2005 Financial Overview

Scotiabank Inverlat - another good quarter, Scotiabank contribution, $ millions higher expenses 100 75 50 25 T T ■ Contribution of $86 million - up 4% yr/yr ■ ROE of 24% ☐ ☐ Underlying revenues up 21% yr/yr - growth in retail & commercial lending - higher margins and retail banking fees Higher expenses - advertising and promotion 0 - performance-based compensation Q4/04 Q3/05 Q4/05 23 Scotiabank $ millions - Scotia Capital – higher revenues, lower loan loss recoveries vs. Q4/04 ◉ Net income of $229 million % Net income* -ROE 250 50 45 200 40 ◉ 35 150 30 25 100 20 " 15 50 10 5 ◉ 0 0 Q4/04 Q3/05 Q4/05 down 3% yr/yr, up 15% qtr/qtr ◉ ROE of 27.4% Revenue up 11% yr/yr, 4% qtr/qtr Scotia Waterous contribution strong growth in derivatives Expenses down 2% yr/yr, 7% qtr/qtr lower salaries and performance- based compensation Lower loan loss recoveries yr/yr net recovery of $7 million vs. net recovery of $25 million in Q4/04 * net income available to common shareholders 24

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