Investor Presentation - First Quarter, 2007
Scotiabank
Expenses flat quarter over quarter
Non-interest expenses
($ millions)
1,708
1,724
1,562
966
1,003
934
322
327
281
420
347
394
Q1/06
Q4/06
Q1/07
Salaries & employee benefits
Premises & technology
Other
Scotiabank
Q1/07 vs. Q1/06 expenses: up 10%
■ 60% of increase due to acquisitions
Remaining increase due primarily to:
"
higher salaries and benefits costs
• increased premises, data processing and
advertising expenses to support business
growth initiatives
Q1/07 vs. Q4/06 expenses: up 1%
Salary increases and higher performance-
based compensation reflecting record
Q1/07 results
■ Lower seasonal spending in some categories
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Scotiabank Mexico
Contribution
Scotiabank Mexico Contribution ($ mm)
Q1/07 Q4/06 Q1/06
Net income in pesos, excluding inflation accounting
MXP/CAD exchange rate
956
1,081 1,404
9.5
9.8
9.1
Net income in CAD, excluding inflation accounting
BNS' share (97%)
$101
$111 $154
$98
$108 $150
Canadian GAAP and acquisition adjustments
$43
$3
$(12)
Total contribution in CAD
$141
$111
$138
• Year/Year - contribution up 2%; very strong retail volume growth and higher fee
income offset by branch expansion costs, higher advertising expenses, and other
business initiatives
Qtr/Qtr - contribution up 27%; good retail volume growth, and lower performance-
based compensation
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