4th Quarter & Final Results

RNS Number:4049V
Bank of Nova Scotia
7 December 2000

Scotiabank achieves record operating results for the 11th consecutive year

Fiscal 2000 (year over year)

- net income of $1.926 billion, up $375 million or 24%

- earnings per share $3.67, up 25%

- ROE 17.6%, up from 15.3%

Fourth Quarter (versus Q4 1999)

- net income of $497 million, up $95 million or 24%

- earnings per share $0.95, up 25%

- ROE 17.0%, up from 15.3%

Toronto, Dec. 6 /CNW/ - Scotiabank has achieved record results for the
11th consecutive year, surpassing virtually all performance targets. The
Bank reported $1.926 billion in net income for the year ended October 31,
2000, 24% higher than 1999. Over the past five years, net income has grown
at a compound annual rate of 17%. Both earnings per share and return on
equity (ROE) rose significantly, while the productivity ratio improved to
56.5% from 59.3% year over year.

The Bank also had a strong fourth quarter to round out the record year,
with net income of $497 million, up 24% from $402 million in Q4 1999.
Earnings per share climbed to $0.95 for the quarter, compared to $0.76 in
Q4 last year, and ROE was 17.0%, up from 15.3% for the same period in
1999.

"Scotiabank's record performance was driven by solid growth in Domestic
Banking, which includes Wealth Management, as well as in international
operations," said Peter Godsoe, Chairman and CEO. "Our customer focus
continues to support our ability to successfully deliver some of the best
and most consistent returns of any major Canadian company. Our growth and
diversification strategies have served us well, once again, this year," he
added.

BUSINESS LINE HIGHLIGHTS

Domestic Banking

Domestic Banking net income rose 36% to $882 million, contributing 46% of
the Bank's total net income. "Our domestic retail and commercial
operations performed exceptionally well in 2000, thanks to higher loan
volumes, fee income, and good expense control. The Bank continued to
experience solid growth in core personal lending, particularly from a
lineup of innovative credit products, such as the Scotia Total Equity
Program (STEP) and ScotiaLine VISA," said Mr. Godsoe.

"With our e-commerce subsidiary, e-Scotia, we are committed to playing a
leadership role in promoting e-commerce in Canada, and in developing the
latest technologies available in the marketplace today to offer Canadians
anytime, anywhere access to their financial services. This quarter, we
were the first Canadian bank to launch a consumer pilot of voice
recognition telephone banking services with the Canadian National
Institute for the Blind," said Mr. Godsoe. "During this past year, we
expanded our wireless menu for consumers by offering financial services
through Bell Mobility, Rogers AT&T, ClearNet and Telus. We also joined
forces with others to create Procuron -- one of Canada's largest B2B
electronic marketplaces."

Wealth Management, a key component of Domestic Banking's earnings,
generated $858 million in revenues, an increase of 29% from the previous
year. Assets under administration grew to $97 billion, an 18% increase
from 1999. "We made substantial progress on a number of new product
initiatives, increasing choice, flexibility and convenience for our
customers. This included our mutual fund alliance with Capital
International Asset Management Limited, part of the Capital Group
Companies Inc., one of the world's leading research and asset management
organisations; the launch of Scotia Partners Portfolios, including 16
leading mutual funds; and, the creation of i:PARTNER, an all-in-one
service, combining trusted advice from a ScotiaMcLeod Investment Executive
with a vast range of research, plus access to online trading and banking,"
Mr. Godsoe said.

International Banking

International Banking contributed $364 million to the Bank's earnings this
year, a 23% increase over 1999, and representing 19% of the Bank's net
income. Caribbean and Central American operations continue to lead the
division's earnings contribution, with net income of $221 million. Latin
American net income was substantially above last year's level and our
target. In Asia, where economic conditions have continued to improve,
earnings rose year over year with good growth in assets and fee income.

After year end, the Bank announced the completion of a transaction to
increase its stake in Mexico's Grupo Financiero Inverlat S.A. to 55% from
10%. The purchase price for the additional 45% was US$184 million,
comprised of the conversion of debentures of US$144 million purchased in
1996, and a US$40 million payment. This brings the Bank's total investment
in Inverlat to US$215 million.

"The global reach of our international network -- in more than 50
countries around the world -- is unique among Canadian banks," said Mr.
Godsoe. "We continue to target regions and countries where the financial
sector is expected to achieve superior levels of growth -- Mexico is a
prime example, where we are very optimistic about the country's prospects
and the potential of Inverlat."

Scotia Capital

Scotia Capital earned $650 million in 2000, versus $745 million in 1999.
In Canada, lending operations recorded a substantial increase in interest
and fee revenues, in line with asset growth; however, this was more than
offset by a return to more normal levels of loan loss provisions following
significant recoveries in 1999. Institutional Equity's earnings rose 43%
this year, with volatile markets and high trading volumes driving a record
year for both commission and trading revenues.

Lending operations in the US and Europe achieved record levels of loan
origination fees and higher interest spreads, however, net income was
reduced by higher loan loss provisions, largely due to softening credit
conditions in the US.

Global Trading reported record earnings in 2000, built on strong
performances in virtually all areas. The Capital Markets Group, which
includes derivatives and fixed income, reported its fourth consecutive
year of record results. "Global Trading continued to have great success
this year, playing a pivotal role in a number of large transactions,
including the Rogers Communications financing, the BCE equity forward
contract and hedging the Can- West Global acquisition financing," said
Mr. Godsoe.

Other Highlights

Other initiatives, introduced during fiscal 2000:

Domestic Banking

-  maintained No.1 ranking among Canadian banks for overall customer
service;

-  balances under the Scotia Total Equity Plan more than doubled
expectations;

-  launched a pilot with Canada Post to deliver basic banking services to
10 communities in Newfoundland that have never had face-to-face banking;

-  enhanced customer relationship management capabilities resulting in
significant improvements in response and renewal rates on products and
services such as mortgages, GICs and ScotiaLine VISA.

Wealth Management

-  Scotia Mutual Funds surpassed $10 billion in assets, supported by
several initiatives to add new funds and effectively leverage the Bank's
extensive distribution networks;

-  increased new business in Personal Trust by 38% over the prior year;

-  increased fee-based assets under management in Retail Brokerage by 30%;

-  added new online features to the Discount Brokerage platform, including
improved Web navigation and account access, online statements, market data
and research capabilities.

E-Commerce

-  introduced ScotiaWeb store in partnership with Microsoft, to help small
businesses sell online;

-  joined with WebMD Canada, the College of Family Physicians and the
Royal College of Surgeons of Canada to create and provide financial
services for the Canadian Doctors' Network, the first online portal of its
kind in Canada;

-  launched automobile loan financing with cars4u.com directly over the
Internet;

-  e-Scotia formed a strategic partnership with Creditwave to make it
easier for small and medium-sized business to provide instant online
credit to their customers;

-  joined e-Route, a consortium of banks, to provide a comprehensive,
fully integrated electronic bill payment system for bill issuers;

-  launched smart card loyalty program across Canada.

Commercial and Small Business Banking

-  introduced ScotiaLine VISA for business, an innovative borrowing
solution that combines a line of credit with VISA card access;

-  RoyNat, a subsidiary of Scotiabank specialising in providing long-term
financial solutions for mid-size companies, launched RoyNat Ventures,

a new division dedicated to investing in the high-tech sector;

-  piloted a Small Business Resource Centre, which offers timely advice
and information to help entrepreneurs make everyday business decisions,
and improves the delivery of products through various electronic delivery
channels.

International Banking

-  increased ownership stake in Banco Sud Americano (BSA), Chile from 61%
to 88% in fourth quarter and, subsequent to year end, increased ownership
to 98%;

-  partnered with International Finance Corporation to create a US$50
million loan facility to help small and medium-sized businesses in the
Caribbean modernise and expand operations or fund export-oriented start-up
projects;

-  launched Scotia Americas Capital Purchase Program in the Caribbean,
Central and Latin America;

-  introduced new mortgage products in Mexico, Argentina and the
Caribbean;

-  launched Invertel telephone banking service in Mexico, signing up
190,000 customers.

Scotia Capital

-  awarded the Investment Dealer Digest Project Finance Deal of the Year
for its work with Calpine Construction Finance Corporation;

-  served as lead arranger for the TrizecHahn Hollywood Hotel, the first
hotel development to be syndicated in the market in almost two years;

-  led the largest medium-term note issue in Canadian history, a five-
year $750 million note for Daimler Chrysler;

-  Scotia Capital Europe arranged a US$1.1 billion series of
securitisations to fund shipbuilding contracts in Finland;

-  co-led the $1 billion initial public debt offering of Hydro One Inc.;

-  acted as sole underwriter and arranger of the Alberta Energy
Corporation's acquisition financing of $1 billion;

-  launched ScotiaFX, an Internet-based trading application, allowing
corporate, institutional and commercial clients to execute, settle and
monitor foreign exchange trades rapidly from their computer terminals.

FINANCIAL RESULTS

Revenues This year's strong results were driven by excellent revenue
growth. Total revenues -- comprised of net interest income, on a taxable-
equivalent basis, and other income -- rose to $9.1 billion, a significant
increase of 13% over last year's total of $8.0 billion. The Bank's total
revenue growth has been very strong for the last decade, with annual
increases averaging 12%.

Net Interest Income

Net interest income, on a taxable-equivalent basis, grew 12% to $5.4
billion in 2000. This resulted from solid growth in residential mortgages
and business loans, in part arising from the first time inclusion of BSA
Chile. The Bank's net interest margin, which expresses net interest income
as a percentage of average assets, was 2.26%, an increase of 15 basis
points from the previous year.

Other Income

Other income climbed 15% from the prior year to $3.7 billion in 2000. For
the past five years, these revenues have grown at an average rate of 20%,
and now represent 41% of the Bank's total revenues. The substantial
increase in 2000 was the result of broad-based growth across all
categories.

Revenues from wealth management activities showed remarkable gains, with
full-service and discount brokerage businesses increasing by 42% following
record customer demand. Credit-related fees rose 16%, with solid growth
across all lending products. Trading income was 12% higher as a result of
strong performances in securities trading and derivatives. Securitisation
revenues were up 33%, reflecting the full-year impact of securitisations
undertaken in 1999.

Special items in 2000 included a $21 million gain relating to the sale of
the Bank's investment in Solidbank in the Philippines, and $61 million
from the sale of the Bank's stock transfer business.

Expenses

Scotiabank led all major Canadian banks in productivity in 2000. Through a
continued focus on expense management, the productivity ratio -- non-
interest expenses as a percentage of total revenues -- improved to 56.5%
in 2000 versus 59.3% last year.

Operating expenses were $5.1 billion in 2000, a $363 million or 8%
increase over last year. However, excluding the effect of consolidating
BSA Chile and the increase in performance-driven compensation, expenses
were flat.

Included in expenses in the fourth quarter was a $33 million provision
established for the closure of certain non-strategic international
locations. As well, the Bank reversed $34 million of the National Trust
restructuring provision, representing amounts no longer required.

Credit Quality

At October 31, 2000, the allowance for credit losses exceeded gross
impaired loans, resulting in negative net impaired loans of $61 million.
This represented a modest increase of $95 million in net impaired loans
since last year end. The Bank continued to maintain a substantial general
provision of $1.3 billion in 2000, representing 0.83% of risk-weighted
assets, as at October 31, 2000.

In fiscal 2000, specific provisions for credit losses were $765 million,
an increase of $280 million over last year. Almost all of this growth was
attributed to Scotia Capital, particularly in the US, as provisions were
increased following softening credit conditions, consistent with market
trends. Credit quality in Canadian retail and commercial lending improved,
reflecting a continuation of the downward trend experienced over the past
few years.

Balance Sheet

Total assets as at October 31, 2000, were $253 billion, up 14% or $30
billion from last year. Total loans grew by $21 billion, which included $2
billion in residential mortgages, $8 billion in loans to businesses
diversified over the major business lines, and higher assets purchased
under resale agreements of $10 billion. Securities rose $7 billion, mainly
in trading securities in Scotia Capital.

Total deposits grew by $17 billion or 11% in 2000. Personal deposits were
up 5%, reflecting customer demand for the Bank's various personal deposit
products, such as stock-indexed GICs.

Capital

Scotiabank has always maintained a solid capital base, and this was
further strengthened during the year. Total regulatory capital increased
by more than $2.1 billion to $19 billion in 2000. Growth in Tier 1 capital
accounted for 91% or $1.9 billion of this increase. Of this, $1.5 billion
came from strong earnings retention, as well as a $500 million issue of
Scotiabank Trust Securities (BaTS), an innovative Tier 1 capital
instrument. Over the past five years, $4.7 billion in capital has been
internally generated through record levels of net income.

The Tier 1 capital ratio rose substantially by 50 basis points in the year
to 8.6%. The total capital ratio rose to 12.2%, an increase of 30 basis
points from the prior year.

Outlook

"Our strategy, combined with our proven ability to execute effectively and
efficiently across our core businesses -- Domestic Banking, including
Wealth Management, International Banking and Scotia Capital -- forms a
solid foundation for the future," said Godsoe. "With a clear focus on our
customers, and first-rate expense and risk-management, we are confident
that Scotiabank will continue its strong growth and successful performance
in the years ahead for our shareholders, our customers and our employees."

The Bank expects steady growth in its retail and commercial businesses in
Canada. A sales and service focus will continue to emphasise building
deeper customer relationships, which will drive asset, deposit and revenue
growth. Branch support functions are being restructured, emphasising sales
support and centralising administrative functions into a common shared
services unit. As well, a relentless focus on managing costs and improving
productivity, will be ongoing.

Strong revenue growth in Wealth Management is expected to continue. The
Bank's retail brokerage division will be a key contributor, with continued
emphasis on disciplined pricing and building fee-based business. Mutual
fund sales will benefit substantially from an enhanced domestic and global
fund lineup and an increased focus on maximising distribution
capabilities.

Scotia Capital should see continued growth in revenues in 2001 from higher
assets, fee income and trading revenues. Moderately higher loan losses are
expected due to weaker credit conditions in the US market.

Higher net income is anticipated in International Banking for 2001, with
continued record growth in the Caribbean and Central America. The Bank
also expects a substantial rise in earnings from Latin America, with the
addition of earnings from Inverlat in Mexico, and stronger performance in
Argentina and Chile. In Asia, reasonable growth in earnings is expected.

2001 Targets

The Bank has established the following targets for 2001:

-  ROE -- 16 to 18%

-  Earnings per share growth -- 12 to 15%

-  Productivity Ratio -- less than 60%

-  Credit quality -- moderately higher specific provisions for credit
losses are expected (excluding Inverlat)

-  Capital ratios and credit ratings -- maintain strong capital ratios and
credit ratings

Community Involvement

"Community involvement is not something we just talk about, it is an
important part of the way we live, work and do business every day. This
year we contributed more than $18 million to community groups and non-
profit organisations in Canada and around the world," said Mr. Godsoe.

The Bank continued with a number of large sponsorships and donations, with
an ongoing focus on breast cancer through support of Breast Cancer
Awareness Day, Dialogue on Breast Cancer and the Willow Breast Cancer
Support and Resource Services Workshops. The Scotiabank Fraud Awareness
Program: the ABCs of Fraud continues to help make seniors tough targets
against fraud in six cities across Canada.

"Over the last year we have made a conscious effort to support more
community-based organisations, by expanding our local employee-based
giving as well," he concluded.

Performance Highlights                                         Scotiabank
-------------------------------------------------------------------------

                                           For the three months ended
-------------------------------------------------------------------------
                                  October 31       July 31(1) October 31(2)
                                          2000          2000          1999
-------------------------------------------------------------------------
    Net income (millions)                 $497          $548          $402

    Earnings per share: - basic          $0.95         $1.05         $0.76

                        - fully diluted  $0.93         $1.03         $0.75

    Return on equity                     17.0%         19.8%         15.3%

    Productivity ratio                   55.9%         54.0%         59.8%
-------------------------------------------------------------------------



                                            For the twelve months ended
-------------------------------------------------------------------------
                                               October 31(1) October 31(2)
                                                        2000          1999
-------------------------------------------------------------------------
    Net income (millions)                             $1,926        $1,551

    Earnings per share: - basic                        $3.67         $2.93
                        - fully diluted                $3.62         $2.91

    Return on equity                                   17.6%         15.3%

    Productivity ratio                                 56.5%         59.3%
-------------------------------------------------------------------------

    (1) Excluding special items recorded in Q3/2000, the financial ratios
        for the three months ended July 31, 2000 and for the twelve months
        ended October 31, 2000, would have been as follows: EPS $0.94, $3.56;
        ROE 17.8%, 17.1%; and productivity ratio 55.9%, 57.0%.

    (2) The above financial results have been prepared in accordance with
        Canadian generally accepted accounting principles (GAAP),including
        the accounting requirements of the Superintendent of Financial
        Institutions Canada, other than recording the increase to the
        general provision for credit losses as a direct charge to retained
        earnings in the fourth quarter of 1999, which is in accordance with   
        the accounting requirements specified by the Superintendent of
        Financial Institutions Canada under the Bank Act, as described in Note
        22 of the Consolidated Financial Statements. Had the one-time increase
        in the general provision been recorded as a charge to the
        Consolidated Statement of Income, the above financial results would   
        have been as follows: a) for the three months ended October 31, 1999  
        -- net income $88 million, earnings per share (basic) $0.12, earnings 
        per share (fully diluted) $0.12, return on equity 2.5%; b) for the    
        twelve months ended October 31, 1999 -- net income $1,237 million,
        earnings per share (basic) $2.29, earnings per share (fully diluted)  
        $2.28 and return on equity 12.0%.



    Consolidated Statement of Income                           Scotiabank
-------------------------------------------------------------------------
                           For the three             For the twelve
                           months ended              months ended
-------------------------------------------------------------------------
                    October       July    October    October  October
                         31         31      31(1)         31    31(1)
($ millions)           2000       2000       1999       2000    1999
-------------------------------------------------------------------------

Interest income
Loans                 $3,296     $3,182     $2,650    $12,129 $10,654
Securities               622        577        496      2,286   1,874
Deposits with banks      250        252        213        916     943
                  -----------------------------------------------------

                       4,168      4,011      3,359     15,331  13,471
                  -----------------------------------------------------
                  -----------------------------------------------------

    Interest expense
    Deposits           2,213      2,118      1,783      8,192   7,284
    Subordinated
     debentures           87         77         82        324     314
    Other                475        431        322      1,616   1,201
                -----------------------------------------------------

                       2,775      2,626      2,187     10,132   8,799
                -----------------------------------------------------
                -----------------------------------------------------

    Net interest 
     income            1,393      1,385      1,172      5,199   4,672
    Provision for
     credit losses       226        227        159        765     635
               -----------------------------------------------------
    Net interest
     income after
     provision for
     credit losses     1,167      1,158      1,013      4,434   4,037
                -----------------------------------------------------
                -----------------------------------------------------

    Other income
    Deposit and
    payment services     157        158        150        624     602
    Investment,
     brokerage and
     trust services      156        178        153        733     604
    Credit fees          164        168        154        632     543
    Investment banking   202        201        186        756     706
    Net gain on
     investment
     securities           46        115        102        379     343
    Securitisation
     revenues             50         52         42        206     155
    Other                 90        118         53        335     230
                 -----------------------------------------------------

                         865        990        840      3,665   3,183
                 -----------------------------------------------------
                 -----------------------------------------------------

    Net interest and
     other income      2,032      2,148      1,853      8,099   7,220
                 -----------------------------------------------------
                 -----------------------------------------------------

    Non-interest
     expenses
    Salaries             678        661        582      2,594   2,297
    Pension
     contributions and
     other staff
     benefits             86         91         73        350     330
    Premises and
     equipment,
     including
     depreciation        209        270        245        995   1,007
    Other                352        288        356      1,214   1,142
    Restructuring
     provision for
     National
     Trustco Inc.        (34)         -        (20)       (34)    (20)
                  ----------------------------------------------------

                       1,291      1,310      1,236      5,119   4,756
                 -----------------------------------------------------
                 -----------------------------------------------------

    Income before the
     undernoted:         741        838        617      2,980   2,464
    Provision for
     income taxes        223        272        206        990     867
    Non-controlling
     interest in
     net income of
     subsidiaries         21         18          9         64      46
                 -----------------------------------------------------

    Net income          $497       $548       $402     $1,926   $1,551
                -----------------------------------------------------
                -----------------------------------------------------

    Preferred
     dividends paid     $27        $27        $27       $108      $108
                -----------------------------------------------------

    Net income
     available to
     common
     shareholders      $470       $521       $375     $1,818    $1,443
 ------------------------------------------------------------------------

    (1) Refer to footnote (2) on Performance Highlights page.

    Certain comparative amounts in these financial statements have
    been reclassified to conform with current period presentation.



    Condensed Consolidated Balance Sheet

                                                      As at
 -------------------------------------------------------------------------
                                    October 31       July 31    October 31
    ($ millions)                          2000          2000          1999
 -------------------------------------------------------------------------

    Cash resources                     $18,744       $19,043       $17,115
    Securities                          41,386        36,891        33,939
    Loans                              166,903       161,364       145,859
    Other assets                        26,138        25,826        25,748
                              ------------------------------------------

    Total assets                      $253,171      $243,124      $222,691
                              -------------------------------------------
                              -------------------------------------------

    Deposits - Personal                $68,972       $68,588       $65,715
             - Business and
               governments              76,980        74,742        64,070
             - Banks                    27,948        24,395        26,833
                              -------------------------------------------

    Total deposits                     173,900       167,725       156,618

    Other liabilities                   60,926        57,578        49,293
    Subordinated debentures              5,370         5,327         5,374

    Equity - Preferred                   1,775         1,775         1,775
           - Common                     11,200        10,719         9,631
                               -------------------------------------------

    Total liabilities and equity      $253,171      $243,124      $222,691
                              -------------------------------------------
                              -------------------------------------------
 -------------------------------------------------------------------------



    Components of Net Income and Average Assets                 Scotiabank
 -------------------------------------------------------------------------
                           For the three             For the twelve
                           months ended              months ended
-------------------------------------------------------------------------
                      October       July    October    October   October
                           31         31      31(1)         31     31(1)
                         2000       2000       1999       2000     1999
-------------------------------------------------------------------------
    Net Income
    ($ millions)

    By business line:
    Domestic Banking     $256       $234       $167       $882     $649
    International
     Banking               89        104         83        364      296
    Scotia Capital        114        211        158        650      745
    Other(2)               38         (1)        (6)        30     (139)
                -----------------------------------------------------

                         $497       $548       $402     $1,926   $1,551
                  -----------------------------------------------------
                  -----------------------------------------------------

    By geography:
    Canada               $347       $377       $320     $1,309   $1,089
    United States          39         66         13        308      343
    Other
     International        112        142        124        472      463
    Corporate
     adjustments           (1)       (37)       (55)      (163)    (344)
                  -----------------------------------------------------

                         $497       $548       $402     $1,926    $1,551
                   -----------------------------------------------------
                   -----------------------------------------------------

    Average Assets
    ($ billions)

    By business line:
    Domestic Banking         $90        $89        $88        $89   $86
    International
     Banking                  32         32         27         31    26
    Scotia Capital           108        103         92        101    97
    Other(2)                  17         17         19         18    20
                   -----------------------------------------------------

                            $247       $241       $226       $239  $229
                   -----------------------------------------------------
                   -----------------------------------------------------

    By geography:
    Canada                  $148       $142       $136       $143  $133
    United States             41         42         35         39    37
    Other
     International            55         55         52         54    54
    Corporate
     adjustments               3          2          3          3     5
                     ----------------------------------------------------

                            $247       $241       $226       $239  $229
                  -----------------------------------------------------
                  -----------------------------------------------------

    (1) Refer to footnote (2) on Performance Highlights page.

    (2) Represents corporate adjustments and smaller operating segments,
        including Group Treasury.


    Capital and Common Share Information
Scotiabank
-------------------------------------------------------------------------

                                                      As at
-------------------------------------------------------------------------
                                    October 31       July 31    October 31
                                          2000          2000          1999
-------------------------------------------------------------------------

    Capital ratios
    Tier 1                                8.6%          8.5%          8.1%
    Total                                12.2%         12.1%         11.9%


    Common shares outstanding
     (millions)                          498.0         496.4         494.3

    Book value per share                $22.49        $21.60        $19.49
    Market value per share              $43.50        $37.55        $33.60
 ------------------------------------------------------------------------



                                           For the three months ended
 -------------------------------------------------------------------------
                                    October 31       July 31    October 31
                                         2000          2000          1999
-------------------------------------------------------------------------

    Common dividends paid
    Total (millions)                    $139.3        $119.1        $118.5

    Per share                            $0.28         $0.24         $0.24
-------------------------------------------------------------------------



This report 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 therefore cautioned not to place
undue reliance on such statements.

A live audio Internet broadcast of the Bank's analysts' conference call
will begin at 3:00 p.m. today. As well, media and retail investors will be
able to join the conference call on a listen-only basis by calling +1
(416) 640- 4120 between 2:45 p.m. and 2:55 p.m. A replay of the conference
call will be available from December 6 to 20 by calling [phone]
and inputting the following identification code: 72574 (Pound key).

The Web broadcast will include both audio and slide presentations by Bank
executives, and a subsequent question and answer period. The full
presentation will be available on the Web at about 5:00 p.m. today. Please
visit http://www.scotiabank.com for more information about the broadcast.

For further information: please contact Sabi Marwah, Executive Vice-
President and Chief Financial Officer, [phone], or Kevin
Harraher, Vice-President, Investor Relations, [phone] or Diane
Flanagan, Senior Manager, Public Affairs, [phone]