In recent years, the Scotiabank Group has greatly enlarged its capabilities in personal wealth management services. The Bank’s aim is to provide the range of products and services to meet the investment needs of customers through a wide network of delivery channels. Wealth management products are today delivered to customers by staff in a variety of locations, both directly in the Bank and through its subsidiaries, as detailed in the table below.

Private Client Financial Services, the full-service retail brokerage division of ScotiaMcLeod, has grown rapidly, with the number of investment executives increasing by a third over the past three years. The business produced revenues in 1998 at the same level as 1997, despite weak customer activity in the latter part of the year. In addition, the Bank’s discount brokerage is one of the lowest cost non-advisory retail brokerage firms in Canada.

The Scotia Mutual Funds family, containing 27 individual mutual funds, is available to investors at each of the Bank’s Canadian branches through Scotia Securities. As well, a wide array of other investment products are available through the branch network, including “GICs with Guts”, the Bank’s innovative GICs linked to stock indexes, a product where the Bank is a market leader.

Scotiatrust is now one of the largest trust businesses in Canada. The Bank has a substantial number of skilled trust and investment officers operating in 28 centres across Canada. Two acquisitions (Montreal Trust in 1994 and National Trust in 1997) and significant internal growth have contributed to the achievement of this leadership position in the marketplace. Scotiabank’s international trust companies are located in Bahamas, Cayman, Jersey, and Hong Kong, and in a number of other locations through subsidiaries and affiliates. They offer trust services to private and institutional clients located outside Canada.

Private Banking, which provides services for clients with more sophisticated needs, is offered in five Canadian locations.

Scotia Cassels Investment Counsel, with $15 billion in assets under management, provides portfolio management for Scotia Mutual Funds, Scotiatrust customers, institutions and high net worth clients.

The wealth management area is expected to grow as a key complement to core banking services. The Bank will continue to invest in people and technology to realize the full potential of this growing business segment.

Generating Wealth Management revenues ...

* for 1998 includes predecessor firms