Financial Overview and 2012 Outlook

12 Canadian Banking: Continuing Solid Performance Net Income ($ millions) 461 460 441 Q4/10 Q3/11 Q4/11 • Scotiabank Year-over-Year ⚫ Revenues up slightly • • + Asset growth and higher transaction-based fees and card revenues in retail banking - Lower margin due to higher wholesale funding costs PCLs down $37MM to $135MM Expenses up 4% - Higher merit, pension and premises costs Quarter-over-Quarter Revenues down modestly - Lower margin + Solid asset growth, higher credit fees and card revenues in commercial banking ⚫ PCLs down $10MM Expenses up 1% - Higher costs associated with seasonality International Banking: Strong and Diversified Asset Growth Scotiabank Net Income ($ millions) 373 • 338 350 • Q4/10 Q3/11 Q4/11 • • Year-over-Year Revenues up 11% + Broad based organic growth and positive impact of acquisitions - Negative impact of foreign currency translation PCLs up $24MM to $152MM Expenses up 16% - Higher compensation costs to support growth initiatives + Approximately 40% of expense increase due to acquisitions Quarter-over-Quarter Revenues up 8% + Impact of Uruguay acquisition + Strong broad-based organic loan and deposit growth - Lower margin PCLs up $32MM to $152MM Expenses up 9% - Seasonal expense growth + Impact of Uruguay acquisition CO 6

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