Investor Presentaiton

Scotiabank $ millions Higher salaries & employee benefits due to acquisitions and network expansion % Change vs. % Change vs. 2006 2005 Q4/06 Q4/05 Q3/06 Salaries Stock-based Compensation $2,100 7% $558 8% 4% 164 17 50 19 100%+ Other Performance-based 936 6 217 21 (10) Compensation Pension & Employee Benefits 568 12 141 14 3 Total $3,768 8% $966 12% 3% 2006 vs. 2005: up 8% Higher salaries and employee benefits due to acquisitions, as well as increased performance-based compensation Q4/06: up 12% yr/yr & 3% qtr/qtr " " Yr/yr: higher salaries due to acquisitions and additional sales staff as well as increased performance-based compensation ■ Qtr/qtr: increase in stock-based compensation due to increase in the Bank's share price partially offset by lower performance-based compensation Scotiabank % All Bank 37 Net interest margin 1.97 1.97 1.97 1.98 1.89 Domestic 2.89 2.78 2.74 2.67 2.62 International 4.06 3.93 4.15 4.19 4.20 Scotia Capital 0.76 0.72 0.73 0.70 0.71 All-Bank margin: (9) bps qtr/qtr negative impact of AcG-13 and higher funding costs Domestic margin: (5) bps qtr/qtr ■ primarily from strong mortgage growth at relatively narrower spreads International margin: +1 bps qtr/qtr ■ wider spreads in Latin America & Mexico partly offset by lower spreads in Caribbean & Central America Scotia Capital margin: (5) bps qtr/qtr tighter loan spreads and lower interest recoveries Q4/05 Q1/06 Q2/06 Q3/06 Q4/06 38

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