Scotiabank Risk and Credit Portfolio Overview

Scotiabank Risk Overview ☐ ☐ ☐ Stable credit quality . • underlying credit losses stable net impaired loans flat Some increase in VaR market risk well controlled Asset classes of current focus ■ Credit portfolios well positioned 25 Scotiabank Underlying Credit Losses Stable Specific Provision for Credit Losses ($ millions) 92 45 74 92 63 8 25 24 19 24 30 30 69 69 58 26 74 66 949 25 77 Specific provision + $47MM qtr/qtr + lower recoveries in Scotia Capital + increase in Domestic due mainly to Commercial provision reversals in Q2/07 (10) (19) (30) (51) Q4/06 Q1/07 Q2/07 Q3/07 Q3/06 Scotia Capital Domestic International 26

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