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Investor Presentaiton

Higher Expenses: Growth Initiatives & Seasonality Non-Interest Expenses ($ millions) 2,286 " 2,183 2,009 1,191 1,308 1,187 411 407 371 ■ 581 571 451 Q1/10 Q4/10 Q1/11 ■ Salaries & employee benefits ■Premises & technology ■Other Scotiabank Year-over-Year Expenses up 14% - Impact of acquisitions - Higher stock-based compensation - Higher employee benefits, including pensions + One-time gain on wind-up of pension plan relating to a prior acquisition Quarter-over-Quarter Expenses up 5% - Higher performance and stock-based compensation (seasonal impact of new grants) - Higher staffing levels and employee benefits + Lower advertising and technology expenses + One-time gain on wind-up of pension plan relating to a prior acquisition Continued Strength in Capital Ratios • • 11.7 11.8 11.8 11.2 11.2 9.8 9.6 9.3 8.8 8.8 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 ■TCE (%) Tier 1 (%) Internal capital generation of $611MM (vs. $437MM in Q1/10) Stock issued under DRIP: $127MM (vs. $132MM in Q1/10) Scotiabank 9 10
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