Q3/06 Earnings Report

Domestic Banking – Higher expenses to - support growth initiatives Scotiabank expenses, $ millions 900 870 879 833 845 Year/Year: up 7% 825 750 600 450 300 150 0 Q3/05 Q4/05 Q1/06 Q2/06 Q3/06 17 Increase due primarily to growth initiatives & acquisitions (Maple, NBG) - higher compensation, premises and technology expenses Quarter/Quarter: up 4% Increase due to growth initiatives International Banking Scotiabank Strong underlying asset growth $ millions % Change vs. Q3/06 Q3/05 Q2/06 Total revenue $ 844 13% 11% Provision for credit losses 24 13 nm* Non-interest expenses 477 7 7 Net Income available to common shareholders $ 285 22 7 Average assets ($B) $ 57 13 7 24% * Not meaningful Return on Equity Year/Year: Net income up 22% strong year-over-year growth in Caribbean/Central America and Mexico, including VAT recovery, and contribution from Peru, partly offset by foreign currency translation Quarter/Quarter: Net income up 7% good organic growth and contribution from Peru acquisitions, partly offset by higher loan losses 18

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