2006 Financial Overview and 2007 Priorities

Scotia Capital Record net income & ROE in 2006 Scotiabank Net income* 1,100 -ROE 1,047 % 40 915 825 30 550 275 2006 vs. 2005 net income: +14% 20 10 10 ■ record earnings from solid revenue growth ■ record return on equity: 31.3% benign credit environment ▪ expenses remain well controlled: +3% 0 0 2005 2006 300 278 40 229 235 30 200 100 0 Q4/05 Q3/06 Q4/06 * net income available to common shareholders, $ millions 20 10 0 Q4/06 vs. Q4/05 net income: +3% ■ increased derivatives revenues partly offset by higher loan losses & expenses Q4/06 vs. Q3/06 net income: (15)% ■ lower revenues and higher loan losses, partly offset by lower expenses 27 Scotiabank revenues (TEB), $ millions 1,102 1,234 1,067 1,154 2005 2006 Global Capital Markets (GCM) Scotia Capital 2006 revenues higher Global Corporate & Investment Banking (GC&IB) 244 251 307 369 288 268 Q4/05 Q3/06 Q4/06 2006 vs. 2005 revenues: +10% Global Capital Markets: +12% strong results in derivatives, precious metals & foreign exchange, offset by lower equity trading higher interest income, due primarily to higher dividend income Global Corporate & Investment Banking: +8% higher interest recoveries and increased lending volumes, partly offset by tighter spreads ■record M&A revenues, due in part to full year of Scotia Waterous, and higher net securities gains Q4/06 vs. Q4/05 revenues: +7% Global Capital Markets: +22% ■ higher derivatives revenues Global Corporate & Investment Banking: (7)% higher revenues from Scotia Waterous & loan growth offset by lower net securities gains Q4/06 vs. Q3/06 revenues: (6)% ■ lower net securities gains and interest recoveries compared to high levels in Q3 partly offset by higher derivatives revenues 28

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