Investor Presentaiton

Scotiabank Domestic Banking Solid earnings from asset & revenue growth Net income* 1,253 2006 vs. 2005 net income: +2% ROE % 1,279 40 ▪ strong retail asset & deposit growth, resulting in market share gains 30 1,300 975 650 20 325 10 0 0 2005 2006 400 40 335 326 319 300 30 200 100 0 Q4/05 Q3/06 Q4/06 *net income available to common shareholders, $ millions Scotiabank revenues (TEB), $ millions 3,651 3,741 992 911 ■ solid performance in wealth management, small business and commercial banking ▪ margin compression primarily due to higher funding costs Q4/06 vs. Q4/05 net income: +3% ■ improved wealth management results, strong growth in retail loans +14% higher expenses related to acquisitions, business growth initiatives margin compression 20 Q4/06 vs. Q3/06 net income: +5% 10 0 ■ growth in assets and deposits, increased wealth mgmt. fees and lower credit losses partly offset by higher expenses +$33 mm 19 Domestic Banking Revenue growth 2006 vs. 2005 revenues: +4% Retail & Small Business: +2% ■ strong asset and deposit growth: - loans +11% & GICS +10% higher transaction fees and card revenues Wealth Management: +9% ▪ higher mutual fund, brokerage & Private Client Commercial Banking: +6% strong asset +7% & deposit growth +15% Q4/06 vs. Q4/05 revenues: +4% Retail & Small Business: +2% strong asset and deposit growth higher transaction fees Wealth Management: +10% ■ increase in mutual fund revenues Q4/06 vs. Q3/06 revenues: +3% ■ asset growth & higher brokerage revenues 20 833 884 " 2005 2006 Retail & Small Business Wealth Management Commercial Banking 967 944 956 232 235 255 227 221 233 Q4/05 Q3/06 Q4/06

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