Strategic Economic and Financial Overview

8 Continued Sustainable Profitability Q3/12¹ Q2/12 Q/Q Q3/11 Y/Y $1,437 $1,460 (2%) Net Income ($MM) $1,303 10% $1.16 $1.15 1% EPS $1.10 5% 17.0% 18.6% (160) bps ROE 19.1% (210) bps 53.9% 53.7% 20 bps Productivity Ratio 53.7% 20 bps (1) Excluding $614 million or $0.53 per share gain from the sale of Scotia Plaza Q3 earnings benefited from... Year-over-Year Comparison • Impact of acquisitions, particularly in Colombia . . Strong trading and insurance revenues Lower effective tax rate Growth in transaction-based banking fees Scotiabank Record Revenue Revenue (TEB) . . Partly offset by.... Higher provisions and an increase in the collective allowance Lower underwriting and advisory fees Lower net gains on investment securities ($ millions) Year-over-Year Net interest income up 12% +Impact of acquisitions, particularly Colombia Non-interest revenues up 11% ex-Scotia Plaza gain 5,589 + Asset growth 727 4,773 4,371 2,289 2,290 2,069 2,302 2,484 2,572 Q3/11 Q2/12 Q3/12 Scotia Plaza gain Non-Interest Revenue (TEB) Net Interest Income (TEB) Scotiabank + Higher banking fees from credit cards and deposits + Stronger capital markets revenues + Gain on sale of a leasing business - Lower net gains on investment securities Quarter-over-Quarter Net interest income up 4% + Asset growth - Decline in core banking margin Non-interest revenues flat ex-Scotia Plaza gain + Higher trading revenues + Gain on sale of a leasing business + Two additional days in the quarter - Lower wealth management and investment banking revenues

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