Financial Review Q3/11

Solid Revenue Growth Scotiabank Revenue (TEB) ($ millions) 4,586 286 4,373 3,854 1,942 • 2,017 1,611 2,243 2,283 2,431 • Q3/10 Q2/11 Q3/11 Gains related to recent acquisitions Other Income Net Interest Income (TEB) Year-over-Year Net interest income up 8% + Asset growth in Canadian mortgages and commercial loans internationally - Foreign currency translation Other income up 21% + Contribution from recent acquisitions + Higher transaction based fees - Decline in trading revenues, primarily in fixed income Quarter-over-Quarter Net interest income up 6% + Asset growth in low spread trading securities and deposits with banks + Three additional days in quarter - Modest decline in margin Other income down 4% (excluding gain in Q2) - Reduction in trading revenue in fixed income + Increase in transaction based fees Continued Investment in Growth Initiatives Non-Interest Expenses ($ millions) • 2,381 2,378 2,023 608 588 513 431 423 384 1,339 1,370 1,126 Q3/10 Q2/11 Q3/11 Other Premises & technology ■Salaries & employee benefits • Scotiabank Year-over-Year Expenses up 18% - Recent acquisitions accounted for 48% of increase - Higher compensation related expenses reflecting staffing levels, pension costs and incentive bonuses Quarter-over-Quarter Expenses marginally higher -Increases in remuneration expenses reflecting higher staffing levels and additional days in quarter + Lower performance based compensation and professional fees 4

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