Investor Presentaiton

Scotiabank Net Income* ($ millions) 416 364 367 Q2/07 Q1/08 Q2/08 Domestic Banking Excellent Quarter Q2/08 vs. Q2/07 net income: up 14% + revenues up 8% • strong asset & deposit growth partly offset by margin compression expenses up 2% growth initiative spending, including acquisitions & hiring client facing staff, partly offset by lower performance driven compensation increase in Retail provisions • portfolio growth including Scotia Dealer Advantage (SDA) underlying loss ratios continue to be good. higher Commercial provisions due to recoveries in Q2/07 Q2/08 vs. Q1/08 net income: up 13% + revenues up 5% strong asset growth & lower funding costs ▪ expenses were flat . increased growth initiative spending & seasonal expenses offset by shorter quarter & lower stock based compensation *available to common shareholders - higher provisions relate to 2 commercial accounts & SDA 13 Scotiabank 1,472 Domestic Banking Strong Asset Growth Driving Revenue Revenues (TEB) ($ millions) 1,588 1,510 992 932 933 Q2/08 vs. Q2/07 revenues: up 8% Retail & Small Business + mortgages +16% & deposits +12% lower margin due to asset mix & increased wholesale funding requirements Commercial Banking + strong asset growth + higher margin due to lower funding costs Wealth Management + Mutual Funds +12% 252 282 317 288 295 279 Q2/07 Q1/08 Q2/08 Retail & Small Business Commercial Banking Wealth Management Q2/08 vs. Q1/08 revenues: up 5% + strong asset growth: +3% + higher margin due to lower funding costs lower wealth mgmt. revenues due mostly to Dundee Wealth annual performance fees in Q1 14

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