Strategy in action

8 Strong Earnings Momentum Continues Q2/12 Q1/12 $1,460 $1,436 $1.15 Q/Q Q2/11 Y/Y 2% Net Income ($MM) $1,258 16% $1.122 3% EPS $1.06 8% 18.6% 19.8% (120) bps ROE 19.8% (120) bps 53.7% 53.5% 20 bps Productivity Ratio 55.5% (180) bps (1) Excluding $286 million or $0.26 per share gain from acquisitions and $77 million or $0.07 per share from IFRS-related FX gains (2) Excluding $0.08 per share impact from real estate gain in Q1/12 Year-over-Year Comparison Q2 earnings benefited from... Partly offset by... • Impact of acquisitions, particularly in Colombia • ⚫ Higher margin and solid volume growth . Stronger trading revenues Growth in transaction-based banking fees Scotiabank Higher operating expenses from acquisitions Higher effective income tax rate Lower net gain on investment securities Record Revenue Revenue (TEB) ($ millions) 4,708 286 4,689 4,773 2,309 2,289 2,281 2,141 2,380 2,484 Year-over-Year Net interest income up 16% + Higher margin and asset growth + Impact of acquisitions, particularly Colombia Non-interest revenues up modestly ex-gains -IFRS foreign currency-related gains in Q2/11 + Higher fee-based revenues and growth in payment volumes + Stronger trading revenues Quarter-over-Quarter Q2/11 Q1/12 Acquisition-related gains Q2/12 Non-Interest Revenue (TEB) Net Interest Income (TEB) Scotiabank Net interest income up 4% + Higher margin from recent acquisitions - Shorter quarter Non-interest revenues down 1% + Higher wealth management fees + Increased contributions from Thanachart Bank - Gain on sale of Calgary real estate asset in Q1/12

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