Investor Presentaiton

Scotiabank % All Bank Stable All-Bank Margin 1.87 1.79 1.79 1.82(1) 1.76 1.68 Canadian Banking 2.52 - 2.49 2.49 2.35 2.33 International Banking 4.32 4.18 4.14 4.10 4.27 Scotia Capital 0.96 0.78 0.69 0.66 0.60 Q4/07 Q1/08 Q2/08 Q3/08 Q4/08 All-Bank: +3 bps qtr/qtr (1) + higher margins in Latin America, including acquisitions in Peru + wider spreads in U.S. & European Corporate relatively higher funding costs - increase in non-earning assets Canadian Banking: (3) bps qtr/qtr - change in product mix International Banking: +13 bps qtr/qtr Scotia Capital: +12 bps qtr/qtr (1) Adjusted for $(162)MM pre-tax impact of ALM Hedging. See slide 35 for more detail. 11 Scotiabank Higher Expenses Acquisitions, Forex & Growth Initiatives Non-interest expenses ($ millions) 1,944 1,889 1,792 1,058 963 1,068 397 362 368 467 453 489 Q4/07 Q3/08 Q4/08 Q4/08 vs. Q4/07 expenses: up 8% - negative impact of forex acquisitions & branch expansion led to higher salaries & premises & technology increased pension & benefit costs vs. low level in Q4/07 + lower performance-based & stock-based compensation + decrease in professional fees & capital taxes Q4/08 vs. Q3/08 expenses: up 3% increase due to acquisitions & forex + decrease in performance-based & stock- based compensation + lower capital taxes Salaries & employee benefits ■Premises & technology Other 12

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