Scotiabank Q2 2009 Financial Performance Review

Scotiabank Canadian Banking Solid Quarter Net Income ($ millions) 438 422 410 Q2/08 Q1/09 Q2/09 Q2/09 vs. Q1/09 net income: down 7% - revenues down 2% - ■ NII stable, higher margin offset by shorter quarter lower wealth management revenues, reflecting Dundee Wealth (DW) equity accounted earnings + expenses down 4% + reduced discretionary & initiative spending + lower stock based compensation PCLs up $33MM, incl. $10MM auto sectoral provision Q2/09 vs. Q2/08 net income: down 3% + revenues up 5% - - + strong retail volume growth, lower margin lower wealth management revenues expenses up only 1% acquisitions, partly offset by cost control PCLs up $86MM Scotiabank Net Income ($ millions) 388 335 332 Q2/08 Q1/09 Q2/09 15 International Banking Solid Quarter Q2/09 vs. Q1/09 net income: down 14% - revenues down 8% $36MM loss on sale of portion of credit card portfolio - forex revenues strong, but down from record Q1 MTM write-downs on non-trading securities + expenses down 6% + lower discretionary spending + PCLs flat, Q2 included a $29MM reversal of a retail provision no longer required in Mexico Q2/09 vs. Q2/08 net income: down 1% + revenues up 13% + positive impact of forex translation & acquisitions + solid asset growth expenses up 19% - acquisitions and negative impact of forex - higher remuneration due to branch expansion, partly offset by lower discretionary spending PCLs up $55MM 16

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