Scotiabank Financial Performance Review

Domestic Banking Scotiabank Solid earnings from asset & revenue growth 1600 1,550 1,279 1200 800 400 450 300 150 0 2006 2007 Net Income* 391 335 434 2007 vs. 2006 net income: +21% + revenues up 9% - expenses up 3% • growth initiatives volume related expenses Q4/07 vs. Q3/07 net income: +11% + revenues up 5% (including VISA gain) - expenses up 4% reflecting growth initiatives: • acquisition related costs ⚫ new branches • higher advertising and technology costs Q4/06 Q3/07 Q4/07 * net income available to common shareholders, $ millions 17 Scotiabank revenues (TEB), $ millions 6,103 5,617 4,046 3,741 Domestic Banking Revenue growth 2007 vs. 2006 revenues: +9% Retail & Small Business: +8% + strong asset & deposit growth + higher service fees and credit card revenues - partly offset by lower margin Wealth Management: +14% ⚫mutual funds +24% retail brokerage +10% ⚫ private client • +13% Commercial Banking: +5% • asset & deposit growth Q4/07 vs. Q3/07 revenues: +5% Retail & Small Business: +4% + VISA gain + strong retail asset growth + small business deposit growth - margin compression Wealth Management: -2% lower retail brokerage Commercial Banking: +16% higher deposit revenue 18 992 1,131 884 926 • 2006 2007 Retail & Small Business Wealth Management Commercial Banking 1,617 1,543 1,455 1,066 1,024 967 255 283 277 233 236 274 Q4/06 Q3/07 Q4/07

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