Scotiabank Q2 Financial Results

Scotiabank Credit losses Q2/06 Items of note EPS Impact (cents) Change Change Qtr/Qtr Year/Year 3 Lower tax rate 3 4 Stock-based compensation 2 Securities gains 1 (2) Trading (5) 2 Foreign currency translation (1) (5) Shorter quarter (3) (1) Other Growth 5 9 ▪ Lower tax rate: due mainly to higher earnings in lower tax jurisdictions Trading: revenues decreased from record levels in Q1/06 ■Forex Translation: foreign currency earnings reduced by stronger Canadian $ Change 5 cents 8 cents 9 Scotiabank Broad-based revenue growth year over year $ millions, TEB Net interest income: up 6% yr/yr ☐ 2,830 2,830 12% average asset growth 2,688 1,605 1,644 1,552 1,136 1,225 1,186 Q2/05 Q1/06 Q2/06 ■ Net interest margin down 10 bps Other income: up $50 mm, 4% yr/yr ■ Higher wealth mgmt revenues: $32 mm ■ Higher card and activity-based banking revenues: $30 mm ■ Strong trading results: $32 mm ■Lower securities gains: ($26) mm, Shinsei: $48 mm vs $118 mm in Q2/05 ■Lower securitization revenues due to narrowed spreads: ($12) mm ☐ Net Interest Income (TEB) Other Income 10

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