2010 Outlook

International Banking: Impacted by FX 227 Net Income ($ millions) 312 283 Q4/08 Q3/09 Q4/09 Scotiabank Q4/09 vs. Q4/08 + Revenues up 7% + Net securities gains (vs. Q4/08 writedowns) + Underlying retail loan growth & wider interest margins, partly due to acquisitions + Lower effective tax rate - PCLs up $77MM + Expenses down 2% - + FX & strong cost control Q4/09 vs. Q3/09 Revenues down 2% + $79MM Q3/09 writedown on an equity investment + Higher securities gains Negative impact of financial instruments - Lower average Commercial volumes + PCLs down $12MM Expenses up 3% Higher seasonal & professional expenses 17 Scotia Capital: Strong Quarter, 2nd Highest Ever 44 Net Income ($ millions) 470 353 Q4/08 Q3/09 Q4/09 Q4/09 vs. Q4/08 + Revenues up 100% + + Q4/08 writedowns of $503MM + Stronger underlying trading revenues + Record credit fees & investment banking revenues - PCLs up $53MM, from low level in Q4/08 - Expenses up 14% Increased legal provisions, support costs & technology expenses Q4/09 vs. Q3/09 Revenues down 18% - 2nd highest trading quarter, but down vs. record Q3 - Lower average loan volumes, partly offset by wider lending spreads + Record credit fees & investment banking revenues + PCLs down $43MM Expenses up 7% - Increased remuneration & legal provisions, partly offset by lower incentive compensation Scotiabank 18

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