Canadian and International Banking Update

Scotiabank 373 Net Income ($ millions) 466 438 Q1/08 Q4/08 Q1/09 Canadian Banking - Solid Quarter Q1/09 vs. Q4/08 net income: down 6% - revenues down 1% - lower margin due to competitive pricing pressures on deposits & higher liquidity costs + strong deposit growth + expenses down 1% + seasonally lower initiative & discretionary spending provisions up $48MM Q1/09 vs. Q1/08 net income: up 18% + revenues up 13% + strong asset & deposit growth mortgages +11%, Scotia Line +15% personal term deposits +10%, cheq./savings +12% + higher margin due to lower funding interest rates expenses up 5% acquisitions & full yr. impact of '08 growth initiatives provisions up $64MM 13 Scotiabank Net Income ($ millions) 289 227 International Banking Record Quarter 388 Q1/08 Q4/08 Q1/09 Q1/09 vs. Q4/08 net income: up 71% + revenues up 21% + strong volume & transaction-driven growth + positive impact of forex + securities write-downs in Q4/08 lower margin expenses up only 2% negative impact of forex provisions up $26MM Q1/09 vs. Q1/08 net income: up 34% + revenues up 36% + forex & acquisitions + organic volume growth, strong forex revenues & - higher transaction-driven revenues lower margin, higher securities gains in Q1/08 expenses up 36% ■ expenses up 16% excl. forex & acquisitions branch expansion & Q1/08 expense recoveries provisions up $86MM - 14

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