Citigroup Lowers Rating & Raises Target Price of Scotiabank

Citigroup, 13 June 2008� Lower Rating to 2M Driven by Valuation � At nearly 3x book and 11.2x forward earnings estimates, BNS is trading at a significant premium to its peer group of Canadian banks. Historically, the share price has traded at a premium ranging from 2.5% to 9% based on book and 2% to 5% based on earnings. Currently, the bank is trading at a 20% premium to book and 11% to earnings.