Financial Review Q3/11

13 Scotia Capital: Challenging Markets Scotiabank 305 Net Income ($ millions) 357 289 Q3/10 Q2/11 Q3/11 • • • • Year-over-Year Earnings down 5%; revenues up 5% + Higher investment banking revenues - Lower trading revenue, primarily in fixed income PCLs of $8MM vs. reversals of $25MM Expenses up 17% - Higher remuneration and benefits to support growth initiatives in trading business - Higher support costs Quarter-over-Quarter Earnings down 19%; revenues down 8% - Lower fixed income trading revenue + Higher revenue in equities, foreign exchange and precious metals + Modest growth in corporate loans PCLs down $2MM Expenses down 13% + Lower performance based compensation Other Segment¹ ($ millions) Q3/10 Q2/11 Q3/11 Funding Net Interest Income (118) (75) (54) Net Securitization Revenues² (110) (78) (78) AFS Securities Writedowns (5) (6) (12) Financial Instruments (6) 60 11 General Allowance for Credit Losses 30 Expenses & Net Other Items (3) TEB Offset (70) Taxes Total 131 (181) 56 (69) 75 (56) 8 (73) (149) (71) Scotiabank 14 (1) Includes Group Treasury and other corporate items, which are not allocated to a business line (2) Represents the impact on the Other segment of CMB securitization revenues recognized in other income, and the reduction in mortgage net interest income earned as a result of removing the mortgages from the balance sheet 7

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