Scotiabank Financial Performance Review

Scotiabank Performance Review Luc Vanneste Executive Vice-President & Chief Financial Officer Scotiabank Group financial performance overview % Net income* -ROE 3,994 4,000 3,549 30 3,000 20 2,000 10 1,000 - 0 0 2006 2007 1,200 1,016 938 890 900 20 600 30 2007 vs. 2006 net income: +13% ■ record earnings and high ROE driven by: + strong asset growth + positive impact of acquisitions + favourable credit quality partially offset by: - some margin compression negative forex translation ($82) mm Q4/07 vs. Q3/07 net income: (8)% + VISA gains + widespread growth in retail volumes higher expenses partly due to acquisitions 300 0 Q4/06 Q3/07 10 - losses on structured credit instruments - lower underlying trading revenues 0 - higher expenses Q4/07 negative forex translation ($37) mm 10 * net income available to common shareholders, $ millions

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