Scotia World Magazine August 2010

1 Competitive advantageMaking leadership a August 2010 , VOLUME 4, NUMBER 3 Please help us reduce. Share this copy of Scotia WorldMagazinewith your A G A Z I N ENEWS EXPERIENCE SUCCESS competitive advantageMaking leadership a Our 2010 Objectives Scotiabank Group'sBalanced ScorecardFinancial Return on equity of 16-20% Diluted earnings per share growth of 7-12% Long-term shareholder value through increases in dividends and stock price appreciationOperational Productivity ratio of <58% Strong practices in corporate governance and compliance processes Strong capital ratios Corporate social responsibility and strong community involvementCustomer High levels of customer

2 Satisfaction and loyalty Deeper relationships with existing customers New customer acquisitionPeople High levels of employee satisfaction and engagement Diversity of workforce CollaborationThank You From HaitiOn the Thank you to all Scotiabankers for your overwhelming support during theperiod following the earthquake of January 12, 2010 . We have been profoundlytouched by your spontaneous gestures of all kinds. We will never forget yourenthusiastic assistance to our dire situation. By your care and action, we trulylived the bonding of the One Great Scotia Family that we indeed are.

3 Nancy Jean-Baptiste Administrative Assistant to the Country HeadWe will never forget your freespirited gesture, it was helpful inthese difficult Baptiste Relationship OfficerThanks for having opened up yourarms when we most needed Occenad Account ManagerThank you so much for yoursupport and solidarity. We will not forget Weil Account OfficerThere are not enough words toexpress our gratitude toward yourkindness and moral D. Rocourt Asst. Manager Administration & Human ResourcesThank you does not say it isa nice alternative to overwhelmingyou with gratitude and appreciationfor what you have done for Saint-Paul Personal Banking OfficerIdeas inActionVisit Scotia World Magazineonline for a list of the latest Ideas in Action award recipients.

4 Sheryl MacDonald, Client Service Manager; Allen Ransome,International Advisory Director; Theresa Marshall,International Advisory Sales Assistant and Lana Fingall,Relationship Manager, Private Banking from the ScotiaPrivate Client Group Centre in borders andbusiness lines5 ProfileToronto Region6 ProfileOntario and Quebec & Eastern Ontario Regions8 ProfileScotiabank s South American operations Located in Canada?Access the online version at: HR Passportunder My Communities; through IntraLink > Scotia Beat > Scotia News Network; or, Scotia Navigator homepageunder the Employee information outside of Canada?

5 Access the online version at: HR Passport(where available) or, From IMAC under Corporate & Contact Information > Public, Corporate & Government Affairs > Public andCorporate Affairs > Scotia World Magazine . For additional information on some of the articles in this issue go to:onlineScotia World MagazineScotiaNewswhat sinside1210 Leadership SeriesBuilding future leaders12 Employee EngagementViewPoint Action planning 13 Year-end AssessmentUsing the method13 CSR ColumnScotiabank signs the UN Global Compact14 Scotia Living WellSun protection15 Lead storyTaking leadership in the community Community16 Reaching Out17 Sewing to build life skillsVisit Scotia World Magazineonline for an expanded Scotia Cares sectionScotiaExperienceScotiaCares16 Contributing Writers.

6 Lori Bianco, Jennifer Corbett, Gail Lambie, Chris McAuliffe,Menka Walia, Sheena WaltonCo-ordination:Jennifer CorbettCreative Director:Nancy HowardDesign: Jim Kapsalis, Kelly McCraw, Vincenza ThorburnProduction: Kelly McCrawScotia World Magazine is published five times a year in English,French and Spanish by Corporate Affairs, and is distributed to allScotiabank Group employees worldwide. Scotia World Magazineis available on HR Passport under My Communities, on Scotia News Network, which is availablethrough IntraLink, and on the Scotia Navigator home pageunder the Employee Information link.

7 It s also accessible fromIMAC where submissions and suggestions are welcomed. If you are sending a digital photo, please make sure it is high resolution (300 dpi at 5 x 7 ).You can contact us by e-mailing or by mailing directly to: Scotia World Magazine , Scotia Plaza, 40 King Street West, Toronto, Ontario M5H 1H1 Transit #37622 For address or distribution changes, please call 416-866-3925 orfax Editor:Paula CufreTelephone: 416-866-4833 Editorial Board:Toni Spooner, Gail Lambie, Chris McAuliffe2In conversationAlberta CefisScotiaWorldAugust 20102 AEAlberta, not everyone is familiarwith Global Transaction Banking (GTB).

8 Can you tell us what GTB does? ACGTB was established in November2005 as a new unit for the Bank tocreate customer and shareholder valueby bringing together various functionsfrom the business lines. Our mandate isto provide cash management, deposit,payment, and trade finance services tobusiness customers on a worldwidebasis. Our customers includecommercial, small business, corporatesegments and correspondent is designed to put the customerfirst as we work horizontally across theBank s business lines to providestructured solutions for our customers. AEWhat are some of GTB s key strategic initiatives?

9 ACThe first is deposit acquisition,which provides stable funding for theBank. Another is the implementation ofa worldwide payments clearing solutionfor the dollar, euro and involves every country and allthree divisions. The third is our Lettersof Credit (LC) reissuance initiative,which has to do with trade services andkeeping the processing of LCs in theScotiabank family. Fourth is our tradecorridors strategy to expand in regionswith potential where we re not a core player in terms of trade, such asEurope. We re also adding salescapabilities in the to drive GTBbusiness and support Scotia , there s the Global WholesaleBanking (GWB) initiative.

10 As well, wehave to run the business, keep ourcustomers satisfied, and stay ahead ofthe competition. AEYou mention the GWB initiative,which is an example of collaborationacross business lines. How is GTBsupporting this?ACGWB is one of the Bank s keyopportunities to create value forcorporate customers and the Bank. It focuses on the needs of corporatecustomers worldwide by bringingtogether Scotia Capital s capabilitieswith International Banking sdistribution system and GTB s productand service delivery. The seniorexecutive committee for GWB includesMike Durland and Steve MacDonaldfrom Scotia Capital, Rob Pitfield fromInternational Banking and myself fromGTB, to ensure that all of us from theleadership team down work cross-functionally for our customers andshareholders.