2011 Outlook

Canadian Banking: Strong Quarter, Record Year 503 Net Income ($ millions) 604 Q4/09 Q3/10 567 Q4/10 Year-over-Year ■ Revenues up 5% + Asset growth + Deposit growth + Growth in Other Income ■ PCLs down $16MM Expenses up 4% - - Higher performance based compensation - Expenses related to growth initiatives Quarter-over-Quarter ■ Revenues flat PCLs up $11MM Expenses up 4% Seasonally higher expenses - Higher performance based compensation Scotiabank International Banking: Strong Quarter Net Income ($ millions) 317 283 363 Year-over-Year ■ Revenues up 14% (up 15% ex. FX) + Increased contribution from acquisitions + Higher volumes ■ PCLs down $39MM Expenses up 7% - Impact of acquisitions - Higher compensation costs and premises expenses Q4/09 Q3/10 O Q4/10 Scotiabank Quarter-over-Quarter ■ Revenues up 3% (up 2% ex. FX) + Benefit of acquisitions + Higher volumes ■ PCLs down $10MM Expenses up 5% Higher salaries - Higher advertising and other seasonal costs 11 12

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