Scotiabank Q2 2009 Financial Performance Review

Scotiabank Canadian Banking Solid Quarter ($MM) Q2/09 Q1/09 Change Q/Q Comments on Q/Q Movements NII 1,147 1,146 +1 ■ higher margin & volume growth, offset by shorter quarter Other 524 556 (32) Income Expenses 899 934 +35 PCL 188 155 (33) Net Income 410 438 (28) ■ lower income recognition on DW investment ■ lower wealth management revenues, seasonally lower VISA fees higher credit fees in Commercial ■ strong cost control program, timing & shorter quarter ■ lower volume related & stock-based compensation ■ $10MM sectoral provision for Auto ■retail PCLS stable higher PCLS in Commercial ■stable underlying earnings ■ benefitting from prudent expense & risk management 35 Scotiabank Canadian Banking Stable Revenues During Challenging Conditions Revenues (TEB) ($ millions) 1,702 1,671 1,588 1,041 1,038 992 384 317 389 279 277 244 Q2/08 Q1/09 Retail & Small Business ■Commercial Banking ■Wealth Management Q2/09 Q2/09 vs. Q1/09 revenues: down 2% NII stable, higher margin offset by shorter quarter decrease in wealth management revenues: lower DW equity accounted earnings & lower full service brokerage seasonally lower forex revenues & VISA fees + higher credit fees in Commercial Q2/09 vs. Q2/08 revenues: up 5% Retail & Small Business + solid, but moderating, asset growth + strong deposit growth Commercial Banking + higher margin due to lower wholesale funding rates + continued strong deposit growth Wealth Management lower full service brokerage & mutual fund fees Cl contribution offset by DW write-down + ITRADE acquisition 36

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