Investor Presentaiton

Scotiabank 1,039 Net Income ($ millions) Financial Performance Overview 980 835 Q2/07 Q1/08 Q2/08 Q2/08 vs. Q2/07 net income: down 6% ■ revenues up 2%: + net interest income up 4% - other income down 1% ■ expenses up 4% specific provisions up $108 million - lower recoveries in Scotia Capital, higher provisions in Domestic & International Q2/08 vs. Q1/08 net income: up 18% ■ revenues up 11%, or 2% excluding securities write-downs last quarter expenses up 7% provisions up $42 million - largely due to lower commercial recoveries in International 7 Scotiabank Higher Revenues - Strong Asset Growth, Lower Capital Markets Revenues Revenues (TEB) ($ millions) 3,211 3,272 2,957 1,308 1,299 1,025 1,903 1,932 1,973 Q2/07 Q1/08 Q2/08 Net Interest Income (TEB) ☐ Other Income Q2/08 vs. Q2/07 revenues: up 2% ■ net interest income up 4% driven by: + continued strong organic asset growth + acquisitions - lower net interest margin ■ other income down marginally: - lower capital markets related revenues (trading, investment banking, retail brokerage) & lower gains on non-trading securities + higher credit fees, mutual fund fees, securitization & insurance revenues Q2/08 vs. Q1/08 revenues: up 11% ■ net interest income up 2% + full quarter of Chile acquisition, favourable forex impact ■ other income up 27% +higher securities write-downs in Q1 + stronger trading revenues, including record precious metals trading results + higher securitization revenues 8

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