Strengthening Capital and Wealth Management Presentation

8 • • • Gains Related to Recent Acquisitions Two acquisition-related gains in Q2 $260MM from revaluing original 18% stake in DundeeWealth $26MM from an International acquisition purchased below fair value Adoption of new standards relating to business combinations - Acquisitions measured at fair value Aligns with IFRS Other non-recurring acquisition- related items in Q21 $286MM Gain (Q2/11) Scotiabank International Banking acquisition 9% 91% DundeeWealth acquisition As Reported Ex-Impact of One-time Gains Net Income $1,543MM $1,257MM - Transaction and integration costs of $27MM (after tax) re DundeeWealth EPS $1.36 $1.10 ROE 22.9% 18.5% Negative goodwill of $26MM (for a total of $52MM together with the gain above) (1) Independent of adopting new accounting standards Productivity Ratio 51.8% 55.3% Solid Results Scotiabank Q2/111 Q1/11 Q/Q Q2/10 Y/Y $1,257 1,2002 5% Net Income ($MM) 1,124³ 12% $1.10 $1.07 3% EPS $1.02 8% 18.5% 18.7% (20) bps ROE 19.9% (140) bps 55.3% 54.5% (80) bps Productivity Ratio 49.9% (540) bps Year-over-Year Comparison Q2 earnings benefited from... • Solid underlying net interest income Partly offset by... • Growth in operating expenses • Higher wealth management and investment banking revenues • Lower loan loss provisions (1) Excluding $286MM impact from non-recurring gains (2) Restated due to adopting new accounting standards • Lower trading results • Lower net gains on investment securities (3) Represents net income before deducting non-controlling interest to ensure comparability with 2011 results 4

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