Latin America. Introduction. Peter Slan Senior Vice President, Investor Relations. Investor Day January 2013

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1 Latin America Investor Day January 2013 Introduction Peter Slan Senior Vice President, Investor Relations

2 Caution Regarding 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, andsimilar expressions of future orconditional 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 materiallyfromtheestimatesandintentionsexpressedinsuchforward 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 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 and ontheedgarsection of the SEC s website at

3 Latin America Investor Day January 2013 Opening Remarks Brian Porter President

4 Latin America Investor Day January 2013 Overview of International Banking & LatAm Region Dieter Jentsch Group Head, International Banking

5 Agenda International Banking s growth record Investment thesis for LatAm Managing our international businesses Growth strategies for LatAm 2

6 International is a Significant Contributor to the Bank Proportion of Scotiabank Results in 2012** International* Rest of Scotiabank Net Income Lending Assets Revenues 32% 23% 36% * For this slide, International means the results reported by the International Banking division (which includes Personal, Commercial & Corporate banking) plus the international wealth & insurance results reported by the Global Wealth Management division ** Real estate gains and Other segment are excluded 3

7 International has had Strong Performance (in billions of Canadian dollars) Net Income Lending Assets Revenues $5.8 $347.6 $19.2 $4.2 $212.6 $13.0 $1.4 $2.0 $40.7 $81.8 $4.0 $ International* Rest of Scotiabank** Note: 2007 Net Income is adjusted to exclude NCI * For this slide, International means the results reported by the International Banking division (which includes Personal, Commercial & Corporate banking) plus the international wealth & insurance results reported by the Global Wealth Management division ** Real estate gains are excluded

8 With Higher Growth Rates than the Rest of the Bank (5 year CAGR, ) Net Income Lending Assets Revenues 8% 15% 13% 6% 9% 6% International* Rest of Scotiabank** * For this slide, International means the results reported by the International Banking division (which includes Personal, Commercial & Corporate banking) plus the international wealth & insurance results reported by the Global Wealth Management division ** Real estate gains are excluded 5

9 IB Division: Significantly Expanded Footprint & Geographies IB Division Change Customers 5.2 million 13.7 million +163% Employees 27,800 69, % Branches 1,500 2, % ABMs 3,000 6, % Acquisitions 20+ 6

10 LatAm Growth has Outpaced International & Scotiabank Growth in Average Lending Assets 5 year CAGR ( ) 20% 15% 10% Scotiabank International* LatAm** * For this slide, International means the Personal, Commercial & Corporate results reported by the International Banking division, plus the international wealth & insurance results reported by the Global Wealth Management division ** For this slide, LatAm includes Mexico, Peru, Chile, Colombia, Brazil & Uruguay 7

11 Converting Acquisitions into Organic Growth 20+ international acquisitions for $6 billion since 2007 Different timelines for inmarket vs. new market acquisitions Multiple factors drive the timing for achieving full organic growth potential Business & Portfolio Integration Due Diligence & Acquisition Organic Growth Operational Integration 8

12 Agenda International Banking s growth record Investment thesis for LatAm Managing our international businesses Growth strategies for LatAm 9

13 Investment Thesis for LatAm Strong economic growth rates Considerable room to increase banking products & services Fast growing middle class Significant opportunities for consumer & micro finance segment Sound & stable regulatory environment 10

14 Strong Growth Prospects in LatAm 2013 Real GDP Growth Forecast Canada / U.S. Scotiabank s Key LatAm Markets 6.0% 5.0% 5.0% 3.6% 1.7% 2.0% Canada United States Mexico Colombia Chile Peru Source: Scotia Economics, as of December,

15 Considerable Room to Provide More Banking Products & Services 193% Private Sector Loans as a % of GDP 128% 71% 45% 26% 26% United States Canada Chile Colombia Peru Mexico Source: The World Bank, October

16 to a Fast Growing Middle Class $6,000 $4,000 $2,000 North America 0.2% CAGR Middle Class Population Central & South America Middle Class Purchasing Power North America 0.2% CAGR 2.7% CAGR Central & South America 3.4% CAGR (in millions) $0 Source: OECD Estimates, (in millions of U.S. dollars) 13

17 Significant Opportunities in a Unique Segment 50% of the population in Mexico, Peru, Chile & Colombia 30% of the purchasing power in Mexico, Peru, Chile & Colombia Consumer & Micro finance Opportunity Excellent potential for generating attractive riskadjusted returns 14

18 Sound & Stable Banking Environment Strong banking regulations Well capitalized banking systems Effective prudential oversight Moving to IFRS compliance 15

19 Agenda International Banking s growth record Investment thesis for LatAm Managing our international businesses Growth strategies for LatAm 16

20 Key Aspects of Managing our International Businesses Strong & robust risk management Effective control functions & overall governance framework Country Heads have key accountabilities Experienced leadership & deep talent pool 17

21 Risk Management: A Strong Foundation Pervasive risk culture and strong risk management framework Highly centralized risk oversight, balanced with local expertise and input All Bank risk appetite framework is cascaded to all international subsidiaries All major subsidiaries have highly seasoned Chief Risk Officers 18

22 Risk Management: Recent Enhancements Refined Risk Appetite Enhanced Governance Framework Wider Use of Stress Testing Enhanced Risk Management Improved MIS & Risk Technology Improved Collection Capabilities Deeper Local Risk Teams 19

23 Governance & Control: Effective Framework and Policies Key control functions (Finance, Risk, Audit, Compliance, Legal & Tax) report jointly to Toronto and local management Governance model is based on all Bank standards Toronto based officers play significant roles in oversight & governance of local operations 20

24 Country Heads: Several Key Roles Country Head Significant role in ensuring effective governance Central to effective collaboration between the Business Lines Accountable through their Balanced Scorecard for a wide range of factors 21

25 Leadership & Talent: Experienced, Deep and Mobile Senior Leadership Team Highly experienced leadership group Accountability is driven through Region Heads & Country Heads Leadership Development Strong focus on leadership development to maintain a deep talent pool International Human Investment Committees at Divisional and Country levels Talent Mobility Talent is moved to where it is needed most Extensive use of cross training, transfers and Head Office assignments 22

26 Agenda International Banking s growth record Investment thesis for LatAm Managing our international businesses Growth strategies for LatAm 23

27 Multiple Levers to Drive LatAm Growth Growth Retail Banking Commercial Banking Global Wholesale Banking Operating Convergence Acquisitions Multiple Levers 24

28 Retail Banking: Organic Growth Priorities Segments Distribution Products Focus on small business, consumer & microfinance and mid market affluent Strengthen channels, especially non branch channels and payments Leverage auto loans, mortgages and deposits Technology Leverage risk & customer relationship management technologies 25

29 Commercial Banking: Organic Growth Priorities Customers Grow client base, including an increased focus on mid market segment Cross Sell Increase number of Scotiabank products per commercial banking customer Process Improvements Enhance end to end processes to drive productivity, increase customer retention and deepen customer loyalty 26

30 Global Wholesale Banking: Context & Key Priorities Contribution Activities Customers Technology Products Context Global Wholesale Banking accounted for 8% of LatAm s revenue in 2012, mainly Mexico (56%) and Peru (17%) Corporate Banking, Foreign Exchange, Fixed Income & Equity Key Priorities Pursue a focused strategy to develop relationships with preferred customers Leverage Global Foreign Exchange platform and expand Equity Platform Expand cross sell of capital market products 27

31 Operating Convergence: Driving Better Performance Processing Hubs Contact Centres Collection Centres Standard Operating Approach Standardized Risk Management Common Technology Standards Common Control & Governance Standards 28

32 Acquisitions: Opportunistic & Selective Criteria Shifting primary emphasis to organic growth Will consider acquisitions on an opportunistic & selective basis Must meet stringent financial & strategic goals Bias for building out our LatAm footprint 29

33 International Banking: A Key Growth Engine for Scotiabank International Banking has an excellent track record of delivering strong growth We have a sound investment thesis for the LatAm region We have multiple levers to drive continued growth in LatAm 30

34 Latin America Investor Day January 2013 Overview of International Wealth Management & Insurance LatAm Region Barb Mason Executive Vice President, Global Wealth Management

35 Agenda The business today Current state & key priorities: Wealth Current state & key priorities: Insurance Selective acquisitions 2

36 International: A Significant and Growing Contributor to GWM s Net Income Includes International Wealth Distribution, International Asset Management and International Insurance Contribution to GWM s Net Income 2012 LatAm is the primary regional driver 25% ~ $300 million 3

37 Multiple Levers to Drive LatAm Growth Growth International Wealth International Insurance Selective Acquisitions Multiple Levers 4

38 Agenda The business today Current state & key priorities: Wealth Current state & key priorities: Insurance Selective acquisitions 5

39 Wealth: Good Revenue Diversification 2012 Revenue Mix By Business Asset Management 23% Wealth Structuring/ Trust 10% 7% Private Banking Pensions 25% 35% Retail Brokerage 6

40 Wealth: LatAm is the Largest Regional Opportunity 2012 Revenue Contribution By Region (in billions of Canadian dollars) 2012 AUM/AUA by Country English C&CA 24% 12% Spanish C&CA C&CA $4.0 AUM/ $21.5 AUA $5.0 AUM/ $9.0 AUA Mexico $1.0 AUM Colombia 65% LatAm $9.6 AUM Colfondos - $1.5 AUM/ Pro Forma $2.1 AUA $6.4 AUM/ $6.8 AUA Chile Peru 7

41 Wealth Distribution: Key Priorities to Drive Organic Growth Wealth Distribution 1. Prioritize select markets, segments and solutions Priorities 2. Develop regional centers of excellence 3. Generate new client relationships through bank referrals 4. Pensions: Leverage economic growth and formalization of employment 8

42 Asset Management: Key Priorities to Drive Organic Growth Asset Management 1. Leverage multiple bank distribution channels from primarily brokerage to retail (Premium Banking) and institutional Priorities 2. Leverage global portfolio management bench strength for cross border products and to export investment strategies 3. Improve operational efficiencies 9

43 Agenda The business today Current state & key priorities: Wealth Current state & key priorities: Insurance Selective acquisitions 10

44 Insurance: Well Diversified with Minimal Risk 2012 Revenue Mix by Product 2012 Revenue Contribution by Region Other 6% Savings & Wealth 16% Property & Casualty 12% 5% Life & Health English C&CA 30% 19% Spanish C&CA 61% Creditor 51% LatAm 11

45 Insurance: Providing Convenient Solutions for Scotiabank s International Customers Top 3 Insurance Products by Country (2012) Mexico Creditor Life & Health Creditor Homeowners Creditor Automobile Chile Creditor Life & Health Creditor Homeowners Creditor Unemployment Peru Creditor Life & Health Creditor Homeowners Creditor Small Business Property Colombia Creditor Life & Health Life & Health (Non Creditor) Assistance 12

46 Insurance: Key Priorities to Drive Organic Growth Insurance 1. Develop segment specific new product offerings Priorities 2. Increase penetration through bank distribution channels 3. Invest in technology and processes to support our product and distribution strategy 13

47 Agenda The business today Current state & key priorities: Wealth Current state & key priorities: Insurance Selective acquisitions 14

48 Opportunistic & Selective Acquisitions International M&A over the last decade: Colfondos, Crecer, DB&G Brokerage and Profuturo Will consider acquisitions selectively to grow scale internationally Includes teams and entities Must meet stringent financial and strategic goals 15

49 Significant Growth Opportunity Across International Footprint Multiple bank channels (retail/corporate/ commercial/institutional) to provide growth opportunities Canadian wealth management expertise and capabilities will be leveraged Region s affluence growth trajectory is very positive Low penetration of insurance products 16

50 Latin America Investor Day January 2013 Financial Overview Paul Baroni Senior Vice President & Chief Financial Officer, International Banking

51 Agenda Performance record: International Focus on LatAm Accounting considerations Summary 2

52 International Banking: Strong Performance (in billions of Canadian dollars) Growth in Revenues and in Net Income 13% CAGR $7.2 8% CAGR $2.0 $4.0 $1.4* * 2007 Net Income adjusted to exclude NCI IB + International GWM 3

53 Strong Balanced Loan Growth (in billions of Canadian dollars) Average Loans Portfolio Breakdown $ Year CAGR Personal Loans 10% 15% Residential Mortgages $ % % Commercial, Government & Institutional 63% 5% Credit Cards Commercial Retail IB + International GWM 4

54 Strong Deposit Growth (in billions of Canadian dollars) Deposits Funding Breakdown 5 Year CAGR $50.6 Demand $34.8 7% 21% 8% Term 51% 28% Savings Commercial Retail IB + International GWM 5

55 Stable, Attractive Margins and PCLs Margin After PCLs* PCL Ratio** 5% 3.0% 4% 3% 3.6% 2.5% 2.0% 1.5% 1.0% Retail PCL Total PCL 0.5% Commercial PCL 2% % 0.5% * On average earning assets ** On average loans IB + International GWM 6

56 Key Ratios Improving Productivity Ratio ROE Impacted by Goodwill 57.1% 55.9% 19.5% 13.5% IB + International GWM 7

57 Strong Earnings Growth in Latin America and Asia (in billions of Canadian dollars) Latin America Net Income Caribbean & Central America Asia 8% CAGR $1.1 flat $0.5* $0.5 $0.4 $0.8* 51% CAGR Other $0.05* $0.14 Thanachart Bank * 2007 Net Income adjusted to exclude NCI IB + International GWM 8

58 Agenda Performance record: International Focus on LatAm Accounting considerations Summary 9

59 2012 Quick Facts (in billions of Canadian dollars) Mexico Peru Chile Colombia IB Total % of IB Scotiabank Reported Revenues $1.3 $1.2 $0.5 $0.6 1 $7.2 50% Total Loans 2 $11.3 $10.1 $11.5 $6.7 $ % ROE 14.4% 20.5% 8.3% 21.0% 3 Local Loan Market 4 4.9% 16.1% 4.9% 5.5% Share % 5 Year Average PCL 5 Year Average Industry PCL 2.2% 1.6% 1.6% 4.0% 3.9% 2.0% 1.6% 2.4% 1 Colombia includes revenues from Colpatria for 257 days since being acquired on January 17, 2012 as reported by Scotiabank 2 Spot balances as at Q Colpatria only and adjusted for one time items 4 As at September 2012 IB + International GWM 10

60 Revenue in Latin America (in billions of Canadian dollars) Revenue Mexico Peru Chile Colombia* 0% CAGR $1.4 $1.3 $1.2 20% CAGR $0.5 27% CAGR $0.5 $0.6 $ CAGR at (constant FX rates) 5% 19% 28% * Colpatria acquired January 17, 2012 IB + International GWM 11

61 Improved Loan Diversification 2007 Total Loans (%) % 13% 30% 24% 14% 17% 34% 22% $40.7 billion $81.8 billion Mexico LatAm excluding Mexico Asia Caribbean & Central America IB + International GWM 12

62 Agenda Performance record: International Focus on LatAm Accounting considerations Summary 13

63 Accounting Considerations Global Wealth Management results Local GAAP and regulatory differences Acquisition/fair value accounting Business line allocations 14

64 Agenda Performance record: International Focus on LatAm Accounting considerations Summary 15

65 International Banking is a Key Growth Engine Strong performance record for International Banking High growth & improved quality of earnings Significant growth potential in LatAm, with multiple levers to drive growth 16

66 Latin America Investor Day January 2013 Mercantil Colpatria Overview Eduardo Pacheco Chairman Mercantil Colpatria

67 Building one of Colombia s Leading Groups Founded Banking Business Health Corpavi Banco GE bought a services Colpatria 49% stake in Banco Colpatria Private Equity 2010 BNS acquires 51% of Banco Colpatria / Colfondos Insurance Business Driven by: Pension Fund Workers Compensation Construction & Real Estate development Work ethic Culture of savings Excellence Respect for stakeholders Pension fund sold to BBVA and access to Fogafin credit line 2009 Colfondos 2011 GE stake in Banco Colpatria is bought back 2

68 Mercantil Colpatria: Full Range of Financial Services Mercantil Colpatria S.A. 100% 49% 100% 100% 49% Insurance Banco Colpatria Construction & Infrastructure Private Equity Pension Fund (Colfondos) Ranks 2nd in P&C (10% market share) Workers Compensation (13% market share) 6th largest banking group 3rd largest construction company by sales Infrastructure & Energy 4th largest pension fund in Colombia Life Health Mineros S.A 31.6% Ambulance Hospital Largest gold extraction company Leadership presence in a broad range of fast growing sectors in Colombia Strong Colombia base with plans to grow both locally and expand in Latin America Strong relationships with international players active in Colombia 3

69 Scotiabank: The Right Partner Respect for Colpatria s team Experience with joint ventures Financial soundness and success International experience Expertise in fast growing sectors in Colombia mining and infrastructure Opportunities in Wholesale banking and private wealth management Canadian banking system soundness and respectability of its regulator The Right Partner for Mercantil Colpatria 4

70 Latin America Investor Day January 2013 Banco Colpatria Overview Santiago Perdomo Chief Executive Officer Banco Colpatria

71 Agenda The business today Performance record Growth strategy 2

72 Banco Colpatria at a Glance Bank group ranking in Colombia 6th Total loans (in billions of Canadian dollars) $6.6 Customers (in millions) 2.4 Credit card ranking 1st Mortgages (market share) 9.8% Commercial mid market (market share) 10.0% Number of branches 171 Capital adequacy ratio 12% Local credit rating AAA 3

73 Profitable Business Model Focused on commercial mid market with higher yields Emphasis on lower income segments with unique risk management strategies Further penetrate mass affluent segment 4

74 An Attractive, Underpenetrated Industry 71% Low Loans/GDP Levels 45% Banking Penetration Opportunity (% with no financial products) 45% 45% 43% 38% 35% 26% 26% Chile Colombia Peru Mexico Source: The World Bank, October

75 Attractiveness of Colombia World Bank easy country to do business Investment grade since 2011 U.S./Canada free trade agreement Good performance throughout financial crisis Strong banking system/deep regulation Reduced crime rates Stable political environment Strong AML policies and supervision 6

76 Excellent Regulatory Environment Strong supervision Superintendencia Financiera Interest rate cap in place IFRS compliance in 2015 Counter cyclical reserve requirements Transitioning to Basel III 7

77 Agenda The business today Performance record Growth strategy 8

78 Strong Performance Record (in millions of Canadian dollars) Growth in Revenues* and in Net Income* $800 18% CAGR 19% CAGR $ *100% of Banco Colpatria based on local GAAP excluding unusual items 9

79 A Strong Focus on Cost Efficiency 65% Productivity Ratio vs. Industry 60% 55% Industry Colpatria advantage 58% 50% Colpatria 50% 45% *100% of Banco Colpatria based on local GAAP excluding unusual items 10

80 Strong Profitability ROE vs. Industry 26% Colpatria 20% Colpatria advantage 21% 14% Industry 15% 8% *100% of Banco Colpatria based on local GAAP excluding unusual items 11

81 Diversified Loan Portfolio with Strong Growth Loan Portfolio Breakdown (in billions of Canadian dollars) Loan Growth $6.6 Mortgages Commercial 22% CAGR Credit Cards $2.5 Personal Loans SME Industry grew at 17% CAGR 12

82 Proven Ability to Fund Growth Funding Breakdown (in billions of Canadian dollars) Funding Growth Corresponding & Sponsored $6.7 Bonds Chequing Accounts 5% 7% 14% 39% CDs $2.6 21% CAGR 36% Savings Accounts Industry grew at 16% CAGR 13

83 Very Strong Growth in Credit Cards Market Share by Segment Personal Loans Commercial Mortgages Credit Cards Total 14

84 A Leader in Growth and ROE Loan Growth (5 year CAGR) 25% 20% Corpbanca Davivienda Aval Colpatria/ Scotiabank * 15% 10% 5% Citi Bancolombia GNB Sudameris BCSC BBVA 0% *Excluding one time items 8% 11% 14% 17% 20% 23% ROE (5 year average) 15

85 Loan Market Share in Colombia: Room to Grow 28.7% 21.6% 12.8% 9.3% 6.9% 5.5% 3.5% 2.9% 2.5% Grupo Aval Bancolombia Davivienda BBVA Corpbanca Colpatria Agrario BCSC Citibank 16

86 Agenda The business today Performance record Growth strategy 17

87 Market Growth Drivers Infrastructure investment Oil & gas, energy and mining growing Large unbanked population Growth Opportunities Growing middle class 18

88 Protect and Enhance Profitability Advantage 1 Grow key customer and product segments 2 Proactive risk management 3 Leverage Scotiabank expertise 4 Build talent pipeline 19

89 Colpatria Growth Opportunities Leverage Scotiabank expertise Micro Finance Corporate & upper end Commercial IT best practices Risk tools & AML systems Target underpenetrated segments Leverage origination, credit cards & CRM platforms 20

90 Well Positioned for Continued, Profitable Growth Attractive macroeconomic environment Low banking penetration Proven record & strong platform for growth Local & international expertise 21

91 Latin America Investor Day January 2013 Retail & SME Strategies & Opportunities Danilo Morales Vice President, SME, Retail Banking and Branch Network Banco Colpatria

92 Agenda The business today Growth strategy 2

93 The Business Today # 1 credit card issuer Leader in co branding credit cards Mortgage market share 10% Momentum in savings growth Fast growth in SME loans 3

94 Diversified and Growing Loan Portfolio (in billions of Canadian dollars) Loan Portfolio Strengths 20% CAGR $3.4 Credit Cards Market Share 17.5% Diversified product mix Leader in credit cards Partnerships with utility companies $1.3 Consumer 3.5% Specialized sales force for each product Mortgage 9.8% 4

95 Growing Deposit Portfolio (in billions of Canadian dollars) Deposits Strengths $0.9 15% CAGR $1.8 CD Current Savings Growth above the system Improved deposit mix New products Focus on mass affluent segment 5

96 Leader in Credit Cards (in millions) # of Cards Colpatria Davivienda Bancolombia Falabella Bogotá Citibank 6

97 Crédito Fácil Codensa: A Profitable, Low Risk Business Model to Serve Low Income Customers The Bank Funding Sales & marketing Operations & risk Past due collections Éxito Card Industry Low Delinquency 15.1% Electricity Company Brand Billing & payment collections La Polar 14.6% Retail Partners Billing statement inserts Discounts / promotions Credit Card Industry 4.9% In store origination Codensa 3.5% 7

98 Well Managed Growth in SME (in billions of Canadian dollars) Strong Loan Growth While Delinquency Continues to Decline $0.5 38% CAGR Unsecured Other $0.1 Mortgage + Real Estate Leasing 2.8 % 8

99 Strong Growth in Insurance Revenues (in millions of Canadian dollars) Insurance Revenue Growth Expanding Product Penetration and Offering 43% CAGR Life Insurance Life Insurance Fire and earthquake Assistance Unemployment Crédito Fácil Fraud Funeral Personal Accident Leasing Serious diseases 9

100 Expanding Branch Network & Distribution Channels 171 branches 34 cities 1,200+ external sales force 6,300+ third party agents 10

101 Improving Branch Productivity Focused Branch Structure Branch Managers Branch Productivity Improvement Products Sold per Advisor per Day 4.4 SME Executive 65 Mass Affluent Executive 159 Sales Reps

102 Agenda The business today Growth strategy 12

103 Focused Growth Strategy Growth and profit focused on mass affluent and SME, capturing underserved opportunities Strengthen Channels Improve Value Proposition Development and Innovation Underserved Improve Risk 13

104 Solid Retail and SME Business Focused on mass affluent and SME segments Maintaining leadership in credit cards and expanding Codensa platform Insurance is a future driver to increase earnings 14

105 Latin America Investor Day January 2013 Corporate/Commercial Strategies & Opportunities Jorge Rojas Vice President, Commercial Banking Banco Colpatria

106 Agenda The business today Growth plans 2

107 Focused on Mid Market: Large Opportunity Commercial Annual sales $8 $100 million 4,000 companies Our Share Corporate Annual sales > $100 million 400 companies Our Share 10% 1.6% 3

108 A Well Diversified Portfolio with Short Duration By Industry Others Wholesale 10% Auto 4% 5% Energy, Oil & Gas, Mining 6% 25% Construction Transport 7% Services 10% 11% 22% Industrial Agribusiness Average remaining term: 2.2 years 4

109 Strong Growth Record (in billions of Canadian dollars) Portfolio Growth $2.7 21% CAGR $

110 Balanced Growth in Deposits from Commercial and Government Segments (in billions of Canadian dollars) Growth by Segment Key Strategies $1.5 $0.5 22% CAGR Government Commercial Cross sell cash management products Customized transactional solutions capabilities Leverage third party agent network (4,000+) 6

111 Agenda The business today Growth plans 7

112 Our Growth Focus Market by annual sales >US$100M 400 Companies Loans: US$26.4B 1.6% share Great opportunity for growth in corporate & upper end commercial segment US$50M US$100M 432 Companies Loans: US$5.1B US$7.5M US$50M 3,619 Companies Loans: US$12.2B 7.1% share 10.7% share 9.6% share 8

113 Mining, Infrastructure and Oil & Gas Opportunities Key Economic Sectors Colpatria Focus 1. Innovation 2. Housing 3. Mining / energy Oil & Gas + mining 4. Agriculture 5. Infrastructure Roads, railroads pipelines and ports 9

114 Key Initiatives New Banking Unit Creation of new upper end commercial & corporate banking unit leveraging Scotiabank s international expertise and capabilities Focus on mining, infrastructure and oil & gas sectors Target Commercial Clients Provide Global Banking & Markets and Global Wealth Management solutions to commercial clients 10

115 Solid Growth Platform Good mid market platform to support growth Increase penetration in upper end commercial & corporate segment Unique opportunity to complement Colpatria s existing capabilities with Scotiabank s expertise 11

116 Latin America Investor Day January 2013 Colfondos Strategies & Opportunities Alcides Vargas Chief Executive Officer Colfondos

117 Agenda The pension system in Colombia The business today Performance record Growth strategy 2

118 The Pension System at a Glance Public Defined Benefit Mandatory Pension Employment Insurance Private Defined Contribution Mandatory Pension Employment Insurance Voluntary Pension 5 Companies 5 Companies 14 Companies Colfondos Industry 3

119 Three Types of Capital Pools (in Canadian dollars) Mandatory Pension: $64 billion market Industry fees are based on client salary and not on AUM Employment Insurance: $3 billion market Contributions made by employers Voluntary: $6 billion market Fees based on AUM and redemption fees Income tax deductible, equivalent to RRSP in Canada 4

120 Agenda The pension system in Colombia The business today Performance record Growth strategy 5

121 The Business Today (in Canadian dollars) $9.6 billion in AUM Mandatory $9.0 billion 14% market share Employment Insurance $0.3 billion 10% market share Voluntary $0.3 billion 5% market share 2 million customers 1,100+ employees Established footprint in 20 major cities 20 year history in Colombia Bogota Cartagena Medellin 6

122 #4 Player in a $73 Billion Market (in Canadian dollars) Mandatory AUM $64 billion Employment Insurance AUM $3 billion Voluntary AUM $6 billion 5% 37% 2% 38% 35% 14% 16% 28% 10% 16% 34% 5% 4% 18% 38% Colfondos Skandia Proteccion Porvenir BBVA Horizonte * * Pending merger 7

123 Agenda The pension system in Colombia The business today Performance record Growth strategy 8

124 Solid Growth in AUM and Net Income (in billions of Canadian dollars) (in millions of Canadian dollars) AUM Net Income 18% CAGR $9.6 18% CAGR $22 $4.2 $ Industry CAGR 19% Industry CAGR 11% 9

125 Colfondos: An Attractive Business Model High cash flow + Low volatility + Low regulatory capital + Strong internal cash flow dividends Attractive Business Model 10

126 Agenda The pension system in Colombia The business today Performance record Growth strategy 11

127 Significant Growth Opportunities in Colombia Strong employment growth The middle class has doubled in the last 10 years Only 40% of labour force contributes to a mandatory pension fund 12

128 Five Point Growth Strategy New commercial model Our goal is to be recognized as a pension fund manager committed to service excellence and informational clarity New value added services Efficiency and expense rationalization Human resources development Grow ancillary businesses 13