Investor Presentaiton

Scotiabank 294 Scotia Capital Challenging Market Conditions Net Income* ($ millions) 226 35** 187 191 Q1/07 Q4/07 Q1/08 *available to common shareholders **gain on sale of bond index business Q1/08 vs. Q1/07 net income: down 36% revenues 36% lower reserves/write-downs of $122 million - lower derivative & equity trading - lower interest recoveries + partly offset by record foreign exchange & strong fixed income trading + expenses improved by 26% + lower performance-based compensation - lower loan loss recoveries vs. high level in Q1/07 Q1/08 vs. Q4/07 net income: down 17% revenues 22% lower - lower tax-exempt dividend income - gain on sale of bond index business in Q4 + expenses 15% better + lower performance-based compensation 25 Scotiabank Scotia Capital Difficult Environment for Capital Markets Revenue revenues (TEB), $ millions 630 520 43* 331 405 192 151 299 285 254 Q1/07 Q4/07 Global Capital Markets (GCM) Q1/08 Global Corporate & Investment Banking (GC&IB) *gain on sale of bond index business Q1/08 vs. Q1/07 revenues: down 36% ■ revenues down 16% ex. reserve/write-downs Global Capital Markets - $80 million single monoline counter party reserve - $42 million in structured credit write-downs - weaker equity & credit derivative trading + record foreign exchange trading & strong fixed income trading Global Corp. & Investment Banking - lower interest recoveries - lower credit & advisory fees + partly offset by higher loan volumes & spreads Q1/08 vs. Q4/07 revenues: down 22% - lower tax-exempt dividend income & equity trading - gain on sale of bond index business in Q4 - lower securities gains in the U.S. & Europe + partly offset by record foreign exchange trading & strong fixed income trading 26

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