Strategy in action

11 12 Canadian Banking: Expense Discipline 374 Net Income ($ millions) 475 461 . Q2/11 Q1/12 Q2/12 • Scotiabank • Year-over-Year Revenues up 5% + Strong asset and deposit growth - Modestly lower margin PCLs down $26MM to $120MM Expenses virtually flat + Staffing decline due to operational efficiency initiatives - Normal annual increases offset by lower pension costs Quarter-over-Quarter Revenues down 2% - Modestly lower margin - Shorter quarter PCLs down $16MM to $120MM Expenses essentially flat + Shorter quarter and seasonally higher expenses in Q1 - Higher pension costs International Banking: Solid Quarter Net Income ($ millions) 1 448 394 391 26 368 Q2/11 Q1/12 Q2/12 Portion of acquisition-related gain due to new accounting standards (1) Before deducting non-controlling interest Year-over-Year Revenues up 27% + Strong diversified loan and deposit growth + Wider margins + Positive impact from recent acquisitions PCLs up $33MM to $145MM Expenses up 32% - Higher costs to support growth initiatives - Almost two thirds of growth due to acquisitions Quarter-over-Quarter Revenues up 15% + Positive impact from Colombia acquisition + Higher contributions from Asia/Pacific + Strong broad-based loan and deposit growth PCLs up $21MM to $145MM Expenses up 10% - - Entirely due to acquisitions and seasonality, reflecting careful expense control Scotiabank

View entire presentation