Strategic Economic and Financial Overview

13 14 Global Wealth Management: Solid Quarter Net Income ($ millions) 298 284 260 Q3/11 Q2/12 Scotiabank Q3/12 Year-over-Year Revenues up 5% + Strong growth across insurance and most wealth management businesses + Good AUM/AUA growth - Lower brokerage revenues Expenses flat + Lower brokerage commissions and performance- based compensation + Discretionary expense management Higher taxes ($12MM) due to Ontario tax rate freeze impacting CI Quarter-over-Quarter Revenues down 2% + Higher international wealth revenues - Lower brokerage and mutual fund revenues Expenses down 3% + Lower volume related expenses and performance based compensation Higher taxes ($12MM) due to Ontario tax rate freeze impacting Cl Global Banking & Markets: Very Strong Quarter 304 Net Income ($ millions) 398 387 Q3/11 Q2/12 Q3/12 Scotiabank Year-over-Year Revenues up 18% + Higher fixed income and commodities revenues + Solid asset growth - Modestly lower underwriting and advisory fees PCLs up $7MM to $15MM Expenses up 14% - Higher performance-based compensation and technology costs - Impact of the Howard Weil acquisition Quarter-over-Quarter Revenues flat + Stronger fixed income and FX revenues + Modestly higher revenues from Canadian lending businesses - Decline in precious metals revenues PCLs of $15MM vs. recoveries of $1MM Expenses up 2% - Full quarter impact of the Howard Weil acquisition

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