2010 Outlook

• Specific Provisions Stabilizing ($ millions) 500 400 300 200 100 0 Q4/06 Q1/07 Q2/07 Q3/07 1 Specific PCLS Q4/07 Scotiabank 2010 Risk Outlook • Q1/08 Q2/08 Q3/08 -Specific PCLS as a % of Avg. Loans & BAS Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 • Signs of portfolios stabilizing Overall pace of credit migration slowing 2010 provisions Retail provisions will likely stay at elevated levels Corporate/Commercial provisions to decline gradually Overall, expect downward trend in second half of 2010 Scotiabank 26 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% 25

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