓Identifying potential leaders early in their careers and developing them for the long term ✓ Fundamentals of Coaching Excellence ✔Mentoring Tools ✓ International Opportunities for locals ✓ Successors for key positions ICC Cricket World Cup WEST INDIES 2007 Scotiabank OFFICIAL SPONSOR HUMAN RESOURCES Investor Presentation, 29 January 2007 Mello#43TM ICC Cricket World Cup WEST INDIES 2007 Scotiabank® OFFICIAL SPONSOR Scotiabank Trinidad and Tobago Limited Investor Presentation 29 January 2007 Mello#44TM ICC Cricket World Cup WEST INDIES 2007 Scotiabank® OFFICIAL SPONSOR Scotiabank Trinidad and Tobago Limited Investor Presentation 29 January 2007 QUESTIONS? 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