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June 2008

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Scotiabank Toronto, Ontario, Canada Report Facts Company name: The Bank of Nova Scotia Fiscal year end: October 31, 2007 Report title: Opportunity means the world to us Chairman of the Board: Arthur R.A. Scace President and CEO: Rick Waugh Number of books: 1 + separate CSR report Report length: 144 pages (+ 46 for CSR) Auditors: KPMG LLP Design: N/A E-mail: corpaff@scotiabank.com	Report Rating 4/5 (Rating scale below) Profile-Mission (Excerpts, as from the report) Scotiabank is one of North America’s premier financial institutions and Canada’s most international bank. Through our team of approximately 60,000 employees, the bank’s offer includes retail, commercial, corporate and investment banking to more than 12.5 million customers in some 50 countries… (Annual Report p 1) (Italics are own company’s words) Key Figures Total assets: $ 411.51 billion Total revenue: $ 12.49 billion Net interest income: $ 7.1 billion Net income: $ 4.04 billion Earnings per share: $ 4.04 (basic) Dividends per share: $ 1.74 Return on equity: 22% Tier 1 capital ratio: 9.3% Total capital ratio: 10.5% (Source: figures sourced from the annual report) Major Competitors RBC (Royal Bank of Canada) TD Bank Financial BMO Financial CIBC (Canadian Imperial Bank of Commerce) National Bank of Canada Laurentian Bank … and a number of U.S. banks

Triple A > Outstanding financial performance and condition review: 30 pages, introduced with a quick overview; supported with 20 tables and 32 charts –these really allow a parallel grasp, or an invitation to read further as most are placed at the top of the pages (see selected page). Clearly structured and written in plain English. > Tables about Regulatory Capital and related changes over the last five years (p 41). > Narrative-based overviews of business lines and number-based performance analysis supplement each other. > Comprehensive and very clear Risk management chapter: each risk category is first defined, then analyzed and substantiated with figures (see e.g. Interest rate gap, Liquidity, Contractual obligations…).

Double A > Thorough yet shown late Financial Highlights: over 5 years, including major ratios and share indicators. > Last year Accomplishments and next year Priorities placed on the same footing. > 52 tables (not including statements and notes), all numbered, and with many over 3 years or more.

Simple A > Chairman and CEO’s messages go to the main points and are backed with next year Objectives. > It’s about more numbers, we know, but a more strongly sustained theme in a more animated style would be a bit more inviting. > The use of post-consumer waste paper is of course fine, yet it may look, er, cheap…

Some Bs > Unless you take the ones in the inside cover for granted, it takes 27 pages to get real financial highlights, > The aggressive acquisition policy is emphasized. Couldn’t it be questioned as organic growth measures are hard to find –and check? > Such a quantity of tables and charts could have deserved a special index. > In spite of a number of worthwhile achievements shown and indicators measured, the CSR report doesn’t deliver up to the best in class. KPIs are not really checked out and 2008 priorities are vague. And medium-term targets were not found.

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Selected Page (p 24 of Scotiabank Annual Report 2007)	Rating Scale 5 First-Rate 4.5 Excellent 4 Very good 3.5 Sound 3 Average 2.5 Uneven 2 Common 1.5 Substandard 1 Poor 0.5 Uncompetitive The rating is based on ReportWatch internal desk research and does not take into account the independent Rating Panel’s judgment.