2008 Financial Overview and Trading Results

Scotiabank (1) Net Income ($ millions) Scotia Capital Impacted by Writedowns 349(1) 288(1) 59(1) 297 229 305 44 Q4/07 Q3/08 Q4/08 Q4/08 vs. Q4/07 net income: up 21% (1) + revenues up 20%(1) + record forex & precious metals trading results + higher corporate loan volumes, interest & spreads lower tax-exempt dividend income - expenses up 11% - increased hiring & technology expenses + lower professional fees & discretionary spending - provisions up $20MM: one new provision, less recoveries Q4/08 vs. Q3/08 net income: up 18% (1) + revenues up 13% (1) + higher corporate banking interest profit + record forex & precious metals trading, stronger underlying derivatives revenues - lower securities trading & Scotia Waterous revenues + expenses down 2% - + lower performance based compensation increased hiring costs Adjusted for items of note (Q4/08: $(503)MM pre-tax, $(305)MM after-tax, Q4/07: $(92)MM pre-tax, $(59)MM after-tax). See slides 35 and 36 for more details. Scotiabank 15 Business Line Outlook & Priorities Chris Hodgson Group Head, Canadian Banking Rob Pitfield Group Head, International Banking Mike Durland Group Head, Global Capital Markets & Co-CEO Scotia Capital 16

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