Scotia Capital: 2010 Outlook

Stable Net Interest Margin (%) 1.68 1.52 1.76 1.74 1.71 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q4 margin benefited from... • Asset re-pricing • Lower non-earning assets Offset by... • Negative impact of financial instruments Scotiabank 13 Higher Expenses: Growth Initiatives & Seasonality Non-Interest Expenses ($ millions) 2,064 1,944 1,959 1,097 1,058 1,093 394 382 382 573 504 484 Q4/09 vs. Q4/08 Expenses - Higher performance & stock-based compensation - Impact of acquisitions Increased capital taxes $23MM relating to VISA rewards points + Positive impact of FX Q4/09 vs. Q3/09 Expenses Higher performance & stock-based compensation Seasonally higher advertising & business development spending Increased professional fees $23MM relating to VISA rewards points Q4/08 Q3/09 Q4/09 + Positive impact of FX Salaries & employee benefits Premises & technology Other Scotiabank 14

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