Scotiabank Q2 2009 Financial Performance Review

Scotiabank net income ($ millions) Solid Earnings in Our Three Main Businesses 422 438 410 388 335 1332 300 328 255 Q2/08 Q1/09 Q2/09 Other* Canadian International Scotia Capital (32) (198) (284) Year over year Canadian Banking: Strong deposit & asset growth, higher PCLs International: Wider margins, positive impact of acquisitions & FX, higher PCLS Scotia Capital: Good loan volumes, wider spreads, strong trading results & higher PCLS Other: Higher funding costs, securities writedowns, higher securitization revenues, positive FI impact * includes Group Treasury and other corporate items, which are not allocated to a business line Scotiabank • • • Positives Outlook "The New Normal" Financial & capital markets stabilizing Monetary and fiscal stimulus working Continued growth in emerging markets Long-term demographics, technology, globalization Negatives Markets & economies still fragile Lower leverage, consumption & growth expectations More government, more regulation Scotiabank Our chosen markets to perform well Proven strategy, strong management and capital ☐ Bright future 6

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