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Investor PresentationNovember 30, 1999Investor PresentationNovember 30, 1999

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Performance ReviewSabi MarwahExecutive Vice-President &Chief Financial Officer

Performance ReviewSabi MarwahExecutive Vice-President &Chief Financial Officer

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Performance Highlights• solid earnings growth

÷ EPS up 11% year-over-year

÷ strong contribution from business lines

÷ good top-line revenue growth

• strengthened balance sheet

÷ higher capital ratios

÷ increased general provision

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10 Years of RecordEarnings

0

500

1000

1500

2000

90 92 94 96 98 990

1

2

3

Net Income

EPS = $2.93

$ millions$

94 & 97 exclude unusual items

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Good Top-Line Revenue Growth$ millions

12%2,8933,247Operating income (TEB)8%805870

6%4,4464,716Non-interest expenses*-1,1961,196

9%7,3397,963Total revenues3%2,0012,066

10%2,8333,128Other income*4%808840

7%4,5064,835Net interest income (TEB)3%1,1931,226

change19981999changeQ3/99Q4/99

* Excludes: real estate write-down: ($22MM, Q3/99); gain on sale of business ($25MM, 1998); special one-time gain ($77MM, Q1/99); net restructuring cost ($40MM, Q4/99)

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Continued Productivity Leadershipexpenses as a % of revenues

55

60

65

1992 93 94 95 96 97 98 1999

Other Canadian Banks

Scotia advantage

66.2*

59.3

Scotiabank

* Q3/99 YTD

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Capital Ratios –Strengthened Significantly% of risk-adjusted assets

0

2

4

6

8

10

12

14

1996 1997 1998 1999

Total

Tier 1

Common

8.9

10.4 10.6

11.9

6.7 6.9 7.28.1

5.5 5.8 6.0 6.9

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Higher General Provision & Securities Surplus

General Provision as a % of RWA*

0

50

100

40bp

91bp

basispoints

Oct-98 Oct-99

$ billions

0

0.5

1

1.5

Oct-98 Oct-99

GeneralProvision

SecuritiesSurplus

0.7B

1.6B

* Risk-weighted assets

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Canadian Retail & Commercial - Steady

• strong growth in assets÷ mortgages up 10%

• some margin pressure

• broad-based fee growth

• lower loan losses

• market share gains0

200

400

600

800

98 99*

Net Income, $ millions

* includes net restructuring charge of $35MM pre-tax

10

10

12

14

16

18

20

1994 1995 1996 1997 1998 1999

% share

Residential Mortgages

#5

#2

Personal deposits

#2

Market Share Growth in 1999

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International – Better Results in 1999

0

100

200

300

1998 1999

Net Income, $ millions

Asia &Latin America

Caribbean

• very strong results in Caribbean

• lower contribution from Latin America

• Asia returned to profitability

12

0

50

100

150

200

92 93 94 95 96 97 98 99

Highly Successful CaribbeanFranchisenet income, $ millions

CAGR = 24%

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Corporate - Record Year

• good growth in interest profit÷ solid increase in loans÷ wider spreads

• other income up 16%

• higher credit losses

• improving ROE

0

200

400

600

98 99

Net Income, $ millions

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Top Ten U.S. Presence Maintained

Source: Loan Pricing Corp, Nov. 15, 1999, Agent-only volume

Top Ten: seventh year in a row for syndicated loans

2 Bank of America

1 Chase Manhattan Corp

7 Bank of New York

3 Citibank/Salomon Smith Barney

4 BANK ONE

6 Deutsche Banc Alex. Brown

5 J.P. Morgan & Co

8 Credit Suisse First Boston

9 First Union

11 ABN AMRO Bank

12 Fleet Financial Group

10 Scotiabank

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Investment Banking –Solid 1999 Results

0

100

200

300

400

98 99

Net Income, $ millions

ScotiaCapital Markets

GroupTreasury

• Scotia Capital Markets÷ Global Trading:

• record year for 5 of 7 areas• revenues up 27%

• Group Treasury÷ strong gains

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Scotia Capital Markets –Improved Position

* Source: Brendan Woods 1999 Survey

• Led largest IPO in Canadian history

1997 1999

#1Inst. Sales #13

#2Research #5

• Top-tier service quality*

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Exceeded 1999 Targets

7%vs.8.1%Tier 1

<60%vs.59.3%Productivity

10%+vs.11%EPS Growth

14%+vs.15.3%ROE

GoalsActual

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Risk ReviewJohn CreanSenior Executive Vice-PresidentRisk Management

Risk ReviewJohn CreanSenior Executive Vice-PresidentRisk Management

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Risk Management: Overview

• Impaired loans:÷ decreases in Canada÷ some formations in U.S.

• Higher coverage ratios÷ increased 1999 specific provisions by

$50MM in Q4/99÷ general provision now at $1.3 billion

= 0.9% of risk-weighted assets

• Low trading risk

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Gross Impaired Loans$ millions

89(74)Total

Canada

414International

21067Corporate

(138)(102)- Commercial

(24)(43)- Retail

Q4/98Q3/99

Q4/99 vs.

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Improvement in NetImpaired Loans

-0.5

0

0.5

1

1.5

2

1995 1996 1997 1998 1999-0.5

0

0.5

1

1.5

2$ billions % of loans & acceptances

1.5%

0.7%

0.5%0.3%

(0.1)%

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Low Trading Risknet trading revenue, fiscal year 1999

0

10

20

30

40

-4 3 -2 -1 0 1 2 3 4 5 6 7 8 9

$ millions

# days

5th percentile 95th percentile

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Focus for 2000Peter GodsoeChairman & Chief Executive Officer

Focus for 2000Peter GodsoeChairman & Chief Executive Officer

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Retail & Commercial: Short-Term Plans• Focus on top-line revenue growth

÷ maximize revenue from acquisitions÷ leverage Sales & Service initiatives÷ focus on small & medium-size enterprises

• Develop Electronic Banking & E-Commerce÷ wireless banking (pager, cell phone)÷ e-Scotia.com & Microsoft alliance

• Streamline operations, reduce costs÷ “paperless” branch÷ cost savings = $100 million+

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Growing Wealth Management

Building blocks:

• A Leader in Personal Trust÷ ≈20% market share

• 3rd largest in Private Client Investment Mgmt.÷ $16 billion+ in Assets under Management

• Large full-service brokerage sales force÷ ≈800 investment executives in 85 offices

• Strong branch distribution in Canada÷ 8000+ licensed to sell mutual funds

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International: Build Profitability

Caribbean

÷ build on dominant franchise

Latin America

÷ Mexico - take ownership of Inverlat÷ Argentina - reinvest in Scotiabank Quilmes÷ Chile - assume majority control of Banco

Sudamericano

Asia

÷ leverage network

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Corporate & Investment Banking

Canada÷ reap benefits from “Scotia Capital” integration

U.S.A.÷ leverage top-10 presence÷ disciplined underwriting

Improve ROE÷ higher syndication, cross-sell÷ pricing discipline

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Setting Higher Targets

16-18%14%+ROE

12-15%10%+EPS Growth

Next 3 years1999

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This presentation includes forward-looking statements about objectives, strategies, and expected financial results. Such forward-looking statements are inherently subject to risks and uncertainties beyond the Bank’s control, including but not limited to economic and financial conditions globally, regulatory developments in Canada and elsewhere, technological developments, and competition. These and other factors may cause the Bank’s actual performance to differ materially from that contemplated by forward-looking statements, and the reader is cautioned not to place undue reliance on such forward-looking statements.

Investor PresentationNovember 30, 1999Investor PresentationNovember 30, 1999