Financial Overview and Performance

Scotiabank Scotia Capital - credit quality Net income, $ millions. 221 196 continues to improve 244 Q4/03 Q3/04 Q4/04 Net income - - up 10% yr/yr, 24% qtr/qtr record results in several areas Lower provisions - Net recovery in Q4/04 of $25 mm vs. net provisions of $22 mm in Q4/03, $28 mm in Q3/04 Revenue down 14% yr/yr, 8% qtr/qtr - lower lending volumes decreased underwriting fees Expenses down 18% yr/yr, 19% qtr/qtr - lower performance-based compensation 21 Scotiabank - International – negative impact of foreign currency translation Net income, $ millions 156 218 165 ◉ Net income - up 6% yr/yr, down 24% qtr/qtr - foreign currency translation reduced 2004 net income by $112 mm Caribbean - growth in retail lending volumes higher provisions related to hurricanes Latin America Inverlat & Chile up strongly offset by lower securities gains Q4/03 Q3/04 Q4/04 ☐ Asia - net income down qtr/qtr 22

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