2013 Q1 Earnings Presentation

Positive Operating Leverage Non-Interest Expenses ($ millions) • 2,813 2,713 2,507 792 866 692 425 366 445 1,449 1,596 1,402 Q1/12 Q4/12 Q1/13 Other Premises & technology Remuneration Scotiabank 9 10 Year-over-Year Expenses up 12% - Acquisitions accounted for over 55% of increase - Higher remuneration costs - Higher premises costs driven by the sale of Scotia Plaza -Increase in pension and benefit expenses Quarter-over-Quarter Expenses up 4% - Acquisitions accounted for 60% of increase - Seasonally higher remuneration costs - Lower benefits costs last quarter - Higher pension costs mainly reflecting the persistent lower rate environment + Lower expenses in almost all other categories Operating Leverage Year-over-Year: +2.7%' (1) Excluding Q1 2012 real estate gains Strong and High Quality Capital Ratios: Basel III Basel III Capital Ratios (%) 8.6 8.2 Q4/12 Q1/13 • Internal capital generation: $829MM ⚫ Stock issued under DRIP: $250MM Completed ING DIRECT acquisition during Q1/13 Increased CET1 by 50 bps from Q4/12 proforma of 7.7% (proforma for ING DIRECT) Fully-implemented Basel III capital ratios are strong and well above the international regulatory requirements Common Equity Tier 1 (1) Q4/12 CET1 on a proforma basis for announced ING DIRECT acquisition was 7.7% Scotiabank

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