Scotiabank Earnings Update

Scotiabank 285 268 51** 234 International Banking Solid Operating Performance Net Income* ($ millions) 316 Q3/06 Q4/06 Q1/07 *available to common shareholders **VAT recovery in Mexico 293 270 Net income up 15% yr/yr (ex. VAT) + revenues up 13% expenses up 6% . business growth initiatives • normal salary increases higher tax rate Net income down 8% qtr/qtr + higher retail volumes in Caribbean, Mexico and Peru MTM writedown in securities portfolio impact of forex translation Q2/07 Q3/07 higher tax rate - 19 Scotiabank International Banking Good Revenue Growth Revenues (TEB) ($ millions) 979 967 953 895 844 387 394 393 349 331 303 339 342 322 305 208 243 241 243 238 Q3/06 Q4/06 Q1/07 Q2/07 ■Caribbean & Central America Mexico Latin America/Asia/Other Revenues up 13% yr/yr C&CA up 19% + strong asset and deposit growth + higher fee revenues + impact of acquisitions Mexico up 6% + strong retail loan growth + higher card, mutual fund fees - lower trading revenues LatAm/Asia/Other up 14% + higher loan volumes in Peru/Chile MTM writedown in securities portfolio Revenues down 3% qtr/qtr + higher retail loan volumes - Q3/07 MTM writedown - impact of forex translation 20

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