Geographic Highlights For the three For the months ended year ended ------------------------------------------------------------------------- October July October October October 31 31 31 31 31 (Unaudited) 2007 2007 2006 2007 2006 ------------------------------------------------------------------------- Net income available to common shareholders ($ millions) Canada $ 560 $ 639 $ 538 $ 2,304 $ 2,039 United States 97 98 27 497 312 Mexico 122 112 116 505 547 Other international 237 201 181 861 674 Corporate adjustments (78) (34) 28 (173) (23) ------------------------------------------------------------------------- $ 938 $ 1,016 $ 890 $ 3,994 $ 3,549 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Average assets ($ billions) Canada $ 278 $ 270 $ 243 $ 265 $ 227 United States 27 25 33 29 31 Mexico 20 21 20 21 21 Other international 77 86 71 81 66 Corporate adjustments 7 7 7 7 6 ------------------------------------------------------------------------- $ 409 $ 409 $ 374 $ 403 $ 351 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Impact of foreign currency translation The movement in foreign currency exchange rates again had a negative effect on the Bank's earnings in 2007. The Canadian dollar appreciated 3% relative to the U.S. dollar and 4% against the Mexican peso. The dollar also strengthened against the Jamaican dollar and many other currencies in which the Bank conducts business. Changes in the average exchange rates affected net income as shown in the following table: Table 2 Impact of Foreign Currency Translation Average Exchange Rate 2007 2006 2005 ------------------------------------------------------------------------- U.S. dollar/Canadian dollar 0.9088 0.8782 0.8217 Mexican peso/Canadian dollar 9.9679 9.5422 9.0523 ------------------------------------------------------------------------- 2007 vs. 2006 vs. 2005 vs. Impact on income ($ millions) 2006 2005 2004 Net interest income $ (119) (202) $ (164) Other income (80) (138) (123) Non-interest expenses 77 136 95 Other items (net of tax) 40 51 47 ------------------------------------------------------------------------- Net income $ (82) (153) $ (145) Earnings per share (diluted) $ (0.08) (0.15) $ (0.14) ------------------------------------------------------------------------- Impact by business line ($ millions) International Banking $ (37) $ (65) $ (62) Scotia Capital $ (19) $ (35) $ (34) Domestic Banking $ (4) $ (8) $ (9) Other $ (22) $ (45) $ (40) Impact of acquisitions The Bank made a number of acquisitions in 2007 and 2006 which contributed to the growth in Canada and in our international operations. The impact on selected income statement categories is shown in the following table: Table 3 Impact of Acquisitions ($ millions) 2007 2006 ------------------------------------------------------------------------- Net interest income $ 464 $ 173 Other income 263 118 Non-interest expenses (416) (191) Other items (net of tax) (117) (46) ------------------------------------------------------------------------- Net income $ 194 $ 54 Earnings per share (diluted) $ 0.19 $ 0.05 Quarterly Financial Highlights For the three months ended ------------------------------------------------------------------------- Oct. July April Jan. Oct. July April Jan. 31 31 30 31 31 31 30 31 2007 2007 2007 2007 2006 2006 2006 2006 ------------------------------------------------------------------------- Total revenue ($ millions) $3,078 $3,201 $3,102 $3,109 $2,868 $2,889 $2,717 $2,734 Total revenue (TEB)(1) ($ millions) 3,294 3,302 3,211 3,214 2,999 2,989 2,830 2,830 Net income ($ millions) 954 1,032 1,039 1,020 897 936 894 852 Basic earnings per share ($) 0.95 1.03 1.04 1.02 0.90 0.94 0.90 0.85 Diluted earnings per share ($) 0.95 1.02 1.03 1.01 0.89 0.93 0.89 0.84 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) Non-GAAP measure. Refer to Non-GAAP measures section of this press release for a discussion of these non-GAAP measures. Share Data As at ------------------------------------------------------------------------- October 31 (thousands of shares outstanding) 2007 ------------------------------------------------------------------------- Common shares 983,767(1) ------------------------------------------------------------------------- Preferred shares Series 12 12,000(2) Preferred shares Series 13 12,000(3) Preferred shares Series 14 13,800(4) Preferred shares Series 15 13,800(5) Preferred shares Series 16 13,800(6) ------------------------------------------------------------------------- Series 2000-1 trust securities issued by BNS Capital Trust 500(7) Series 2002-1 trust securities issued by Scotiabank Capital Trust 750(8) Series 2003-1 trust securities issued by Scotiabank Capital Trust 750(8) Series 2006-1 trust securities issued by Scotiabank Capital Trust 750(8) ------------------------------------------------------------------------- Scotiabank Trust Subordinated Notes - Series A issued by Scotiabank Subordinated Notes Trust 1,000(8) ------------------------------------------------------------------------- Outstanding options granted under the Stock Option Plans to purchase common shares 27,885(1)(9) ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) As at November 22, 2007, the number of outstanding common shares and options were 983,879 and 27,773, respectively. The number of other securities disclosed in this table were unchanged. (2) These shares are entitled to non-cumulative preferential cash dividends payable quarterly in an amount of $0.328125 per share. (3) These shares are entitled to non-cumulative preferential cash dividends payable quarterly in an amount $0.30 per share. (4) These shares are entitled to non-cumulative preferential cash dividends payable quarterly in an amount of $0.28125 per share. (5) These shares are entitled to non-cumulative preferential cash dividends payable quarterly in an amount of $0.28125 per share. (6) These shares are entitled to non-cumulative preferential cash dividends payable quarterly in an amount of $0.328125 per share. The initial dividend will be paid on Janurary 29, 2008, at $0.39195 per share. (7) Reported in capital instrument liabilities in the Consolidated Balance Sheet. (8) Reported in deposits in the Consolidated Balance Sheet. (9) Included are 16,025 stock options with tandem stock appreciation rights (SAR) features. Consolidated Financial Statements Consolidated Statement of Income For the three For the months ended year ended ------------------------------------------------------------------------- October July October October October 31 31 31 31 31 (Unaudited) ($ millions) 2007(1) 2007(1) 2006 2007 2006 ------------------------------------------------------------------------- Interest income Loans $ 3,668 $ 3,536 $ 3,254 $13,985 $11,575 Securities 1,071 1,192 1,116 4,680 4,124 Securities purchased under resale agreements 320 325 326 1,258 1,102 Deposits with banks 303 292 257 1,112 881 ------------------------------------------------------------------------- 5,362 5,345 4,953 21,035 17,682 ------------------------------------------------------------------------- Interest expense Deposits 2,968 2,756 2,582 10,850 8,589 Subordinated debentures 23 30 32 116 130 Capital instrument liabilities 13 14 13 53 53 Other 642 733 674 2,918 2,502 ------------------------------------------------------------------------- 3,646 3,533 3,301 13,937 11,274 ------------------------------------------------------------------------- Net interest income 1,716 1,812 1,652 7,098 6,408 Provision for credit losses 95 92 32 270 216 ------------------------------------------------------------------------- Net interest income after provision for credit losses 1,621 1,720 1,620 6,828 6,192 ------------------------------------------------------------------------- Other income Card revenues 92 92 83 366 307 Deposit and payment services 204 208 196 817 766 Mutual funds 78 77 63 296 241 Investment management, brokerage and trust services 185 192 171 760 666 Credit fees 126 143 127 530 530 Trading revenues (67) 217 138 450 637 Investment banking 164 184 175 737 659 Net gain on securities, other than trading(2) 148 134 64 488 371 Other 432 142 199 948 623 ------------------------------------------------------------------------- 1,362 1,389 1,216 5,392 4,800 ------------------------------------------------------------------------- Net interest and other income 2,983 3,109 2,836 12,220 10,992 ------------------------------------------------------------------------- Non-interest expenses Salaries and employee benefits 963 1,013 966 3,983 3,768 Premises and technology 362 335 322 1,353 1,214 Communications 76 76 75 300 276 Advertising and business development 94 71 73 311 232 Professional 81 53 58 227 174 Business and capital taxes 33 37 36 143 133 Other 183 167 178 677 646 ------------------------------------------------------------------------- 1,792 1,752 1,708 6,994 6,443 ------------------------------------------------------------------------- Income before the undernoted 1,191 1,357 1,128 5,226 4,549 Provision for income taxes 204 296 203 1,063 872 Non-controlling interest in net income of subsidiaries 33 29 28 118 98 ------------------------------------------------------------------------- Net income $ 954 $ 1,032 $ 897 $ 4,045 $ 3,579 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Preferred dividends paid 16 16 7 51 30 ------------------------------------------------------------------------- Net income available to common shareholders $ 938 $ 1,016 $ 890 $ 3,994 $ 3,549 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Average number of common shares outstanding (millions): Basic 983 988 989 989 988 Diluted 991 996 1,000 997 1,001 ------------------------------------------------------------------------- Earnings per common share (in dollars)(3): Basic $ 0.95 $ 1.03 $ 0.90 $ 4.04 $ 3.59 Diluted $ 0.95 $ 1.02 $ 0.89 $ 4.01 $ 3.55 ------------------------------------------------------------------------- Dividends per common share (in dollars) $ 0.45 $ 0.45 $ 0.39 $ 1.74 $ 1.50 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Certain comparative amounts have been reclassified to conform with current period presentation. (1) Refer to note below on new accounting policies related to financial instruments adopted in the first quarter of 2007. (2) Prior to November 1, 2006, the net gain was related to securities classified as investment securities. These securities were reclassified as a result of new accounting policies related to financial instruments. (3) The calculation of earnings per share is based on full dollar and share amounts. See Basis of Presentation below. Consolidated Balance Sheet As at ------------------------------------------------------------------------- October July October 31 31 31 (Unaudited) ($ millions) 2007(1) 2007(1) 2006 ------------------------------------------------------------------------- Assets Cash resources Cash and non-interest-bearing deposits with banks $ 2,138 $ 2,370 $ 2,280 Interest-bearing deposits with banks 23,011 23,048 17,734 Precious metals 4,046 3,358 3,362 ------------------------------------------------------------------------- 29,195 28,776 23,376 ------------------------------------------------------------------------- Securities Trading 59,685 63,797 62,490 Available-for-sale(2) 28,426 28,636 - Investment - - 32,870 Equity accounted investments 724 424 142 ------------------------------------------------------------------------- 88,835 92,857 95,502 ------------------------------------------------------------------------- Securities purchased under resale agreements 22,542 26,834 25,705 ------------------------------------------------------------------------- Loans Residential mortgages 102,154 99,000 89,590 Personal and credit cards 41,734 41,360 39,058 Business and government 85,500 84,778 76,733 ------------------------------------------------------------------------- 229,388 225,138 205,381 Allowance for credit losses 2,241 2,423 2,607 ------------------------------------------------------------------------- 227,147 222,715 202,774 ------------------------------------------------------------------------- Other Customers' liability under acceptances 11,538 10,289 9,555 Derivative instruments 21,960 16,635 12,098 Land, buildings and equipment 2,271 2,296 2,256 Goodwill 1,134 1,140 873 Other intangible assets 273 287 294 Other assets 6,615 6,286 6,573 ------------------------------------------------------------------------- 43,791 36,933 31,649 ------------------------------------------------------------------------- $411,510 $408,115 $379,006 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Liabilities and shareholders' equity Deposits Personal $100,823 $ 98,171 $ 93,450 Business and government 161,229 156,668 141,072 Banks 26,406 32,146 29,392 ------------------------------------------------------------------------- 288,458 286,985 263,914 ------------------------------------------------------------------------- Other Acceptances 11,538 10,289 9,555 Obligations related to securities sold under repurchase agreements 28,137 31,223 33,470 Obligations related to securities sold short 16,039 21,322 13,396 Derivative instruments 24,689 15,352 12,869 Other liabilities 21,138 20,248 24,799 Non-controlling interest in subsidiaries 497 505 435 ------------------------------------------------------------------------- 102,038 98,939 94,524 ------------------------------------------------------------------------- Subordinated debentures 1,710 1,774 2,271 ------------------------------------------------------------------------- Capital instrument liabilities 500 750 750 ------------------------------------------------------------------------- Shareholders' equity Capital stock Preferred shares 1,635 1,290 600 Common shares and contributed surplus 3,566 3,521 3,425 Retained earnings 17,460 16,967 15,843 Accumulated other comprehensive income (loss)(1) (3,857) (2,111) (2,321) ------------------------------------------------------------------------- 18,804 19,667 17,547 ------------------------------------------------------------------------- $411,510 $408,115 $379,006 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Certain comparative amounts have been reclassified to conform with current period presentation. (1) Refer to note below on new accounting policies related to financial instruments adopted in the first quarter of 2007. (2) Prior to November 1, 2006, these securities were classified as investment securities. They were reclassified as a result of new accounting policy related to financial instruments. See Basis of Presentation below. Consolidated Statement of Changes in Shareholders' Equity For the year ended ------------------------------------------------------------------------- October October 31 31 (Unaudited) ($ millions) 2007 2006 ------------------------------------------------------------------------- Preferred shares Balance at beginning of year $ 600 $ 600 Issued 1,035 - ------------------------------------------------------------------------- Balance at end of year 1,635 600 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Common shares and contributed surplus Common shares: Balance at beginning of year 3,425 3,316 Issued 184 135 Purchased for cancellation (43) (26) ------------------------------------------------------------------------- Balance at end of year 3,566 3,425 Contributed surplus: Fair value of stock options - - ------------------------------------------------------------------------- Total 3,566 3,425 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Retained earnings Balance at beginning of year 15,843 14,126 Cumulative effect of adopting new accounting policies (61)(1) (25)(2) ------------------------------------------------------------------------- 15,782 14,101 Net income 4,045 3,579 Dividends: Preferred (51) (30) Common (1,720) (1,483) Purchase of shares (586) (324) Other (10) - ------------------------------------------------------------------------- Balance at end of year 17,460 15,843 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Accumulated other comprehensive income (loss)(1) Balance at beginning of year (2,321) (1,961) Cumulative effect of adopting new accounting policies 683 - Other comprehensive income (loss) (2,219) (360) ------------------------------------------------------------------------- Balance at end of year (3,857) (2,321) ------------------------------------------------------------------------- Total shareholders' equity at end of year $ 18,804 $ 17,547 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Consolidated Statement of Comprehensive Income(1) For the year ended ------------------------------------------------------------------------- October October 31 31 (Unaudited) ($ millions) 2007 2006 ------------------------------------------------------------------------- Comprehensive income Net income $ 4,045 $ 3,579 Other comprehensive income (loss), net of income taxes: Net change in unrealized foreign currency translation losses (2,228) (360) Net change in unrealized gains on available-for-sale securities (67) - Net change in gains (losses) on derivative instruments designated as cash flow hedges 76 - ------------------------------------------------------------------------- Other comprehensive income (loss) (2,219) (360) ------------------------------------------------------------------------- Comprehensive income $ 1,826 $ 3,219 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Certain comparative amounts have been reclassified to conform with current period presentation. (1) Refer to note below on new accounting policies related to financial instruments adopted in the first quarter of 2007. (2) Relates to the adoption of a new accounting policy related to stock- based compensation adopted in 2006. See Basis of Presentation below. Condensed Consolidated Statement of Cash Flows For the three For the months ended year ended ------------------------------------------------------------------------- October October October October Sources (uses) of cash flows 31 31 31 31 (Unaudited) ($ millions) 2007 2006 2007 2006 ------------------------------------------------------------------------- Cash flows from operating activities Net income $ 954 $ 897 $ 4,045 $ 3,579 Adjustments to determine net cash flows from (used in) operating activities (86) (62) (57) (103) Net accrued interest receivable and payable 88 296 18 221 Trading securities 2,686 (4,834) 334 (13,042) Derivative instruments, net 3,439 816 932 668 Other, net (2,891) 1,924 (3,261) 2,713 ------------------------------------------------------------------------- 4,190 (963) 2,011 (5,964) ------------------------------------------------------------------------- Cash flows from financing activities Deposits 13,566 8,144 41,746 44,014 Obligations related to securities sold under repurchase agreements (1,964) 4,435 (3,858) 8,245 Obligations related to securities sold short (4,610) (1,247) 3,848 2,190 Subordinated debentures redemptions/repayments - - (500) (300) Capital instrument liabilities redemptions/repayments (250) - (250) - Preferred shares issued 345 - 1,035 - Common shares issued 20 33 112 118 Common shares redeemed/ purchased for cancellation - (36) (629) (350) Cash dividends paid (458) (393) (1,771) (1,513) Other, net (139) 341 3,391 684 ------------------------------------------------------------------------- 6,510 11,277 43,124 53,088 ------------------------------------------------------------------------- Cash flows from investing activities Interest-bearing deposits with banks (1,063) 923 (7,087) (1,664) Securities purchased under resale agreements 3,484 (3,205) 1,897 (5,633) Loans, excluding securitizations (14,094) (9,273) (42,028) (31,978) Loan securitizations 992 699 3,756 2,514 Securities, other than trading, net(1) 265 1,239 (851) (8,169) Land, buildings and equipment, net of disposals (87) (95) (317) (256) Other, net(2) (271) (326) (390) (2,099) ------------------------------------------------------------------------- (10,774) (10,038) (45,020) (47,285) ------------------------------------------------------------------------- Effect of exchange rate changes on cash and cash equivalents (158) (9) (257) (60) ------------------------------------------------------------------------- Net change in cash and cash equivalents (232) 267 (142) (221) Cash and cash equivalents at beginning of period 2,370 2,013 2,280 2,501 ------------------------------------------------------------------------- Cash and cash equivalents at end of period(3) $ 2,138 $ 2,280 $ 2,138 $ 2,280 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash disbursements made for: Interest $ 2,765 $ 3,003 $ 13,625 $ 10,559 Income taxes $ 69 $ 188 $ 905 $ 1,012 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Certain comparative amounts have been reclassified to conform with current period presentation. (1) Prior to November 1, 2006, this related to securities classified as investment securities. They were reclassified as a result of new accounting policies related to financial instruments. (2) For the three and twelve months ended October 31, 2007, comprises investments in subsidiaries, net of cash and cash equivalents at the date of acquisition of $3 and $6, respectively (October 31, 2006 - $9, and $167, respectively), and net of non-cash consideration of common shares issued from treasury of $21 and $36, respectively (October 31, 2006 - nil, and $1, respectively). (3) Represents cash and non-interest bearing deposits with banks. See Basis of Presentation below. Basis of preparation These unaudited consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles (GAAP), except for certain required disclosures. Therefore, these consolidated financial statements should be read in conjunction with the Bank's audited consolidated financial statements for the year ended October 31, 2006. The significant accounting policies used in the preparation of these consolidated financial statements are consistent with those used in the 2006 year-end statements, except as described below. Certain comparative amounts have been reclassified to conform with the current period's accounting presentation. New accounting policies Commencing November 1, 2006, the Bank adopted three new accounting standards: (i) Financial Instruments - Recognition and Measurement, (ii) Hedges and (iii) Comprehensive Income. The new standards require all financial assets and financial liabilities to be carried at fair value in the Consolidated Balance Sheet, except the following, which are carried at amortized cost unless designated as held for trading upon initial recognition: loans and receivables, securities designated as held-to-maturity and non-trading financial liabilities. The methods used by the Bank in determining the fair value of financial instruments are unchanged as a result of implementing these new accounting standards. Prior periods have not been restated as a result of implementing the new accounting standards, except that unrealized foreign currency translation gains/losses on net investments in self-sustaining operations have been reclassified to accumulated other comprehensive income (loss). As a result of these changes, the Bank has recorded a net reduction of $61 million (net of income tax benefit of $31 million) to opening retained earnings. This transition impact arose primarily from recognizing in retained earnings the deferred gains and losses relating to certain previously discontinued hedges. The adoption of these new accounting policies did not have a material impact on the Bank's results of operations for fiscal 2007. The most significant other balance sheet categories impacted on November 1, 2006 as a result of these new standards were as follows: ------------------------------------------------------------------------- $ millions Balance sheet Increase/ category (Decrease) Explanation ------------------------------------------------------------------------- Available-for-sale $ 1,091 To record these securities at fair value securities ------------------------------------------------------------------------- Future tax assets $ (369) To record future taxes on the components (Other assets) of accumulated other comprehensive income ------------------------------------------------------------------------- Accumulated other $ 683 After-tax impact related to net comprehensive income unrealized gains on available-for-sale securities and cash flow hedges ------------------------------------------------------------------------- A new Consolidated Statement of Comprehensive Income now forms part of the Bank's consolidated financial statements and displays current period net income and other comprehensive income. Accumulated other comprehensive income (loss) is a separate component of shareholders' equity. The Consolidated Statement of Comprehensive Income reflects changes in accumulated other comprehensive income, comprising changes in unrealized gains and losses on available-for-sale assets, the fair value of derivatives designated as cash flow hedges, to the extent they are effective, and foreign currency translation amounts arising from self-sustaining foreign operations. The components of accumulated other comprehensive income (loss) as at October 31, 2007 and 2006 were as follows: Accumulated other comprehensive income (loss)(1) As at and for the year ended ------------------------------------------------------------------------- Opening Transition Net Ending balance amount change balance ------------------------------------------- October November October ($ millions) 31 2006 1 2006 31 2007(1) ------------------------------------------------------------------------- Unrealized foreign currency translation losses, net of hedging activities $ (2,321) $ - $ (2,228) $ (4,549) Unrealized gains on available-for-sale securities, net of hedging activities - 706 (67) 639 Gains (losses) on derivative instruments designated as cash flow hedges - (23) 76 53 ------------------------------------------------------------------------- Accumulated other comprehensive income (loss) $ (2,321) $ 683 $ (2,219) $ (3,857) ------------------------------------------------------------------------- ------------------------------------------------------------------------- As at and for the year ended -------------------------------------------------------------- Opening Net Ending balance change balance -------------------------------- October October ($ millions) 31 2005 31 2006(1) -------------------------------------------------------------- Unrealized foreign currency translation losses, net of hedging activities $ (1,961) $ (360) $ (2,321) Unrealized gains on available-for-sale securities, net of hedging activities - - - Gains (losses) on derivative instruments designated as cash flow hedges - - - -------------------------------------------------------------- Accumulated other comprehensive income (loss) $ (1,961) $ (360) $ (2,321) -------------------------------------------------------------- -------------------------------------------------------------- (1) Amounts are net of applicable Income tax expense/benefit. Shareholder and Investor Information Direct Deposit Service Shareholders may have dividends deposited directly into accounts held at financial institutions which are members of the Canadian Payments Association. To arrange direct deposit service, please write to the Transfer Agent. Dividend and Share Purchase Plan Scotiabank's dividend reinvestment and share purchase plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. Debenture holders may apply interest on fully registered Bank subordinated debentures to purchase additional common shares. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the Transfer Agent. Dividend Dates for 2008 Record and payment dates for common and preferred shares, subject to approval by the Board of Directors. Record Date Payment Date January 2 January 29 April 1 April 28 July 2 July 29 October 7 October 29 Annual Meeting Date for Fiscal 2007 The Bank's Annual Meeting of Shareholders will be held at the Shaw Conference Centre in Edmonton, Alberta, on March 4, 2008. The record date for determining shareholders entitled to receive notice of and to vote at the meeting will be the close of business on January 14, 2008. Duplicated Communication If your shareholdings are registered under more than one name or address, multiple mailings will result. To eliminate this duplication, please write to the Transfer Agent to combine the accounts. World Wide Web Site For information relating to Scotiabank and its services, visit us at our Web site: http://www.scotiabank.com/. Conference Call and Web Broadcast The quarterly results conference call will take place on December 6, 2007, at 2:00 p.m. EST and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone, toll free, at 1-800-733-7571 (please call five to 15 minutes in advance). In addition, an audio Webcast, with accompanying slide presentation, may be accessed via the Investor Relations page of http://www.scotiabank.com/. Following discussion of the results by Scotiabank executives, there will be a question and answer session. Listeners are invited to submit questions by e-mail to . A telephone replay of the conference call will be available from December 6, 2007, to December 20, 2007, by calling (416) 640-1917 and entering the identification code 21251767 followed by the number sign. The archived audio Webcast will be available on the Bank's Website for three months. Forward-looking statements Our public communications often include oral or written forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include comments with respect to the Bank's objectives, strategies to achieve those objectives, expected financial results (including those in the area of risk management), and the outlook for the Bank's businesses and for the Canadian, United States and global economies. Such statements are typically identified by words or phrases such as "believe," expect," "anticipate," "intent," "estimate," "plan," "may increase," "may fluctuate," and similar expressions of future or conditional verbs such as "will," "should," "would" and "could." 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. Do not unduly rely on forward-looking statements, as a number of important factors, many of which are beyond our control, 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; the effect of changes in monetary policy; legislative and regulatory developments in Canada and elsewhere, including changes in tax laws; operational and reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services in receptive markets; the Bank's ability to expand existing distribution channels and to develop and realize revenues from new distribution channels; the Bank's ability to complete and integrate acquisitions and its other growth strategies; changes in accounting policies and methods the Bank uses to report its financial condition and the results of its operations, including uncertainties associated with critical accounting assumptions and estimates; the effect of applying future accounting changes; global capital markets activity; the Bank's ability to attract and retain key executives; reliance on third parties to provide components of the Bank's business infrastructure; unexpected changes in consumer spending and saving habits; technological developments; fraud by internal or external parties, including the use of new technologies in unprecedented ways to defraud the Bank or its customers; consolidation in the Canadian financial services sector; competition, both from new entrants and established competitors; judicial and regulatory proceedings; acts of God, such as earthquakes and hurricanes; the possible impact of international conflicts and other developments, including terrorist acts and war on terrorism; the effects of disease or illness on local, national or international economies; disruptions to public infrastructure, including transportation, communication, power and water; 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, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. For more information on the risks the Bank faces, see the Risk Management section of the Bank's 2006 Annual Report. The preceding list of important factors is not exhaustive. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding 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 its behalf. The "Outlook" section in this document is based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing this section. Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR website at http://www.sedar.com/ and on the EDGAR section of the SEC's website at http://www.sec.gov/. General Information Information on your shareholdings and dividends may be obtained by writing to the Bank's Transfer Agent: Computershare Trust Company of Canada 100 University Avenue, Ninth Floor Toronto, Ontario, Canada M5J 2Y1 Telephone: 1-877-982-8767 Facsimile: 1-888-453-0330 Electronic Mail: Contact Information Investors: Financial analysts, portfolio managers and other investors requiring financial information, please contact Investor Relations, Finance Department: Scotiabank Scotia Plaza, 44 King Street West Toronto, Ontario, Canada M5H 1H1 Telephone: (416) 866-5982 Facsimile: (416) 866-7867 Electronic Mail: Media: For other information and for media enquiries, please contact the Public, Corporate and Government Affairs Department at the above address. Telephone: (416) 866-3925 Facsimile: (416) 866-4988 Electronic Mail: Shareholders: For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's Transfer Agent: Computershare Trust Company of Canada 100 University Avenue, Ninth Floor Toronto, Ontario, Canada M5J 2Y1 Telephone: 1-877-982-8767 Facsimile: 1-888-453-0330 Electronic Mail: Co-Transfer Agent (U.S.A.) Computershare Trust Company N.A. 350 Indiana Street Golden, Colorado 80401 U.S.A. Telephone: 1-800-962-4284 For other shareholder enquiries, please contact the Finance Department: Scotiabank Scotia Plaza, 44 King Street West Toronto, Ontario, Canada M5H 1H1 Telephone: (416) 866-4790 Facsimile: (416) 866-4048 Electronic Mail: Rapport trimestriel disponible en francais Le Rapport annuel et les etats financiers de la Banque sont publies en francais et en anglais et distribues aux actionnaires dans la version de leur choix. Si vous preferez que la documentation vous concernant vous soit adressee en francais, veuillez en informer Relations publiques, Affaires de la societe et Affaires gouvernementales, La Banque de Nouvelle-Ecosse, Scotia Plaza, 44, rue King Ouest, Toronto (Ontario), Canada M5H 1H1, en joignant, si possible, l'etiquette d'adresse, afin que nous puissions prendre note du changement. The Bank of Nova Scotia is incorporated in Canada with limited liability. DATASOURCE: Scotiabank - Financial Releases CONTACT: PRNewswire - - 12/06/2007

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