Financial Overview and 2012 Outlook

10 Continued Investment in Sustainable Growth Initiatives Non-Interest Expenses ($ millions) 2,519 2,381 2,183 679 588 581 423 458 411 1,370 1,382 1,191 Q4/10 Q3/11 Q4/11 Other Premises & technology ■Salaries & employee benefits Year-over-Year Scotiabank Expenses up 15% - Acquisitions accounted for more than half of increase - Higher expenses from continued business expansion and ongoing growth initiatives + Lower stock-based compensation Quarter-over-Quarter Expenses up 6% - Higher levels of investment in customer acquisition initiatives - Impact of acquisition Continued Strength in Capital Ratios Capital Ratios (%) 12.3 12.2 11.8 11.8 12.0 9.7 9.9 9.3 9.6 9.6 . Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Leverage Ratio 17.0 17.6 17.6 17.0 16.6 Tangible Common Equity Tier 1 • Scotiabank 2011 Summary Internal capital generation of $2,759MM (vs. $2,015MM in 2010) Common shares issued under DRIP: $632MM (vs. $623MM in 2010) • Share issuance for the acquisition of Dundee Wealth - - $1.8B in common shares $409MM in preferred shares Remain committed to common equity Tier 1 ratio under Basel Ill of 7.0% to 7.5% by Q1 2013 5 LO

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