2008 Financial Overview and Trading Results

Scotiabank 347 (1) Net Income ($ millions) 463 Canadian Banking Results Another Strong Quarter 466 Q4/08 vs. Q4/07 net income: up 35% (1) + revenues up 14% (1) + strong deposit growth & continued asset growth ■ term deposits +12%, chequing/savings +15% ■ mortgages +11%, ScotiaLine +15% +16 bps increase in margin expenses well managed, up only 1% acquisitions & new branch openings, partly offset by lower volume related expenses in Wealth Mgmt. provisions up $29MM mainly due to increased commercial provisions Q4/08 vs. Q3/08 net income: up 1% + revenues up 2% + strong deposit growth & continued asset growth - expenses up 3% acquisitions & growth initiative spending Q4/07 Q3/08 Q4/08 (1) Adjusted for impact of Visa gain in Q4/07 ($111MM pre-tax, $92MM after-tax) 13 Scotiabank Net Income ($ millions) International Banking Solid Underlying Results 335 329 (1) 288 (1) 102 (1) 227 Q4/08 vs. Q4/07 net income: up 14% (1) + revenues up 29% (1) + acquisitions, solid asset growth, & broad based increase in fee income partly offset by narrower margin expenses up 29% - - acquisitions, growth initiative spending & forex provisions up $63MM due to asset growth, acquisitions, & higher retail delinquency in Mexico Q4/08 vs. Q3/08 net income: down 2% (1) + revenues up 4% (1) + acquisitions, asset growth, higher margin & forex lower underlying securities gains (Q3 included IPO gain on Mexican stock exchange) (1) Q4/07 Q3/08 Q4/08 - expenses up 8% acquisitions & forex Adjusted for items of note (Q4/08: $(120) MM pre-tax, $(102)MM after-tax, Q4/07: $91MM pre-tax, $71MM after-tax). See slides 35 and 36 for more details. 14

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