Q3/06 Earnings Report

Scotiabank $ millions Scotia Capital - record net income % Change vs. Q3/06 Q3/05 Q2/06 Total revenue $ 613 18% 6% Provision for (recovery of) credit losses (19) nm* (65) Non-interest expenses 232 9 (8) Net income available to common $ 278 39 1 shareholders Average assets ($B) $136 19 6 32% * Not meaningful Return on Equity Year/Year: Net income up 39% ■ asset growth, securities gains and higher loan loss recoveries, partly offset by lower trading results and higher expenses Quarter/Quarter: Net income up 1% ■ securities gains, interest recovery, lower expenses offset by lower loan loss recoveries and trading revenues 21 Scotia Capital - Strong C&l banking revenue offsets lower trading Scotiabank $ millions, TEB 700 18% 600 500 400 260 288 300 250 268 369 200 370 312 258 251 244 100 0 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 Global Corporate & Investment Banking Global Capital Markets Global Corporate & Investment (C&I) Banking - up 42% yr/yr ■ record M&A revenues ■ increased lending volumes higher interest recoveries and securities gains Global Capital Markets Down 22% qtr/qtr ■ lower derivatives, institutional equity trading and fixed income revenues ■ stable precious metals, foreign exchange revenues 22

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