Risk and Performance Review

Scotiabank Q2/03 highlights ■ Lower net impaired loans: $378 million ➤ down $181 million vs. Q1/03 ➤ lower formations in Scotia Capital ■ Lower specific provisions: $248 million ➤ down $77 million vs. Q1/03 ➤ $27 million reversal relating to Argentine cross-border exposure Scotiabank 23 Net formations by business line $ millions, Q2/03 Scotia Capital - Canada 73 - U.S. (11) - Europe/Asia 21 83 Domestic 79 International Total 24 (9) 153

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