Financial Review Q3/11

12 International Banking: Good Performance and Diversification Net Income ($ millions) • 402 26 350 376 292 Q3/10¹ Q2/11 Portion of negative goodwill as described in Q2/11 Report to Shareholders • • Q3/11 • Year-over-Year Earnings up 20%; revenues up 6% Scotiabank + Broad based organic loan growth, particularly in commercial lending, and deposit growth + Benefit from acquisitions - Lower securities gains PCLs down $18MM to $120MM Expenses up 11% - Higher spending on growth initiatives in Mexico, Peru and Chile - Expenses associated with acquisitions Quarter-over-Quarter Earnings flat; revenues up 6% (excluding gain in Q2) + Continued loan and deposit growth - Impact of $52MM acquisition-related gain in Q2 ($26MM from new accounting standard) PCLs up $14MM Expenses up 9% - Investment to support future growth - Longer quarter and seasonality (1) Represents net income before deducting non-controlling interest to ensure comparability with 2011 results Global Wealth Management: Good Quarter Scotiabank 228 Q3/10¹ Net Income ($ millions) 489 260 229 Q2/11 256 • Q3/11 Gain on revaluation of original 18% stake in Dundee Wealth • Year-over-Year Earnings up 12%; revenues up 43% + DundeeWealth acquisition and strong ScotiaFunds sales + Higher insurance revenue Expenses up 67% - Impact of acquisitions - Higher volume related expenses Quarter-over-Quarter Earnings up 12%; revenues down 2% (excluding gain in Q2) - Weaker markets resulting in lower brokerage trading volumes Expenses down 8% + One-time integration costs in previous quarter - Higher remuneration costs (1) Represents net income before deducting non-controlling interest to ensure comparability with 2011 results CO 6

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