Scotiabank Financial Overview

Scotiabank $ millions Credit quality remains stable Q2/06 Q1/06 Q2/05 Specific Provisions: 35 75 35 Net Impaired Loans*: 579 659 666 ■ Specific provisions down $40 mm qtr/qtr and unchanged yr/yr ■ Continued to benefit from recoveries and low levels of provisions ■ Net impaired loans decreased $80 mm qtr/qtr and $87 mm yr/yr ■ No change in General Allowance: $1,330 mm after specific allowance Scotiabank $ millions 29 Specific provisions Q2/06 Q1/06 Q2/05 Domestic: 88 64 66 International: 1 27 26 Scotia Capital: - U.S. (30) (12) (55) - Other (24) (4) (2) (54) (16) (57) Total 35 75 35 ■ Domestic: Higher PCLs qtr/qtr and yr/yr due primarily to provisions taken against two accounts in the commercial portfolio. Retail credit quality remains solid. ■ International: Provisions were favourably affected by retail and commercial reversals in the Caribbean & Central America. ■ Scotia Capital: Higher net recoveries qtr/qtr and no new provisions in Q2/06. 30

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