Strategic Economic and Financial Overview

9 10 Expense Growth In Line with Business Performance Non-Interest Expenses ($ millions) 2,565 2,618 2,348 734 755 636 408 388 357 1,355 1,422 1,476 Q3/11 Q2/12 Q3/12 • Other Premises & technology Salaries & employee benefits Year-over-Year Expenses up 11% - Acquisitions accounted for over 50% of increase - Higher expenses related to increased staffing levels + Higher performance-based compensation in line with higher revenues Quarter-over-Quarter Expenses up 2% - Two additional days in the quarter Year-to-Date¹ Operating leverage +0.4% + Each business line positive Scotiabank (1) Excluding 2012 real estate gains and 2011 non-recurring acquisition gains and IFRS FX translation gains Strong Capital Ratios: High Quality Capital Ratios (%) 12.6 12.3 12.2 12.2 11.4 10.2 9.6 9.6 9.4 8.5 Q3/11 Q4/11 Q1/12 Tangible Common Equity Scotiabank Q2/12 Q3/12 Tier 1 • YTD internal capital . . generation of $2,832MM (vs. $2,238MM in 2011) YTD stock issued under DRIP: $573MM (vs. $463MM in 2011) Target of 7.0-7.5% common equity Tier 1 ratio under Basel III achieved as at Q3/12

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