Scotiabank Financial Overview

Scotiabank $ millions Domestic Banking Solid performance Change vs. Q2/05 Q1/06 Total revenue 1,369 5% (1)% Provision for credit losses 88 32% 36% Non-interest expenses 845 3% 1% Net Income available to common 296 6% (10)% shareholders Return on Equity 27% Average assets ($B) 132 9% 2% Year/Year: Net income up 6% " 5% revenue growth partly offset by higher expenses and provisions Quarter/Quarter: Net income down 10% ■ earnings impacted by shorter quarter and higher provisions in the commercial portfolio Scotiabank $ millions 1,600 1,400 17 Domestic Banking Steady revenue Year/Year: up 5% 10% growth in retail assets - 10% growth in mortgages - 11% growth in lines of credit ■ 12% growth in business deposits ■Margin down 14 bps due to impact of rising rates ■ Wealth mgmt. revenues up 14% Quarter/Quarter: down 1% ■ Slight decline mainly due to shorter quarter 1,200 474 453 472 485 445 1,000 800 600 400 852 905 929 909 884 200 0 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Other Income Net interest income 18

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