Scotiabank Earnings Report

13 14 International Banking: Strong Quarter 371 Net Income¹ 453 ($ millions) 442 Q4/11 Q3/12 (1) Q4/12 Before deducting non-controlling interest Scotiabank Year-over-Year Revenues up 18% + Strong loan and deposit growth + Positive impact of acquisitions - Negative goodwill from acquisitions in prior year PCLs up $18MM to $176MM, mostly due to acquisitions and portfolio growth Expenses up 19% - Two-thirds attributable to acquisitions - Higher remuneration and premises costs from inflationary increases and to support business growth Quarter-over-Quarter Revenues flat + Higher retail banking fees in Latin America + Good retail loan growth - Foreign currency translation - Lower margins, mainly in Chile PCLs up $8MM to $176MM Expenses up 4% -Increases due to seasonality and to support business development in Latin America • Lower effective tax rate Global Wealth Management: Record Quarter Net Income ($ millions) 300 284 262 Q4/11 Q3/12 Q4/12 Year-over-year Revenues up 10% + Strong growth across insurance and most wealth management businesses + Solid AUM/AUA growth - Lower online brokerage revenues Expenses up 5% - Higher volume-related expenses + Discretionary expense management Quarter-over-Quarter Revenues up 4% + Higher global asset management, brokerage, and international wealth revenues + Strong insurance revenues Expenses up 6% - Seasonally higher expenses - Higher volume-related expenses Scotiabank

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