Scotiabank Q2 Financial Results

Scotiabank $ millions 500 400 300 200 100 391 International Banking Expenses impacted by acquisitions Total Non-Interest Expenses 486 447 452 443 0 Q2/05 Q3/05 Q4/05 Q1/06 Q2/06 23 Year/Year: up 13% ■ El Salvador, Peru acquisitions Higher compensation expenses in Mexico, Jamaica and Puerto Rico Partly offset by impact of foreign currency translation: ($25) mm Quarter/Quarter: down 2% ■ Lower litigation, benefit expenses Partly offset by Peru acquisitions and higher performance-based compensation in Mexico from low level in Q1/06 Scotiabank earnings contribution, $ millions Scotiabank Mexico 150 138 124 125 100 85 15 75 50 25 0 Q2/05 Q1/06 Q2/06 Year/Year contribution: up 46% ☐ Higher volumes in retail lending: - residential mortgages: 26% - personal lending: 14% commercial lending: 14% ■ Lower tax charge due to change in tax rates in Q2/05 Qtr/Qtr contribution: down 10% ■ Lower securities gains and higher performance-based compensation 1 Partly offset by strong volume growth in mortgages and retail loans 24

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