Scotia Capital: 2010 Outlook

Strong Capital Ratios Tier 1 Ratio (%) 9.3 9.5 9.6 10.4 10.7 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q4/09 vs. Q3/09 Capital Ratios + $352 million of internal capital generation + DRIP & Option Plan: $178 million No net impact from RWA or FX TCE Ratio (%) 7.9 8.2 6.6 7.2 7.2 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Scotiabank 15 Canadian Banking: Record Quarter Net Income ($ millions) 500 503 466 Q4/08 Q3/09 Q4/09 Q4/09 vs. Q4/08 + Revenues up 10% + Increased margin, deposit & asset growth + Higher contributions from wealth management PCLs up $83MM Expenses up 6% $23MM relating to VISA reward points Higher performance-based compensation & wealth management commissions, partly offset by strong cost control Q4/09 vs. Q3/09 + Revenues up 5% + Higher margin (+10 bps) due to asset re-pricing & funding mix + Asset growth, primarily residential mortgages + Increased wealth management revenues PCLs up $21MM Expenses up 6% $23MM relating to VISA rewards points - Higher stock & performance-based compensation - Spending on growth initiatives Scotiabank 16

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