Scotiabank Q2 Financial Results

Scotiabank $ millions Scotia Capital - record net income Change vs. Total revenue Provision for credit losses Non-interest expenses Net Income available to common shareholders Return on Equity Average assets ($B) Year/Year: Net income up 16% Q2/05 Q1/06 580 4% (6)% (54) (5)% (100+)% 253 (1)% 276 16% 7% 35% 128 14% 12% ■ revenues 4% higher, expenses down 1%, foreign currency translation impact of ($20) mm Quarter/Quarter: Net income up 7% ■ primarily due to increased net loan loss recoveries and strong trading, although lower than Q1/06 record levels 25 Scotiabank $ millions Scotia Capital revenue 700 600 500 329 411 400 351 316 338 300 200 Year/Year: up 4% ■ Global Capital Markets: - $9 B increase in trading securities - strong performance in precious metals and derivatives ■ Global Corporate & Investment Banking: - $5 B increase in U.S. auto receivables - revenue down due mainly to sale of restructured asset in Q2/05 ($17) mm Impact of foreign currency translation: ($29) mm Quarter/Quarter: down 6% 230 100 202 201 209 229 - 0 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 Other Income Net interest income O Global Capital Markets: - lower equity trading volumes ■ Global Corporate & Investment Banking: - higher loan syndication fees and net interest income 26

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