Growing Earnings and Risk Review

Scotiabank Higher margins Inc. vs. Inc. vs. Q4/01 Q4/00 2001 2000 2.46% 14bps Net interest margin 2.37% 11bps Increase due to: Inverlat Lower funding costs 6 3 Scotiabank 7 4 Securities income (2) Other 14bps 11 Good growth in other income 3 (1) 11bps $ millions Q4/01 Q4/00 change 2001 2000 change 989 865 14% Reported 4,071 3,665 11% (28) (46) (65) Tax settlement - refund interest Gain on investment securities Gains on sale of businesses (82) (217) (358) (92) (82) 896 819 9% 3,680 3,225 14% 88 100 Inverlat 48 26 85 Cards 80 86 (7) Underwriting 60 80 (25) Trading 68 90 (24) Brokerage Stock transfer 552 537 3 Other 896 819 9% 229 100 170 116 47 352 278 27 412 326 26 307 389 (21) 57 (100) 2,210 2,059 7 3,680 3,225 14% 12

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