Investor Presentaiton

Scotiabank expenses, $ millions 6,043 6,443 Higher expenses Investing for future growth 2006 vs. 2005 expenses: +7% ■ more than 60% increase due to acquisitions higher salaries & employee benefits +$280 mm, due partly to acquisitions higher premises and technology: +$66 mm ■ other expenses up $54 mm due to the impact of acquisitions partly offset by VAT recovery of $51 3,768 3,488 1,148 1,214 1,407 1,461 mm 2005 2006 Salaries & employee benefits Premises & technology Other 1,708 1,579 1,608 966 861 940 302 322 313 416 420 355 Q4/05 Q3/06 Q4/06 Scotiabank Q4/06 vs. Q4/05 expenses: +8% ■70% of increase due to the impact of acquisitions primarily in salaries & employee benefits +$105 mm Q4/06 vs. Q3/06 expenses: +6% ■ expenses rose $100 mm, due mainly to $51 mm VAT recovery in Q3 higher remuneration, technology and advertising 13 Risk Review Brian Porter Chief Risk Officer 14

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