2011 Outlook

Scotia Capital: Second Best Year on Record Year-over-Year ■ Revenues down 20% Net Income ($ millions) 353 305 273 Q4/09 Q3/10 Q4/10 Scotiabank Other Segment (1) ($ millions) - Lower trading revenue - Lower underwriting and credit fees - Lower loan volumes PCLs down $71MM Expenses up 13% Higher expense from growth initiatives Quarter-over-Quarter ■ Revenues up 4% + Higher trading revenues + Higher M&A advisory revenues ■ PCLS recoveries down $17MM Expenses up 21% Higher expenses from growth initiatives and legal provisions Q4/10 Funding Net Interest Income (98) Q3/10 (117) Q4/09 (106) Broker Deposits (2) -- (49) Net Securitization Revenues (3) (38) (110) (139) AFS Securities Writedowns (15) (49) Financial Instruments 25 (6) 28 General Provision 40 -- Expenses & Net Other Items (23) 20 27 TEB Offset (70) (70) (73) Taxes 68 124 124 Total Other (111) (164) (237) (1) Includes Group Treasury and other corporate items, which are not allocated to a business line (2) Effective Q1/10, Broker deposits were transferred to Canadian Banking 13 (3) Represents the impact to the Other segment of CMB securitization revenues recognized in other income, and the reduction in mortgage net interest income earned as a result of removing the mortgages from the Balance Sheet Scotiabank 14

View entire presentation