BANK OF NOVA SCOTIA: Annual Financial Report

Scotiabank reports record annual net income 
Scotiabank's 2012 audited annual consolidated financial statements and
accompanying management's discussion & analysis (MD&A) will be available today
at www.scotiabank.com, along with the supplementary financial information
report, which includes fourth quarter financial information.  All amounts are
in Canadian dollars and are based on our audited annual consolidated financial
statements and accompanying MD&A for the year October 31, 2012 and related
notes prepared in accordance with International Financial Reporting Standards
(IFRS), unless otherwise noted.  The Bank transitioned from Canadian GAAP to
IFRS effective for the interim and annual periods beginning the first quarter
of fiscal 2012.  Comparative periods in 2011 were also restated to reflect IFRS
changes.  
Additional information relating to the Bank, including the Bank's Annual
Information Form, can be found on the SEDAR website at www.sedar.com and on the
EDGAR section of the SEC's website at www.sec.gov. 
Fiscal 2012 Highlights 
·         Net income of $6,466 million, up 21% from last year 
·         Earnings per share (diluted) of $5.22 versus $4.53, up 15.2% 
·         ROE was 19.7% versus 20.3% 
·         Productivity ratio of 52%, versus 53.9% 
·         Annual dividends per share of $2.19, compared to $2.05, an increase
of 6.8% 
·         Tier 1 capital ratio of 13.6%, compared to 12.2% last year 
·         Tangible common equity ratio of 11.3%, compared to 9.6% last year 
Fourth Quarter Highlights (versus Q4, 2011) 
·         Net income of $1,519 million, up 31% from $1,157 million 
·         Earnings per share (diluted) of $1.18 compared to $0.97, up 22% 
·         ROE of 16.4%, unchanged from last year 
·         Productivity ratio of 54.9%, versus 57.9% 
·         Quarterly dividend of 57 cents per common share 
Fiscal 2012 Performance versus Objectives: 
The Bank met or exceeded its four key financial and operational objectives this
year as follows (2012 performance excluding 2012 real estate gains is reflected
in parentheses): 
1.     Earn a return on equity (ROE)1 of 15 to 18%.  For the full year,
Scotiabank earned an ROE of 19.7% (17.6%). 
2.     Generate growth in EPS (diluted) of 5 to 10%2.  The year-over-year EPS
growth was 22.2%2 (8.0%). 
3.     Maintain a productivity ratio1 of less than 58%. Scotiabank's
performance was 52.0% (54.3%). 
4.     Maintain sound capital ratios.  With a Tier 1 ratio of 13.6% and a TCE
ratio of 11.3%, Scotiabank's capital ratio remains strong. 
(1)    Refer below for a discussion of non-GAAP measures.                       
                                                                            
                                                                           
(2)    Excluding $286 million of acquisition-related gains reported in the
second quarter of 2011. 


                                                                               

TORONTO, Dec. 7, 2012 /CNW/ - For the full year Scotiabank achieved record net
income of $6,466 million in 2012, up 21%.  Earnings per share (EPS) (diluted)
were $5.22, compared to $4.53 in 2011, an increase of 15.2%.  Adjusting for
real estate gains in 2012 (61 cents per share) and non-recurring
acquisition-related gains in 2011 (26 cents per share), diluted earnings per
share rose 8.0% in 2012.

Scotiabank reported net income for the fourth quarter ended October 31, 2012 of
$1,519 million, up 31% from $1,157 million for the same period last year. 
Diluted earnings per share (EPS) were $1.18, compared to $0.97 last year, an
increase of 22.2%.  Return on equity was 16.4%, unchanged from last year.

"Scotiabank had strong overall results this year with record net income and
revenues and very good contributions from each of our four business lines,"
said Rick Waugh, Scotiabank CEO.  "Our keen focus on expense management
resulted in positive operating leverage across the Bank.  We continue to have a
solid track record of earnings and dividend growth with superior compound
annual shareholder returns of 13.0% over 10 years and 15.6% over 20 years.  In
an uncertain global environment, our proven, straightforward business model,
anchored in diversity, as well as our strong focus on risk management positions
us well for continued success.

"Canadian Banking had a very good quarter with net income of $481 million. 
Results were driven by volume growth in residential mortgages and commercial
lending. There were higher deposit volumes in retail, commercial and small
business banking and margins remained stable.  As well, provisions improved
compared to last year. Our recently completed acquisition of ING DIRECT Canada
solidifies Scotiabank as Canada's third largest retail bank and provides an
excellent opportunity to continue to grow and diversify our business and
funding base.

"International Banking delivered strong earnings with net income of $453
million.  Year-over-year growth was driven by our acquisition of Banco
Colpatria and solid contributions from Latin America and Asia.  Good retail and
commercial lending and deposit growth underpinned these results, particularly
in Latin America.  These results continue to reflect the benefit of our diverse
geographic footprint across the Caribbean, Latin America and Asia.

"Net income in Global Wealth Management was $300 million this quarter, a strong
performance.  The business line continued to earn through uncertainty in
financial markets, with assets under management growing to $115 billion. 
Expense growth was effectively contained.

"Global Banking and Markets reported net income of $396 million, with growth in
revenues of 37%, compared to the same period last year due in part to more
favourable market conditions. This year's results reflect higher revenues from
fixed income initiatives that performed well and growth in other key product
areas.  Diversification across the business allowed for effective management of
risk and stable results despite continued volatility in markets.

"Going forward, the four business lines, which now report to Brian Porter, our
new President, will continue to execute on the Bank's strategy and adapt to our
increasingly changing environment.

"I would like to thank the entire Scotiabank team for their hard work over this
past year in meeting the needs of our customers and our financial objectives.
Our efforts were most recently recognized by The Banker, a Financial Times
publication that named Scotiabank as the Global Bank of the Year and Bank of
the Year in the Americas. This is the first time that a Canadian bank has
received either of these prestigious awards. We were also named Bank of the
Year in Canada, Antigua, Barbados, Belize, Turks and Caicos and the British
Virgin Islands.

"The Bank is well positioned to continue to deliver growth in all business
lines. Earnings have remained resilient despite the moderated global economic
growth. The Bank's diversified platforms, sustainable revenues, high
profitability, strong capital and its focus on adding new customers,
particularly in the higher growth markets, should continue to support growth in
2013 and beyond."

Financial Highlights(1)
                                     As at and for the three months ended       
    For the year ended
                                                                                
                      


                                  October 31   July 31    October 31    
October 31    October 31   
                                                                             
                  
(Unaudited)                                 2012      2012          2011        
  2012          2011   


                                                                                
                      
                                                                                
                      
                                                                                


                  
Operating results ($ millions)                                                   


                      
                                                                                


                  
Net interest income                        2,580     2,567         2,329        
10,003         9,014   
                                                                             
                  
Net interest income (TEB(2))               2,584     2,572         2,334        
10,020         9,035   
                                                                             
                  
Non-interest revenue                       2,284     2,945         1,896        
 9,698         8,296   
                                                                             
                  
Non-interest revenue (TEB(2))              2,354     3,017         1,965        
 9,969         8,562   
                                                                             
                  
Total revenue                              4,864     5,512         4,225        
19,701        17,310   
                                                                             
                  
Total revenue (TEB(2))                     4,938     5,589         4,299        
19,989        17,597   
                                                                             
                  
Provision for credit losses                  321       402           281        
 1,252         1,076   
                                                                             
                  
Operating expenses                         2,713     2,618         2,489        
10,403         9,481   
                                                                             
                  
Provision for income taxes                   311       441           298        
 1,580         1,423   
                                                                             
                  
Provision for income taxes (TEB(2))          385       518           372        
 1,868         1,710   
                                                                             
                  
Net income                                 1,519     2,051         1,157        
 6,466         5,330   
                                                                             
                  
Net income attributable                    1,398     1,946         1,071        
 6,023         4,965  
 to common shareholders                                                          


                      
                                                                                
                      
                                                                                
                      
                                                                                


                  
Operating performance                                                            


                      
                                                                                


                  
Basic earnings per share ($)                1.20      1.70          0.99        
  5.31          4.63   
                                                                             
                  
Diluted earnings per share ($)              1.18      1.69          0.97        
  5.22          4.53   
                                                                             
                  
Adjusted diluted earnings per share         1.21      1.72          1.00        
  5.33          4.62  
(2) ($)                                                                          


                      
                                                                                


                  
Return on equity(2) (%)                     16.4      24.6          16.4        
  19.7          20.3   
                                                                             
                  
Productivity ratio (%) (TEB(2))             54.9      46.9          57.9        
  52.0          53.9   
                                                                             
                  
Core banking margin (%) (TEB(2))            2.35      2.33          2.26        
  2.32          2.32   
                                                                             
                  
Banking margin on average                   2.12      2.11          2.07        
  2.10          2.11  
 total assets (%) (TEB(2))                                                       


                      
                                                                                
                      
                                                                                
                      
                                                                                


                  
Financial position information                                                   


                      
                                                                                


                  
 ($ millions)                                                                    


                      
                                                                                


                  
Cash and deposits with banks              54,804    62,438        45,222         


                      
                                                                                


                  
Trading assets                            87,596    93,797        75,799         


                      
                                                                                


                  
Loans                                    364,766   356,558       327,573         


                      
                                                                                


                  
Total assets                             668,044   669,970       594,423         


                      
                                                                                


                  
Deposits                                 463,609   461,022       421,335         


                      
                                                                                


                  
Common equity                             35,252    32,414        26,356         


                      
                                                                                


                  
Preferred shares                           4,384     4,384         4,384         


                      
                                                                                


                  
Assets under administration(2)           327,977   315,403       297,668         


                      
                                                                                


                  
Assets under management(2)               114,694   108,680       102,733         


                      
                                                                                
                      
                                                                                
                      
                                                                                


                  
Capital measures(1)                                                              


                      
                                                                                


                  
Tier 1 capital ratio (%)                    13.6      12.6          12.2         


                      
                                                                                


                  
Total capital ratio (%)                     16.7      14.4          13.9         


                      
                                                                                


                  
Tangible common equity to                   11.3      10.2           9.6         
                  
 risk-weighted assets(2) (%)                                                     


                      
                                                                                


                  
Assets-to-capital multiple                  15.0      17.2          16.6         


                      
                                                                                


                  
Risk-weighted assets ($ millions)        253,309   252,399       233,970         


                      
                                                                                
                      
                                                                                
                      
                                                                                


                  
Credit quality                                                                   


                      
                                                                                


                  
Net impaired loans ($ millions)(3)         1,973     2,032         1,957         


                      
                                                                                


                  
Allowance for credit losses ($             2,969     2,862         2,689         
                  
millions)                                                                        


                      
                                                                                


                  
Net impaired loans as a %                   0.53      0.56          0.58         
                  
of loans and acceptances(3)                                                      


                      
                                                                                


                  
Provision for credit losses as                                                   
                  
 a % of average loans and                   0.34      0.44          0.34        
  0.35          0.34  
acceptances (annualized)                                                         


                      
                                                                                
                      
                                                                                
                      
                                                                                


                  
Common share information                                                         


                      
                                                                                


                  
Share price ($)                                                                  


                      
                                                                                


                  
  High                                     55.00     54.89         54.96        
 57.18         61.28   
                                                                             
                  
  Low                                      51.24     50.25         49.00        
 47.54         49.00   
                                                                             
                  
  Close                                    54.25     52.35         52.53         


                      
                                                                                


                  
Shares outstanding (millions)                                                    


                      
                                                                                


                  
  Average - Basic                          1,166     1,142         1,086        
 1,133         1,072   
                                                                             
                  
  Average - Diluted                        1,184     1,160         1,118        
 1,160         1,108   
                                                                             
                  
  End of period                            1,184     1,146         1,089         


                      
                                                                                


                  
Dividends per share ($)                     0.57      0.55          0.52        
  2.19          2.05   
                                                                             
                  
Dividend yield(4) (%)                        4.3       4.2           4.0         
4.2           3.7   
                                                                             
                  
Market capitalization ($ millions)        64,252    59,988        57,204         


                      
                                                                                


                  
Book value per common share ($)            29.76     28.29         24.20         


                      
                                                                                


                  
Market value to book value multiple          1.8       1.9           2.2         


                      
                                                                                


                  
Price to earnings multiple                  10.2      10.3          11.3         


                      
                                                                                
                      
                                                                                
                      
                                                                                


                  
Other information                                                                


                      
                                                                                


                  
Employees                                 81,497    81,281        75,362         


                      
                                                                                


                  
Branches and offices                       3,123     3,115         2,926         


                      
                                                                                
                      
    (1) The Bank has adopted IFRS effective November 1, 2011. All amounts reflect  
    the adoption of IFRS, except for capital measures. Capital measures have   
    not been restated for IFRS as they represent the actual amounts in that    
    period for regulatory purposes.                                            


                                                                           
(2) Refer to Non-GAAP measures section of this press release for a discussion   
of these measures.                                                          
                                                                           
(3) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans      
related to the acquisition of R-G Premier Bank of Puerto Rico.              
                                                                           
(4) Based on the average of the high and low common share price for the year.   
                                                                            


    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 U.S.
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, U.S. 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; significant market volatility and
interruptions; the failure of third parties to comply with their obligations to
us and our affiliates; the effect of changes in monetary policy; legislative
and regulatory developments in Canada and elsewhere, including changes in tax
laws; the effect of changes to our credit ratings; amendments to, and
interpretations of, risk-based capital guidelines and reporting instructions
and liquidity regulatory guidance; operational and reputational risks; the risk
that the Bank's risk management models may not take into account all relevant
factors; 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 financial
performance, 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, see the discussion starting
on page 55 of the MD&A.

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" sections in this document are based on the Bank's views and the
actual outcome is uncertain. Readers should consider the above-noted factors
when reviewing these sections.

Additional information relating to the Bank, including the Bank's Annual
Information Form, can be located on the SEDAR website at www.sedar.com and on
the EDGAR section of the SEC's website at www.sec.gov.

Notable Business Highlights

Scotiabank became the first Canadian bank to be named Global Bank of the Year
and Bank of the Year in the Americas by The Banker magazine. Scotiabank was
also recognized by the magazine as Bank of the Year in Canada, Antigua,
Barbados, Belize, Turks and Caicos and the British Virgin Islands.

Recent initiatives

·         The Bank completed the acquisition of ING DIRECT Canada.  This
acquisition solidifies Scotiabank as Canada's third largest retail bank and
provides an excellent opportunity to continue to grow and diversify our
business and our funding base. ING DIRECT Canada will continue to operate as a
separate and distinct wholly-owned subsidiary, providing low cost and highly
competitive products to self-directed customers.

·         In Canada, the Bank launched a strategic partnership with American
Express offering a leading suite of Scotiabank American Express Cards. These
new cards are now among the best customer offers in travel rewards providing up
to 4X reward earning power. Scotiabank Canadian customers now have a choice
between two card networks - Visa and American Express.

·         Scotiabank announced that it had reached an agreement to acquire 51
per cent of Colfondos AFP, a Colombian pension fund company.  With an existing
presence in the retail space through Banco Colpatria, and now the wealth market
through Colfondos, Scotiabank is well positioned to take advantage of Latin
America's fourth-largest economy and increase its regional footprint in this
segment.

Recognized for success

·         Cited by Bill Clinton in 'Time magazine' for outstanding progress in
mobile technology and banking.  The Bank's mobile wallet partnership with
Digicel and YellowPepper in Haiti has helped make banking easy, affordable and
accessible to all Haitians.

·         Global Banking and Markets' Global Equity Sales group was recognized
by Brendan Wood International as the industry leader in Canada in six
categories, including Overall Quality of Sales Service, Understanding Client
Portfolios and Trading Style, and Quality of Investment Ideas and Original
Thinking.

·         Scotiabank continues to gain market share in mutual funds, with
year-to-date net sales second highest in the industry, according to the most
recent IFIC data (as of September 2012). Scotiatrust, meanwhile, has regained
its #1 position among trust companies in estate assets, and remains #1 in
personal custody assets, according to the most recent Investor Economics data
(as of June 2012).

Serving customers

·         Global Banking and Markets acted as Financial Advisor and
Co-Bookrunner to Alimentation Couche-Tard Inc. on its acquisition of Statoil
Fuel & Retail ASA, for approximately US$3.6 billion, the largest transaction
ever by a Canadian retailer.

Scotiabank's Bright Future Program in Action

·         Eight National finalists for the 2012 Scotiabank Game Changer 
program
were chosen from 72 Scotiabank Game Changers recognized over the course of the
2012 CFL regular season, for their commitment to doing outstanding work for
causes and people in their communities.  The winner received $100,000 towards
their chosen charity.

·         Peru launched "Proyecto Logro" - an online community philanthropic
initiative.  "Create, share and donate" are the key elements of this campaign
where users upload a personal picture that shows a moment in time that they
were proud of and Scotiabank donates 5 Soles (about $2) to a known charity in
Peru called Ceritas. Since the campaign began there have been more than 102,000
'likes' and more than 1,300 photos have been uploaded.

Non-GAAP Measures

The Bank uses a number of financial measures to assess its performance. Some of
these measures are not calculated in accordance with International Financial
Reporting Standards (IFRS), are not defined by IFRS and do not have
standardized meanings that would ensure consistency and comparability between
companies using these measures. These non-GAAP measures are used throughout
this report and defined below.

Assets under administration (AUA)
AUA are assets administered by the Bank which are beneficially owned by clients
and therefore not reported on the Bank's Consolidated Statement of Financial
Position. Services provided for AUA are of an administrative nature, such as
trusteeship, custodial, safekeeping, income collection and distribution,
securities trade settlements, customer reporting, and other similar services.

Assets under management (AUM)
AUM are assets managed by the Bank on a discretionary basis and for which the
Bank earns investment management fees. AUM are beneficially owned by clients
and are therefore not reported on the Bank's Consolidated Statement of
Financial Position. Some AUM are also administered assets and are therefore
included in assets under administration, under these circumstances.

Adjusted diluted earnings per share
The adjusted diluted earnings per share is calculated by adjusting the diluted
earnings per share to add back the non-cash, after-tax amortization of
intangible assets.

Economic equity and return on economic equity
For internal reporting purposes, the Bank attributes capital to its business
segments based on their risk profile and uses a methodology that considers
credit, market, operational and other risks inherent in each business segment.
The amount of risk capital attributed is commonly referred to as economic
equity. Return on economic equity for the business segments is calculated as a
ratio of Adjusted Net Income of the business segment and the economic equity
attributed. Adjusted Net Income is net income attributable to common
shareholders adjusted for the incremental cost of non-common equity capital
instruments.

Core banking margin (TEB)
This ratio represents net interest income (on a taxable equivalent basis)
divided by average earning assets excluding bankers acceptances and total
average assets relating to the Global Capital markets business within Global
Banking and Markets. This is consistent with the Bank's Consolidated Statement
of Income presentation where net interest income from trading operations is
recorded in trading revenues included in other operating income.

Banking margin on average total assets (TEB)
The banking margin represents net interest income (on a taxable equivalent
basis) divided by average total assets excluding average total assets relating
to Global Capital markets business within Global Banking and Markets.

Operating leverage (TEB)
The Bank defines operating leverage as the rate of growth in total revenue (on
a taxable equivalent basis), less the rate of growth in operating expenses.

Productivity ratio (TEB)
Management uses the productivity ratio as a measure of the Bank's efficiency.
This ratio represents operating expenses as a percentage of total revenue
(TEB).

Return on equity
Return on equity is a profitability measure that presents the net income
attributable to common shareholders as a percentage of common shareholders'
equity. The Bank calculates its return on equity using average common
shareholders' equity.

Tangible common equity to risk-weighted assets
Tangible common equity to risk-weighted assets is an important financial
measure for rating agencies and the investing community. Tangible common equity
is total common equity plus non-controlling interests in subsidiaries, less
goodwill and unamortized intangible assets (net of taxes). Tangible common
equity is presented as a percentage of risk-weighted assets. Regulatory capital
ratios, such as Tier 1 and Total Capital ratios, have standardized meanings as
defined by the Office of the Superintendent of Financial Institutions, Canada.

Taxable equivalent basis
The Bank analyzes net interest income, other operating income, and total
revenue on a taxable equivalent basis (TEB). This methodology grosses up
tax-exempt income earned on certain securities reported in either net interest
income or other operating income to an equivalent before tax basis. A
corresponding increase is made to the provision for income taxes; hence, there
is no impact on net income. Management believes that this basis for measurement
provides a uniform comparability of net interest income and other operating
revenue arising from both taxable and non-taxable sources and facilitates a
consistent basis of measurement. While other banks also use TEB, their
methodology may not be comparable to the Bank's methodology. For purposes of
segmented reporting, a segment's revenue and provision for income taxes are
grossed up by the taxable equivalent amount. The elimination of the TEB gross
up is recorded in the Other segment. The TEB gross up to net interest income,
other operating income, total revenue, and provision for income taxes are
presented below:

TEB Gross up
                    For the three months ended            For the year ended   


                                                                           
TEB Gross up       October 31    July 31   October 31   October 31   October 31
($ millions)             2012       2012         2011         2012         2011 
                                                                           
Net interest   $            4   $      5   $        5      $    17    $      21
income                                                                          
                                                                           
Other                      70         72           69          271          266
operating                                                                    
income                                                                          
                                                                           
Total          $           74   $     77   $       74      $   288    $     287
revenue and                                                             
provision                                                                      
for taxes                                                                       


                                                                               

Group Financial Performance

Q4 2012 v Q4 2011

Net income
Net income was $1,519 million in the fourth quarter, an increase of $362
million or 31% above the same quarter last year. The increase mainly reflected
higher revenues, including the contributions of acquisitions, growth in earning
assets and stronger trading revenues. These increases were partially offset by
higher operating expenses and increased provision for credit losses.

Total revenue
Total revenue (TEB) of $4,938 million was $639 million or 15% higher than the
same quarter last year, with significant increases in all three revenue
categories. Net interest income rose from a wider core banking margin, mostly
due to acquisitions, and higher volumes of core banking assets. Net fee and
commission revenues were up due primarily to higher banking, underwriting and
wealth management fees. The increase in other operating income was primarily
from higher trading revenues, as well as a favourable change in the fair value
of financial instruments used for asset/liability management.

Net interest income
Net interest income (TEB) was $250 million or 11% above the same period last
year.  This increase was a result of both a 7% increase in core banking assets
and a nine basis point increase in the core banking margin. The former was from
higher lending volumes across all business lines. The nine basis point widening
of the margin was primarily from the acquisition of Banco Colpatria, partly
offset by a narrower spread on Canadian currency personal deposits.

Net fee and commission revenues
Compared to the same period last year, net fee and commission revenue of $1,634
million was up $145 million or 10%. This increase was primarily from increased
revenues from cards, deposit and payment services including the contribution
from the acquisition of Banco Colpatria. Underwriting fees rose $39 million,
and mutual fund fees were up $26 million, in both DundeeWealth and Scotia
Funds.

Other operating income
Other operating income (TEB) was $720 million, a significant $244 million or
51% increase from the fourth quarter of the previous year.  Most of this
increase was from stronger trading revenues, particularly in fixed income. In
addition, there was higher insurance underwriting income and a favourable
change in the fair value of financial instruments used for asset/liability
management.

Provision for credit losses
The provision for credit losses was $321 million in the fourth quarter compared
to $281 million in the same period last year. This increase in provisions was
due primarily to a decrease of $30 million in the collective allowance on
performing loans last year, and higher provisions in International Banking this
year.

Operating expenses and productivity
Operating expenses were $2,713 million in the fourth quarter, an increase of
$224 million or 9% over the same quarter last year.  Acquisitions accounted for
approximately $123 million or 55% of the growth in expenses. The remaining
increase was due mainly to higher salaries from annual pay increases and
additional staff for business expansion, as well as higher performance-based
compensation.  Additionally, premises costs, technology and professional
expenses rose, reflecting spending to support growth initiatives. Partially
offsetting this increase were lower benefit costs due to actuarial revaluations
of long-term benefit plans.

The productivity ratio was 54.9% in the fourth quarter, an improvement from
57.9% in the same quarter last year.

Taxes
The effective tax rate was 17.0% this quarter compared to 20.5% in the same
quarter last year. The decrease was primarily due to a reduction in the
statutory tax rate in Canada and the inclusion in last year's results of a
valuation allowance recorded against a deferred tax asset related to a loss on
disposal of subsidiary operations in a prior year. These decreases were
partially offset by lower tax recoveries in foreign subsidiaries and
proportionately lower tax-exempt dividend income.

Q4 2012 v Q3 2012

Net income
Net income was $1,519 million this quarter, down 26% compared to $2,051 million
in the previous quarter. Last quarter's results included an after-tax gain on
sale of real estate in Toronto of $614 million.  Adjusting for this, net income
grew 6% quarter over quarter.  The favourable impact of lower taxes and
provisions was partly offset by higher operating expenses.

Total revenue
Total revenue (TEB) of $4,938 million fell $651 million or 12% from the prior
quarter entirely due to last quarter's real estate gain. The underlying
increase of $76 million was driven by a slight rise in net interest income from
a widening of the core banking margin, higher fee and commission revenues and
increased gains on investment securities.  These were partly offset by lower
trading revenues.

Net interest income
Net interest income (TEB) rose $12 million to $2,584 million. This increase
reflected growth in residential mortgages and personal lending.  Partly
offsetting were lower margins in Chile and in the fixed rate Canadian currency
portfolio.

Net fee and commission revenues
Compared to the previous quarter, net fee and commission revenue of $1,634
million was $71 million or 5% higher.  This increase was primarily from
seasonally higher banking fees in Latin America, higher mutual fund revenues,
brokerage commissions and underwriting and other advisory fees.

Other operating income
Other operating income (TEB) was $720 million, a reduction of $734 million from
the prior quarter, almost entirely from the real estate gain in the third
quarter.  The remaining revenues were relatively flat as lower trading revenues
(mainly in the fixed income and equity businesses) and the impact of the gain
on sale of a leasing business in the prior quarter, were offset by higher gains
on investment securities.

Provision for credit losses
The provision for credit losses of $321 million for the fourth quarter was down
$81 million from last quarter. This was due to an increase of $100 million in
the collective allowance on performing loans in the last quarter, partially
offset by higher commercial provisions in Canadian Banking.

Operating expenses and productivity
Quarter over quarter, operating expenses were up $95 million or 4%, due mainly
to higher levels of investment in revenue generating initiatives resulting in
increased expenditures on advertising and business development, as well as
growth in technology and professional expenses.  This was partially offset by
lower benefit costs due to actuarial revaluation of long-term benefit plans.

The productivity ratio was 54.9% in the fourth quarter, compared to 53.9% in
the third quarter adjusted for the real estate gain last quarter.

Taxes
The effective tax rate this quarter was 17.0%, compared to 17.7% in the prior
quarter. This quarter benefitted from tax recoveries, an increase in deferred
tax assets due to changes in tax rates in a foreign subsidiary and
proportionately higher tax-exempt income. Last quarter benefitted from lower
taxes on the gain on sale of real estate and a decline in non-deductible
expenses.

Common Dividend

The Board of Directors at its meeting on December 6, 2012 approved the
quarterly dividend of 57 cents per common share.  This quarterly dividend
applies to shareholders of record as of January 2, 2013 and is payable January
29, 2013.

Outlook

Global growth has moderated and will likely remain subdued in 2013 as
governments in many debt-heavy developed nations impose additional austerity
measures to rein in outsized deficits.  Momentum in major emerging markets is
moderating, but these markets remain the major drivers of global growth through
next year and beyond. Robust domestic demand in these nations has helped to
underpin world commodity markets and is becoming an important market
opportunity for manufacturers and service industries around the globe.

The U.S. economy is benefiting from stronger consumer spending and the
beginnings of a revival in the housing industry and is expected to be supported
by continued monetary stimulus.  Canadian prospects will also benefit both from
an improvement in U.S. domestic demand and generally buoyant markets for many
commodities.  In Canada, despite concerning growth in debt levels, the Bank's
customers and portfolios are in strong shape.  The Bank expects softening house
prices will result in a soft landing due to high equity values in homes and
continued growth in the Canadian economy.

The Bank is well positioned to continue to deliver growth in all business
lines. Earnings have remained resilient despite the moderated global economic
growth. The Bank's diversified platforms, sustainable revenues, high
profitability, strong capital and its focus on adding new customers,
particularly in the higher growth markets, should continue to support growth in
2013 and beyond.

Targets

The Bank's targets for 2013 are as follows:

·         Earn a return on equity (ROE) of 15 to 18%

·         Generate growth in EPS (diluted) of 5 to 10%(1)

·         Maintain a productivity ratio of less than 56%

·         Maintain strong capital ratios.

(1)         Excluding $708 million or 61 cents per share related to real estate
                                                                 gains in 2012.
                                                                               

Statement of Financial Position

Assets
The Bank's total assets at October 31, 2012 were $668 billion, up $74 billion
or 12% from October 31, 2011. The impact of foreign currency translation was
not significant.

Cash and deposits with banks grew by $10 billion, due mainly to increases in
interest bearing deposits with central banks in the U.S. and the United
Kingdom.

Precious metals rose $3 billion and securities purchased under resale
agreements increased by $13 billion.

Trading assets
Trading assets increased $12 billion from October 31, 2011, primarily in
trading securities which were up $12 billion from higher holdings of U.S. and
other foreign government debt, and common equities.

Investment securities
Investment securities grew by $3 billion due mainly to increased holding of
U.S. and other foreign government debt, partially offset by reduced holdings of
Canadian government debt.

As at October 31, 2012, the unrealized gain on available-for-sale securities,
after the impact of qualifying hedges is taken into account, was $891 million,
an increase of $155 million from October 31, 2011. The change was due mainly to
increases in the values of corporate bonds and equities.

Loans
Loans increased $37 billion or 11% from October 31, 2011. Business and
government loans rose $19 billion due primarily to growth in Latin America,
including the acquisition of Banco Colpatria in Colombia, and growth in Global
Banking and Markets, mainly investment grade corporate loans in the U.S. and
Europe. In retail lending, residential mortgages increased $14 billion due
primarily to growth in Canada. Personal and credit card loans rose $5 billion
due mainly to Banco Colpatria and growth in Canada.

Liabilities
Total liabilities were $627 billion as at October 31, 2012, up $64 billion or
11% from October 31, 2011.

Deposits
Total deposits increased by $42 billion. Personal deposits grew by $5 billion
primarily from growth in deposits in Canada and the acquisition of Banco
Colpatria. Business and government deposits increased $29 billion due mainly
from growth in the U.S. and Canada as well as the inclusion of Banco Colpatria.
Deposits by banks increased $9 billion in the U.S. and Asia.

Other Liabilities
Obligations related to securities sold under repurchase agreements and
obligations related to securities sold short grew by $19 billion and $3
billion, respectively. Derivative instrument liabilities decreased $5 billion,
which was similar to the decrease in derivative instrument assets.

Equity
Total equity increased $9,139 million from October 31, 2011. This increase was
driven by internal capital generation of $3,557 million, the issuance of common
shares of $4,803 million including public offerings of $3,329 million, and $518
million for the purchase of Banco Colpatria, as well as $956 million through
the Dividend Reinvestment Plan and the exercise of options.

The accumulated other comprehensive loss decreased $466 million due to higher
unrealized gains on available-for-sale securities, improvements in unrealized
foreign exchange losses on the Bank's investments in its foreign operations,
and lower unrealized losses on cash flow hedges.

Non-controlling interests
Non-controlling interests in subsidiaries increased $340 million due mainly to
the acquisition of Banco Colpatria and current period net income attributable
to non-controlling interests. Non-controlling interests capital instrument
equity holders decreased $97 million due mainly to distributions.

Capital ratios

In 2012, the Bank's regulatory capital ratios improved and the Bank's capital
position remains strong.

Tier 1 and Total capital ratios as at year end were 13.6% and 16.7 %. These
ratios continued to be well in excess of OSFI's minimum capital ratios of 7%
and 10% and were strong by international standards.  Excluding the equity
issued in 2012 for the Bank's acquisition of ING DIRECT Canada, Tier 1 and
Total Capital ratios were 12.9% and 16.0% respectively.

Tangible common equity (TCE) is generally considered to be an important measure
of a bank's capital strength, and is often used by rating agencies and
investors in their assessment of the quality of a bank's capital position.
During the year, the Bank's TCE ratio improved. At year end, the Bank's TCE was
11.3%, or 10.6 % excluding the equity issued in 2012 for the Bank's acquisition
of ING DIRECT Canada.

Based on the Bank's analysis and assumptions, as at October 31, 2012, its Basel
III fully implemented common equity Tier 1 ratio was 8.6%.  The ING DIRECT
Canada acquisition which closed on November 15, 2012, will reduce the common
equity Tier 1 ratio by approximately 85 basis points.

Business Segment Review

Canadian Banking
                       For the three months ended         For the year ended    
                                                                                    
    (Unaudited) ($       October      July      October        October      October 
    millions)                 31        31           31             31           31 
                                                                                    
    (Taxable                                                                        


equivalent              2012      2012         2011 (2)       2012         2011 
(2)
basis)(1)                                                                        


                                                                                    
    Business                                                                        
    segment income                                                                  
                                                                                    
    Net interest      $    1,229   $ 1,197   $    1,145     $    4,756   $    4,553 
    income                                                                          
                                                                                    
    Net fee and                                                                     
    commission               376       375          363          1,477        1,418 
    revenues                                                                        
                                                                                    
    Net income from                                                                 
    investments              (2)         5            2              4            7 
     in associated                                                                  
    corporations                                                                    
                                                                                    
    Other operating          (2)        43            2             50           13 
    income                                                                          
                                                                                    
    Provision for            132       118          135            506          592 
    credit losses                                                                   
                                                                                    
    Operating                820       793          797          3,152        3,084 
    expenses                                                                        
                                                                                    
    Provision for            168       188          161            691          645 
    income taxes                                                                    
                                                                                    
    Net income        $      481   $   521   $      419     $    1,938   $    1,670 
                                                                                    
    Net income                                                                      
    attributable                                                                    
     to               $        -   $     1   $        -     $        2   $        3 
    non-controlling                                                                 
    interests                                                                       
                                                                                    
    Net income                                                                      
    attributable                                                                    
    to equity         $      481   $   520   $      419     $    1,936   $    1,667 
    holders of the                                                                  
    Bank                                                                            
                                                                                    
    Other measures                                                                  
                                                                                    
    Return on                                                                       


economic equity         37.7 %    41.7 %       35.2 %         39.1 %       35.7 
%  
(1)                                                                              


                                                                                    
    Average assets    $      232   $   227   $      216     $      225   $      210 
    ($ billions)                                                                    
                                                                                    
    Average                                                                         
    liabilities ($    $      153   $   152   $      145     $      150   $      143 
    billions)                                                                       
                                                                                    


(1)  Refer to Non-GAAP measures section of this press release for a discussion 
of                                       


     these measures.                                                            
                                       
                                                                                


                                   
(2)  Prior period amounts have been restated as the Bank implemented changes in 
its                                     
 methodology for certain business line allocations relating to fund 
transfer                                        
 pricing, revenue and cost sharing agreements between Canadian and 
International                                    
 Banking and Global Wealth Management, tax normalization and Global 
Transaction                                     


     Banking allocations. These changes were made in the first quarter and the  
                                       
     allocations did not have an impact on the Bank's consolidated results.     
                                       
                                                                                
                                       
    Q4 2012 v Q4 2011

Canadian Banking reported net income of $481 million in the fourth quarter, an
increase of $62 million or 15% from the same period last year, mainly driven by
strong asset and deposit growth. Return on economic equity increased to 37.7%
from 35.2% last year.

Average assets rose by $16 billion or 7% from the same quarter last year.  This
was due primarily to growth of $11 billion or 8% in residential mortgages and
$3 billion or 6% in personal loans.  There was also growth in commercial and
small business lending. Average deposits increased by $7 billion or 5%, with
strong growth in each of retail, small business and commercial banking.  Retail
Banking experienced solid growth in chequing accounts of $1 billion or 7% and
savings deposits of $2 billion or 7%. There was also growth of $4 billion or
14% in small business and commercial banking business operating accounts.

Total revenues increased by $89 million or 6% from the fourth quarter last
year, with growth in both net interest income and net fee and commissions
revenues.

Net interest income of $1,229 million was up $84 million or 7% from the fourth
quarter last year.  This was driven by strong volume growth in both assets and
deposits.  Net interest margin was relatively unchanged as higher spreads on
fixed rate mortgages were offset by narrower spreads on personal deposits
reflecting a competitive pricing environment.

Net fee and commission revenues increased $13 million or 4% from the same
quarter last year due to higher commercial banking fees and transaction-driven
card revenues and deposit fees in retail banking, as a result of significant
new account growth.

The provision for credit losses was $132 million this quarter, down from $135
million in the same quarter last year, with lower provisions in retail
partially offset by higher commercial banking provisions.

Operating expenses were up $23 million or 3%.  Staffing decreased from the same
quarter last year reflecting the impact of operational efficiency initiatives
and the divesture of the leasing business, partly offset by an increase in
personnel to support business growth and new initiatives.  Operating leverage
was a positive 3.1% year over year.

Q4 2012 v Q3 2012

Quarter over quarter, net income decreased $40 million or 8%. Excluding the $32
million after-tax gain on the sale of a non-strategic leasing business, net
income decreased $8 million or 2% reflecting an increase in operating expenses
and higher provisions for credit losses, partly offset by higher net interest
income as a result of continued strong asset growth. Return on economic equity
was 37.7% versus 41.7% last quarter.

Average assets rose $5 billion or 2%, mainly from solid growth in retail
mortgages.  Average deposits grew $1 billion or 1% mainly in savings in retail
and business operating accounts in commercial banking.

Total revenue decreased $19 million or 1% quarter over quarter.

Net interest income increased $32 million or 3% mainly from strong asset
growth.

Other operating income decreased $45 million as the previous quarter included a
pre-tax $44 million gain on sale of the leasing business.

The provision for credit losses was $132 million in Canadian Banking, up $14
million from the previous quarter due to higher commercial provisions.

Operating expenses rose $27 million or 3% compared to last quarter mainly from
investments in business initiatives and seasonally higher costs.

International Banking
                                              For the three months ended        
           For the year ended          
                                                                                


                                   
(Unaudited) ($ millions)              October 31       July 31        October 
31         October 31      October 31     
                                                                             
                                   
(Taxable equivalent basis)(1)               2012          2012              
2011 (2)           2012            2011 (2) 
                                                                             
                                   
Business segment income                                                          


                                       
                                                                                


                                   
Net interest income                $       1,153     $   1,175     $         
941      $       4,468   $       3,579     
                                                                             
                                   
Net fee and commission revenues              352           320               
294              1,299           1,076     
                                                                             
                                   
Net income from investments                  103           104               
100                384             378    
 in associated corporations                                                      


                                       
                                                                                


                                   
Other operating income                        84            93               
100                347             356     
                                                                             
                                   
Provision for credit losses                  176           168               
158                613             509     
                                                                             
                                   
Operating expenses                           979           937               
820              3,687           3,038     
                                                                             
                                   
Provision for income taxes                    84           145                
86                464             375     
                                                                             
                                   
Net income                         $         453     $     442     $         
371      $       1,734   $       1,467     
                                                                             
                                   
Net income attributable to         $          52     $      50     $           
9      $         169   $          59    
 non-controlling interests                                                       


                                       
                                                                                


                                   
Net income attributable to         $         401     $     392     $         
362      $       1,565   $       1,408    
equity holders of the Bank                                                       


                                       
                                                                                


                                   
Other measures                                                                   


                                       
                                                                                


                                   
Return on economic equity(1)                12.4 %        11.7 %            
13.3 %             12.3 %          13.2 %   


                                                                                
                                       
                                                                                


                                   
Average assets ($ billions)        $         111     $     112     $          
98      $         109   $          93     
                                                                             
                                   
Average liabilities ($ billions)   $          73     $      72     $          
62      $          70   $          59     


                                                                                
                                       
    (1) Refer to Non-GAAP measures section of this press release for a discussion  
    of these measures.                                                         


                                                                           
(2) Prior period amounts have been restated as the Bank implemented changes in  


    its methodology for certain business line allocations relating to fund     
    transfer pricing, revenue and cost sharing agreements between Canadian and 
    International Banking and Global Wealth Management, tax normalization and  
    Global Transaction Banking allocations. These changes were made in the     
    first quarter and the allocations did not have an impact on the Bank's     
    consolidated results.                                                      
                                                                               
    Q4 2012 v Q4 2011

International Banking reported a strong fourth quarter with net income of $453
million.  This was an increase of $82 million or 22% year-over-year
notwithstanding $27 million of negative goodwill from an acquisition in the
fourth quarter last year.  The increase was driven by strong broad-based asset
and deposit growth and the contribution from acquisitions, particularly Banco
Colpatria in Colombia.  Return on economic equity was 12.4% versus 13.3% in the
same quarter last year.

Average assets were $111 billion this quarter, up $13 billion or 13% from the
same quarter last year.  The increase was driven by strong diversified loan
growth in retail and commercial lending in Latin America and from recent
acquisitions.

Total revenue was $1,692 million this quarter, up 18%, with strong growth in
both net interest income and net fee and commission revenues.

Net interest income at $1,153 million increased $212 million or 23%, driven by
strong loan and deposit growth, the positive impact of acquisitions, and
increased margins in Peru and Asia partly offset by lower margins in Chile and
Mexico.

Net fee and commission revenues of $352 million increased 20% largely from the
acquisition of Banco Colpatria and higher retail fees in Mexico.

Income from our investments in associated corporations rose 3% to $103 million
with a higher contribution from the Bank of Xi'an in China.

Other operating income at $84 million declined by $16 million due primarily to
$27 million of negative goodwill last year.

The provision for credit losses was $176 million this quarter, compared to $158
million in the same quarter last year.  The increase was due mainly to higher
retail provisions in Latin America as a result of recent acquisitions,
partially offset by lower provisions in commercial portfolios. Excluding the
impact of acquisitions, a modest increase in retail provisions in Latin
America, from asset growth and softening credit conditions, was offset by lower
provisions in the Caribbean.  While commercial provisions remain low relative
to the size of the portfolio, they increased compared to the same quarter last
year in Latin America as a result of asset growth. A net benefit of $20 million
is included in the current period's provision for credit losses, due to the net
amortization of the credit mark on acquired loans in Colpatria in excess of
actual losses, in line with the maturity of the acquired portfolio.

Operating expenses of $979 million increased $159 million, or 19% year over
year, largely attributable to acquisitions.  Other contributors were higher
remuneration and premises costs, largely in Latin America, as a result of
general inflationary increases and to support growth.

The productivity ratio was 57.9% versus 57.1% for the same quarter last year.

The effective tax rate decreased to 15.6% from 18.8% in the same quarter last
year mainly due to the increase in deferred tax assets in Chile as a result of
changes in tax rates and recoveries in Mexico.

Q4 2012 v Q3 2012

Net income increased to $453 million, up $11 million or 2% compared to last
quarter.  The quarter benefited from solid retail asset growth in Latin America
and the impact of lower taxes in Chile and Mexico.  Partly offsetting were
seasonally higher expenses and the negative impact of foreign currency
translation.

Return on economic equity was 12.4% versus 11.7% last quarter.

Average assets of $111 billion this quarter, were up $1 billion
quarter-over-quarter excluding the negative impact of foreign currency
translation of $1.8 billion.  Underlying retail loan growth was 5%, with broad
based growth in all markets in Latin America. Commercial loan growth was 1%
excluding foreign currency translation, as good growth in Latin America was
offset by declines in Asia.

Revenues at $1,692 million were in line with last quarter with higher
non-interest revenue being offset by lower net interest income.

Net interest income of $1,153 million decreased 2% compared to last quarter
largely as a result of the negative impact of foreign exchange translation and
lower margins in Chile due to lower inflation rates.  This was partially offset
by continued growth in Mexico, Peru, and the Caribbean and Central America.

Net fee and commission revenues of $352 million increased 10% largely
reflecting seasonally higher retail banking fees in Latin America.

Other operating income at $84 million was lower than last quarter by $9
million, as lower securities gains were largely offset by increased foreign
exchange trading revenue.

The provision for credit losses was $176 million this quarter, compared to $168
million last quarter. The increase was due primarily to higher retail and
commercial provisions in the Caribbean and Central America, partially offset by
lower provisions in Latin America, mostly related to the acquisition in
Colombia.  A net benefit of $20 million is included in the current period's
provision for credit losses, due to the net amortization of the credit mark on
acquired loans in Banco Colpatria in excess of actual losses, in line with the
maturity of the acquired portfolio.  Excluding the impact of recent
acquisitions, commercial and retail provisions increased $19 million and $9
million respectively. Continued economic softness in the Caribbean is
negatively impacting both portfolios.

Operating expenses rose $42 million or 4% to $979 million, primarily in Latin
America, reflecting seasonal increases related to advertising campaigns, and
business development.

The productivity ratio was 57.9% versus 55.4% last quarter.

The effective tax rate decreased to 15.6% from 24.7% in the last quarter due to
the increase in deferred tax assets in Chile as a result of changes in tax
rates, and tax recoveries in Mexico.

Global Wealth Management
                       For the three months ended        For the year ended     


                                                                                
(Unaudited) ($       October     July      October        October      October   
millions)                 31       31           31             31           31   
                                                                                
(Taxable                                                                         
equivalent              2012     2012         2011 (2)       2012         2011 
(2)
basis)(1)                                                                        
                                                                                
Business                                                                         
segment income                                                                   
                                                                                
Net interest      $      125   $  128   $      121     $      502   $      444   
income                                                                           
                                                                                
Net fee and                                                                      
commission               646      610          586          2,469        2,205   
revenues                                                                         
                                                                                
Net income from                                                                  
investments               53       50           48            210          212   
in associated                                                                   
corporations                                                                     
                                                                                
Other operating           99       98           83            392          576   
income                                                                           
                                                                                
Provision for              2        1            1              3            2   
credit losses                                                                    
                                                                                
Operating                538      509          513          2,067        1,900   
expenses                                                                         
                                                                                
Provision for             83       92           62            333          280   
income taxes                                                                     
                                                                                
Net income        $      300   $  284   $      262     $    1,170   $    1,255   


                                                                                   
                                                                                   


                                                                                
Net income                                                                       
attributable to   $        6   $    6   $        8     $       25   $       29   
non-controlling                                                                  
interests                                                                        
                                                                                
Net income                                                                       
attributable to   $      294   $  278   $      254     $    1,145   $    1,226   
equity holders                                                                   
of the Bank                                                                      
                                                                                
Other measures                                                                   
                                                                                
Return on                                                                        
economic equity         15.1 %   14.1 %       12.8 %         14.5 %       17.6 
%  
(1)                                                                              
                                                                                
Assets under                                                                     
administration    $      283   $  272   $      262     $      283   $      262   
($ billions)(1)                                                                  
                                                                                
Assets under                                                                     
management ($     $      115   $  109   $      103     $      115   $      103   
billions)(1)                                                                     
                                                                                
Average assets    $       14   $   14   $       13     $       14   $       12   
($ billions)                                                                     
                                                                                
Average                                                                          
liabilities ($    $       16   $   16   $       13     $       16   $       13   
billions)                                                                        
                                                                                


     

(1)  Refer to Non-GAAP measures section of this press release for a discussion 
     of these measures.                                                        


                                                                           
(2)  Prior period amounts have been restated as the Bank implemented changes in 


     its methodology for certain business line allocations relating to fund    
     transfer pricing, revenue and cost sharing agreements between Canadian and
     International Banking and Global Wealth Management, tax normalization and 
     Global Transaction Banking allocations. These changes were made in the    
     first quarter and the allocations did not have an impact on the Bank's    
     consolidated results.                                                     
                                                                               
    Q4 2012 v Q4 2011

Global Wealth Management reported net income of $300 million this quarter, an
increase of $38 million or 15% from the same quarter last year. Net income
increased due to strong results from insurance and wealth management driven by
higher assets under management and assets under administration from net sales
and higher financial market levels. Return on equity was 15.1%, compared to
12.8% last year.

Assets under management (AUM) of $115 billion increased $12 billion or 12% from
the same quarter last year notwithstanding challenging financial markets,
primarily driven by positive mutual fund sales and new client acquisition.
Assets under administration (AUA) increased $21 billion or 8% to $283 billion.
AUM and AUA from the Bank's investment in CI Financial are not included in
these figures.

Total revenues increased $85 million or 10% to $923 million driven by strong
growth across the insurance and wealth management businesses, with the
exception of lower online brokerage revenues due to lower trading volumes.
Approximately 84% of total revenue was attributable to wealth management and
16% to global insurance, in line with last year.

Net interest income of $125 million increased $4 million or 3% over the same
quarter last year, with growth primarily in average deposits.

Net fee and commission revenues of $646 million increased by $60 million or 10%
from strong growth in global asset management and global insurance. In
addition, revenues also increased in international wealth, full service
brokerage and Canadian private client businesses partially offset by a decline
in online brokerage.

Net income from investments in associated corporations increased $5 million or
10%.

Other operating income of $99 million increased by $16 million or 19% mainly
due to higher global insurance revenues.

Operating expenses increased by $25 million or 5% from the same quarter last
year due mainly to higher volume-related expenses partially offset by
discretionary expense management. Year-over-year operating leverage was a very
good 5.3%.

Q4 2012 v Q3 2012

Quarter over quarter, net income increased by $16 million or 6%. Adjusting for
the CI Financial deferred tax charge in the previous quarter, net income grew
by $4 million or 1% due to higher global asset management, brokerage and global
insurance revenues.

Quarter over quarter, AUM increased by $6 billion or 6%, due in part, to higher
financial market levels and strong mutual fund sales, while AUA grew by $11
billion or 4%.

Total revenue increased by $37 million or 4% quarter over quarter, mainly from
revenue growth in global asset management, brokerage and international wealth
businesses. In addition, global insurance revenues also increased from higher
sales.

Net interest income decreased by $3 million or 2% to $125 million this quarter.

Net fee and commission revenues of $646 million increased by $36 million or 6%
due to higher fee revenues across all wealth management businesses and higher
revenues in global insurance.

Net income from associated corporations increased by $3 million or 6%.

Other operating income of $99 million grew by $1 million or 1%.

Operating expenses increased 6% from last quarter due primarily to seasonality
and higher volume-related expenses, performance-based compensation and expenses
to support business growth.

Global Banking and Markets
                                           For the three months ended           
     For the year ended          
                                                                                


                             
(Unaudited) ($ millions)             October 31     July 31      October 31      
October 31      October 31     
                                                                             
                             
(Taxable equivalent basis)(1)              2012        2012            2011 (2)  


         2012            2011 (2)
                                                                                


                             
Business segment income                                                          


                                 
                                                                                


                             
Net interest income               $         217   $     202   $         193     
$         792   $         768     
                                                                             
                             
Net fee and commission revenue              338         289             282      


        1,246           1,198    
                                                                                


                             
Net income from investments                   1           -               -      
        1               -    
in associated corporations                                                       


                                 
                                                                                


                             
Other operating income                      361         419             194      


        1,543           1,174    
                                                                                


                             
Provision for credit losses                  11          15              17      


           30              33    
                                                                                


                             
Operating expenses                          390         374             370      


        1,519           1,482    
                                                                                


                             
Provision for income taxes                  120         123              39      


          541             367    
                                                                                


                             
Net income                        $         396   $     398   $         243     
$       1,492   $       1,258     
                                                                             
                             
Net income attributable to non-   $           1   $       1   $           -     
$           2   $           -    
controlling interests                                                            


                                 
                                                                                


                             
Net income attributable to        $         395   $     397   $         243     
$       1,490   $       1,258    
equity holders of the Bank                                                       


                                 
                                                                                


                             
Other measures                                                                   


                                 
                                                                                


                             
Return on economic equity(1)               30.1 %      29.0 %          17.9 %    


         27.9 %          21.8 %  
                                                                                


                             
Average assets ($ billions)       $         232   $     227   $         203     
$         219   $         192     
                                                                             
                             
Average liabilities ($            $         174   $     172   $         159     
$         165   $         147    
billions)                                                                        


                                 
                                                                                
                                 
    (1)  Refer to Non-GAAP measures section of this press release for a discussion 
     of these measures.                                                        


                                                                           
(2)  Prior period amounts have been restated as the Bank implemented changes in 


     its methodology for certain business line allocations relating to fund    
     transfer pricing, revenue and cost sharing agreements between Canadian and
     International Banking and Global Wealth Management, tax normalization and 
     Global Transaction Banking allocations. These changes were made in the    
     first quarter and the allocations did not have an impact on the Bank's    
     consolidated results.                                                     
                                                                               
    Q4 2012 v Q4 2011

Net income for the quarter was $396 million, an increase of $153 million from
last year largely reflecting a significant improvement in revenues across the
business platform compared to the challenging market conditions experienced in
2011. Return on economic equity was 30.1%, compared with 17.9% in the same
period last year.

Average assets increased $29 billion to $232 billion compared to the fourth
quarter of last year.  There were increases of $12 billion in securities
purchased under resale agreements and $13 billion in securities, mainly from
the continued growth of the fixed income business.  Corporate loans and
acceptances also grew by $5 billion, mainly investment grade loans in the U.S.
and Europe.

Total revenues were $917 million, up $248 million or 37% compared to the fourth
quarter of last year. The improvement was primarily driven by the fixed income
business, as well as stronger revenues in equities, commodities, corporate
lending and investment banking.

Net interest income rose $24 million year over year. This was driven by
slightly higher spreads in Canada and Europe, as well as increases in corporate
lending volumes of $4 billion, mainly in the U.S. and Europe.

Net fee and commission revenues increased by $56 million year over year.  This
was largely driven by underwriting fees in fixed income, equities and
investment banking.  Credit fees also increased in Canadian lending.

Other operating income of $361 million reflects a significant $167 million
improvement from the challenging market conditions in the fourth quarter last
year.  Fixed income, equities and U.S. corporate lending were the main
contributors to this strong result.  This was partly offset by somewhat lower
results in the foreign exchange and precious metals businesses.

Global Banking and Markets had provisions for credit losses of $11 million this
quarter, compared to $17 million in the fourth quarter of last year. The
provisions in the current quarter were primarily related to higher provisions
in the United States and Canada.

Total non-interest expenses were $390 million or 5% higher than last year. The
increase mainly reflects higher results-driven performance and stock-based
compensation.

The effective tax rate was higher due to a higher level of tax recoveries in
the prior year.

Q4 2012 v Q3 2012

Net income declined $2 million from the prior quarter to $396 million. Return
on economic equity was 30.1%, compared with 29.0% in the previous quarter.

Average Assets increased $5 billion from the prior quarter, primarily due to
higher securities purchased under resale agreements.  There was also growth of
$2 billion in corporate loans and acceptances, offset by lower securities.

Total revenues of $917 million increased 1% compared to the previous quarter.
Improvements in the U.S., Europe and Canadian lending businesses, fixed income
and investment banking were partly offset by market driven declines in the
other capital markets businesses.

Net interest income rose 7% to $217 million. This improvement was mainly due to
spread increases in Canada and an increased contribution from the U.S.
multi-seller conduit, combined with modest volume growth in Europe.

Net fee and commission revenues increased by $49 million from the prior
quarter.  Underwriting fees were higher in fixed income, equities and
investment banking.  Also acceptances fees were higher in Canadian lending.

Other operating income of $361 million declined by $58 million from the strong
results last quarter.  There were declines in each of the capital markets
businesses, due to lower market activity.

Global Banking and Markets had provisions for credit losses of $11 million this
quarter, compared to $15 million in the previous quarter, with lower provisions
in the United States, partially offset by higher provisions in Canada due to
one corporate account.

Total operating expenses rose 4% to $390 million. The increase was due
primarily to higher stock-based compensation, salaries and professional fees.

Other(1)


                                     For the three months ended              
For the year ended           
                                                                             
                           
(Unaudited) ($ millions)           October 31     July 31      October 31       
 October 31      October 31     
                                                                             
                           
(Taxable equivalent basis)(2)            2012        2012            2011 (3)    


       2012            2011 (3)
                                                                                


                           
Business segment income                                                          


                               
                                                                                


                           
Net interest income(4)          $       (144)   $   (135)   $        (71)     $  


      (515)   $       (330)    
                                                                                


                           
Net fee and commission                   (78)        (31)            (36)        
  (217)           (170)    
revenues                                                                         


                               
                                                                                


                           
Net income from investments              (37)        (48)            (41)        
  (157)           (164)    
 in associated corporations                                                      


                               
                                                                                


                           
Other operating income(4)                (10)         618            (81)        


        650              17    
                                                                                


                           
Provision for credit losses                 -         100            (30)        


        100            (60)    
                                                                                


                           
Operating expenses                       (14)           5            (11)        


       (22)            (23)    
                                                                                


                           
Provision for income taxes(4)           (144)       (107)            (50)        


      (449)           (244)    
                                                                                


                           
Net income                      $       (111)   $     406   $       (138)     $  


        132   $       (320)    
                                                                                


                           
Net income attributable to      $           7   $     (8)   $          14     $  
     25   $          58    
non-controlling interests                                                        


                               
                                                                                


                           
  Capital instrument holders                                                     


                               
                                                                                


                           
Net income attributable to      $       (118)   $     414   $       (152)     $  
    107   $       (378)    
equity holders of the Bank                                                       


                               
                                                                                


                           
Other measures                                                                   


                               
                                                                                


                           
Average assets ($ billions)     $          89   $      95   $          85     $  


         93   $          79    
                                                                                


                           
Average liabilities ($          $         222   $     225   $         204     $  
    222   $         194    
billions)                                                                        


                               
                                                                                
                               
    (1)  Includes all other smaller operating segments and corporate adjustments,  
     such as the elimination of the tax-exempt income gross-up reported in net 
     interest income, other operating income and provision for income taxes and
     differences in the actual amount of costs incurred and charged to the     
     operating segments.                                                       


                                                                           
(2)  Refer to Non-GAAP measures section of this press release for a discussion  
 of these measures.                                                         
                                                                           
(3)  Prior period amounts have been restated as the Bank implemented changes in 


     its methodology for certain business line allocations relating to fund    
     transfer pricing, revenue and cost sharing agreements between Canadian and
     International Banking and Global Wealth Management, and tax               
     normalization.  These changes were made in the first quarter and the      
     allocations did not have an impact on the Bank's consolidated results.    


                                                                           
(4)  Includes the elimination of the tax-exempt income gross-up reported in net 


     interest income and provision for income taxes for the three months ended 
     October 31, 2012 ($74), July 31, 2012 ($77), October 31, 2011 ($74), and  
     the years ended October 31, 2012 ($288) and October 31, 2011 ($287) to    
     arrive at the amounts reported in the Consolidated Statement of Income.   
                                                                               


The Other segment includes Group Treasury, smaller operating segments and other
corporate items which are not allocated to a business line. Due to the nature
of activities and consolidated adjustments reported in the Other segment, the
Bank believes that a comparative period analysis is not relevant. 
Net interest income, other operating income, and the provision for income taxes
in each period include the elimination of tax-exempt income gross-up. This
amount is included in the operating segments, which are reported on a taxable
equivalent basis. The elimination was $74 million in the fourth quarter,
compared to $74 million in the same period last year and $77 million last
quarter. 
Net income from investments in associated corporations and the provision for
income taxes in each period include the tax normalization adjustments related
to the gross-up of income from associated companies. This adjustment normalizes
the effective tax rate in the divisions to better present the contribution of
the associated companies to the divisional results. 
In addition to the TEB gross-up and tax normalization adjustment noted above,
the following identifies the other material items affecting the reported
results in each quarter. 
Q4 2012 
The net loss of $111 million primarily reflected the impact of asset /
liability management activities and a $20 million after-tax offset to revenues
reported in the other operating segments related to the underwriting of the
Bank's common share issuance during the quarter. The latter had no impact on
the Bank's consolidated results. Partly offsetting were net gains of $31
million after-tax on investment securities. 
Q3 2012 
The net income of $406 million included the after-tax gain of $614 million on
sale of Scotia Plaza in Toronto and an increase in the collective allowance for
credit losses on performing loans of $74 million after-tax. Adjusting for these
items, the Other segment had a net loss of $134 million primarily from the
impact of asset / liability management activities, net losses of $11 million
after-tax on investment securities, and a redemption cost of $17 million
after-tax on a capital instrument liability which was fully offset in
non-controlling interest. 
Q4 2011 
The net loss of $138 million mainly reflected the impact of asset / liability
management activities and foreign currency related losses of $34 million
arising from the conversion to IFRS, which were subsequently hedged later in
2011. Partly offsetting were net gains of $46 million after-tax on investment
securities and a $22 million after-tax reduction in the collective allowance
for credit losses on performing loans. 
Total 
                                      For the three months ended         
For the year ended     


                                                                                
                   


                                     October      July      October      
October      October   
                                          31        31           31         
  31           31   
                                                                             
               
(Unaudited) ($ millions)                    2012      2012         2011         
2012         2011   
                                                                             
               
Business segment income                                                          


                   
                                                                                


               
Net interest income                   $    2,580   $ 2,567   $    2,329   $   
10,003   $    9,014   
                                                                             
               
Net fee and commission revenues            1,634     1,563        1,489        
6,274        5,727   
                                                                             
               
Net income from investments                  118       111          109         
 442          433  
 in associated corporations                                                      


                   
                                                                                


               
Other operating income                       532     1,271          298        
2,982        2,136   
                                                                             
               
Provision for credit losses                  321       402          281        
1,252        1,076   
                                                                             
               
Operating expenses                         2,713     2,618        2,489       
10,403        9,481   
                                                                             
               
Provision for income taxes                   311       441          298        
1,580        1,423   
                                                                             
               
Net income                            $    1,519   $ 2,051   $    1,157   $    
6,466   $    5,330   
                                                                             
               
Net income attributable to            $       66   $    50   $       31   $     
 223   $      149  
non-controlling interests                                                        


                   
                                                                                


               
  Non-controlling interests                   59        58           17         
 198           91  
 in subsidiaires                                                                 


                   
                                                                                


               
  Capital instrument equity holders            7       (8)           14         
  25           58   
                                                                             
               
Net income attributable to            $    1,453   $ 2,001   $    1,126   $    
6,243   $    5,181  
equity holders of the Bank                                                       


                   
                                                                                


               
Other measures                                                                   


                   
                                                                                


               
Return on equity(1)                         16.4 %    24.6 %       16.4 %       
19.7 %       20.3 % 


                                                                                
                   
                                                                                


               
Average assets ($ billions)           $      678   $   675   $      615   $     
 660   $      586   
                                                                             
               
Average liabilities ($ billions)      $      638   $   637   $      583   $     
 623   $      556   


                                                                                
                   
    (1)  Refer to Non-GAAP measures section of this press release for a discussion 
                                of these measures.                             
                                                                               

Quarterly Financial Highlights
                             For the three months ended                      
                                                                             


                                Oct. 31    July 31    April 30    Jan. 31     
Oct. 31   July 31   April 30    Jan. 31   
                              2012       2012        2012       2012        
2011      2011        2011       2011 
                                                                             
                                 
Total revenue ($ millions) $     4,864 $    5,512 $     4,704 $    4,621 $     
4,225 $   4,298 $     4,639 $    4,148 
                                                                             
                                 
Total revenue (TEB(1)) 
($ millions)                     4,938      5,589       4,773      4,689       
4,299     4,371       4,708      4,219 
                                                                             
                                 
Net income ($ millions)          1,519      2,051       1,460      1,436       
1,157     1,303       1,621      1,249 
                                                                             
                                 
Basic earnings per share ($)      1.20       1.70        1.18       1.23        
0.99      1.12        1.42       1.11 
                                                                             
                                 
Diluted earnings per share ($)    1.18       1.69        1.15       1.20        
0.97      1.10        1.39       1.08 
(1)  Refer to Non-GAAP measures section for a discussion of these measures. 
                                                                        
Consolidated Statement of Income 
                               For the three months ended           For the 
year ended     


                                                                                
              
                                October        July        October      October 
       October
                                    31          31             31           31  
           31 
                                                                                


          
(Unaudited) ($ millions)           2012        2012           2011         2012  


          2011
                                                                                


          
Revenue                                                                          


              
                                                                                


          
Interest income                                                                  


              
                                                                                


          
Loans                        $    3,975     $ 4,017     $    3,671   $   15,608  


    $   14,376
                                                                                


          
Securities                          262         272            255        1,041  


           986
                                                                                


          
Securities purchased under           53          60             52          220  
       220
 resale agreements                                                               


              
                                                                                


          
Deposits with banks                  69          68             76          285  


           273
                                                                                
              
                                  4,359       4,417          4,054       17,154 
        15,855
                                                                                


          
Interest expense                                                                 


              
                                                                                


          
Deposits                          1,499       1,550          1,404        5,947  


         5,589
                                                                                


          
Subordinated debentures             104          93             93          381  


           369
                                                                                


          
Capital instruments                  28          35             33          132  


           138
                                                                                


          
Other                               148         172            195          691  


           745
                                                                                
              
                                  1,779       1,850          1,725        7,151 
         6,841
                                                                                


          
Net interest income               2,580       2,567          2,329       10,003  


         9,014
                                                                                


          
Fee and commission                                                               
          
 revenues                                                                        


              
                                                                                


          
Banking                             853         815            765        3,215  


         2,872
                                                                                


          
Wealth management                   553         535            530        2,170  


         1,963
                                                                                


          
Underwriting and other              131         113             92          493  
       492
advisory                                                                         


              
                                                                                


          
Non-trading foreign                  86          91             94          365  
       349
exchange                                                                         


              
                                                                                


          
Other                                75          75             67          293  


           267
                                                                                
              
                                  1,698       1,629          1,548        6,536 
         5,943
                                                                                


          
Fee and commission                   64          66             59          262  
       216
expenses                                                                         


              
                                                                                


          
Net fee and commission            1,634       1,563          1,489        6,274  
     5,727
 revenues                                                                        


              
                                                                                


          
Other operating income                                                           


              
                                                                                


          
Trading revenues                    319         357            155        1,316  


           830
                                                                                


          
Net gain on investment               64          10             64          185  
       285
securities                                                                       


              
                                                                                


          
Net income from                                                                  
          
investments                         118         111            109          442  
       433
 in associated                                                                   
          
corporations                                                                     


              
                                                                                


          
Insurance underwriting                                                           
          
income,                              99         100             85          388  
       294
 net of claims                                                                   


              
                                                                                


          
Other                                50         804            (6)        1,093  


           727
                                                                                
              
                                    650       1,382            407        3,424 
         2,569
                                                                                


          
Total revenue                     4,864       5,512          4,225       19,701  


        17,310
                                                                                


          
Provision for credit                321         402            281        1,252  
     1,076
losses                                                                           


              
                                                                                
              
                                  4,543       5,110          3,944       18,449 
        16,234
                                                                                


          
Operating expenses                                                               


              
                                                                                


          
Salaries and employee             1,402       1,476          1,370        5,749  
     5,358
benefits                                                                         


              
                                                                                


          
Premises and technology             445         408            392        1,607  


         1,446
                                                                                


          
Depreciation and                    119         117            108          450  
       413
amortization                                                                     


              
                                                                                


          
Communications                       98          94             87          373  


           344
                                                                                


          
Advertising and                     144         104            132          450  
       427
business development                                                             


              
                                                                                


          
Professional                        104          81             72          340  


           262
                                                                                


          
Business and capital taxes           68          62             43          248  


           183
                                                                                


          
Other                               333         276            285        1,186  


         1,048
                                                                                
              
                                  2,713       2,618          2,489       10,403 
         9,481
                                                                                


          
Income before taxes               1,830       2,492          1,455        8,046  


         6,753
                                                                                


          
Income tax expense                  311         441            298        1,580  


         1,423
                                                                                


          
Net income                   $    1,519     $ 2,051     $    1,157   $    6,466  


    $    5,330
                                                                                
              
                                                                                
              
                                                                                


          
Net income attributable to   $       66     $    50     $       31   $      223  
$      149
non-controlling interests                                                        


              
                                                                                


          
  Non-controlling                                                                
          
  interests                          59          58             17          198  
        91 
in subsidiaires                                                               


              
                                                                                


          
  Capital instrument                  7         (8)             14           25  
        58
  equity holders                                                                 


              
                                                                                


          
Net income attributable to        1,453       2,001          1,126        6,243  
     5,181
equity holders of the Bank                                                       


              
                                                                                


          
  Preferred shareholders             55          55             55          220  


           216
                                                                                


          
  Common shareholders        $    1,398     $ 1,946     $    1,071   $    6,023  


    $    4,965
                                                                                


          
Earnings per common                                                              
          
 share (in dollars)(1):                                                          


              
                                                                                


          
  Basic                      $     1.20    $   1.70    $      0.99   $     5.31  
$      4.63 
                                                                             
          
  Diluted                    $     1.18    $   1.69    $      0.97   $     5.22  
$      4.53 


                                                                                
              
    (1)   The calculation of earnings per share is based on full dollar and share  
                                     amounts.                                  
                                                                               
    See Basis of Preparation below.
                               

Consolidated Statement of Financial Position
                                                  As at                 
                                                                        
                                      October 31   July 31    October 31


                                                                    
(Unaudited) ($ millions)                    2012      2012          2011 
                                                                    
Assets                                                                   
                                                                    
Cash and deposits with banks       $      54,804 $  62,438 $      45,222 
                                                                    
Precious metals                           12,387     9,177         9,249 
                                                                    
Trading assets                                                           
                                                                    
  Securities                              74,639    81,641        62,192 
                                                                    
  Loans                                   12,857    12,139        13,607 
                                                                    
  Other                                      100        17             - 


                                                                        
                                          87,596    93,797        75,799


                                                                    
Financial assets designated at               197       257           375
 fair value through profit or loss                                       
                                                                    
Securities purchased under                47,354    46,632        34,582
resale agreements                                                        
                                                                    
Derivative financial instruments          30,327    33,853        37,322 
                                                                    
Investment securities                     33,361    30,381        30,176 
                                                                    
Loans                                                                    
                                                                    
  Residential mortgages                  175,630   171,888       161,685 
                                                                    
  Personal and credit cards               68,277    67,174        63,317 
                                                                    
  Business and government                123,828   120,358       105,260 


                                                                        
                                         367,735   359,420       330,262


                                                                    
  Allowance for credit losses              2,969     2,862         2,689 


                                                                        
                                         364,766   356,558       327,573


                                                                    
Other                                                                    
                                                                    
Customers' liability under                 8,932     8,635         8,172
acceptances                                                              
                                                                    
Property and equipment                     2,260     2,145         2,504 
                                                                    
Investments in associates                  4,760     4,656         4,434 
                                                                    
Goodwill and other                         8,692     8,708         7,639
 intangible assets                                                       
                                                                    
Deferred tax assets                        1,936     2,065         2,214 
                                                                    
Other assets                              10,672    10,668         9,162 


                                                                        
                                          37,252    36,877        34,125


                                                                    
Total assets                       $     668,044 $ 669,970 $     594,423 
                                                                    
Liabilities                                                              
                                                                    
Deposits                                                                 
                                                                    
  Personal                         $     138,051 $ 137,657 $     133,025 
                                                                    
  Business and government                295,588   294,943       266,965 
                                                                    
  Banks                                   29,970    28,422        21,345 


                                                                        
                                         463,609   461,022       421,335


                                                                    
Other                                                                    
                                                                    
Acceptances                                8,932     8,635         8,172 
                                                                    
Obligations related to                    18,622    20,780        15,450
 securities sold short                                                   
                                                                    
Derivative financial                      35,299    38,250        40,236
 instruments                                                             
                                                                    
Obligations related to                                                  
 securities sold under                    56,949    62,509        38,216
 repurchase agreements                                                   
                                                                    
Subordinated debentures                   10,143     6,899         6,923 
                                                                    
Capital instruments                        1,358     1,342         2,003 
                                                                    
Other liabilities                         31,753    32,047        29,848 


                                                                        
                                         163,056   170,462       140,848


                                                                    
Total liabilities                        626,665   631,484       562,183 


                                                                        
                                                                        


                                                                    
Equity                                                                   
                                                                    
Common equity                                                            
                                                                    
  Common shares                           13,139    11,163         8,336 
                                                                    
  Retained earnings                       21,978    21,253        18,421 
                                                                    
  Accumulated other                         (31)     (141)         (497)
  comprehensive income (loss)                                            
                                                                    
  Other reserves                             166       139            96 
                                                                    
Total common equity                       35,252    32,414        26,356 
                                                                    
Preferred shares                           4,384     4,384         4,384 
                                                                    
Total equity attributable to              39,636    36,798        30,740
equity holders of the Bank                                               
                                                                    
Non-controlling interests                                                
                                                                    
  Non-controlling interests                  966       918           626 
in subsidiaires                                                       
                                                                    
  Capital instrument                         777       770           874
  equity holders                                                         
                                                                    
Total equity                              41,379    38,486        32,240 
                                                                    
Total liabilities and equity       $     668,044 $ 669,970 $     594,423 


                                                                        
    See Basis of Preparation below.
                               

Consolidated Statement of Changes in Equity


                                                   Accumulated other 
comprehensive                 


                                                             income (loss)      
                   
                                                               
                                                                        Cash    
                      


                                            Currency Available-     flow    
  Share                
                      Common    Retained translation   for-sale hedging      
from        Other  
(Unaudited) ($ millions)  shares earnings(1)     reserve    reserve  reserve 
associates reserves (2)   
                                                                             
                  
Balance as at                                                                    


                      
                                                                                
                      
                                                                                
                      
                           8,336      18,421       (697)        441    (251)    


 10           96
November 1, 2011                                                                 


                      
                                                                                


                  
Net income                    -        6,023           -          -        -     


      -            -  
                                                                                


                  
Other comprehensive                                                              


                      
                                                                                


                  
income (loss)                  -           -         169        156      116     


     25            -
                                                                                


                  
Total comprehensive                                                              


                      
                                                                                


                  
income                         -       6,023         169        156      116     


     25            -
                                                                                


                  
Shares issued              4,803           8           -          -        -     


      -         (26)  
                                                                                


                  
Common dividends paid          -     (2,493)           -          -        -     


      -            -  
                                                                                


                  
Preferred dividends paid       -           -           -          -        -     


      -            -  
                                                                                


                  
Distributions to                                                                 


                      
                                                                                


                  
non-contolling interests       -           -           -          -        -     


      -            -
                                                                                


                  
Share-based payments           -           -           -          -        -     


      -           38  
                                                                                


                  
Other                          -          19           -          -        -     


      -           58  
                                                                                


                  
Balance as at                                                                    


                      
                                                                                


                  
October 31, 2012          13,139      21,978       (528)        597    (135)     


     35          166
                                                                                
                      
                                                                                
                      
                                                                                


                  
Balance as at                                                                    


                      
                                                                                


                  
November 1, 2010           5,750      15,684           -        616    (357)     


     10           25
                                                                                


                  
Net income                     -       4,965           -          -        -     


      -            -  
                                                                                


                  
Other comprehensive                                                              


                      
                                                                                


                  
income (loss)                  -           -       (697)      (175)      106     


      -            -
                                                                                


                  
Total comprehensive                                                              


                      
                                                                                


                  
  income                       -       4,965       (697)      (175)      106     


      -            -
                                                                                


                  
Shares issued              2,586           -           -          -        -     


      -         (11)  
                                                                                


                  
Common dividends paid          -     (2,200)           -          -        -     


      -            -  
                                                                                


                  
Preferred dividends paid       -           -           -          -        -     


      -            -  
                                                                                


                  
Distributions to                                                                 


                      
                                                                                


                  
non-contolling interests       -           -           -          -        -     


      -            -
                                                                                


                  
Share-based payments           -           -           -          -        -     


      -           46  
                                                                                


                  
Other                          -        (28)           -          -        -     


      -           36  
                                                                                


                  
Balance as at                                                                    


                      
                                                                                


                  
 October 31, 2011          8,336      18,421       (697)        441     (251)    


     10           96
                                                                                
                      
    
                                                 Non-controlling interests      
             
                                                               
                                                                                
    
                                               Total                            
    
                                              common         Non-   Capital     
    
                           Total                 and  controlling Instrument    
    
                          common Preferred preferred interests in     equity    



(Unaudited) ($ millions)  equity    shares    equity subsidiaries    holders   
Total 
                                                                             

Balance as at                                                                    


    
                                                                                
    
                                                                                
    


                      26,356     4,384    30,740          626        874  
32,240
November 1, 2011                                                                 


    
                                                                                



Net income                 6,023       220     6,243          198         25   
6,466 
                                                                             

Other comprehensive                                                              


    
                                                                                



income (loss)                466         -       466         (25)          -    
 441 
                                                                             

Total comprehensive                                                              


    
                                                                                



income                     6,489       220     6,709          173         25   
6,907 
                                                                             

Shares issued              4,785         -     4,785            -          -   
4,785 
                                                                             

Common dividends paid    (2,493)         -   (2,493)            -          - 
(2,493) 
                                                                             

Preferred dividends paid       -     (220)     (220)            -          -   
(220) 
                                                                             

Distributions to                                                                 


    
                                                                                



non-contolling interests       -         -         -         (44)      (115)   
(159) 
                                                                             

Share-based payments          38         -        38            -          -    
  38 
                                                                             

Other                         77         -        77          211        (7)    
 281 
                                                                             

Balance as at                                                                    


    
                                                                                



October 31, 2012          35,252     4,384    39,636          966        777  
41,379 


                                                                                
    
                                                                                
    
                                                                                



Balance as at                                                                    


    
                                                                                



November 1, 2010          21,728     3,975    25,703          559        956  
27,218 
                                                                             

Net income                 4,965       216     5,181           91         58   
5,330 
                                                                             

Other comprehensive                                                              


    
                                                                                



income (loss)              (766)         -     (766)            5          -   
(761) 
                                                                             

Total comprehensive                                                              


    
                                                                                



  income                   4,199       216     4,415           96         58   
4,569 
                                                                             

Shares issued              2,575       409     2,984            -          -   
2,984 
                                                                             

Common dividends paid    (2,200)         -   (2,200)            -          - 
(2,200) 
                                                                             

Preferred dividends paid       -     (216)     (216)            -          -   
(216) 
                                                                             

Distributions to                                                                 


    
                                                                                



non-contolling interests       -         -         -         (41)      (140)   
(181) 
                                                                             

Share-based payments          46         -        46            -          -    
  46 
                                                                             

Other                          8         -         8           12          -    
  20 
                                                                             

Balance as at                                                                    


    
                                                                                



 October 31, 2011         26,356     4,384    30,740          626        874  
32,240 


                                                                                
    
    


   Includes undistributed retained earnings of $38 (2011 - $34) related to a  
(1) foreign associated corporation, which is subject to local regulatory        
restrictions.                                                               
                                                                           
(2) Represents amounts on account of share-based payments.                      
                                                                            
                                                                           
(3) Includes impact of Tandem SARs voluntarily renounced by certain employees   
while retaining their corresponding option for shares.                      
                                                                           
(4) Includes changes to non-controlling interests arising from business         
combinations and divestures.                                                
                                                                           
See Basis of Preparation below.                                                 


                                                                               

Consolidated Statement of Comprehensive Income
                                             For the three months ended         
      For the year ended      
                                                                                
                              
                                      October 31      July 31       October 31  
    October 31      October 31
                                                                                


                          
(Unaudited) ($ millions)                    2012         2012             2011   


          2012            2011
                                                                                
                              
                                                                                
                              
                                                                                


                          
Net income                          $      1,519    $   2,051     $      1,157  
  $      6,466    $      5,330 
                                                                             
                          
Other comprehensive income (loss)                                                


                              
                                                                                


                          
  Net change in unrealized                                                       
                           
foreign currency translation                                                  
                           
gains (losses):                                                               


                              
                                                                                


                          
  Net unrealized foreign                                                         
                          
  currency translation                      (19)          279              474   
        85           (726) 
gains (losses)                                                                


                              
                                                                                


                          
  Net gains (losses) on                                                          
                           
hedges of net investments                (26)         (27)            (301)   
      (33)              47 
in foreign operations                                                         


                              
                                                                                


                          
  Income tax expense (benefit)              (69)         (33)             (83)   


          (97)              18
                                                                                
                              
                                              24          285              256  
           149           (697)
                                                                                


                          
  Net change in unrealized                                                       
                          
  gains (losses) on investment                                                   
                          
  securities:                                                                    


                              
                                                                                


                          
  Net unrealized gains (losses)              110           93            (151)   
       331           (107) 
on investment securities                                                      


                              
                                                                                


                          
  Reclassifciation of net (gains)           (42)         (99)            (110)   
     (176)           (112) 
losses to net income                                                          


                              
                                                                                


                          
  Income tax expense (benefit)                 5         (22)             (66)   


             4            (50)
                                                                                
                              
                                              63           16            (195)  
           151           (169)
                                                                                


                          
  Net changes in gains (losses)                                                  
                           
on derivative instruments                                                     
                          
  designated                                                                     


                              
                                                                                
                              
    as cash flow hedges:                                                        
                              
                                                                                


                          
  Net gains (losses) on derivative                                               
                           
instruments designated                                                        


                              
                                                                                
                              
    as cash flow hedges                        2         (50)              (9)  
            32              91
                                                                                


                          
  Reclassification of net (gains)             12           37               24   
       124              57 
losses to net income                                                          


                              
                                                                                


                          
  Income tax expense (benefit)                 4          (8)                3   


            40              43
                                                                                
                              
                                              10          (5)               12  
           116             105
                                                                                


                          
  Other comprehensive income                   2            7                -   
        25               -
  from investments in associates                                                 


                              
                                                                                


                          
Other comprehensive income (loss)             99          303               73   


           441           (761)
                                                                                


                          
Comprehensive income                $      1,618    $   2,354     $      1,230  
  $      6,907    $      4,569 


                                                                                
                              
                                                                                
                              
                                                                                


                          
Comprehensive income                                                             
                          
attributable to non-controlling     $         55    $      49     $         53  
  $        198    $        154
interests                                                                        


                              
                                                                                


                          
  Non-controlling interests                   48           57               39   
       173              96
  in subsidiaries                                                                


                              
                                                                                


                          
  Capital instrument                           7          (8)               14   
        25              58
  equity holders                                                                 


                              
                                                                                


                          
Comprehensive income                                                             
                          
attributable to equity                     1,563        2,305            1,177   
     6,709           4,415
holders of the Bank                                                              


                              
                                                                                


                          
  Preferred shareholders                      55           55               55   


           220             216
                                                                                


                          
  Common shareholders               $      1,508    $   2,250     $      1,122  
  $      6,489    $      4,199 


                                                                                
                              


All items presented in other comprehensive income will be reclassified to the  
Consolidated Statement of Income in subsequent periods.                         
                                                                           
See Basis of Preparation below                                                  


                                                                               
    Consolidated Statement of Cash Flows


                               For the three months ended         For the 
year ended       
                                                                             
          
Sources (uses) of cash flows        October 31     October 31       October 31   
October 31  
                                                                             
          
(Unaudited) ($ millions)                   2012           2011             2012  


          2011
                                                                                
              
                                                                                
              
                                                                                


          
Cash flows from                                                                  
          
operating activities                                                             


              
                                                                                


          
Net income                       $        1,519 $        1,157   $        6,466 
$        5,330 
                                                                             
          
Adjustment for:                                                                  


              
                                                                                


          
  Net interest income                   (2,580)        (2,329)         (10,003)  


       (9,014)
                                                                                


          
  Depreciation and                          119            108              450  
       413
  amortization                                                                   


              
                                                                                


          
  Acquisition-related gains                   -              -                -  


         (286)
                                                                                


          
  Provisions for credit losses              321            281            1,252  


         1,076
                                                                                


          
  Equity-settled                                                                 
          
  share-based payment                         7              6               38  
        46
  expenses                                                                       


              
                                                                                


          
  Net gain on investment                   (64)           (64)            (185)  
     (285)
  securities                                                                     


              
                                                                                


          
  Net income from investments             (118)          (109)            (442)  
     (433) 
in associated corporations                                                    


              
                                                                                


          
  Gain on sale of property                  (5)              3            (864)  
       (5) 
and equipment                                                                 


              
                                                                                


          
  Provision for income taxes                311            298            1,580  


         1,423
                                                                                


          
Changes in operating assets                                                      
          
and liabilities:                                                                 


              
                                                                                


          
  Trading assets                          6,355         12,253         (11,976)  


       (2,758)
                                                                                


          
  Securities purchased                    (540)        (4,309)         (13,322)  
   (7,462)
  under resale agreements                                                        


              
                                                                                


          
  Loans                                 (9,063)        (7,791)         (33,351)  


      (22,250)
                                                                                


          
  Deposits                                3,140          (285)           36,878  


        38,997
                                                                                


          
  Obligations related to                (2,350)        (6,764)            3,560  
   (5,939)
  securities sold short                                                          


              
                                                                                


          
  Obligations related to                                                         
          
  assets sold under                     (5,663)          (309)           18,936  
     6,206 
repurchase agreements                                                         


              
                                                                                


          
  Net derivative                            464          (915)            2,206  
   (1,422)
  financial instruments                                                          


              
                                                                                


          
  Other, net                            (3,399)          3,778          (2,070)  


         1,393
                                                                                


          
Dividends received                          257            219            1,026  


         1,583
                                                                                


          
Interest received                         4,012          4,338           16,224  


        17,535
                                                                                


          
Interest paid                           (1,557)        (2,228)          (7,293)  


      (10,139)
                                                                                


          
Income tax paid                           (251)           (78)          (1,041)  


       (1,304)
                                                                                


          
Net cash from/(used in)                 (9,085)        (2,740)            8,069  
    12,705
operating activities                                                             


              
                                                                                
              
                                                                                
              
                                                                                


          
Cash flows from                                                                  
          
 investing activities                                                            


              
                                                                                


          
Interest-bearing                          7,640          5,694          (8,475)  
   (4,174)
 deposits with banks                                                             


              
                                                                                


          
Purchase of investment                 (12,144)        (8,972)         (34,856)  
  (30,440)
 securities                                                                      


              
                                                                                


          
Proceeds from sale and                                                           
          
maturity of investment                    9,338          8,112           31,780  
    31,889
securities                                                                       


              
                                                                                


          
Acquisition/sale of                                                              
          
subsidiaries, associated                      4          (133)            (458)  
     (544)
corporations or business                                                         
          
 units, net of cash acquired                                                     


              
                                                                                


          
Proceeds from disposal                        -              -            1,407  
         -
of real estate assets                                                            


              
                                                                                


          
Other property and                                                               
          
equipment, net of                         (181)          (143)            (434)  
     (371)
disposals                                                                        


              
                                                                                


          
Other, net                                 (53)          (209)            (298)  


       (4,167)
                                                                                


          
Net cash from/(used in)                   4,604          4,349         (11,334)  
   (7,807)
investing activities                                                             


              
                                                                                
              
                                                                                
              
                                                                                


          
Cash flows from                                                                  
          
financing activities                                                             


              
                                                                                


          
Proceeds from issue                       3,250             -             3,250  
         -
of subordinated debentures                                                       


              
                                                                                


          
Redemption of                                 -             -              (20)  
        - 
subordinated debentures                                                          


              
                                                                                


          
Redemption of                                 -             -             (750)  
     (500)
capital instruments                                                              


              
                                                                                


          
Proceeds from                             1,966            201            4,200  
       736
common shares issued                                                             


              
                                                                                


          
Cash dividends paid                       (727)          (619)          (2,713)  


       (2,416)
                                                                                


          
Distributions to                           (11)            (9)            (159)  
     (181)
non-controlling interests                                                        


              
                                                                                


          
Other, net                                   55          (591)              287  


       (1,914)
                                                                                


          
Net cash from/(used in)                   4,533        (1,018)            4,095  
   (4,275)
 financing activities                                                            


              
                                                                                


          
Effect of exchange rate                                                          
          
 changes on cash and                          3             57             (88)  
      (59)
cash equivalents                                                                 


              
                                                                                


          
Net change in cash                           55            648              742  
       564
and cash equivalents                                                             


              
                                                                                


          
Cash and cash equivalents                 4,981          3,646            4,294  
     3,730
at beginning of period(1)                                                        


              
                                                                                


          
Cash and cash equivalents        $        5,036 $        4,294   $        5,036 
$        4,294
 at end of period(1)                                                             


              
                                                                                
              
    (1)   Represents cash and non-interest bearing deposits with banks.
                                                                   

Basis of preparation

These unaudited consolidated financial statements were prepared in accordance
with IFRS as issued by IASB and accounting requirements of OSFI in accordance
with Section 308 of the Bank Act, except for certain required disclosures.
Therefore, these unaudited consolidated financial statements should be read in
conjunction with the Bank's audited consolidated financial statements for the
year ended October 31, 2012, which will be available today at 
www.scotiabank.com. With the Canadian Accounting Standards Board adopting
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB) effective January 1, 2011, IFRS
replaced CGAAP as the financial reporting framework for all publicly
accountable enterprises including the Bank.  As these are the Bank's first
consolidated financial statements that have been presented under IFRS, they
were prepared in accordance with IFRS 1, First-time Adoption of International
Financial Reporting Standards.

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 2013
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 2          April 26    
                          
 July  2            July 29    
                          
 October 1         October 29  


                              

Annual Meeting date for fiscal 2012
Shareholders are invited to attend the 181st Annual Meeting of Holders of
Common Shares, to be held on April 9, 2013, at the World Trade and Convention
Centre, 1800 Argyle Street, Halifax, Nova Scotia, beginning at 10:00 a.m.
(local time). The record date for determining shareholders entitled to receive
notice of and to vote at the meeting will be the close of business on February
12, 2013.

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.

Website
For information relating to Scotiabank and its services, visit us at our
website: www.scotiabank.com.

Conference call and Web broadcast
The quarterly results conference call will take place on Friday December 7,
2012 at 2:00 pm EDT 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 416-644-3414 or 1-800-814-4859 (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 www.scotiabank.com.
Following discussion of the results by Scotiabank executives, there will be a
question and answer session.

A telephone replay of the conference call will be available from December 7,
2012, to December 22 , 2012, by calling 416-640-1917 or 1-877-289-8525 and
entering the identification code 4487936#. The archived audio webcast will be
available on the Bank's website for three months.

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) 775-0798
Fax: (416) 866-7867
E-mail: investor.relations@scotiabank.com

Media:
For other information and for media enquiries, please contact the Public,
Corporate and Government Affairs Department at the above address.
Telephone: (416) 933-1344
Fax: (416) 866-4988
E-mail: corporate.communications@scotiabank.com

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, 9th Floor
Toronto, Ontario, Canada M5J 2Y1
Telephone: 1-877-982-8767
Fax: 1-888-453-0330
E-mail: service@computershare.com
Co-Transfer Agent (U.S.A.)
Computershare Trust Company N.A.
250 Royall Street
Canton, MA 02021 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
Fax: (416) 866-4048
E-mail: corporate.secretary@scotiabank.com

Rapport trimestriel disponible en français
Le Rapport annuel et les états financiers de la Banque sont publiés en 
français
et en anglais et distribués aux actionnaires dans la version de leur choix. Si
vous préférez que la documentation vous concernant vous soit adressée en
français, veuillez en informer Relations publiques, Affaires de la société 
et
Affaires gouvernementales, La Banque de Nouvelle-Écosse, Scotia Plaza, 44, rue
King Ouest, Toronto (Ontario), Canada M5H 1H1, en joignant, si possible,
l'étiquette d'adresse, afin que nous puissions prendre note du changement.

The Bank of Nova Scotia is incorporated in Canada with limited liability. 
    
    
    SOURCE: Scotiabank - Financial Releases

For further information:

Peter Slan, Senior Vice President, Investor Relations, (416) 933-1273; 
Ann DeRabbie, Director, Media Communications, (416) 933-1344

(BNS., BNS)



END 
-0- Dec/07/2012 13:47 GMT
 
 
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