Scotiabank reports second quarter net income of $1.6 billion

         Scotiabank reports second quarter net income of $1.6 billion

PR Newswire

TORONTO, May 28, 2013

All amounts are in Canadian dollars and are based on our unaudited Interim
Condensed Consolidated Financial Statements for the quarter April 30, 2013 and
related notes prepared in accordance with International Financial Reporting
Standards (IFRS), unless otherwise noted. Our Second Quarter 2013 Report to
Shareholders and Supplementary Financial Information are available on the
Investor Relations page of www.scotiabank.com.

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.

Second quarter financial measures compared to the same period a year ago:

  *Earnings per share (diluted) of $1.23, compared to $1.15
  *Net income of $1,601 million, versus $1,460 million
  *Return on equity of 16.2%, compared to 18.6%
  *Productivity ratio of 53.6%, compared to 53.7% last year
  *Quarterly dividend of 60 cents per common share

TORONTO, May 28, 2013 /PRNewswire/ - Scotiabank reported second quarter net
income of $1,601 million compared with net income of $1,460 million in the
same period last year. Year over year, net income grew 10%. Diluted earnings
per share were $1.23, compared to $1.15 in the same period a year ago. Return
on equity remained strong at 16.2%.

"We continue to have very strong results this quarter driven by very good
revenue growth. Each business line made a solid contribution to these good
results" said Rick Waugh, Scotiabank CEO. "Our diversification and
straightforward business model have allowed us to take advantage of
opportunities to grow. Our diverse team working together across our
broad-based business provides seamless and complete solutions to our
customers, which contributed to the solid results in the first half of this
year."

"Canadian Banking had a very good second quarter, with net income of $547
million. There was strong asset growth across most businesses, as well as a
solid contribution from ING. Our retail credit portfolios also continue to
perform well.

"International Banking reported another solid quarter with net income of
$471million. Our well diversified platform continues to deliver positive
results. Strong retail and commercial loan and deposit growth in Latin America
balanced the more modest growth in the Caribbean. In Asia, we also saw a
healthy contribution from our investment in Thanachart Bank in Thailand.
Provisions for credit losses remain within expectations and have risen in line
with growth and changes in product mix, primarily in Latin America.

"With net income of $335 million, Global Wealth Management had a very strong
second quarter. Operating revenues were in excess of $1 billion for the first
time and ScotiaFunds mutual fund sales were a record high. There were very
good results from our international operations with strong growth across our
wealth and insurance businesses. This quarter we also acquired 50% of AFP
Horizonte, a pension fund management business in Peru which will provide
greater scale to our existing pension fund management business in Peru.

"Global Banking and Markets had a solid quarter with net income of $361
million. There were good contributions from the lending and most capital
markets businesses despite overall lower market activity and some
market-driven challenges in commodities.Results also benefitted from higher
new issue revenues and strong brokerage commissions.

"The Bank continues to maintain strong, high quality capital levels. The
Bank's Common Equity Tier 1 capital ratio, on an all-in basis, was 8.6%, well
above the 7% minimum.

With strong results in the first six months of this year and the continued
execution of our focused strategy, we are well-positioned to successfully
achieve our goals for 2013."

YEAR-TO-DATE PERFORMANCE versus key 2013 financial and operational objectives
was as follows:

TARGET #1:Earn a return on equity (ROE)^(1) of 15to 18%. For the six months
Scotiabank earned an ROE of 16.4%.
TARGET #2: Generate growth in earnings per common share (diluted) of 5 to
10%^(2). Our year-to-date growth in earnings per share was 9%^(2).
TARGET #3:Maintain a productivity ratio^(1) of lessthan 56%. Scotiabank's
ratio was 53.5% for the six months.
TARGET #4: Maintain strong capital ratios. Scotiabank's capital ratios
remains strong by both Canadian and international standards.

^(1)Refer below for a discussion of non-GAAP measures.
^(2)Excluding $708 million or 61 cents per share relating to real estate
gains in 2012 of which $94million or 8 cents related to the first quarter.

Financial Highlights

                      Asatandforthethreemonthsended      Forthesixmonthsended
                                                                         
   (Unaudited)           April30     January31       April30      April30     April30
                             2013           2013           2012          2013         2012
                                                                         
Operating results
($ millions)                                                                         
Net interest
income               2,784   2,771   2,481  5,555 4,856
Net interest
income (TEB^(1))     2,787   2,775   2,484  5,562 4,864
Non-interest
revenue              2,438   2,411   2,223  4,849 4,469
Non-interest
revenue (TEB^(1))    2,517   2,481   2,289  4,998 4,598
Total revenue        5,222   5,182   4,704 10,404 9,325
Total revenue
(TEB^(1))            5,304   5,256   4,773 10,560 9,462
Provision for
credit losses          343     310     264    653   529
Operating expenses   2,841   2,813   2,565  5,654 5,072
Provision for
income taxes           437     434     415    871   828
Provision for
income taxes
(TEB^(1))              519     508     484  1,027   965
Net income           1,601   1,625   1,460  3,226 2,896
Net income
attributable to
common
shareholders         1,479   1,504   1,336  2,983 2,679
Operating
performance                                                                          
Basic earnings per
share ($)             1.24    1.27    1.18   2.51  2.41
Diluted earnings
per share($)         1.23    1.25    1.15   2.48  2.36
Adjusted diluted
earnings per
share^(1)(2) ($)      1.24    1.27    1.16   2.51  2.38
Return on
equity^(1) (%)        16.2    16.6    18.6   16.4  19.1
Productivity ratio
(%) (TEB^(1))        53.6    53.5    53.7   53.5  53.6
Core banking
margin (%)
(TEB^(1))             2.31    2.30    2.37   2.30  2.31
Financial position
information ($
millions)                                                                            
Cash and deposits
with financial
institutions^(3)    55,157  53,120  59,298                         
Trading assets     104,266 104,493  94,214                         
Loans^(3)          394,673 388,610 336,293                         
Total assets       754,156 736,361 659,690                         
Deposits^(3)       517,896 512,561 460,902                         
Common equity       38,012  36,768  30,566                         
Preferred shares     4,384   4,384   4,384                         
Assets under
administration^(1) 362,622 352,073 318,201                         
Assets under
management^(1)     135,156 130,576 108,661                         
Capital
measures^(4)                                                                         
Common Equity Tier
1 ratio (%)            8.6     8.2     N/A                         
Tier 1 capital
ratio (%)             10.7    10.3    12.2                         
Total capital
ratio (%)             13.6    13.5    14.0                         
Tangible common
equity to
risk-weighted
assets^(1) (%)        10.4    10.1     9.4                         
Assets-to-capital
multiple              17.5    17.3    17.5                         
Risk-weighted
assets ($
millions)          280,747 280,061 252,862                         
Credit quality                                                                       
Net impaired loans
($ millions)^(5)     1,788   1,902   2,021                         
Allowance for
credit losses ($
millions)            3,212   3,097   2,713                         
Net impaired loans
as a % of loans
and
acceptances^(5)       0.44    0.48    0.57                         
Provisions for
credit losses as a
% of average loans
and acceptances
(annualized)^(3)      0.35    0.32    0.31   0.33  0.32
Common share
information                                                                          
Share price ($)
(TSX)                                                                                
      High          61.84   59.20   57.18  61.84 57.18
      Low           56.33   52.30   50.22  52.30 47.54
      Close         58.09   58.65   54.80                         
Shares outstanding
(millions)                                                                           
      Average -
       Basic         1,193   1,186   1,134  1,189 1,112
      Average -
       Diluted       1,213   1,204   1,168  1,208 1,147
      End of
       period        1,198   1,192   1,141                         
Dividends per
share ($)             0.60    0.57    0.55   1.17  1.07
Dividend yield^(6)
(%)                    4.1     4.1     4.1    4.1   4.1
Market
capitalization ($
millions) (TSX)     69,602  69,896  62,545                         
Book value per
common share ($)     31.73   30.85   26.78                         
Market value to
book value
multiple               1.8     1.9     2.0                         
Price to earnings
multiple (trailing
4 quarters)           10.7    11.0    12.1                         
Other information                                                                    
Employees           83,894  82,618  80,932                         
Branches and
offices              3,408   3,392   3,115                         

(1) Refer below for a discussion of non-GAAP measures.
(2) Prior period amounts have been restated to reflect the current period
     definition. Refer below for the definition.
(3) Prior period amounts and related ratios have been restated to reflect the
     current period presentation of deposits with financial institutions and
     cash collateral on securities borrowed and derivative transactions (Refer
     to Note3 in the condensed interim consolidated financial statements).
(4) Effective November1, 2012, regulatory capital ratios are determined in
     accordance with Basel III rules on an all-in basis (Refer to page 19 in
     the MD&A). Comparative amounts for prior periods were determined in
     accordance with Basel II rules and have not been restated.
(5) Excludes Federal Deposit Insurance Corporation (FDIC) guaranteed loans
     related to the acquisition of R-G Premier Bank of Puerto Rico.
(6) Based on the average of the high and low common share price for the
     period.

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 United
States Securities and Exchange Commission, or in other communications. All
such statements are made pursuant to the "safe harbour" provisions of the
UnitedStates Private Securities Litigation Reform Act of 1995 and any
applicable Canadian securities legislation. Forward-looking statements may
include comments with respect to the Bank's objectives, strategies to achieve
those objectives, expected financial results (including those in the area of
risk management), and the outlook for the Bank's businesses and for the
Canadian, United States and global economies. Such statements are typically
identified by words or phrases such as "believe", "expect", "anticipate",
"intent", "estimate", "plan", "may increase", "may fluctuate", and similar
expressions of future or conditional verbs, such as "will", "should", "would"
and "could".

By their very nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, and the risk that
predictions and other forward-looking statements will not prove to be
accurate. Do not unduly rely on forward-looking statements, as a number of
important factors, many of which are beyond our control, could cause actual
results to differ materially from the estimates and intentions expressed in
such forward-looking statements. These factors include, but are not limited
to: the economic and financial conditions in Canada and globally; fluctuations
in interest rates and currency values; liquidity; 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 Bank's 2012 Annual Report.

The preceding list of important factors is not exhaustive. When relying on
forward-looking statements to make decisions with respect to the Bank and its
securities, investors and others should carefully consider the preceding
factors, other uncertainties and potential events. The Bank does not undertake
to update any forward-looking statements, whether written or oral, that may be
made from time to time by or on its behalf.

The "Outlook" 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

Recent initiatives

  *Completed the acquisition of 50% of BBVA's pension fund management
    business, AFP Horizonte, in Peru. AFP Horizonte is the third largest
    pension fund manager in Peru and serves 1.4 million customers in 17
    branches across the country.
  *Scotiabank and Bank of Beijing received regulatory approval to operate a
    fund management joint venture, named Bank of Beijing Scotiabank Asset
    Management Co., Ltd. This is the first fund management license issued in
    China under a new round of pilot programs allowing commercial banks to set
    up fund management companies.
  *On March 14 Scotiabank released its 2012 Corporate Social Responsibility
    (CSR) Report with a focus on the impacts of the Bank's CSR initiatives
    across governance, social and economic spheres.

Recognized for success

  *Scotiabank was recognized by the Great Place to Work Institute as one of
    the Best Workplaces in the Caribbean and Central America and Canada.
    Scotiabank was also named Best Workplace in Costa Rica, Dominican
    Republic, El Salvador, Panama and Puerto Rico. These are in addition to
    our previous recognitions in both Mexico and Peru.
  *Scotiabank's Vice President of Economics and Commodity Market Specialist,
    Patricia Mohr, has received the 2012 Metal Bulletin Apex award for the top
    gold and overall precious metals price forecasts.
  *Scotia Casa de Bolsa (Scotiabank Brokerage house) was recognized as the
    best brokerage house in Mexico by "El Inversionista" (The Investor), a
    premier magazine that specializes in investments.
  *Scotiabank has been honoured with 5 Visa Service Quality Performance
    Awards for 2012.Three of the awards are specifically for Global
    Transaction Banking Commercial Card business and were awarded for the
    quality of the cardholder experience in the day-to-day use of our
    products.

Serving our customers

  *Launched the Scotiabank Momentum for Business VISA card offering
    Scotiabank Small Business customers with market-leading features such as
    3% cash back on key business purchases and extended 25 day grace period -
    a great financial solution for many small business owners.
  *Scotiabank Mexico announced an alliance with Cardtronics for 500 Automated
    Teller Machines (ATMs). The ATMs are mainly located in convenience stores
    throughout the country and with direct access to the Scotiabank ATM
    network.
  *The Bank launched Premium Banking in Chile, Peru, Barbados, Trinidad and
    Jamaica. This offer includes dedicated sales and service officers, a
    premium product offering and other privileges.
  *Scotiabank acted as Exclusive Financial Advisor to Vale S.A. on its sale
    of gold streams to Silver Wheaton Corp., for initial cash payment of
    US$1.9 billion plus 10 million warrants of Silver Wheaton, valued at
    US$100 million.

Scotiabank's Bright Future program in action

  *Scotiabank made a donation to Dalhousie's Rowe School of Business
    tosupport the Scotiabank Ethical Leadership Initiative, which is aimed at
    engaging business students and the Canadian business community in shaping
    ethical business leadership.
  *Scotiabank made a donation to the Caribbean-SickKids Paediatric Cancer and
    Blood Disorders Project, which will help fund the project's telemedicine
    program allowing physicians in Barbados,Jamaica, St. Lucia, St. Vincent
    and the Grenadines,Trinidad and Tobago, and Bahamas to connect with
    leading medical experts from around the world.

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 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 in respect of
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 related to acquisitions (excluding software).

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. In the first quarter of 2013 the economic equity methodology was
updated to include new models and assumptions. The changes have been applied
prospectively. Return on economic equity for the business segments is
calculated as a ratio of net income attributable to common shareholders of the
business segment and the economic equity attributed.

Core banking margin (TEB)
This ratio represents net interest income (on a taxable equivalent basis) on
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 classification of net interest from
trading operations in revenues from trading operations recorded in other
operating income.

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 alternative financial
measure for assessing the quality of capital. 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. In prior years,
risk-weighted assets were comprised of BaselII risk-weighted assets adjusted
for intangible assets deducted from tangible common equity. For 2013, the
tangible common equity ratio includes Basel III risk-weighted assets, adjusted
to include amounts recognized as regulatory deductions at 100% risk weight.

Regulatory capital ratios, such as Common Equity Tier1, Tier1 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:

                          For the three months ended Forthesixmonthsended
TEB Gross up             April30 January31 April30      April30   April30
($ millions)                 2013       2013     2012          2013       2012
Net interest income        $    3     $    4   $    3      $      7    $     8
Other operating income        79       70      66          149       129
Total revenue and          $   82     $   74   $   69      $    156    $   137
provision for taxes
                                                               

Group Financial Performance

Financial results

Scotiabank's net income for the second quarter was $1,601million, compared
with $1,460 million for the same period last year and $1,625 million last
quarter.

Diluted earnings per share were $1.23 up 7% from $1.15 in the same period a
year ago but down 2 cents per share from $1.25 in the first quarter.

Return on equity remained strong at 16.2%, compared to 18.6% last year and
16.6% last quarter.

Impact of foreign currency translation
The table below reflects the impact of foreign currency translation on the
year-over-year, quarter-over-quarter and year-to-date over year-to-date change
in key income statement items. The impact of foreign currency translation was
not significant when comparing the year-over-year impact for both quarterly
and year-to-date results.

                             For the three                   For the six
($ millions)                  months ended                     months ended
                                                      Apr.30,2013vs.
                 Apr.30,2013vs.     Apr.30,2013vs.         Apr. 30, 2012
                     Apr. 30, 2012         Jan. 31, 2013
U.S./Canadian                                                        
dollar
exchangerate
(average)
April30, 2013      $    0.983       $    0.983         $   0.995
January31,                           $    1.007                   
2013
April30, 2012      $    1.006       $                   $   0.992
% change                   -2.3%              -2.4%                0.3%
Impact on                                                           
income:
Net interest        $       33       $       36         $      17
income
Net fee and                15              17                8
commission
revenues
Other                     (17)              (9)          (27)
operating
income^(1)
Operating                 (27)             (29)             (19)
expenses
Other items                (4)              (7)                -
(net of tax)
Net income          $        -       $        8         $     (21)
Impact by                                                           
business line:
Canadian            $        1       $        2         $       -
Banking
International              (1)               9               (8)
Banking^(1)
Global Wealth               2               3              (1)
Management
Global Banking             10               7               1
and Markets
Other^(1)           $      (12)       $      (13)         $     (13)

(1) Includes the impact of foreign currency hedges.

Q2 2013 vs Q2 2012

Net income
Scotiabank's net income was $1,601 million in the second quarter, an increase
of $141 million or 10% from the same period a year ago. Recent acquisitions
contributed $61 million to the year-over-year growth. The remaining increase
was from higher net interest income, growth in transaction-based fees and
wealth management revenues and increased net gains on investment securities.
The growth was partly offset by lower trading revenues, increased operating
expenses and higher provisions for credit losses.

Total revenue
Total revenue (on a taxable equivalent basis) of $5,304 million was up $531
million or 11% from the same quarter last year. Acquisitions accounted for
$202 million. The remaining increase was attributable to higher net interest
income from asset growth, increased banking fees, stronger wealth management
and insurance revenues and higher net gains on investment securities. Partly
offsetting the increases were lower trading revenues.

Net interest income
Net interest income (on a taxable equivalent basis) was $2,787 million, $303
million or 12% higher than the same quarter last year. This was attributable
to the acquisition of ING Bank of Canada (ING DIRECT) and growth in assets,
primarily Canadian residential mortgages, retail and commercial loans in
International Banking and corporate loans. These increases were partly offset
by a lower margin.

The core banking margin was 2.31%, down from 2.37% last year. The decrease in
the margin was due mainly to lower spreads from the acquisition of ING DIRECT.

Net fee and commission revenues
Net fee and commission revenues of $1,736 million were up $159 million or 10%
from the same period last year. The growth was partly attributable to recent
acquisitions, as well as increases in credit and commercial banking fees,
non-trading foreign exchange revenues and underwriting fees. There were also
stronger wealth management revenues in brokerage fees and mutual funds, from
growth in assets under management and assets under administration.

Other operating income
Other operating income (on a taxable equivalent basis) was $781million, up
$69million or 10% from last year's $712 million. This increase reflected
higher net gains on investment securities, stronger insurance income and
growth in revenues from associated corporations. Trading revenues were down
slightly year over year as higher revenues in the fixed income business were
more than offset by weaker results in the precious metals and commodities
businesses.

Provision for credit losses
The provision for credit losses was $343 million this quarter, up $79 million
from the same period last year. The year-over-year increase was due to higher
provisions across all business lines, with the largest increases in
International retail banking and Canadian commercial banking, where the Bank
provided for one large account.

Operating expenses and productivity
Operating expenses were $2,841 million, up $276million or 11% from the same
quarter last year, $114 million of which arose from acquisitions. The
remaining growth was across most operating expense categories to support
planned revenue initiatives and increasing regulatory costs. The largest
increases were in compensation-related expenses, which rose due to annual
merit increases, higher staffing levels, and increased stock-based and
performance-based compensation. Premises costs were also up due mainly to the
sale of Scotia Plaza last year. As well there were higher technology and
marketing costs to support business growth and regulatory requirements, partly
offset by business-related tax recoveries related to prior years.

The productivity ratio was 53.6%, in line with 53.7% in the same quarter last
year.

Taxes
The effective tax rate of 21.5% was down from 22.2% in the same quarter last
year, due mainly to higher income in lower tax jurisdictions and higher
tax-exempt dividend income in the current quarter.

Q2 2013 vs Q1 2013

Net income
Net income was $1,601 million, down $24 million, or 1% compared to the first
quarter. Growth in fee and commission revenues and higher net gains on
investment securities were more than offset by lower trading revenues,
increases in provisions for credit losses, and the impact of a shorter
quarter.

Total revenue
Total revenue (on a taxable equivalent basis) was $5,304 million, up $48
million or 1% quarter over quarter. This increase was due mainly to growth in
wealth management revenues, increased underwriting and foreign exchange fees
and higher net gains on investment securities. The full quarter impact of the
acquisition of ING DIRECT and the positive impact of foreign currency
translation also contributed to the higher total revenue. These increases were
mostly offset by lower trading revenues and a reduced contribution from
associated corporations.

Net interest income
Net interest income (on a taxable equivalent basis) of $2,787million, was up
marginally from $2,775 million in the previous quarter. This increase was
attributable to the impact of recent acquisitions and asset growth, primarily
in residential mortgages. These increases were partly offset by the impact of
three fewer days in the quarter.

The core banking margin was relatively unchanged at 2.31%.

Net fee and commission revenues
Net fee and commission revenues of $1,736 million rose $75million or 5%
quarter over quarter, of which $23 million related to acquisitions. The
remaining growth was due primarily to higher wealth management revenues from
growth in assets under management, assets under administration and improved
market conditions. Underwriting and foreign exchange fees were also higher
quarter-over-quarter.

Other operating income
Other operating income (on a taxable equivalent basis) fell by $39million or
5% to $781million. The decline was due primarily to lower trading results in
the fixed income, precious metals and commodities businesses due to
challenging market conditions. Net income from associated corporations was
also down due primarily to a lower contribution from an associated corporation
in Venezuela as a result of lower earnings and the impact of currency
devaluation. These decreases were partially offset by higher net gains on
investment securities.

Provision for credit losses
The provision for credit losses was $343 million this quarter, up $33 million
from the prior quarter. The quarter-over-quarter increase was due primarily to
higher provisions in Canadian commercial banking and International retail
banking.

Operating expenses and productivity
Operating expenses of $2,841million were $28 million or 1% higher
quarter-over-quarter, but were flat excluding the negative impact of foreign
currency translation. Recent acquisitions contributed $47million to the
growth. Excluding acquisitions, operating expenses were marginally lower
compared to last quarter, due mainly to lower stock-based compensation as a
result of the seasonally higher amounts in the prior quarter. This quarter,
the Bank also benefitted from business-related tax recoveries related to prior
years. Partially offsetting these reductions were higher premises, advertising
and professional expenses.

The productivity ratio was 53.6%, compared to 53.5% in the previous quarter.

Taxes
The effective tax rate this quarter increased to 21.5% from 21.1% in the prior
quarter due primarily to lower foreign tax recoveries, partially offset by
higher tax-exempt dividend income in the current quarter.

Year-to-date Q2 2013 vs Year-to-date Q2 2012

Net income
Net income was $3,226million, an increase of $330 million or 11% compared to
the same period last year, which included an after-tax real estate gain of $94
million. Excluding this gain, net income was up $424million or 15%. Recent
acquisitions contributed approximately 43% of this growth. The remaining
increase was attributable to higher net interest income, growth in wealth
management and transaction-based banking revenues, stronger contributions from
associated corporations and higher net gains on investment securities. These
items were partly offset by an increase in operating expenses and provisions
for credit losses.

Total revenue
For the six month period, total revenue (on a taxable equivalent basis) of
$10,560million was $1,098million or 11% higher than the same period last
year. Last year's results included a real estate gain of $111 million.
Acquisitions accounted for $605million of the year-over-year growth. The
remaining increase was due mainly to strong net interest income from asset
growth, higher banking and wealth management revenues, and increased
contributions from associated corporations. There were also higher net gains
on investment securities and stronger insurance income.

Net interest income
Net interest income (on a taxable equivalent basis) was $5,562million for the
six month period, up $698 million or 14% from the previous period. This was
attributable to diversified loan growth in International Banking, higher
residential mortgages and consumer auto loans in Canadian Banking and
increases in corporate loans.

The year-to-date core banking margin was 2.30%, down slightly from 2.31% for
the same period last year.

Net fee and commission revenues
Compared to the same period last year, net fee and commission revenues of
$3,397 million were up $320 million or 10%. The growth was attributable
primarily to higher transaction-based banking fees from both acquisitions and
existing businesses. In addition, there was strong growth in wealth management
revenues from increases in assets under management and assets under
administration, improved market conditions and recent acquisitions.

Other operating income
Other operating income (on a taxable equivalent basis) increased by $80
million or 5% to $1,601 million. Last year included a real estate gain of $111
million. Excluding this gain, other operating income was up $191 million or
14%. This year-over-year increase was due mainly to increased income from
associated corporations, higher gains on investment securities and growth in
insurance underwriting revenues due to growth in premium income.

Provision for credit losses
For the six month period, total provisions for credit losses were $653
million, up $124 million from $529 million during the same period last year.
Higher provisions in International Banking accounted for the majority of the
increase with a portion due to new acquisitions.

Operating expenses and productivity
Operating expenses were $5,654 million, $582million or 11% higher than last
year. Recent acquisitions accounted for $298 million of the growth. The
remaining increase of $284million or 5% was due mainly to a rise in
compensation-related expenses from increased staffing levels, annual merit
increases and higher performance-based compensation. Pension and benefits
expenses were also up, mostly reflecting the impact of the continued low
interest rate environment. There were also higher premises costs due mainly to
the sale of Scotia Plaza last year. The remaining growth across the other
operating expense categories was primarily to support ongoing revenue and
regulatory initiatives.

The productivity ratio was 53.5%, in line with 53.6% for the same period last
year. Operating leverage year over year was positive 0.1%. However, adjusting
for the real estate gain in thefirst quarter of last year, the operating
leverage was positive 1.5%.

Taxes
The effective tax rate for the first six months was 21.3%, down from 22.2% in
the same period last year. The decrease in the effective tax rate was due
primarily to higher foreign tax recoveries, lower deferred tax adjustments and
increased tax-exempt dividend income in the current year.

Financial position

The Bank's total assets at April 30, 2013 were $754 billion, up $86 billion or
13% from October 31, 2012, including approximately $41 billion related to the
acquisition of ING DIRECT. The impact of foreign currency translation was not
significant.

Cash and deposits with financial institutions grew by $8 billion, due mainly
to increases in interest bearing deposits with central banks. Precious metals
decreased $4 billion due to lower prices and inventory. Securities purchased
under resale agreements and securities borrowed increased by $19 billion.

Trading assets increased $17 billion from October 31, 2012. Trading securities
rose $19 billion from higher holdings of Canadian and U.S. government debt and
common equities. Trading loans decreased $2 billion due mainly to a reduction
in precious metals trading and lending activities.

Investment securities grew by $2 billion due mainly to increased holdings of
Canadian government debt from the acquisition of ING DIRECT. As at April 30,
2013, the unrealized gain on available-for-sale securities, after the impact
of qualifying hedges is taken into account, was $1,074 million, an increase of
$183 million from October 31, 2012. The change was due mainly to increases in
the values of common equities.

Loans increased $42 billion or 12% from October 31, 2012. Residential
mortgages increased $32 billion mainly from the acquisition of ING DIRECT.
Personal and credit card loans rose $3 billion due mainly to growth in Canada
and Mexico. Business and government loans were up $7 billion due primarily to
growth in Latin America and Asia, as well as in Canada due mainly to the
acquisition of ING DIRECT.

Total liabilities were $710 billion as at April 30, 2013, up $83billion or
13% from October 31, 2012, including $38 billion from ING DIRECT.

Total deposits increased by $54 billion. Personal deposits grew by $31 billion
primarily from the acquisition of ING DIRECT. Business and government deposits
increased $22 billion from both the ING DIRECT acquisition as well as growth
in the U.S. Deposits by financial institutions increased $1 billion in Asia.

Obligations related to securities sold under repurchase agreements and
securities lent as well as obligations related to securities sold short grew
by $24 billion and $6 billion, respectively. Derivative instrument liabilities
decreased $2 billion.

Total equity increased $2,828 million from October 31, 2012. This increase was
driven by internal capital generation of $1,588 million and the issuance of
common shares of $765 million, comprised of $99 million for the purchase of
Colfondos in Colombia and $666 million through the Dividend Reinvestment Plan
and the exercise of options.

Accumulated other comprehensive income increased $382million due mainly to
higher unrealized gains on available-for-sale securities and reduced
unrealized foreign exchange losses on the Bank's investments in its foreign
operations.

Non-controlling interests in subsidiaries increased $100million due mainly to
current period net income attributable to non-controlling interests, net of
dividends paid, and the acquisition of Colfondos. Non-controlling interests
for capital instrument equity holders decreased $32 million due mainly to
distributions to noteholders.

Capital ratios

The Bank's various regulatory capital amounts consist of the following:

                                            As at
                                April30   January31   October31
                                     2013         2013         2012
        ($ millions)            BaselIII    BaselIII     BaselII
                                   All-in       All-in
Common Equity Tier1 capital $  24,013 $  23,014 $     n/a
Tier 1 capital                 29,961   28,960   34,436
Total regulatory capital      38,204  37,818   42,193
Total risk-weighted assets    280,747  280,061  253,309
Capital ratios:                                              
Common Equity Tier1 capital       8.6%       8.2%      n/a
Tier 1 capital ratio              10.7%       10.3%       13.6%
Total capital ratio                13.6%       13.5%       16.7%
Assets-to-capital multiple        17.5x      17.3x      15.0x
                                                   

The Bank continues to maintain a strong capital position. As at April30, 2013
the CET1, Tier 1 and Total Capital ratios under Basel III all-in were 8.6%,
10.7% and 13.6% (January 31, 2013 - 8.2%, 10.3% and 13.5%), respectively, well
above minimum requirements. As at October31, 2012, the Basel II Tier 1 and
Total Capital ratios were 13.6% and 16.7%, respectively.

Business Segment Review
Scotiabank's results, average assets, allocated by these operating segments
are as follows:

                            For the three months ended April30, 2013
     Taxable                                            Global
   equivalent                                          Banking
  basis^(1) ($    Canadian International GlobalWealth     and
    millions)      Banking       Banking    Management Markets Other^(2)     Total
Net interest      $ 1,352    $   1,248    $     123 $  212  $  (151) $  2,784
income
Net fee and          369         342         738   337     (50)   1,736
commission
revenues
Net income from        -         127          54     -     (45)     136
investments in
associated
corporations
Other operating       25         131          99   352     (41)     566
income
Provision for        136         194           1    12       -     343
credit losses
Operating            869       1,029         591   396     (44)   2,841
expenses
Provision for        194         154          87   132    (130)     437
income taxes
Net income        $   547    $    471    $    335 $ 361  $  (113) $ 1,601
Net income                                                            
attributable to
non-controlling
interests
 Non-controlling      -          52           9     -       -      61
  interests in
  subsidiaries
 Capital              -           -           -     -       6       6
  instrument
  equity holders
Net income        $   547    $     419    $    326 $ 361  $ (119) $ 1,534
attributable to
equity holders of
the Bank
Average assets ($ $   273    $     122    $     14 $ 254  $   92 $   755
billions)
Average           $   191    $      79    $     18 $ 193  $  230 $   711
liabilities ($
billions)

(1) Refer above for a discussion of non-GAAP measures.
(2) 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 and other operating income and provision for income taxes
    of ($82) to arrive at the amounts reported in the Consolidated Statement
    of Income, differences in the actual amount of costs incurred and charged
    to the operating segments.



                               For the three months ended January31, 2013
     Taxable                                            Global
   equivalent                                          Banking
  basis^(1) ($    Canadian International GlobalWealth     and
    millions)      Banking       Banking    Management Markets    Other^(2)         Total
Net interest       $ 1,361    $    1,200     $     122  $  217 $      (129) $  2,771
income
Net fee and           384          334          683    305        (45)  1,661
commission
revenues
Net income from         9          132           56      -        (47)    150
investments in
associated
corporations
Other operating         1           90          104    427        (22)    600
income
Provision for         118          186            1      5    -    310
credit losses
Operating             861          976          570    406    -  2,813
expenses
Provision for         202          128           84    139  (119)    434
income taxes
Net income         $   574    $     466     $    310  $ 399 $     (124) $      1,625
Net income                                                                   
attributable to
non-controlling
interests
 Non-controlling       -           50            9      -          -           59
  interests in
  subsidiaries
 Capital               -            -            -      -          7            7
  instrument
  equity holders
Net income         $  574    $     416     $    301  $ 399 $     (131) $      1,559
attributable to
equity holders of
the Bank
Average assets ($  $  267    $     115     $     14  $ 240 $       93 $        729
billions)
Average            $  185    $      76     $     17  $ 175 $  234 $        687
liabilities ($
billions)

(1) Refer above for a discussion of non-GAAP measures.
(2) 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 and other operating income and provision for income taxes
    of ($74) to arrive at the amounts reported in the Consolidated Statement
    of Income, differences in the actual amount of costs incurred and charged
    to the operating segments. 



                             For the three months ended April30, 2012
     Taxable                                            Global
   equivalent                                          Banking
  basis^(1) ($    Canadian International GlobalWealth     and
    millions)      Banking       Banking    Management Markets   Other^(2)    Total
Net interest       $ 1,156    $    1,137     $     126 $  203 $     (141) $  2,481
income
Net fee and           361          336          627   330       (77)   1,577
commission
revenues
Net income from         -          109           54     -       (43)     120
investments in
associated
corporations
Other operating         -           81           98   377       (30)     526
income
Provision for         120          145            -    (1)         -     264
credit losses
Operating             771          926          525   365       (22)   2,565
expenses
Provision for         165          144           82   159      (135)     415
income taxes
Net income         $  461    $      448     $    298 $ 387 $    (134) $  1,460
Net income                                                             
attributable to
non-controlling
interests
 Non-controlling       -           49            7     -         -      56
  interests in
  subsidiaries
 Capital               -            -            -     -        13      13
  instrument
  holders
Net income         $  461    $     399     $    291 $ 387 $    (147) $ 1,391
attributable to
equity holders of
the Bank
Average assets ($  $  222    $     112     $     13 $ 211 $      89 $   647
billions)
Average            $  148    $      71     $     16 $ 153 $ 224 $   612
liabilities ($
billions)

(1) Refer above for a discussion of non-GAAP measures.
(2) 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 and other operating income and provision for income taxes
    of ($69) to arrive at the amounts reported in the Consolidated Statement
    of Income, differences in the actual amount of costs incurred and charged
    to the operating segments. 



                             For the six months ended April30, 2013
     Taxable                                            Global
   equivalent                                          Banking
  basis^(1) ($    Canadian International GlobalWealth     and
    millions)      Banking       Banking    Management Markets Other^(2)    Total
Net interest      $  2,713    $    2,448    $     245  $  429  $  (280) $  5,555
income
Net fee and           753          676        1,421    642     (95)   3,397
commission
revenues
Net income from         9          259          110      -     (92)     286
investments in
associated
corporations
Other operating        26          221          203    779     (63)   1,166
income
Provision for         254          380            2     17       -     653
credit losses
Operating           1,730        2,005        1,161    802     (44)   5,654
expenses
Provision for         396          282          171    271    (249)     871
income taxes
Net income        $ 1,121    $     937    $     645  $ 760  $ (237) $ 3,226
Net income                                                           
attributable to
non-controlling
interests
 Non-controlling       -          102           18      -       -     120
  interests in
  subsidiaries
 Capital               -            -            -      -      13      13
  instrument
  holders
Net income        $ 1,121    $     835    $     627  $ 760  $ (250) $ 3,093
attributable to
equity holders of
the Bank
Average assets ($ $   270    $     118    $      14  $ 247  $   93 $   742
billions)
Average           $   188    $      78    $      17  $ 184  $  232 $   699
liabilities ($
billions)

(1) Refer above for a discussion of non-GAAP measures.
(2) 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 and other operating income and provision for income taxes
    of ($156) to arrive at the amounts reported in the Consolidated Statement
    of Income, differences in the actual amount of costs incurred and charged
    to the operating segments. 



                             For the six months ended April30, 2012
     Taxable                                            Global
   equivalent                                          Banking
  basis^(1) ($    Canadian International GlobalWealth     and
    millions)      Banking       Banking    Management Markets Other^(2)     Total
Net interest       $ 2,330    $    2,140    $      249 $   373 $  (236) $   4,856
income
Net fee and           726          627        1,213    619    (108)    3,077
commission
revenues
Net income from         1          177          107      -     (72)      213
investments in
associated
corporations
Other operating         9          170          195    763      42    1,179
income
Provision for         256          269            -      4       -      529
credit losses
Operating           1,539        1,771        1,020    755     (13)    5,072
expenses
Provision for         335          235          158    298    (198)      828
income taxes
Net income         $   936    $     839    $     586 $ 698 $ (163) $ 2,896
Net income                                                            
attributable to
non-controlling
interests
 Non-controlling       1           67           13      -       -       81
  interests in
  subsidiaries
 Capital               -            -            -      -      26       26
  instrument
  holders
Net income        $   935    $     772    $     573 $  698 $  (189) $  2,789
attributable to
equity holders of
the Bank
Average assets ($  $  220    $     107    $      13 $  209 $    92 $    641
billions)
Average            $   148    $      67    $      15 $  156 $    221 $    607
liabilities ($
billions)

(1) Refer above for a discussion of non-GAAP measures.
(2) 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 and other operatingincome and provision for income taxes
    of ($137), to arrive at the amounts reported in the Consolidated Statement
    of Income, differences in the actual amount of costs incurred and charged
    to the operating segments.

Canadian Banking

Q2 2013 vs Q2 2012
Canadian Banking reported net income attributable to equity holders of $547
million, an increase of $86million or 19% from the same period last year,
driven by the acquisition of ING Bank of Canada (ING DIRECT), strong organic
asset growth and gains on investment securities. Return on economic equity
decreased to 34.6% from 38.3% last year, mainly reflecting an increase in
economic equity related to ING DIRECT.

Q2 2013 vs Q1 2013
Quarter over quarter, net income attributable to equity holders decreased
$27million or 5% primarily due to the impact of a shorter quarter and a
higher provision for credit losses. Return on equity decreased to 34.6% from
36.3% last quarter.

Year-to-date Q2 2013 vs Year-to-date Q2 2012
Canadian Banking reported net income attributable to equity holders of $1,121
million, an increase of $186 million or 20% from the same period last year,
driven by the acquisition of ING DIRECT, strong organic asset growth and gains
on investment securities. Return on economic equity decreased to 35.5% from
38.6% last year, mainly reflecting an increase in economic equity related to
ING DIRECT.

International Banking

Q2 2013 vs. Q2 2012 
International Banking reported a solid quarter with net income attributable to
equity holders of $419 million, an increase of $20 million or 5% from the same
quarter last year. It was driven by strong loan growth in Latin America,
higher gains on investment securities and a stronger contribution from
associated corporations, partly offset by increased provisions for credit
losses. Return on economic equity was 13.8% versus 12.4% in the same quarter
last year.

Q2 2013 vs. Q1 2013
Net income attributable to equity holders increased $3million or 1% over last
quarter. Higher gains on investment securities were mainly offset by the
impact of a tax benefit in Puerto Rico last quarter. Return on economic equity
was 13.8%, in line with 13.9% last quarter.

Year-to-date Q2 2013 vs Year-to-date Q2 2012
Net income attributable to equity holders increased by $63million or 8% to
$835 million. This was driven by strong asset growth particularly in Latin
America, acquisitions of Banco Colpatria in Colombia and Credito Familiar in
Mexico, higher contributions from associated companies and gains on investment
securities, partly offset by higher provisions for credit losses. Return on
economic equity was 13.9% versus 12.5% last year.

Global Wealth Management

Q2 2013 vs Q2 2012
Global Wealth Management reported net income attributable to equity holders of
$326 million this quarter, an increase of $35 million or 12% from the same
quarter last year. Net income increased due to strong results from the wealth
management and insurance businesses. Growth in wealth management was driven by
higher assets under management (AUM) and assets under administration (AUA)
from net sales and improved financial market conditions. There were also
stronger results from global insurance. Return on equity was 18.5% compared to
15.0% last year.

Q2 2013 vs Q1 2013
Quarter over quarter, net income attributable to equity holders was up $25
million or 8% due mostly to higher brokerage revenues, increased mutual fund
fees, and stronger international wealth and insurance revenues, partially
offset by higher operating expenses.

Year-to-date Q2 2013 vs Year-to-date Q2 2012
On a year-to-date basis, net income attributable to equity holders increased
by $54 million or 9% due to stronger results from both the wealth management
and insurance businesses. Growth in wealth management was driven by higher AUM
and AUA from net sales, and improved financial markets. Growth in insurance
earnings was also strong. Return on economic equity was 17.8% compared to
14.5% for the same period last year.

Global Banking and Markets

Q2 2013 vs Q2 2012
Global Banking and Markets contributed solid results this quarter, reporting
net income attributable to equity holders of $361million. The year-over-year
decrease of $26 million or 7%, was due to market-driven challenges in the
commodities and precious metals businesses, along with lower underwriting and
advisory fees. These were only partly offset by stronger results in the
lending and fixed income businesses. Return on economic equity was 27.1% this
quarter compared to 29.1% in the same period last year.

Q2 2013 vs Q1 2013 
Net income attributable to equity holders decreased $38 million or 10%
compared to the prior quarter, as capital markets activity moderated from the
strong trend of the last few quarters. Challenging market conditions saw
declines in the fixed income, commodities and precious metals businesses,
partly offset by a stronger performance in the equities business. Provisions
for credit losses were also somewhat higher. Return on economic equity
decreased to 27.1% from 30.8%.

Year-to-date Q2 2013 vs Year-to-date Q2 2012 
Global Banking and Markets reported strong net income attributable to equity
holders of $760 million in the first half of the year. The increase of $62
million or 9% compared to the prior year was driven by stronger revenues in
all of the lending businesses, as well as the fixed income and equities
businesses, and lower taxes. Return on economic equity was 28.9% compared to
26.2% in the same period last year.

Other

The Other segment includes Group Treasury, smaller operating segments and
other corporate items which are not allocated to a business line.

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 $82 million in the second
quarter, compared to $69 million in the same period last year and $74million
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.

Q2 2013 vs Q2 2012
The Other segment had a net loss attributable to equity holders of $119
million in the quarter, compared to a net loss of $147 million last year due
partly to lower operating expenses this quarter. In addition, the prior year
included an offset to revenues reported in other operating segments related to
the underwriting of the Bank's common share issue.

Q2 2013 vs Q1 2013
The Other segment had a net loss attributable to equity holders of $119
million in the second quarter, compared to a net loss of $131 million in the
prior quarter. The improvement was mainly from lower taxes and lower operating
expenses.

Year-to-date Q2 2013 vs Year-to-date Q2 2012
The Other segment had a net loss attributable to equity holders of $250
million in the first half of the year, compared to a net loss of $189 million
last year due primarily to the last year's after-tax gain of $94million from
the sale of a real estate asset, which was partially offset by lower operating
expenses this year.

Shareholder 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 2013
The Annual Meeting for the fiscal year 2013 is scheduled for April8, 2014, in
Kelowna, British Columbia, Canada.

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 May 28, 2013, at
2:00pm 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 May 29, 2013,
to June 12, 2013, by calling (416)640-1917 or 1-877-289-8525 and entering the
identification code 4584493#. The archived audio webcast will be available on
the Bank's website for three months.

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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 media enquiries, please contact the Public, Corporate and Government
Affairs Department at the above address.
Telephone: (416)866-4826
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

Shareholders (continued):
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

Contact:

Peter Slan, Senior Vice President, Investor Relations, (416) 933-1273; Andrew
Chornenky, Media Communications, (416) 866-4826