Scotiabank Financial Performance Update

Canadian Banking: Solid Quarter Net Income ($ millions) 435 441 496 Year-over-Year ■ Revenues up 3% + Asset and deposit growth with increased market share - Slightly lower margin + Growth in Other Income ■ PCLs down $16MM Expenses up 1% Quarter-over-Quarter Revenues up 2% + Asset growth, mainly from residential mortgages + Non-recurring items, primarily securities gains in Commercial ■ PCLs down $7MM Expenses down 4% + One-time gain of $35MM on wind-up of pension plan relating to a prior acquisition - Higher performance based compensation Q1/10 Q4/10 Q1/11 Scotiabank International Banking: Strong Quarter 254 Net Income ($ millions) 321 342 Q1/10 Q4/10 Q1/11 Year-over-Year ■ Revenues up 5% (up 7% ex. FX) + Asset growth including organic commercial growth in Asia and Peru, retail growth in Peru + Impact of acquisitions - Lower net gains on securities PCLs down $70MM Expenses up 19% - Impact of acquisitions Quarter-over-Quarter ■ Revenues up 1% (up 3% ex. FX) + Growth in loan volumes in Peru, Asia and Mexico + Improved margins in Mexico and Caribbean ■ PCLs down $21MM Expenses up 6% - Wind-up of loyalty card program in Mexico - Increases in pension and benefits Scotiabank 11 12

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