Q2 2003 Earnings Highlights

Scotiabank Inverlat - increased ownership Scotiabank ■ Increased ownership in Inverlat to 91% ■ Purchased Mexican government's 36% interest for $465 million or 1.275x book value ■ Offer made to purchase remaining 9% of Inverlat shares held by former shareholders Expected to add $80+ million in earnings annually 19 Scotiabank Scotia Capital – loan losses declining net income, $ millions 169 138 120 Q2/02 Q1/03 Q2/03 ■ ■ ■ Net income up 41% yr/yr Decrease in provisions ➤ $98 million down yr/yr ➤ $53 million down qtr/qtr Lower revenues yr/yr ➤ lower funding spreads ➤ U.S. dollar depreciation 20

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