Scotiabank Earnings Performance Review

Scotiabank Scotia Capital Michael Durland Co-Head Scotia Capital 21 Scotiabank Scotia Capital Good Quarter - Despite Tough Environment Net Income* ($ millions) 318 251 Q2/08 vs. Q2/07 net income: down 21% - revenues 18% lower - high level of interest recoveries in Q2/07 - lower trading revenues due to tougher environment + higher loan volumes & spreads + expenses improved by 7% + lower performance based compensation lower loan loss recoveries vs. high level in Q2/07 187 Q2/07 Q1/08 Q2/08 Q2/08 vs. Q1/08 net income: up 34% + revenues up 33% + great product diversification in trading - expenses up 27% - higher performance based compensation + other expenses well controlled ■ loan losses flat vs. last quarter *available to common shareholders 22

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