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Contents <br />3 Message from Rick Waugh, President and CEO <br />6 Executive Management Team <br />8 Message from John Mayberry, Chairman of the Board <br />9 Corporate Governance <br />10 Board of Directors <br />12 Diversity by Business Lines and Geography <br />Our 5 Strategic Priorities <br />15 Sustainable Revenue 18 Prudent Risk Management <br />Growth and Appetite <br />16 Capital Management 19 Efficiency and Expense <br />17 Leadership Management <br />20 Corporate Social Responsibility <br />Our strength <br />is evident <br />in Scotiabank's <br />solid results for 2009. <br />Total net income: <br />mimol <br />Management Discussion & Analysis Return on equity: 16.7% <br />21 Management's Discussion 37 Group Financial Condition <br />and Analysis Our target range was 16-20% <br /> 51 Business Line Overview for return on equity. <br />23 2009 Financial Highlights 62 Risk Management <br />24 Overview 77 Controls and <br />28 Group Financial Accounting Policies <br />Performance 83 Supplementary Data Earnings per share: 8.5% <br />Consolidated Financial Statements Our earnings per share (diluted) <br /> growth target was 7-12%. <br />102 Management's Report 108 Consolidated Statement <br />on Internal Control over of Changes in <br />Financial Reporting Shareholders' Equity <br />104 Management's 108 Consolidated Statement <br />ti <br />it <br />P <br />d <br />53 <br />7% <br />Responsibility for of Comprehensive ro <br />uc <br />v <br />y: . <br />Financial Information Income <br />105 Shareholders' 109 Consolidated Statement Our target was to maintain a <br />Auditors' Report of Cash Flows productivity ratio of less than 58%. <br />106 Consolidated 110 Notes to the <br />Balance Sheet Consolidated <br />107 Consolidated Financial Statements <br />Ti <br />1 <br />'7° <br />1 O <br />?O <br />f I <br />S 1 <br />1 P <br />i <br />i <br />l S <br />i <br />i er <br />capital ratio: .1 <br />tatement o <br />ncome r <br />nc <br />pa <br />diar <br />6 <br />ubs <br />es <br />162 Shareholder Information <br />163 Glossary <br />164 Basel II Glossary <br />Our target was to maintain <br />strong capital ratios. <br />0