International Banking and Risk Review

Scotiabank Scotia Capital Record Quarter, Despite Rise in PCLS Net Income ($ millions) 300 255 328 Q2/08 Q1/09 Q2/09 Q2/09 vs. Q1/09 net income: up 9% + revenues up 20% + record quarter in Global Capital Markets + higher spreads & loan origination fees, partly offset by small decrease in average loans + expenses down 21% + lower performance based compensation PCLs up $149MM, $50MM auto sectoral provision Q2/09 vs. Q2/08 net income: up 29% + revenues up 57% + near record fixed income, very strong institutional equity, record precious metals revenues + significantly higher loan volumes, wider spreads + positive impact of forex translation + expenses down 5% + lower performance based compensation PCLs up $168 MM Scotiabank Net Income ($ millions) Q2/08 Q1/09 Q2/09 (32) (198) (284) 17 Other Segment* Q2/09 vs. Q1/09 net income + higher securitization revenues + change in fair value of financial instruments + lower net securities write-downs $27MM increase in general allowance Q2/09 vs. Q2/08 net income relatively higher term funding costs compared to declining transfer pricing rates - write-downs on AFS securities + higher securitization revenues + change in fair value of financial instruments includes Group Treasury and other corporate items, which are not allocated to a business line 18

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