Investor Presentaiton

Scotiabank Scotiabank Net Impaired Loans Stable Net Impaired Loans 689 ($ millions) 579 579 584 601 392* 239 329 360 357 245 244 215 208 229 95 53 35 Q1/07 Q2/07 Q3/07 Q4/07 Q1/08 Scotia Capital Domestic International includes $51 million addition from Desarrollo acquisition in Chile 31 Areas of Current Focus Monolines Montreal Accord ABCP CDOs and CLOS Structured Investment Vehicles (SIVS) Hedge Fund Exposure A A bought protection from one monoline on 3 AAA rated CDO tranches . . no sub-prime mortgages notional value: US$937 million $161 million MTM at Q1/08 ($80 million reserve) other direct exposures not material (<$50 million) indirect exposure: US$4.4 billion high quality of underlying assets, minimal exposure (<$50 million) to sub-prime mortgages fair value of holdings: $144 million Q1/08 write-downs ranged up to 30%, reflecting changes in underlying asset value ➤ liquidity lines to conduits total $65 million; drawdowns of $46 million fair value of holdings: $1.4 billion, including $507 million acquired through purchase of Dundee Bank of Canada. Increased from last quarter due to SIV restructuring 100% investment grade equivalent no sub-prime exposure fair value of holdings: $23 million do not sponsor, manage or provide liquidity support to SIVS. majority of activity collateralized no credit issues with counterparties 32

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