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Investor Presentation: Overview

David Wilson, Vice Chairman, Scotiabank and Chairman and C.E.O., Scotia Capital

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Today’s Agenda

9:35Video

9:00Welcome & Introduction – Sabi Marwah

9:20Financial Review – Colleen Johnston

11:45Lunch

11:30Wrap Up and Overall Q & A – David Wilson

11:15Loan Portfolio Management & Risk Management –Mike Aglialoro & Warren Walker

11:00U.S. Corporate – Steve McDonald

10:40Q & A and Break

10:30Canadian Relationship Management – James O’Sullivan

10:15Canadian Capital Structuring – Brian Porter

10:00Global Trading – John Schumacher

9:50Break

9:05Overview – David Wilson

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Overview

• Scotia Capital today

• Strengths we’re building on

• Goals and tactics

• Summary

• Strengths we’re building on

• Goals and tactics

• Summary

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Mission Statement

“Our core purpose is to build relationships by being the best at helping our clients achieve their financial goals.”

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Client Relationships

Talent

Discipline

Achieving Our Mission

Diversification

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Scotia Capital Footprint

• 2300 corporate/government clients

• 600 investor clients

• 14 offices and over 300 relationship managers

• Organized around industry specialties

• North America– Canada– U.S.

• Niche offering in Europe

• Early stages: Mexico & Asia

ClientCoverage

GeographicCoverage

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Historical Milestones

Integrationof TradingBusinesses

Integrationof Canadian Corporate Banking & InvestmentBanking

1995November

1999March2002

Reorganized Europe

April2003

ReorganizedU.S.

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Key Organizational Units

Scotia Capital• Organized for performance

Loan PortfolioManagement Finance Human Resources Corporate Services

& Marketing

InfrastructureCompliance Business Planning

& Client MIS

Canadian Relationship Management

270 Clients 8 Industry Groups in Canada

23 Relationship Managers

Global Trading

Capital Markets Group• Global Derivatives• Domestic Fixed Income• Domestic Money

Market• U.S. Fixed Income

Global Foreign Exchange

Global Precious Metals(ScotiaMocatta)

International MoneyMarket and Bank Funding

Canadian CapitalStructuring

Investment Banking / M&A

Corporate Banking

Loan Syndication

Institutional Equity

Equity Capital Markets

Equity Research

U.S.Corporate

Corporate Banking• 9 Industry Groups

Loan Syndication

Specialized Lending Products

• Securitization• Leasing• Municipal Finance

Private Equity Sponsor Group

Citadel Hill Fund Management

EuropeCorporate

Corporate Banking• 5 Industry Groups

Loan Syndication

Securitization

Private Equity Sponsor Group

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Domestic

International

Scotia Capital

27%44%

29%

A Significant Contributor

Scotia Capital: 29%

Breakdown of Net Income: $2,477M

(Total FY2003 BNS)

Significant Net Income contributor to Scotiabank Group but high capital usage impacts Shareholder returns

ROEE(FY2003)

Total BNS Domestic International ScotiaCapital

17.6%

30.9%

20.7%

12.9%

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CanadianCapital

Structuring

GlobalTrading

U.S.Corporate

Growth

RO

EE

Diverse Set of Major Businesses

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Overview

• Scotia Capital today

• Strengths we’re building on

• Goals and tactics

• Summary

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GlobalTrading

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Building On Our Strengths In...

...to optimize ROEE and earnings growth potential

Canadian CapitalStructuring

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U.S.Corporate

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Plus niche strategiesin Europe Corporate and

International Division

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Global TradingComparative Strengths...

! strong track record of growth & innovative products

! track record of tight control of trading and credit risks

! diversified North American client base

• leveraging existing base of core borrowing clients

• developing and marketing innovative derivative products designed for investor clients

• capitalizing on growing demand for derivative product offerings by issuing and investing clients

...to optimize ROEE and earnings growth potential by...

GlobalTrading

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Canadian Capital Structuring Comparative Strengths...

! highly effective team of relationship managers and product experts providing solutions to our core client base

! product excellence - acknowledged top three market leadership in virtually all products

! established franchise in a highly competitive home market

• building on momentum from successful full product offering and improved market penetration

...to optimize ROEE and earnings growth potential by...

Canadian CapitalStructuring

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U.S. Corporate Comparative Strengths...

• enhanced non-lending product offerings position us for growth in non-credit revenues

...to optimize ROEE and earnings growth potential as...

! rigorous discipline around client segmentation, diversification of credit exposure and risk/return thresholds

! longstanding 30 year market presence, reputation and relationships with Fortune 1000

! compelling NAFTA banking footprint

U.S. Corporate

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Niche Strategies...

! experts in a limited number of industries

! rigorous discipline around client selection, diversification of credit exposure and risk/return thresholds

Europe Corporate niche strategy:

International Banking niche strategy:

! cross sell robust P&C presence in Mexico to Scotia Capital U.S./Canadian clients

! cross sell Scotia Capital products to clients in Mexico and Asia

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Overview

• Scotia Capital today

• Strengths we’re building on

• Goals and tactics

• Summary

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Two Key Goals

Consistently deliver a good return on Shareholder Equity utilized

Deliver sustainable growth in Net Income

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How are we Going to Achieve our Goals?

• Reduce loan losses through disciplined lending and active portfolio management

• Incrementally change our business mix through aggressive cross-sell to deploy capital more efficiently

• Broaden product relationships with core borrowing clients, selectively add new client relationships and continue exiting unprofitable relationships

• Develop and market new capital markets products

• Continuing focus on execution and vigilance on expenses

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Scotia Capital – A Clear Focus

• Significant organizational changes producing desired results

• Lending discipline will not be compromised

• Growth opportunities exist in certain productsand certain markets

• Key financial targets attainable

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This document includes forward-looking statements which are made pursuant to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995. These statements include comments with respect to our objectives, strategies, expected financial results (including those in the area of risk management), and our outlook for our businesses and for the Canadian, U.S. and global economies. 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. The Bank cautions readers not to place undue reliance on these statements, as a number of important factors 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, regulatory developments in Canada and elsewhere, technological developments, consolidation in the Canadian financial services sector, competition, judicial and regulatory proceedings, the possible impact of international conflicts and other developments including terrorist acts and the war on terrorism, 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, financial condition or liquidity.

The Bank cautions that the foregoing list of important factors is not exhaustive. When relying on forward-looking statements to make decisions with respect to the Bank, investors and others should carefully consider the foregoing 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 behalf of the Bank.

Forward-looking statements