Strengthening Capital and Wealth Management Presentation

10 Good Revenue Growth Revenue (TEB) ($ millions) Year-over-Year Scotiabank 3,944 4,586 286 4,196 • 1,825 2,017 1,815 2,371 2,129 2,283 Q2/10 Q1/11 Q2/11 • Gains related to recent acquisitions Other Income Net Interest Income (TEB) ⚫ Net interest income up 7% + Asset growth - Decline in margin due to increasing consumer preference for variable rate mortgages Other income up 27% + Up 11% excluding acquisition gains + Higher wealth management revenues -Lower trading revenues. Quarter-over-Quarter • Net interest income down 4% - Margin compression - Fewer days in quarter + Changes in fair value of financial instruments Other income up 26% + Up 11% excluding acquisition gains + Higher net gains on securities + Higher wealth management revenues - Lower trading revenues Higher Expenses: Acquisition Related Non-Interest Expenses ($ millions) • 2,378 2,286 1,967 608 571 464 407 431 360 1,308 1,339 1,143 Q2/10 Q1/11 Q2/11 Other Premises & technology Salaries & employee benefits • Scotiabank Year-over-Year Expenses up 21% - Acquisitions accounted for $226MM of the increase - Higher compensation related expenses reflecting higher staffing levels and pension costs - Higher technology spend Quarter-over-Quarter Expenses up 4% - Acquisitions + Excluding impact of acquisitions, expenses declined $105MM + Lower stock-based compensation due to grants awarded in Q1 LO 5

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