Q3 2014 Overview

Canadian Banking Net Income ($MM) 575 565 565 555 550 Q3/13 Q4/13 Q1/14 Q2/14 Average Assets ($B) 274 276 277 278 281 Q3/14 Highlights ■ Good quarter, net income up 3% Y/Y ▪ Loan growth of 3% Y/Y Double digit growth in personal loans and credit cards High single digit business loan growth Mortgage growth largely offset by the Tangerine mortgage run-off ■NIM stable Q/Q, but up 5 bps Y/Y ■ Higher PCLs due mainly to growth in Net Interest Margin (%) card and auto loans, lower commercial 2.05 2.06 2.07 2.10 2.10 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 provision reversals Expenses up 7% Y/Y Volume growth (particularly credit cards), Tangerine brand transition costs, stock- based compensation and business initiatives ■ Positive operating leverage of 1.3% YTD Margin expansion and positive operating leverage (1) Attributable to equity holders of the Bank International Banking 1 Net Income ($MM) 9 Highlights ■ Net income +3% Y/Y2 Scotiabank 490 - 90 410 401 416 410 Strong performances from Latin America and Asia regions 400 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Net after-tax non-recurring gain in IB Average Assets ($B) Net Interest Margin (%) 137 143 139 122 126 4.14 3.90 3.93 4.00 4.05 ■ Strong volume growth, loans up 11% Y/Y and deposits up 12% Y/Y ■NIM down 9 bps Y/Y, up 5 bps Q/Q ■ Lower securities gains Y/Y Higher PCLS Y/Y Lower acquisition benefits in Latin America Higher provisions in the Caribbean Expenses up 4% Y/Y2 Good expense control across all regions Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 (1) Attributable to equity holders of the Bank (2) Excluding non-recurring items 10 Strong asset growth, partly offset by lower margin and higher PCLs Scotiabank LO 5

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