#1Investor Presentation May 26, 1999 Scotiabank#2Performance highlights ⚫ net income up 11% year-over-year 5 good revenue growth Scotiabank • stable asset quality improved capital ratios & reserves 1#3Scotiabank Continuing record of earnings growth EPS, cents 90 60 38¢ 30 Q2/94 Q1/95 * CAGR=14% Q1/96 '94 & '97 excludes unusual items 2 73¢ Q1/97 Q1/98 Q299#4Scotiabank Exceeded 1999 targets to date Medium 1H 1999 1999 Goals Term Goals ROE 15.3% VS. 14%+ 16-18% EPS growth 11% VS. 10%+ 12-15% Productivity 59.7%* VS. <60% <60% Tier 1 7.8% VS. 7% 7.5%+ excluding special gain of $77 million in Q1/99 3#5Scotiabank Solid growth in core operating income $ millions Q2/99 Q2/98 % change Net interest income (TEB) 1,198 1,114 8% Other income (ex. sec. gains)* 713 692 3 % Total revenues 1,911 1,806 6% Salaries 576 567 2% Other non-interest expenses 612 578 6% Total non-interest expenses 1,188 1,145 4% Operating income (TEB) *Security gains 723 661 9% 37 106 (65)% 4#6Scotiabank Steady growth in core* revenues $ billions 2 1.8 1.6 1.4 Q2/97 Q4/97 Q2/98 Q4/98 Q2/99 *excludes security gains & gains on sale of businesses LO 5#7Scotiabank Productivity advantage expenses as a % of revenues (1997 = core) 65 60 5 other Canadian Banks BNS 67.5 (Q1/99) Scotia advantage 59.7 55 1992 93 =4 94 95 96 97 98 1H99 6#8Business Lines Scotiabank#9Scotiabank Domestic Retail & Commercial Net income, $ millions 150 good volume growth 100 50 0 Q2/97 Q2/98 Q2/99 7 ➤mortgages strong fee income continuing investment in technology#10Scotiabank Strong market share performance 20 % share 18 +NT Residential Mortgages 16 14 12 10 Personal deposits Q1/95 Q1/96 Q1/97 Q1/98 Q1/99 Q2/99 8#11Key Domestic initiatives • maximize synergies from National Trust • streamline operations, reduce costs cost savings = $100MM+ over next 18 months Scotiabank 6#12International - improving results 100 Net income, $ millions continuing solid results in the Caribbean 50 50 Scotiabank : 0 Q2/97 Q2/98 Q2/99 10 lower credit losses in Asia#13Scotiabank International focus implement BNS culture in affiliates ➤ cost control ➤risk management develop and implement common systems platforms carefully grow portfolio 11#14Scotiabank Corporate & Investment Bkg - strong performance Net income, $ millions 250 200 150 100 50 0 Q2/97 Q2/98 Q2/99 Corporate Investment 12 higher ROE wider credit spreads • solid quarter for Investment Banking#15Corporate & Investment Banking focus Canada integrating Corporate Banking and Scotia Capital Markets USA & Europe pricing and ROE discipline higher syndication, cross-sell • manage risk asset growth Scotiabank 13 13#16Risk Management Scotiabank#17Risk management summary specific credit losses for 1999 unchanged at $435mm steady net impaired loans Asia & Latin America portfolios stable 5 Scotiabank 14 14#18Steadily improving net impaired loans 2 1.5 1 0.5 Scotiabank 0 +4 94 95 95 net impaired loans as a % of loans & acceptances 96 96 15 0.2 97 98 Q2/99#19Scotiabank Emerging markets: small portfolio April 30, 1999 - US$ billions Latin % of total Asia America Total assets Total cross-border exposure 2.4 3.0 5.4 3.5 - less Trade 0.4 0.5 0.9 0.6 -less Bradys/Govt Securities 0.2 1.3 1.5 1.0 Remaining exposure 1.8 1.2 3.0 1.9% 16#20Scotiabank Low-risk portfolio in emerging markets excluding Trade & Bradys - loan exposure of US$3.0 billion, down 10% from Q1/99 ⚫ exposure mostly to joint ventures/ subsidiaries of multinationals and top local names • net impaired loans: ➤Asia: US$40 million ➤Latin America: nil 17#21Capital & Reserves Scotiabank#22Scotiabank Capital ratios: significant increase % 11.2 Total 10.6 10.3 9 7.8 Tier 1 7.2 6.8 5.8 6.1 6.7 Common 4 Q2/98 Q1/99 Q2/99 18#23Scotiabank Large decline in risk- adjusted assets $ billions 150 153 E Securitizations in Q2 153 151 143 $2.5b Res. Mtgs. 3.9 CLO 1.0 Credit Cards $7.4b Total 100 Q3/98 Q4/98 Q1/99 Q2/99 19#24Higher reserves $ billions 1.5 Scotiabank 1 0.5 1.0 0.7 1.4 0 Q4/98 Q1/99 Q2/99 20 20 Securities surplus LDC surplus General provision#25Scotiabank Focus - second half 1999 on track to meet 1999 targets ➤EPS ➤ROE • maintain focus on productivity ⚫ manage growth in risk assets continue to maintain strong capital ratios 21#26Scotiabank This presentation includes forward-looking statements about objectives, strategies, and expected financial results to assist investors and others in assessing The Bank of Nova Scotia's prospective financial condition and results. Such forward-looking statements are inherently subject to uncertainties beyond the Bank's control, including but not limited to economic and financial conditions globally, regulatory developments in Canada and elsewhere, technological developments, and competition. The reader is cautioned that the Bank's actual performance could differ materially from such forward-looking statements. 22#27Investor Presentation May 26, 1999 Scotiabank