#12 Scotiabank Strategy in Action December 7, 2012 Investor Presentation Fourth Quarter, 2012 Scotiabank Scotiabank Caution Regarding Forward-Looking Statements Our public communications often include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbour" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward- looking statements may include comments with respect to the Bank's objectives, strategies to achieve those objectives, expected financial results (including those in the area of risk management), and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "anticipate," "intent," "estimate," "plan," "may increase," "may fluctuate," and similar expressions of future or conditional verbs, such as "will," "should," "would" and "could." By their very nature, forward-looking statements involve numerous assumptions, inherent risks and uncertainties, both general and specific, and the risk that predictions and other forward-looking statements will not prove to be accurate. Do not unduly rely on forward-looking statements, as number of important factors, many of which are beyond our control, could cause actual results to differ materially from the estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to: the economic and financial conditions in Canada and globally; fluctuations in interest rates and currency values; liquidity; significant market volatility and interruptions; the failure of third parties to comply with their obligations to us and our affiliates; the effect of changes in monetary policy; legislative and regulatory developments in Canada and elsewhere, including changes in tax laws; the effect of changes to our credit ratings; amendments to, and interpretations of, risk-based capital guidelines and reporting instructions and liquidity regulatory guidance; operational and reputational risks; the risk that the Bank's risk management models may not take into account all relevant factors; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services in receptive markets; the Bank's ability to expand existing distribution channels and to develop and realize revenues from new distribution channels; the Bank's ability to complete and integrate acquisitions and its other growth strategies; changes in accounting policies and methods the Bank uses to report its financial condition and financial performance, including uncertainties associated with critical accounting assumptions and estimates; the effect of applying future accounting changes; global capital markets activity; the Bank's ability to attract and retain key executives; reliance on third parties to provide components of the Bank's business infrastructure; unexpected changes in consumer spending and saving habits; technological developments; fraud by internal or external parties, including the use of new technologies in unprecedented ways to defraud the Bank or its customers; consolidation in the Canadian financial services sector, competition, both from new entrants and established competitors; judicial and regulatory proceedings; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including terrorist acts and war on terrorism; the effects of disease or illness on local, national or international economies; disruptions to public infrastructure, including transportation, communication, power and water; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. For more information, see the discussion starting on page 55 of the 2012 annual report. The preceding list of important factors is not exhaustive. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. The Bank does not undertake to update any forward- looking statements, whether written or oral, that may be made from time to time by or on its behalf. The "Outlook" sections in this document are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Scotiabank#2• Strategy in Action Overview Rick Waugh Chief Executive Officer Record 2012 Results Record Year - Net income: $6,466 million EPS: $5.22 . Includes $0.61 of real estate gains ROE: 19.7% Scotiabank Revenue growth of 14% (11% excluding one-time gains) Recently completed acquisition of ING DIRECT Canada Credit conditions continue to be stable Capital position remains strong and high quality Scotiabank#3Strong Revenue Growth in 2012 Business Line Canadian Banking Revenue Growth 4.9% International Banking 21.2% Global Wealth Management 12.5% Global Banking and Markets 14.1% All Bank Note: Excludes acquisition-related gains in 2011 and real estate gains in 2012 Scotiabank 5 6 Achieved Full Year 2012 Targets (1) (2) 10.6% Metric Target Actual² EPS Growth 5-10% 8.0% ROE 15-18% 17.6% Productivity Ratio <58% 54.3% Capital Maintain strong ratios TCE: 11.3% Tier 1: 13.6% Based on 2011 EPS excluding $286 million of acquisition-related gains reported in Q2/11 Excluding real estate gains in 2012 in EPS Growth, ROE and Productivity Ratio measures Scotiabank#48 Strategy in Action Financial Review Sean McGuckin Chief Financial Officer Scotiabank Fundamentals Delivering Positive Results Q4/12 Q3/12 Q/Q Q4/11 Y/Y $1,519 $1,437 6% Net Income ($MM) $1,157 31% $1.18 $1.16 2% EPS $0.97 22% 16.4% 17.0% (60) bps ROE 16.4% 54.9% 53.9% 100 bps Productivity Ratio 57.9% (300) bps (1) Excluding $614 million or $0.53 per share gain from the sale of Scotia Plaza Year-over-Year Comparison Q4 earnings benefited from... Partly offset by... • Higher provisions for credit losses Impact of acquisitions, particularly in Colombia Stronger trading revenues • Higher operating expenses: acquisitions accounted for 55% of the increase Growth in transaction-based banking fees Lower tax rate Scotiabank#59 10 Solid Annual Revenue Growth of 14% Revenue (TEB) ($ millions) 5,589 727 4,938 4,299 2,290 2,354 1,965 2,334 2,572 2,584 Q4/11 Q3/12 Q4/12 • Scotia Plaza gain Non-Interest Revenue (TEB) Net Interest Income (TEB) Scotiabank Year-over-Year Net interest income up 11% + Asset growth + Higher margin due to acquisitions, particularly Colombia Non-interest revenues up 20% + Stronger capital markets revenues + Higher banking fees and payment volumes + Higher mutual fund revenues Quarter-over-Quarter Net interest income up slightly + Higher residential mortgages and personal loans - Decline in margin in Chile Non-interest revenues up 3% ex-Scotia Plaza gain in Q3/12 + Higher gains on investment securities + Higher banking fees - Lower trading revenues Delivered Positive Operating Leverage in 2012 Non-Interest Expenses ($ millions) 2,713 2,618 2,489 734 866 727 408 445 392 1,370 1,476 1,402 Year-over-Year Expenses up 9% - Acquisitions accounted for 55% of increase - Increase in professional fees and technology costs - Higher premises costs driven by the sale of Scotia Plaza Quarter-over-Quarter Expenses up 4% - Fourth quarter seasonally higher expenses - Higher professional fees and technology costs - Higher advertising expenditures + Decline in remuneration Q4/11 Q3/12 Q4/12 Other Premises & technology Remuneration Scotiabank Fiscal Year 2012 Operating leverage +0.9%' (1) Excluding 2012 real estate gains and 2011 acquisition gains#611 12 Continued Strength in Capital Ratios: High Quality Capital Ratios (%) 13.6 12.2 12.2 11.4 10.2 9.6 9.4 8.5 Q4/11 Q1/12 Q2/12 ■Tangible Common Equity Scotiabank 12.6 11.3 • Q3/12 Q4/12 Tier 1 2012 Summary Internal capital generation of $3,557MM (vs. $2,737MM in 2011) • Stock issuance: - $822MM under DRIP (2011: $632MM) - $3,329MM in two public offerings -$518MM in Colpatria acquisition Basel III (fully implemented) CET1 ratio of 8.6% as at Oct 31, 2012, or 7.7% after adjusting for the ING DIRECT Canada acquisition Canadian Banking: Continuing Solid Performance Net Income ($ millions) 419 521 481 Q4/11 Q3/12 Q4/12 Scotiabank Year-over-Year Revenues up 6% + Strong asset and deposit growth + Higher card revenues PCLs down $3MM to $132MM Expenses up 3% - Higher expenses to support business growth and new initiatives Quarter-over-Quarter Revenues down 1% - $44MM gain on sale of a leasing business in Q3/12 + Solid growth in retail assets and commercial deposits ⚫ PCLs up $14MM to $132MM, mostly commercial Expenses up 3% - Seasonally higher expenses and new initiatives#713 14 International Banking: Strong Quarter 371 Net Income¹ 453 ($ millions) 442 Q4/11 Q3/12 (1) Q4/12 Before deducting non-controlling interest Scotiabank Year-over-Year Revenues up 18% + Strong loan and deposit growth + Positive impact of acquisitions - Negative goodwill from acquisitions in prior year PCLs up $18MM to $176MM, mostly due to acquisitions and portfolio growth Expenses up 19% - Two-thirds attributable to acquisitions - Higher remuneration and premises costs from inflationary increases and to support business growth Quarter-over-Quarter Revenues flat + Higher retail banking fees in Latin America + Good retail loan growth - Foreign currency translation - Lower margins, mainly in Chile PCLs up $8MM to $176MM Expenses up 4% -Increases due to seasonality and to support business development in Latin America • Lower effective tax rate Global Wealth Management: Record Quarter Net Income ($ millions) 300 284 262 Q4/11 Q3/12 Q4/12 Year-over-year Revenues up 10% + Strong growth across insurance and most wealth management businesses + Solid AUM/AUA growth - Lower online brokerage revenues Expenses up 5% - Higher volume-related expenses + Discretionary expense management Quarter-over-Quarter Revenues up 4% + Higher global asset management, brokerage, and international wealth revenues + Strong insurance revenues Expenses up 6% - Seasonally higher expenses - Higher volume-related expenses Scotiabank#815 Global Banking & Markets: Very Good Quarter 243 Net Income ($ millions) 398 396 الا Q4/11 Q3/12 Q4/12 Year-over-Year Revenues up 37% + Higher fixed income revenues + Asset growth and modestly wider spreads Modestly lower FX and precious metals revenues PCLs down $6MM to $11MM Expenses up 5% - Higher performance-based compensation Quarter-over-Quarter Revenues up 1% + Higher revenues from U.S., Europe and Canadian lending businesses + Higher fixed income revenues - Lower other capital markets revenues PCLs down $4MM to $11MM Expenses up 4% - Higher salaries, stock-based compensation and professional fees Scotiabank Other Segment 1 Net Income ($ millions) 406 Q4/12 + $31MM net gain on investment securities $20MM costs related to share issuance Q3/12 + $614MM gain on the sale of Scotia Plaza - $74MM increase in the collective allowance Q4/11 Q4/11 Q3/122 Q4/12 + $46MM net gain on investment securities + $22MM reduction in the collective allowance (111) (138) - $34MM foreign currency related losses arising from conversion to IFRS (1) Scotiabank (2) 16 Includes Group Treasury, smaller operating segments, and other corporate items which are not allocated to a business line. The results primarily reflect the impact of asset/liability management activities. $134MM loss excluding after-tax Scotia Plaza gain and the increase to the collective allowance for performing loans#9Strategy in Action Risk Review Rob Pitfield Chief Risk Officer Scotiabank Continued Stability in All Our Portfolios • Risk in credit portfolios continues to be well-managed - Provisions for credit losses on impaired loans remain in line with expectations Overall credit quality of loan portfolio remains strong Market risk remains low and well controlled Average 1-day all-bank VaR: $19.0MM vs. $20.0MM in Q3/12 Stress tests confirm appropriateness of risk appetite 18 Scotiabank#1019 Credit Provisions Continue to be Stable ($ millions) Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Canadian Retail 106 112 105 103 99 Canadian Commercial 29 24 15 15 33 135 136 120 118 132 International Retail 129 125 133 151 159 International Commercial 29 (1) 158 124 145 ៩ន 12 17 17 168 1761 Global Wealth Management 1 1 2 Global Banking & Markets 17 5 (1) 45 15 11 Collective allowance on performing loans (30) 100 Total 281 265 264 402 321 PCL ratio (bps) ex. collective allowance PCL ratio (bps) 38 32 30 33 34 on performing loans 34 32 30 44 34 Scotiabank (1) Includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See pg 24 Purchased loans note of the 2012 Annual Report. Canadian Banking: Residential Mortgage Portfolio ($ billions, as at October 31, 2012) $79 $7 Total Portfolio: $156 billion Insured Uninsured 60% 40% Average LTV of uninsured mortgages is 54% $72 $25 $4 -$2 $17 $0.5 $12 $21 -$1 $17 $11 Ontario B.C. Alberta Quebec Other Freehold $142B Condos - $14B Scotiabank 20 (1) LTV calculated based on the total outstanding balance secured by the property. Property values indexed using Teranet and CREA data.#1121 Risk Outlook Remains Stable • Asset quality remains high - Retail and commercial portfolios performing as expected Corporate portfolios continue to demonstrate strength Combination of growth in portfolios and product mix will result in rising provisions - Canadian Retail provisions stable International Retail provisions will increase in line with portfolio growth, product mix, and a modest softening in economic conditions Corporate and Commercial provisions remain modest Scotiabank Strategy in Action Canadian Banking 2013 Outlook Anatol von Hahn Group Head, Canadian Banking Scotiabank#1223 . • • • • Canadian Banking: 2013 Outlook • Retail: Asset growth is expected to continue, albeit at a slightly lower pace Continue to focus on deposits, payments and wealth management Strong contribution from the ING acquisition, solidifies our #3 position in Canada Small Business: Solid loan and deposit growth Automotive: Expanded footprint and strong volume growth Commercial Banking: Strong pipeline reflecting targeted initiatives Continue to partner with Global Transaction Banking to grow deposits Margin: Steady, but remains under pressure PCLs: - Stable loan loss ratio Expenses: - Managing expenses will remain a key priority Scotiabank Strategy in Action International Banking 2013 Outlook Dieter Jentsch Group Head, International Banking Scotiabank#1325 International Banking: 2013 Outlook ⚫ Positive outlook: expecting double-digit growth, on average, across the loan portfolio • • • Positive retail outlook, from organic growth & business initiatives Commercial pipeline remains healthy across our large platforms in Asia & Latin America PCLs expected to rise, reflecting underlying organic growth and the purchase of Colpatria Maintain focus on expense management; positive operating leverage expected for the year Margins expected to remain stable Scotiabank Strategy in Action Global Wealth Management 2013 Outlook Chris Hodgson Group Head, Global Wealth Management Scotiabank#1427 • • • • • • Global Wealth Management: 2013 Outlook Good growth across our businesses, as we continue to benefit from business mix and geographic diversification Growing earnings from International businesses, and capitalizing on recent acquisitions Strong AUM/AUA base driving Wealth, but impacted by markets Product innovations to accelerate sales momentum Consolidated online brokerage platform well positioned to grow Global Insurance outlook remains strong Good deposit growth in Global Transaction Banking • Continued scrutiny on expense management Scotiabank Strategy in Action Global Banking & Markets 2013 Outlook Steve McDonald Group Head, Global Corporate and Investment Banking & Co-CEO, Global Banking & Markets Scotiabank#1529 • • • • • Global Banking & Markets: 2013 Outlook Expecting good growth from continued focus on diversification across focus sectors, products and geographies, including growing the Global Wholesale Banking platform Market headwinds continue to create challenges, but discipline and risk focus have positioned us well Global Transaction Banking continues to provide opportunities for cross-sell and strengthening customer relationships • Mid-to-high single digit loan growth expected with stable margin PCLs to remain modest Expense management initiatives continue with objective of maintaining positive operating leverage Scotiabank Strategy in Action 2013 Targets Brian Porter President Scotiabank#16Full Year 2013 Targets Metric Target EPS Growth 5-10%¹ ROE Productivity Ratio Capital (1) Excluding real estate gains in 2012 Scotiabank 31 15-18% <56% Maintain strong ratios Strategy in Action Appendix Scotiabank#1733 34 Core Banking Margin (TEB)1 2.37% 2.33% 2.35% 2.26% 2.25% Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 . Quarter-over-Quarter Lower volumes of DWBs: +4 bps Lower spreads in Canadian currency portfolio: -2 bps (1) Represents net interest income (TEB) as a % of average earning assets excluding bankers acceptances and total average assets relating to the Global Capital Markets business within Global Banking and Markets. Scotiabank Canadian Banking: Steady Asset & Deposit Growth Revenues (TEB) ($ millions) 1,620 1,601 1,512 444 395 349 1,163 1,176 1,206 Q4/11 Q3/12 Q4/12 Year-over-Year Retail & Small Business + Strong mortgage and personal loan growth + Significant growth in credit cards and chequing accounts Commercial Banking + Strong asset growth in commercial and auto lending + Higher credit fees Quarter-over-Quarter Retail & Small Business + Solid growth in retail mortgages and savings accounts Commercial Banking - Gain from the sale of a leasing business in Q3/12 ■Commercial Banking Retail & Small Business Scotiabank#1835 Canadian Banking: Volume Growth Q4/12 Q3/12 Q/Q Average Balances ($ billions) Q4/11 Y/Y 153.5 149.5 2.7% Residential Mortgages 142.1 8.0% 41.0 39.7 3.3% Personal Loans 38.1 7.6% 1 8.9 8.8 1.1% Credit Cards 8.9 28.4 28.3 0.4% Business Loans & Acceptances 26.0 9.2% 104.5 104.0 0.5% Personal Deposits 101.2 3.3% 45.0 43.6 3.2% Non-Personal Deposits 41.1 9.5% (1) Includes ScotiaLine VISA Scotiabank International Banking: Strong Loan and Deposit Growth Revenues (TEB) ($ millions) 1,692 1,692 165 173 1,435 148 475 469 458 Year-over-Year Latin America + Strong retail and commercial loan growth + Impact of acquisitions - Negative goodwill from acquisitions in prior year Caribbean & Central America + Modest growth in retail and commercial loan volumes Asia + Higher margins 1,052 1,050 829 Quarter-over-Quarter Q4/11 Asia Q3/12 Q4/12 Caribbean & Central America Latin America Latin America + Strong retail and commercial loan growth + Seasonally higher retail banking fees - Lower margins, mainly in Chile Caribbean & Central America - Slight decline in retail loan volumes due to FX • Asia + Higher margins - Decline in commercial loans and trade finance partly due to FX Scotiabank 36#1937 38 Global Wealth Mgmt: Growth Despite Volatile Markets Revenues (TEB) ($ millions) 923 886 838 148 142 132 744 775 706 Q4/11 Q3/12 Q4/12 Insurance Wealth Management Scotiabank . Year-over-Year Wealth Management + Higher revenues from asset management, international wealth, full-service brokerage, and Canadian private client businesses + Strong AUM and AUA growth - Lower online brokerage revenues Insurance + Higher global insurance revenues Quarter-over-Quarter Wealth Management + Higher asset management revenues + Good AUM and AUA growth Insurance + Higher global insurance revenues Global Wealth Management: Key Metrics ($ billions) Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Assets Under Administration 262 269 275 272 283 Assets Under Management 103 106 109 109 115 Mutual Funds Market Share in Canada vs. Schedule 1 Banks¹ 18.4% 18.4% 18.4% 18.3% 18.3% (1) Excludes Scotiabank's investment in CI Financial. Source: IFIC Scotiabank#2039 40 Global Banking & Markets: Strong Performance Revenues (TEB) ($ millions) 910 669 511 483 305 917 • Year-over-year Global Capital Markets + Higher revenues in fixed income, equities, and commodities businesses Global Corp. & Investment Banking + Volume growth in the U.S. and Europe + Higher margins in Canada and Europe + Higher credit fees Quarter-over-Quarter Global Capital Markets + Strong revenues in fixed income - Market-driven decline in revenues in the other capital markets businesses Global Corp. & Investment Banking + Margin increase in Canada + Higher underwriting fees + Modest volume growth in Europe 364 399 434 Q4/11 Q3/12 Q4/12 Global Capital Markets Global Corporate & Investment Banking Scotiabank Economic Outlook in Key Markets Real GDP (Annual % Change) 2000-11 Country 2012F 2013F 2014F Avg. Mexico 2.2 4.0 3.6 4.0 Peru 5.6 6.3 6.0 5.5 Chile 4.8 5.4 5.0 5.4 Jamaica 0.7 1.0 1.2 1.2 Colombia 4.5 4.5 5.0 4.8 Costa Rica 4.1 4.5 4.0 4.4 Dominican Republic 5.4 4.0 4.4 5.0 Thailand 4.0 5.5 4.0 4.2 2000-11 2012F 2013F 2014F Avg. Canada 2.2 2.0 1.7 2.3 U.S. 1.8 2.2 2.0 2.5 Source: Scotia Economics, as of December 4, 2012. Scotiabank#2141 42 Unrealized Securities Gains ($ millions) Q4/12 Q3/12 Emerging Market Debt 242 269 Other Debt 397 345 Equities 454 439 1,093 1,053 Net Fair Value of Derivative Instruments (202) (230) and Other Hedge Amounts Total 891 823 Scotiabank PCL Ratios (Total PCL as % of average loans & BAs) Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 Canadian Banking Retail 0.22 0.23 0.22 0.21 0.20 Commercial 0.45 0.36 0.22 0.22 0.46 Total 0.25 0.25 0.22 0.21 0.23 International Banking Retail 1.98 1.90 1.79 1.99 2.03 Commercial 0.25 0.00 0.09 0.13 0.13 Total 0.87 0.65 0.71 0.81 0.84 Global Wealth Management 0.06 0.03 (0.01) 0.09 0.08 Global Banking and Markets Corporate Banking 0.21 0.06 (0.01) 0.16 0.12 All Bank (ex. collective allowance 0.38 0.32 0.30 0.33 0.34 on performing loans) All Bank 0.34 0.32 0.30 0.44 0.34 Scotiabank (1) Includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See pg 24 Purchased loans note of the 2012 Annual Report.#22Net Impaired Loan Formations ($ millions) 500 400 326 299 300 200 100 0 Q1/11 Q2/11 1 394 374 355 295 241 216 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 (1) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans related to the acquisition of R-G Premier Bank of Puerto Rico Scotiabank 43 44 Downward Trend in Gross Impaired Loans %" ($ billions) 3.7 3.6 3.5 3.4 3.3 3.2 3.1- 1.15% 1.10% 1.05% 1.00% 0.95% 3.0 0.90% Q1/11 Q2/11 Q3/11 Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 GILS -GILS as % of Loans & Bas (1) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans related to the acquisition of R-G Premier Bank of Puerto Rico Scotiabank#2345 46 Canadian Banking Retail: Loans and Provisions $156 (Spot Balances at Q4/12, $ billions) Total = $207 billion'; 93% secured $25 $17 $9 % secured Mortgages 100% Lines of Credit 66% Personal Loans Credit Cards² 98% 37% PCL Q4/12 Q3/12 Q4/12 Q3/12 Q4/12 Q3/12 Q4/12 Q3/12 $ millions 4 7 24 28 40 33 32 35 % of avg. 1 2 39 45 97 84 141 158 loans (bps) Scotiabank (1) (2) Includes Wealth Management balances of -$3.5 billion Includes $6 billion of Scotialine VISA International Retail Loans and Provisions $13.2 $0.8 $2.9 Total Portfolio = $33 billion 68% secured Credit Cards ($3.3B) Personal Loans ($10.1B) ■Mortgages ($19.2B) $5.8 $0.1 $5.0 $4.7 $9.5 <<$0.3 $2.1 $1.0 $0.8 $3.9 $1.3 $2.7 $3.7 $3.6 $1.4 $1.2 $1.2 % of total C&CA 40% Mexico 15% Chile Peru Colombia¹ 18% 14% 11% PCL Q4/12 Q3/12 Q4/12 $ millions 35 28 21 19 Q3/12 Q4/12 Q3/12 17 Q4/12 Q3/12 Q4/12 Q3/12 16 55 60 16 18 % of avg. loans (bps) 105 85 169 156 111 125 483 564 163 197 Scotiabank (1) Note: Excludes non-material portfolios Includes the impact of Colombian purchased portfolio. The Bank expects the PCL ratio to rise with the maturity of the acquired portfolio. See pg 24 Purchased loans note of the 2012 Annual Report.#2447 International Banking Commercial Lending Portfolio Q4/12 = $52 billion 48 Asia 32% Latin America 45% • Well secured . . Caribbean & Central America 23% Portfolios in Asia, Mexico, Chile, Peru and Central America performing well Closely managing Caribbean hospitality portfolio Scotiabank Q4 2012 Trading Results and One-Day Total VaR ($ millions) 10 225050 15 (5) (10) - (15) - (20) - - Actual P&L 1-Day Total VaR митиримия (25) Scotiabank Average 1-Day Total VaR Q4/12: $19.0MM Q3/12: $20.0MM Q4/11: $15.9ММ#25Q4 2012 Trading Revenue Distribution (# days) 14 13 11 9 12270 49 8965 4 3 (1) 01 2 3 4 5 6 7 8 9 10 ($ millions) 11 12 13 14 • 98% of days had positive results in Q4/12 Scotiabank