Scotia CapitalFinancials Summit Conference

September 14, 2004

Rick Waugh, President and CEO

The Path to Sustainable Growth

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Our goal

To be the best Canadian-based

international financial services company.

One Team, One Goal

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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%

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Strong record of dividend growth

20

35

50

65

80

95

110

1994 1996 1998 2000 2002 2004

$1.10*

29¢

Annual dividend, cents/shareadjusted for 100% stock dividend

* based on current rate

10-YEARCAGR = 14.3%

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Superior returns in Canada

Source: Bloomberg – Total Returns as of July 31, 2004

11.4%

22.0%

TD CIBC RBC BMO BNS

5 Years

19.4%

23.1%

TD RBC CIBC BMO BNS

10 Years 19.1%

13.3%

TD CIBC RBC BMO BNS

15 Years

7.3%

20.8%

TD RBC CIBC BMO BNS

3 Years

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Core strengths

• Sales and customer service

• Risk management

• Expense management

• People/Execution

• Diversification

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Three strong, diversified growth platforms

2004 YTD

Domestic

Scotia CapitalInternational

43%

28%29%

% of net income, excluding Other

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Achieving sustainable growth

1. Building customer base

• deeper, more profitable customer relationships

• acquiring new customers

2. Leveraging core strengths

3. Optimizing use of capital

Achieve profitable and sustainable growth by:

1. Building Customer Base

• Deeper, more profitable relationships

• Acquiring new customers

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Retail Customer Segments

DomesticDeepen high value relationships

• Strong relationships– industry-leading 50% share of

lending wallet

• Opportunity to capture business

– particularly savings/investments

• Improved sales capacity and productivity

– doubled sales capacity over 5 years

– align high value customers with best advisors

Assigned

High Potential

unassignedUnassigned

High Valueunassigned

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Domestic – Acquiring new customersAccelerating household penetration

Source: CFM - Based on Product Holdings – as at January ‘04

“The Opportunity”Canadian Household

Penetration*

* % of Canadian Households who hold any product/service with us

28.1

19.8

0

5

10

15

20

25

30

Scotiabank Peer Average

• Leverage branch network

• Utilize indirect channels– 20 small business alliances– leader in indirect auto lending– mortgage brokers

• Increased mass media investment – targeted customer segments– raise brand awareness

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Domestic - Wealth Management Building customer base

• Increase referrals – retail and commercial

• Grow philanthropic business– market-leading position

• Emphasize financial planning

• Increase ScotiaMcLeod sales force

• Introduce new Premium service

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Scotia CapitalCross-sell success in Canada

2002 ROE

13%

13%

26%

Lending Other Products Total

Cross sell pick up:1300 basis points

2004* ROE

19%

20%

39%

Lending Other Products Total

Cross sell pick up:2000 basis points

* trailing 4 quarters

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Scotia Capital Increase Cross-Sell to US Clients

• Higher ROE– all clients

– core clients

• Increased cross-sell– % of non-lending revenue

increasing (32% in 2004 vs. 26% in 2002)

13.6%

7.6%

2002 Q3/03 - Q2/04

ROE, All Clients

20.5%

13.2%

2002 Q3/03 - Q2/04

ROE, Core Clients

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Scotia CapitalAcquiring new customers

• Investment grade clients increasing

– 70 new investment-grade clients– non-investment grade flat

• Market derivatives products – pension and hedge funds– corporate/institutional investors

• Exit accounts in U.S. almost complete

Investment grade clients in U.S.

326356

286

Q4/02 Q3/03 Q2/04

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• Roll out products– ScotiaLine VISA– STEP

• Expand services– insurance– wealth management

• Identify more of our high-value clients – expand data warehouse to include Mexico, Chile

International Deepen customer relationships

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International Acquiring new customers

• Focus on mortgages and auto loans• Strong market share of new bank lending

– 30+% mortgages/auto loans in 2003 and 2004

• Purchased portfolio of auto loans • Open 20+ branches/year

Mexico

Caribbean

• Aggressive marketing of credit cards• Purchase portfolios/branches

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2. Leveraging core strengths

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International - leverage sales & service expertise

• Rolling out sales and service platform– sales training & coaching

– contact management desktop

– focus on high-value customers

– customer satisfaction metrics

– data warehouse

• Focus on high-value customers

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International - recognition for service excellence

• Scotiabank Inverlat (2003)

– Best Bank in Mexico (Latin Finance)

– Best Customer Service (La Reforma)

• Best Bank in the Dominican Republic in

2003 (Latin Finance)

• Bank of the Year in Jamaica in 2003

(The Banker)

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International - leverage productivity strengths

• Expand electronic delivery channels

– ABMs– internet banking– telephone banking/call centres

• Consolidate data centres

• Implement shared services

• Improving productivity in Inverlat

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Scotia Capital - leverage capabilities

• Establish NAFTA wholesale banking platform

• Deliver Scotia Capital’s product capabilities to

new markets

• Integrated cash management and trade finance– unique capability

3. Optimizing use of capital

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Tangible Common EquityJuly 31, 2004, %

TD CIBC BMO Royal

8.5

Scotia

9.5

8.17.2 7.1

Strong Capital Base to Fund Growth

• Business growth

– organic

– acquisitions

• Dividend increases

• Share buybacks

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Acquisitions

Criteria

• bring value

• obtain value

• be opportunistic

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Growth through acquisitions

• What types of businesses?–personal & commercial

–wealth management

–insurance

• Where?

–International

–in-fill in Canada

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The path to sustainable growth

• Building customer base

• Leveraging core strengths

• Optimizing use of capital

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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. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intent,” “estimate,” “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. 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; the effect of changes in monetary policy; legislative and regulatory developments in Canada and elsewhere; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services; the Bank’s ability to complete and integrate acquisitions; 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; consolidation in the Canadian financial services sector; changes in tax laws; competition; judicial and regulatory proceedings; acts of God, such as earthquakes; the possible impact of international conflicts and other developments, including terrorist acts and 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, 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.

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