RBC Capital MarketsCanadian Financial Services CEO Conference 2004

January 21, 2004

Rick Waugh, President and CEO

1

Record of consistent earnings growth

0

500

1000

1500

2000

2500

94 95 96 97 98 99 00 01 02* 03

2,477

482

* excludes impact of charges related to Argentina of $540 million (after-tax)

Net income, $ millions

10-YEARCAGR = 13.2%

Record of consistent dividend growth - two increases in 2003

40

60

80

100

120

140

160

180

200

1994 1996 1998 2000 2002 2004

$2.00*

58¢

Annual dividend, cents/share

2003 increase:+16%

* based on current rate

2

Strong returns vs North American peer group

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CIBC

BMO

-10%

-5%

0%

5%

10%

15%

20%5-year compound annual total return on common shares(1)

(1) In Canadian dollars, assumes dividends reinvested, from Dec.31/98 to Dec.31/03. Source: Bloomberg

Key Co

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Raised financial targets for 2004

2004 targets

• EPS growth: 10-15%

• ROE: 16-19%

• productivity ratio – below 58%

• maintain strong capital ratios

and credit ratings

3

Key issues

• Credit quality – improving trends

• Capital management – maintain strength, flexibility and discipline

• Growth – 3 strong platforms– Domestic– Scotia Capital– International

Leverage from improving credit quality

* excluding Argentina

Specific provisions, $ millions*

1250

1575

957

2001 2002 2003

4

October 31, 2003, %

CIBC TD Royal BMO

10.810.8

7.9

Scotia

8.9

6.97.5

7.1

10.5

9.7 9.6

TangibleCommon

Equity

Tier 1

Capital ManagementIndustry-Leading Ratios

Capital ManagementFlexibility and Discipline

• Business expansion and acquisitions

• Dividend increases

• Share buybacks

• Cushion to handle unforeseen risks

Disciplined use of capital

5

Strength from diversified earnings base

2003

Domestic

Scotia CapitalInternational

44%

27%29%

% of net income, excluding Other

Domestic – grow market share

• Retail Banking - leverage leadership in customer loyalty and a sales-focused platform

• Wealth Management -leverage partnership with Retail Banking

• Commercial – streamline and focus on sales & service

38%

34%

30%

28%2002 2003

Market leader in Customer Loyalty

Scotiabank

Peer Group6%

8%

6

Domestic – increase share of customers’ business

• Disciplined execution

• Innovative bundled products– Scotia Total Equity Plan (STEP) – strong

value proposition– ScotiaLine VISA

• #3 VISA bank in Canada• $4 billion balance growth in 4 years

• Award-winning data warehouse– segment customer base– sales leads & event triggers direct to branch

desktop– targeted marketing

Domestic – attract new customers

• Increased advertising and branding

• Emphasize products where we have a competitive advantage– STEP, ScotiaLine VISA– Money Master high interest savings account

• retail, small business• RSP eligible• 69 basis point increase in deposit market share

Life. Money.Balance Both.

7

Domestic – Wealth ManagementSignificant Opportunity

• Grow share of wallet – 500,000 BNS customers with $60 billion

in assets at other FIs

• Increase referrals– Retail Banking– Commercial Banking

• Expand Investment Executive sales force– up to 1,200 IE’s by 2006– strong fee-based asset growth

Retail Brokerage Mutual Funds Private Client

Scotia Capital – capitalize on long-established relationships

• Leverage top 3 position in Canada

• Improve customer profitability in the U.S.

• Expand reach of Global Trading

8

Scotia CapitalStrong Canadian Franchise

• Top 3 in many products– lending (#1)– mergers & acquisitions (#2)– equity underwriting (#2)

• Cross sell success

Scotia Capital – Leverage Long-Standing U.S. Relationships

• Committed to profitable, long-term client relationships– cross-sell additional products

(derivaties, fixed income)

– exit underperforming relationships

• Opportunity to leverage international reach

9

Scotia Capital – Global TradingPlatform for Growth

• Top 3 in many products– derivatives (#1)– fixed income (#2)(corporate #1)– foreign exchange (#2)– precious metals (#2 globally)

• Low risk (VAR)• Target new markets and

clients– U.S., Mexico – debt underwriting,

derivatives– investment (buy-side) clients

International – leverage group strengths

• Emphasize sales & service– focus on sales and customer satisfaction– aggressive product launches– leverage distribution network

• Improve productivity– use best practices from Canada– upgrade core systems and processes

• Expand in key markets– Mexico– Spanish Caribbean and Central America

(e.g. Dominican Republic, Costa Rica, El Salvador)

10

Caribbean & Central AmericaInvesting for Growth

• Dominant franchise in the region

• Acquisition in the Dominican Republic– increased market share to 10%

• Implement second phase of Sales & Service program– sales management & measurement

• Install International BankingPlatform (paperless banking)

Scotiabank Inverlat Continued Earnings Growth

• Incremental earnings – full year of 91% ownership– expect to acquire remaining 9% in 2004

• Sales & service– deploy contact & sales management software– expand product offerings eg STEP

• Enhance delivery network– add 20 branches/yr– Automotive Finance centre– introduce Private Client centres

• Alliances/joint ventures/acquisitions– bancassurance– credit cards

11

Position of Strength

!Earnings leverage from improving credit quality

! Industry-leading capital

!Growth from 3 diversified platforms– Domestic – Retail Banking, Wealth Mangement– Scotia Capital – Global Trading– International – Mexico, Caribbean

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