2006 Financial Overview and 2007 Priorities

Scotiabank Scotiabank Mexico Continued strong growth Scotiabank Mexico Contribution ($ mm) 2006 2005 Q4/06 Q3/06 Net income in pesos, excluding inflation accounting MXP/CAD exchange rate 5,008 3,445 1,081 1,487 9.5 9.1 9.8 9.9 Net income in CAD, excluding inflation accounting BNS' share (97%) $525 381 $111 $151 $511 $370 $108 $147 Canadian GAAP and acquisition adjustments $21 $(22) $3 13 Total contribution in CAD $532 $348 $111 $160 Q4/06 strong retail asset growth with residential mortgages up 14% qtr/qtr and credit cards up 11% qtr/qtr • Non-interest expenses up 2% qtr/qtr (excluding tax recovery, f/x impact) due to higher salaries and premises costs related to branch openings, higher profit sharing, increased appraisal and acquisition costs (mainly for credit cards) Scotiabank 39 Earnings in Other segment net income available to common shareholders, $ millions 216 169 2006 vs. 2005 net income: (22)% ■lower net securities gains partially offset by greater reduction in general allowance +$15 mm 74 2005 2006 Q4/05 46 Q3/06 52 Q4/06 The Other category includes Group Treasury and other corporate items, which are not allocated to a business line Q4/06 vs. Q4/05 net income: (30)% ■ lower net securities gains partly offset by greater reduction in general allowance Q4/06 vs. Q3/06 net income: +13% $6 mm increase due to $60 reduction in general allowance and higher securitization revenues largely offset by higher amount of tax- exempt gross-up elimination and AcG-13 40

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