Q3 2008 Financial Overview

Scotiabank Higher Expenses Acquisitions, Growth Initiatives Non-interest expenses ($ millions) 1,889 1,794 1,752 1,013 1,005 1,068 359 368 335 404 430 453 Q3/07 Q2/08 Q3/08 Salaries & employee benefits ■Premises & technology Q3/08 vs. Q3/07 expenses: up 8% - higher salaries, premises & technology, mainly due to acquisitions, branch expansion, other growth initiatives - higher advertising, rewards program costs + lower performance-based compensation + favourable forex impact Q3/08 vs. Q2/08 expenses: up 5% - higher salaries due to longer quarter - increased performance-based compensation in line with improved trading results - indemnity provision in Peru - higher stock-based compensation + lower professional fees Other Scotiabank 9 Strong Capital 9.8 9.6 Tier 1 9.3 TCE 7.2 7.5 7.6 Q4/07 Q2/08 Q3/08 Higher Tier 1 and TCE ratios (%) + strong internal capital generation + capital issuances + positive impact of Basel II in 2008 - risk-weighted asset growth 10

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