International Banking: Second Half 2010 Outlook

Trend in PCL Ratios (Specific PCL as % average of loans & BAs) Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Canadian Banking Retail 0.32 0.33 0.37 0.32 0.35 Commercial 0.83 0.52 0.55 0.68 0.68 Total 0.39 0.36 0.40 0.37 0.39 International Banking Retail 2.17 2.59 2.30 2.41 2.42 Commercial (0.09) 0.32 0.48 0.50 0.53 Total 0.69 1.13 1.13 1.19 1.22 Scotia Capital Corporate Banking 0.80 1.01 0.65 0.15 (0.07) All Bank 0.54 0.64 0.63 0.55 0.55 Scotiabank 37 Provisions: Consistently Outperforming Canadian Peers Specific PCL as a % of Average Loans & BAS (basis points) 100 80 60 40 40 20 20 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 - Scotiabank -4 Cdn. Bank Peers 0 Scotiabank 38

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