#1760-64 TH STOCKS 17-28111111383288 19.5 20.50 +1303128-IC 453900 368825 Investor Presentation November 30, 1999 SOTERICA 850963549 RA ATIC Sefbdu RATUS 1972 Scotiabank#2453900 368825 Sefbdu 17-28111111383288 TH STOCKS 760-64 19.5 20.50 +1303128-IC Performance Review Sabi Marwah Executive Vice-President & Chief Financial Officer LERICA 8509635998 RATIC 2 2 RATUS 1972 Scotiabank#3D-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 Performance Highlights solid earnings growth ➤ EPS up 11% year-over-year ➤ strong contribution from business lines ➤ good top-line revenue growth • strengthened balance sheet ➤ higher capital ratios ➤ increased general provision 3 Scotiabank#4D-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 10 Years of Record Earnings millions 2000 1500 Net 1000 Income 500 0 90 92 94 & 97 exclude unusual items $ EPS = $2.93 3 2 1 0 94 96 98 99 4 Scotiabank#510-1360-64 ARD-7 17-208383208 WTH STOCKS 19.5-20.50 Good Top-Line Revenue Growth $ millions 1999 1998 change Q4/99 Q3/99 change 1,226 1,193 3% Net interest income (TEB) 4,835 4,506 7% 840 808 4% Other income* 3,128 2,833 10% 2,066 2,001 3% Total revenues 7,963 7,339 9% 1,196 1,196 870 805 8% Non-interest expenses* 4,716 4,446 6% Operating income (TEB) 3,247 2,893 12% * Excludes: real estate write-down: ($22MM, Q3/99); gain on sale of business ($25MM, 1998); special one-time gain ($77MM, Q1/99); net restructuring cost ($40MM, Q4/99) 5 Scotiabank#610-1360-64 WTH STOCKS 17-208 383208 19.5-20.50 Continued Productivity Leadership expenses as a % of revenues 65 Other Canadian Banks Scotia advantage 60 60 55 I Scotiabank 66.2* 59.3 1992 93 94 95 96 97 98 1999 6 * Q3/99 YTD Scotiabank#7D-1360-64 17-208 383208 WITH STOCKS 19.5-20.50 Capital Ratios Strengthened Significantly % of risk-adjusted assets 141 11.9 12 10.4 10.6 10 Total 8.9 8 8.1 Tier 1 7.2 6 6.7 6.9 4 5.5 5.8 6.0 6.9 Common 2 0 1996 1997 1998 1999 7 Scotiabank#817-208383208 WTH STOCKS D-1360-64 19.5-28.50 Higher General Provision & Securities Surplus 1.5 1 0.7B 0.5 $ billions 1.6B 0 Oct-98 Oct-99 General Provision as basis a % of RWA* points 100 91bp Securities Surplus 50 40bp General Provision 0 * Oct-98 Risk-weighted assets Oct-998 Scotiabank#917-208 383208 WTH STOCKS D-1360-64 19.5-20.50 Canadian Retail & Commercial - Steady Net Income, $ millions 800 600 400 200 • strong growth in assets • ➤ mortgages up 10% some margin pressure • broad-based fee growth • lower loan losses • market share gains 0 98 99* * includes net restructuring charge of $35MM pre-tax 9 Scotiabank#10D-1360-64 17-208383208 WTH STOCKS 19.5-20.50 Market Share Growth in 1999 20 % share 18 16 14 12- Residential Mortgages #5 Personal deposits 悲悲 10+ 1994 1995 1996 1997 1998 1999 10 Scotiabank#1110-1360-64 17-208 383208 TH STOCKS 19.5-20.50 - - International – Better Results in 1999 Net Income, $ millions 300 200 100 Asia & Latin America Caribbean very strong results in Caribbean • lower contribution from Latin America • Asia returned to 0 1998 1999 profitability 11 Scotiabank#1217-208383208 WTH STOCKS 10-1360-64 19.5-28.50 Highly Successful Caribbean Franchise net income, $ millions 200 CAGR = 24% 150 100 50 50 0 92 93 94 95 96 97 98 88 99 12 Scotiabank#13WTH STOCKS 17-208383208 D-1360-64 19.5-20.50 Corporate - Record Year 600 400 200 0 Net Income, $ millions 88 98 99 • good growth in interest profit solid increase in loans wider spreads • other income up 16% • higher credit losses improving ROE 13 Scotiabank#14D-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 Top Ten U.S. Presence Maintained Top Ten: seventh year in a row for syndicated loans 1 Chase Manhattan Corp 2 Bank of America 3 Citibank/Salomon Smith Barney 4 BANK ONE 5 J.P. Morgan & Co. 6 Deutsche Banc Alex. Brown 7 Bank of New York Source: Loan Pricing Corp, 8 Credit Suisse First Boston Nov. 15, 1999, Agent-only volume 9 First Union 10 Scotiabank 11 ABN AMRO Bank 12 Fleet Financial Group 14 Scotiabank#15WTH STOCKS 17-208383208 10-1360-64 19.5-20.50 - Investment Banking – Solid 1999 Results 400 Net Income, $ millions Scotia 300 Capital Markets 200 Group 100 00 Treasury • Scotia Capital Markets Global Trading: • record year for 5 of 7 areas • revenues up 27% • Group Treasury ➤ strong gains 0 98 99 90 15 Scotiabank#16WTH STOCKS 17-208383208 10-1360-64 19.5-28.50 Scotia Capital Markets - Improved Position Top-tier service quality* Research 1997 1999 #5 #2 #1 Inst. Sales #13 • Led largest IPO in Canadian history * Source: Brendan Woods 1999 Survey 16 Scotiabank#17D-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 Exceeded 1999 Targets ROE Actual Goals 15.3% VS. 14%+ EPS Growth 11% VS. 10%+ Productivity 59.3% VS. <60% Tier 1 8.1% VS. 7% 17 Scotiabank#18760-64 17-28111111383288 TH STOCKS 453900 368825 19.5 20.50 +1303128-IC Risk Review John Crean Senior Executive Vice-President Risk Management LERICA 850963599R RATIC 18 Sefbdu RATUS 1972 Scotiabank#1917-208383208 TH STOCKS 10-1360-64 19.5-20.50 Risk Management: Overview • Impaired loans: . decreases in Canada some formations in U.S. • Higher coverage ratios increased 1999 specific provisions by $50MM in Q4/99 ➤ general provision now at $1.3 billion = 0.9% of risk-weighted assets • Low trading risk 19 Scotiabank#20D-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 Gross Impaired Loans $ millions Q4/99 vs. Q3/99 Q4/98 Canada - Retail (43) (24) - Commercial (102) (138) Corporate 67 210 International 4 41 Total (74) 89 20 Scotiabank#2117-208383208 WTH STOCKS 10-1360-64 19.5-20.50 Improvement in Net Impaired Loans $ billions 2 1.5 1 0.5 1.5% % of loans & acceptances 2 1.5 0.7% 1 0.5% 0.3% 0.5 0 0 (0.1)% -0.5 -0.5 1995 1996 1997 1998 1999 21 Scotiabank#22# 10-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 Low Trading Risk net trading revenue, fiscal year 1999 days 40 30 5th percentile 95th percentile I 20 10 0 -4 3 -2 -101234 $ millions 56789 22 Scotiabank#23TH STOCKS 760-64 17-28111111383288 19.5 20.50 +1303128-IC 453900 368825 Sefbdu Focus for 2000 Peter Godsoe Chairman & Chief Executive Officer ERICA 50963549R ATIC 23 RATUS 1972 Scotiabank#2417-208383208 IH STOCKS D-1360-64 19.5-20.50 Retail & Commercial: Short-Term Plans • Focus on top-line revenue growth ➤ maximize revenue from acquisitions ➤ leverage Sales & Service initiatives ➤ focus on small & medium-size enterprises Develop Electronic Banking & E-Commerce wireless banking (pager, cell phone) ➤ e-Scotia.com & Microsoft alliance • Streamline operations, reduce costs "paperless" branch ➤ cost savings = $100 million+ 24 Scotiabank#2517-208383208 WTH STOCKS D-1360-64 19.5-20.50 Growing Wealth Management Building blocks: • A Leader in Personal Trust ➤ =20% market share • 3rd largest in Private Client Investment Mgmt. ➤ $16 billion+ in Assets under Management Large full-service brokerage sales force ➤ ~800 investment executives in 85 offices Strong branch distribution in Canada ➤ 8000+ licensed to sell mutual funds 25 Scotiabank#2617-208383208 WTH STOCKS D-1360-64 19.5-20.50 International: Build Profitability Caribbean ➤ build on dominant franchise Latin America ➤ Mexico - take ownership of Inverlat Argentina - reinvest in Scotiabank Quilmes ➤ ➤ Chile - assume majority control of Banco Sudamericano Asia ➤ leverage network 26 Scotiabank#2717-208383208 WTH STOCKS D-1360-64 19.5-20.50 Corporate & Investment Banking Canada reap benefits from "Scotia Capital" integration U.S.A. leverage top-10 presence ➤ disciplined underwriting Improve ROE ➤ higher syndication, cross-sell ➤ pricing discipline 27 Scotiabank#2810-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 Setting Higher Targets 1999 Next 3 years EPS Growth 10%+ ROE 14%+ 11 12-15% 16-18% 28 Scotiabank#2910-1360-64 17-208 383208 WTH STOCKS 19.5-20.50 This presentation includes forward-looking statements about objectives, strategies, and expected financial results. Such forward-looking statements are inherently subject to risks and 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. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements, and the reader is cautioned not to place undue reliance on such forward-looking statements. 29 Scotiabank#30453900 368825 Sefbdu 760-64 TH STOCKS 17-28111111383288 19.5 20.50 +1303128-IC Investor Presentation November 30, 1999 SOTERICA 50963549 R ATIC RATUS 1972 Scotiabank