Q3 2008 Financial Overview

Scotiabank Strong Relative PCL Performance 0.50% 0.40% Specific Provisions as % of Average Loans and Acceptances 0.32% 0.30% 0.26% 0.43% 0.44% 0.24% 0.23% 0.20% 0.18% 0.14% 0.13% 0.10% 0.00% 2006 2007 Q1/08 Q2/08 Q3/08 BNS 4 Cdn. Bank Peers 27 Scotiabank Higher Net Impaired Loan Formations Driven Primarily by 3 Accounts Q3/08, $ millions Domestic - Retail 115 - Commercial 15 130 International Retail 104 - Commercial 93 197 Scotia Capital - U.S. 79 - Canada & Other (29) 50 Total 377 Domestic Retail: formations reflect growing portfolio size; underlying credit trends remain strong Domestic Commercial: underlying credit quality stable International Retail: formations across division, largely reflects underlying growth and some increase in delinquencies International Commercial: classification of two accounts in the Caribbean and additional classifications in Chile, partially offset by declassifications in Mexico and the Caribbean Scotia Capital: classification of one account in the U.S., partially offset by loan sales in Canada and the U.S. 28

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