CWB reports solid fourth quarter performance and record results for fiscal 2012

CWB reports solid fourth quarter performance and record results for fiscal 2012 
Loan growth of 2% in the quarter and 14% for the year
Quarterly dividend declared of $0.17 per CWB common share, an increase of 6% 
Fourth Quarter 2012 Highlights((1)) (compared to the same period in the prior 
year) 


    --  Net income available to common shareholders of $43.0 million,
        up 20% ($7.1 million).
    --  Diluted earnings per common share of $0.55, up 17%; adjusted
        cash earnings per common share((2)) of $0.56, up 6%.
    --  Total revenues, on a taxable equivalent basis (teb)((2)), of
        $133.2 million, up 11% ($13.5 million).
    --  Solid Basel II regulatory capital position using the
        standardized approach for calculating risk-weighted assets:
        tangible common equity to risk-weighted assets ratio((2)) of
        8.8%, Tier 1 capital ratio of 10.6% and total capital ratio of
        13.8%. Well positioned for transition to Basel III regulatory
        capital framework effective January 1, 2013.
    --  Opened a new full-service business and personal banking centre
        in Winnipeg, Manitoba, bringing the total number of CWB
        branches to 41.
    --  Recognized for a seventh consecutive year as one of the 50 Best
        Employers in Canada in a list compiled by Aon Hewitt, a global
        human resources consultant.
    --  On December 3, 2012, declared a quarterly dividend of $0.17 per
        CWB common share, an increase of 6% over the prior quarter and
        13% over the dividend declared a year earlier.

(1)      Effective in the first quarter of 2012, CWB's unaudited
         interim consolidated financial statements and the accompanying
         notes, along with all comparative information, are prepared in
         accordance with International Financial Reporting Standards
         (IFRS).

(2)      Non-GAAP measure - refer to definitions following the table of
         Selected Financial Highlights.

Fiscal 2012 Highlights (compared to the prior year)
    --  Record net income available to common shareholders of $172.2
        million, up 15% ($22.7 million).
    --  Record diluted earnings per common share of $2.22, up 14%;
        adjusted cash earnings per share of $2.30, up 6%.
    --  Very strong loan growth of 14% ($1,660 million).
    --  Record total revenues (teb) of $525.5 million, up 9% ($41.9
        million).
    --  Return on common shareholders' equity of 15.0%, up 30 basis
        points.
    --  Net interest margin (teb) of 2.79%, down 20 basis points.
    --  Efficiency ratio (teb) of 44.8%, an improvement of 10 basis
        points.
    --  Dollar level of gross impaired loans decreased 31% ($30.4
        million) to $66.8 million, or 0.48% of total loans (compared to
        0.79% of total loans at October 31, 2011).
    --  Total assets and total loans surpassed $16 billion and $13
        billion, respectively.

Fiscal 2012 Performance versus Minimum Targets

 _____________________________________________________________________
|                        2012 Minimum Targets        |2012 Performance|
|____________________________________________________|________________|
|Net income available to common shareholders growth  |                |
|of 10%                                              |         15%    |
|____________________________________________________|________________|
|Total revenues (teb) growth of 7%                   |          9%    |
|____________________________________________________|________________|
|Loan growth of 10%                                  |         14%    |
|____________________________________________________|________________|
|Provision for credit losses between 0.20% - 0.25% of|                |
|average loans                                       |        0.19%   |
|____________________________________________________|________________|
|Efficiency ratio (teb)((1)) of 46% or less          |        44.8%   |
|____________________________________________________|________________|
|Return on common shareholders' equity((1)) of 15%   |        15.0%   |
|____________________________________________________|________________|
|Return on assets((1)) of 1.05%                      |        1.08%   |
|____________________________________________________|________________|

((1) )Defined on page 2.

Selected Financial Highlights
                            For the three months ended         Change       For the year ended    Change     


                                                             from                               from
(unaudited)      October 31        July 31     October 31                  October     October           
                   2012           2012           2011                       31          31
($ thousands,                                                    2011         2012        2011      2011
except per
share amounts) 
Results of                                                                                                   
Operations 
Net interest   $    113,246   $    115,217   $    106,184           7  % $ 443,572   $ 411,452         8    %
income (teb -
see below) 
Less teb              1,979          2,086          3,133        (37)        9,143      11,059      (17)     
adjustment 
Net interest        111,267        113,131        103,051           8      434,429     400,393         9     
income per
financial
statements 
Other income         19,932         22,933         13,489          48       81,910      72,103        14      
Total revenues      133,178        138,150        119,673          11      525,482     483,555         9     
(teb) 
Total revenues      131,199        136,064        116,540          13      516,339     472,496         9      
Net income           43,046         48,004         35,921          20      172,197     149,538        15     
available to
common
shareholders 
Earnings per                                                                                                 
common share 
Basic((1))          0.55           0.62           0.48          15         2.24        2.07         8      
Diluted(            0.55           0.61           0.47          17         2.22        1.95        14      
(2)) 
Adjusted            0.56           0.63           0.53           6         2.30        2.17         6      
cash((3)) 
Return on              13.8 %         16.1 %         13.6 %        20 bp      15.0 %      14.7 %      30  bp(
common                                                                                                   (5))
shareholders'
equity((4)) 
Return on              1.03           1.19           0.97           6         1.08        1.09       (1)     
assets((6)) 
Efficiency             46.7           42.8           45.5         120         44.8        44.9      (10)     
ratio (teb)(
(7)) 
Efficiency             47.4           43.4           46.7          70         45.6        45.9      (30)     
ratio 
Net interest           2.71           2.85           2.87        (16)         2.79        2.99      (20)     
margin (teb)(
(8)) 
Net interest           2.67           2.80           2.79        (12)         2.73        2.91      (18)     
margin 
Provision for          0.17           0.19           0.17           -         0.19        0.19         -     
credit losses
as a
percentage of
average loans 
Per Common                                                                                                   
Share 
Cash dividends $       0.16   $       0.16   $       0.14          14  % $    0.62   $    0.54        15    % 
Book value            15.94          15.56          13.87          15        15.94       13.87        15      
Closing market        29.56          26.27          28.50           4        29.56       28.50         4     
value 
Common shares        78,743         78,319         75,462           4       78,743      75,462         4     
outstanding
(thousands) 
Balance Sheet                                                                                                
and
Off-Balance
Sheet Summary 
Assets         $ 16,873,269   $ 16,033,025   $ 14,849,141          14  %                                      
Loans            13,953,686     13,642,414     12,293,282          14                                         
Deposits         14,144,837     13,455,398     12,394,689          14                                         
Debt                634,273        603,931        634,877           -                                         
Shareholders'     1,464,981      1,428,090      1,256,613          17                                        
equity 
Assets under      7,171,826      6,830,282      9,369,589        (23)                                        
administration 
Assets under        855,333        814,498        816,219           5                                        
management 
Capital                                                                                                      
Adequacy((9)) 
Tangible                8.8 %          8.7 %          8.6 %        20 bp                                     
common equity
to
risk-weighted
assets((10)) 
Tier 1 ratio           10.6           10.5           11.1        (50)                                         
Total ratio            13.8           13.7           15.4       (160)                                         
(1)       Basic earnings per common share (EPS) is calculated as net 
      income available to common shareholders divided by the 


          average number of common shares outstanding.

(2)       Diluted EPS is calculated as net income available to common
          shareholders divided by the average number of common shares
          outstanding adjusted for the dilutive effects of stock
          options and warrants.

(3)       Adjusted cash EPS is diluted EPS excluding the after-tax
          amortization of acquisition-related intangible assets and the
          non-tax deductible change in fair value of contingent
          consideration. These exclusions represent non-cash charges
          mainly related to the acquisition of National Leasing Group
          Inc. and are not considered indicative of ongoing business
          performance. The effect of the non-tax deductible change in
          the fair value of contingent consideration was eliminated in
          the third quarter of 2012 on the settlement of such
          consideration.  The Bank believes the adjusted results
          provide the reader with a better understanding about how
          management views CWB's performance.

(4)       Return on common shareholders' equity is calculated as net
          income available to common shareholders divided by average
          common shareholders' equity.

(5)       bp - basis point change.

(6)       Return on assets is calculated as net income available to
          common shareholders divided by average total assets.

(7)       Efficiency ratio is calculated as non-interest expenses
          divided by total revenues excluding the non-tax deductible
          change in fair value of contingent consideration.

(8)       Net interest margin is calculated as annualized net interest
          income divided by average total assets.

(9)       Capital adequacy is calculated in accordance with Basel II
          guidelines issued by the Office of the Superintendent of
          Financial Institutions Canada (OSFI). The 2011 ratio reflects
          the returns filed and has not been restated to International
          Financial Reporting Standards (IFRS).

(10)      Tangible common equity to risk-weighted assets is calculated
          as shareholders' equity less subsidiary goodwill divided by
          risk-weighted assets, calculated in accordance with
          guidelines issued by OSFI. The 2011 ratio has not been
          restated to IFRS.

Taxable Equivalent Basis (teb)

Most banks analyze revenue on a taxable equivalent basis to permit uniform 
measurement and comparison of net interest income. Net interest income (as 
presented in the consolidated statement of income) includes tax-exempt income 
on certain securities. Since this income is not taxable, the rate of interest 
or dividends received is significantly lower than would apply to a loan or 
security of the same amount. The adjustment to taxable equivalent basis 
increases interest income and the provision for income taxes to what they 
would have been had the tax-exempt securities been taxed at the statutory 
rate. The taxable equivalent basis does not have a standardized meaning 
prescribed by IFRS and, therefore, may not be comparable to similar measures 
presented by other banks. Total revenues, net interest income and income taxes 
are discussed on a taxable equivalent basis throughout this quarterly report 
to shareholders.

Non-GAAP Measures

Taxable equivalent basis, adjusted cash earnings per common share, return on 
common shareholders' equity, return on assets, efficiency ratio, net interest 
margin, tangible common equity to risk-weighted assets, Tier 1 and total 
capital adequacy ratios, and average balances do not have standardized 
meanings prescribed by IFRS and therefore may not be comparable to similar 
measures presented by other financial institutions.

Management's Discussion and Analysis

This financial summary should be read in conjunction with Canadian Western 
Bank's (CWB or the Bank) unaudited interim consolidated financial statements 
for the period ended October 31, 2012 and the audited consolidated financial 
statements and Management's Discussion and Analysis (MD&A) for the year ended 
October 31, 2011, available on SEDAR at www.sedar.com and the Bank's website 
at www.cwbankgroup.com. Commencing in 2012, CWB's financial results and 
quarterly financial statements, including comparative information, are 
prepared under International Financial Reporting Standards (IFRS). Except 
where indicated below, the factors discussed and referred to in the MD&A for 
fiscal 2011 remain substantially unchanged. Commencing in the first quarter of 
2012, operating results are presented as one segment - Banking and Financial 
Services. The 2012 Annual Report and audited consolidated financial statements 
for the year ended October 31, 2012 will be available on both SEDAR and the 
Bank's website on December 6, 2012. The 2012 Annual Report will be distributed 
to shareholders in January 2013.



EDMONTON, Dec. 4, 2012 /CNW/ - Canadian Western Bank (TSX: CWB) today 
announced solid financial performance marking the Bank's 98(th) consecutive 
profitable quarter. Fourth quarter net income available to common shareholders 
of $43.0 million was up 20% ($7.1 million) compared to the same quarter last 
year while diluted earnings per common share increased 17% to $0.55. Adjusted 
cash earnings per share, which excludes the after-tax amortization of 
acquisition-related intangible assets and the non-tax deductible change in 
fair value of contingent consideration, was $0.56, up 6%.

Fourth quarter total revenues, measured on a taxable equivalent basis (teb - 
see definition following the Financial Highlights table), grew 11% ($13.5 
million) to reach a record $133.2 million as the benefit of very strong 14% 
year-over-year loan growth and 48% ($6.4 million) higher other income more 
than offset the impact of a 16 basis point decline in net interest margin 
(teb) to 2.71%. Growth in other income mainly resulted from an $8.5 million 
positive change in net gains on securities and the elimination of charges 
related to changes in fair value of contingent consideration ($3.6 million in 
the fourth quarter of 2011), partially offset by $4.0 million lower net 
insurance revenues and a $2.6 million decline in the "other" component of 
other income. Net gains on securities of $5.4 million in the fourth quarter 
compared to net losses of $3.1 million in the same period of 2011. Charges for 
contingent consideration were eliminated in the third quarter of this year 
upon the settlement of the Bank's ownership of National Leasing Group Inc. Net 
insurance revenues were impacted by increased claims expense related to severe 
hailstorms in Alberta in August 2012. The 'other' component of other income in 
the fourth quarter of 2011 included a $2.0 million gain attributed to the sale 
of a residential mortgage portfolio.

Compared to last quarter, net income available to common shareholders declined 
10% ($5.0 million) as the positive revenue contribution from 2% quarterly loan 
growth and $3.5 million higher gains on securities was more than offset by the 
combined impact of a 14 basis point reduction in net interest margin (teb), a 
$5.3 million decline in net insurance revenues and a $1.8 million reduction in 
the 'other' component of other income. The material reduction in net interest 
margin largely resulted from unusually high interest recoveries in the 
previous quarter, as well as lower yields on both loans and securities, 
partially offset by more favourable fixed term deposit costs. Diluted earnings 
per common share decreased 10% ($0.06) from the prior quarter while adjusted 
cash earnings per share was down 11% ($0.07).

Record annual net income available to common shareholders of $172.2 million 
increased 15% ($22.7 million) compared to last year while diluted earnings per 
common share was up 14% to $2.22. Adjusted cash earnings per share of $2.30 
improved from $2.17 in the prior year. Record total revenues (teb) of $525.5 
million increased 9%, reflecting 8% ($32.1 million) growth in net interest 
income (teb) and 14% ($9.8 million) higher other income. Growth in net 
interest income was driven by the benefit of very strong loan growth, 
partially offset by the significant impact of a 20 basis point reduction in 
net interest margin (teb) to 2.79%.

The quarterly return on common shareholders' equity of 13.8% increased 20 
basis points compared to a year earlier, but was down 230 basis points from 
the prior quarter for the reasons already mentioned. Return on common 
shareholders' equity for the year of 15.0% was up from 14.7% in 2011. Fourth 
quarter return on assets of 1.03% compared to 0.97% last year and 1.19% in the 
previous quarter. Return on assets for the year was 1.08%, down one basis 
point from 2011.

The quarterly efficiency ratio (teb), which measures non-interest expenses as 
a percentage of total revenues (teb), excluding the non-tax deductible change 
in fair value of contingent consideration, was 46.7%, up 120 basis points. The 
annual efficiency ratio (teb) of 44.8% was a slight improvement from 44.9% in 
2011.

 _____________________________________________________________________
|"Solid fourth quarter performance marked the Bank's 98(th)           |
|consecutive profitable quarter and capped off a record year for CWB  |
|Group," said Larry Pollock, Chief Executive Officer of CWB. "We met  |
|or exceeded all of our fiscal 2012 targets, led by very strong loan  |
|growth. The volume in our pipeline for new loans remains solid and   |
|continues to be supported by favourable economic conditions in our   |
|key western Canadian markets. Although we will likely see an increase|
|from the current very low dollar level of impaired loans, this period|
|marked the 10th consecutive quarter of declines in this measure.     |
|Overall credit quality remains sound and we expect this will continue|
|going forward."                                                      |
|                                                                     |
|"Our minimum performance targets for 2013 reflect ongoing confidence |
|across all of our businesses," added Chris Fowler, President and     |
|Chief Operating Officer of CWB. "However, near-term growth in both   |
|revenues and earnings will likely be range-bound in the high         |
|single-digits owing to the significant headwinds on net interest     |
|margin from a very low interest rate environment and flat yield      |
|curve. Until we enter a rising rate environment, which could still be|
|quite some time away, our focus will remain centred on diligently    |
|serving our clients and underwriting quality, secured loans that     |
|offer a fair return in the context of today's markets. We will also  |
|keep a close eye on managing expenses to maintain our                |
|industry-leading efficiency ratio."                                  |
|                                                                     |
|"As always, maintaining our track record of strong growth requires   |
|that we adapt and constantly evolve our businesses to ensure we      |
|maintain our competitive advantages and continue to meet the needs of|
|our clients and other stakeholders. CWB Group's vision is to be seen |
|as crucial to our clients' futures and we are communicating and      |
|acting to achieve this vision across every corner of our business.   |
|Our tremendous team of people and their contributions to CWB Group's |
|unique organizational culture are the basis of our past and future   |
|success, and we will continue to foster this core advantage going    |
|forward. CWB was recognized in November for a seventh straight year  |
|as one of the 50 Best Employers in Canada, which is something we're  |
|very proud of," added Mr. Fowler.                                    |
|_____________________________________________________________________|

Regulatory Capital

The Bank's Basel II Tier 1 and total capital ratios at October 31, 2012 
remained solid at 10.6% and 13.8%, respectively, compared to 11.1% and 15.4% a 
year earlier. Reported capital ratios for 2011 are based on the returns filed 
and have not been restated for the full transition impact of IFRS or a 
required change in the capital deduction related to CWB's insurance 
subsidiary, both of which were effective in the first quarter of 2012. The 
lower total capital adequacy ratio additionally reflects the March 2012 
redemption of $125 million of subordinated debentures. The tangible common 
equity ratio, which represents the highest quality form of capital, was 8.8%, 
up from 8.6% a year earlier.

Going forward, all Canadian banks must comply with the Basel III capital 
standards. Pro forma application of the all-in Basel III standards to the 
Bank's financial position at October 31, 2012 results in an estimated 8.1% 
common equity Tier 1 (CET1) ratio, 9.9% Tier 1 ratio and 13.1% total capital 
ratio. This compares to required minimum Basel III regulatory capital ratios, 
which include a 250 basis point capital conservation buffer, of 7.0% CET1 
effective January 1, 2013, and 8.5% Tier 1 and 10.5% total capital effective 
January 1, 2014. The maintenance of solid capital levels over-and-above 
regulatory minimums supports management's objectives to effectively manage 
risks and maintain strong growth.

Dividends

On December 3, 2012, CWB's Board of Directors declared a cash dividend of 
$0.17 per common share, payable on January 4, 2013 to shareholders of record 
on December 17, 2012. This quarterly dividend represents a 6% increase over 
the previous quarter and is 13% higher than the quarterly dividend declared 
one year ago. The Board of Directors also declared a cash dividend of 
$0.453125 per Series 3 Preferred Share payable on January 31, 2013 to 
shareholders of record on January 24, 2013.

Dividend Reinvestment Plan

CWB common shares (TSX: CWB) and preferred shares (TSX: CWB.PR.A) are deemed 
eligible to participate in the Bank's dividend reinvestment plan (the Plan). 
The Plan provides holders of eligible shares of CWB the opportunity to direct 
cash dividends toward the purchase of CWB common shares. Further details for 
the Plan are available on the Bank's website. At the current time, for the 
purposes of the Plan, the Bank has elected to issue common shares from 
treasury at a 2% discount from the average market price (as defined in the 
Plan).

Loan Growth

Total loans of $13,954 million grew 2% ($311 million) in the quarter and 14% 
($1,660 million) over the past twelve months. Very strong performance in 
general commercial loans, equipment financing and leasing, and personal loans 
and mortgages contributed the greatest amount to loan growth in both the 
current quarter and for the year. Growth was achieved across all lending 
sectors, with the exception of oil and gas production loans, and the overall 
outlook for generating new loans remains solid. Management expects the Bank to 
maintain double-digit loan growth and has set the fiscal 2013 minimum loan 
growth target at 10%.

Credit Quality

Overall credit quality continued to show improvement reflecting sound 
underwriting, secured lending practices and a relatively strong level of 
economic activity in the Bank's key geographic markets. Gross impaired loans 
totaled $66.8 million at quarter end, compared to $70.2 million last quarter 
and $97.3 million a year earlier. This represented the tenth consecutive 
quarterly decrease in the dollar level of impaired loans. The quarterly 
provision for credit losses exceeded net new specific provisions and led to a 
slight increase in the dollar level of the collective allowance for credit 
losses compared to last quarter. Compared to October 31, 2011, the dollar 
level of the total allowance for credit losses increased $9.7 million to reach 
$81.7 million, exceeding the total balance of gross impaired loans. Based on 
management's current view of credit quality, a 2013 provision for credit 
losses between 18 and 23 basis points of average loans is expected.

Net Interest Margin

Net interest margin (teb) of 2.71% was down from 2.87% in the fourth quarter 
last year with the difference resulting from lower yields on both loans and 
securities, partially offset by more favourable costs on fixed term deposits 
and reduced debenture expense. Compared to the prior quarter, net interest 
margin (teb) decreased 14 basis points reflecting unusually high interest 
recoveries in the previous quarter, as well as lower yields on both loans and 
securities, partially offset by more favourable fixed term deposit costs. 
Annual net interest margin (teb) of 2.79% was down 20 basis points from the 
prior year reflecting the factors already noted. In view of expectations for a 
prolonged period of very low interest rates, a flat interest rate curve and 
ongoing competitive influences, fiscal 2013 net interest margin is expected to 
be lower compared to 2012.

Fiscal 2013 Minimum Performance Targets and Outlook

The Bank's minimum performance targets established for fiscal 2013 are 
presented in the following table:

 __________________________________________________________________
|                                                  |     2013      |
|                                                  |Minimum Targets|
|__________________________________________________|_______________|
|Net income available to common shareholders growth|         8%    |
|__________________________________________________|_______________|
|Total revenue (teb) growth                        |         8%    |
|__________________________________________________|_______________|
|Loan growth                                       |         10%   |
|__________________________________________________|_______________|
|Provision for credit losses as a percentage of    | 0.18% - 0.23% |
|average loans                                     |               |
|__________________________________________________|_______________|
|Efficiency ratio (teb)((1))                       |         46%   |
|__________________________________________________|_______________|
|Return on common shareholders' equity((2))        |         14%   |
|__________________________________________________|_______________|
|Return on assets((3))                             |       1.05%   |
|__________________________________________________|_______________|

((1)) Efficiency ratio (teb) calculated as non-interest expenses
      divided by total revenues (teb)

((2)) Return on common shareholders' equity calculated as net income
      available to common shareholders divided by average common
      shareholders' equity.

((3)) Return on assets calculated as net income available to common
      shareholders divided by average total assets.

Fiscal 2013 minimum performance targets are based on expectations for modest 
economic growth in Canada and comparatively stronger performance within the 
Bank's key western Canadian markets. Lending activity remains solid and 
double-digit loan growth is expected to be maintained despite the impacts of 
competitive factors and ongoing global economic uncertainties. Overall credit 
quality is expected to remain sound and the provision for credit losses is 
targeted between 18 and 23 basis points of average loans. The Bank will 
maintain its focus on secured loans that offer a fair and profitable return in 
an environment where net interest margin pressure is expected to persist as a 
result of a very low interest rate environment, a flat interest rate curve and 
increased competitive influences in certain sectors. The foregoing 
circumstances will continue to constrain growth in total revenues and earnings 
compared to what would be expected in a more normal historical interest rate 
environment. Targeted growth of 8% for both total revenues (teb) and net 
income available to common shareholders' reflects confidence in CWB's proven 
business model and overall strategic direction, but also considers 
expectations for a lower net interest margin compared to 2012. Minimum targets 
for return on common shareholders' equity and return on assets have been 
established at 14% and 1.05%, respectively. One of management's key priorities 
is to maintain effective control of costs while ensuring the Bank is 
positioned to deliver continued strong growth. In consideration of targeted 
revenue growth and planned expenditures, the 2013 efficiency ratio (teb) is 
expected to remain at 46% or less.

The ongoing development of CWB Group's core businesses will remain a key 
priority to achieve continued strong growth. Potential acquisitions that are 
both strategic and accretive for CWB shareholders will also be evaluated very 
closely. With its strong capital position under the more conservative 
standardized approach for calculating risk-weighted assets, CWB is well 
positioned to support continued growth and manage unforeseen challenges. 
Management will maintain its focus on creating value and growth for 
shareholders over the long term. Despite challenges arising from the current 
interest rate environment and related pressures on net interest margin, the 
current overall outlook for 2013 and beyond is positive.

 _____________________________________________________________________
|Fiscal 2012 Fourth Quarter and Annual Results Conference Call        |
|CWB's fourth quarter and annual results conference call is scheduled |
|for Tuesday, December 4, 2012 at 3:00 p.m. ET (1:00 p.m. MT). The    |
|Bank's executives will comment on financial results and respond to   |
|questions from analysts and institutional investors.                 |
|                                                                     |
|The conference call may be accessed on a listen-only basis by dialing|
|647-427-7450 or toll-free 1-888-231-8191. The call will also be      |
|webcast live on the Bank's website,                                  |
|www.cwbankgroup.com.            |
|                                                                     |
|A replay of the conference call will be available until December 18, |
|2012 by dialing 416-849-0833 (Toronto) or 1-855-859-2056 (toll-free) |
|and entering passcode 59924778.                                      |
|_____________________________________________________________________|

About Canadian Western Bank Group

Canadian Western Bank offers a full range of business and personal banking 
services across the four western provinces and is the largest publicly traded 
Canadian bank headquartered in Western Canada. The Bank, along with its 
operating affiliates, National Leasing Group Inc., Canadian Western Trust 
Company, Valiant Trust Company, Canadian Direct Insurance Incorporated, Adroit 
Investment Management Ltd. and Canadian Western Financial Ltd., collectively 
offer a diversified range of financial services across Canada and are together 
known as the Canadian Western Bank Group. The common shares of Canadian 
Western Bank are listed on the Toronto Stock Exchange under the trading symbol 
"CWB". The Bank's Series 3 Preferred Shares trade on the Toronto Stock 
Exchange under the trading symbol "CWB.PR.A". Refer to www.cwbankgroup.com for 
additional information.

Taxable Equivalent Basis (teb)

Most banks analyze revenue on a taxable equivalent basis to permit uniform 
measurement and comparison of net interest income. Net interest income (as 
presented in the consolidated statement of income) includes tax-exempt income 
on certain securities. Since this income is not taxable, the rate of interest 
or dividends received is significantly lower than would apply to a loan or 
security of the same amount. The adjustment to taxable equivalent basis 
increases interest income and the provision for income taxes to what they 
would have been had the tax-exempt securities been taxed at the statutory 
rate. The taxable equivalent basis does not have a standardized meaning 
prescribed by IFRS and, therefore, may not be comparable to similar measures 
presented by other banks. Total revenues, net interest income and income taxes 
are discussed on a taxable equivalent basis throughout this quarterly report 
to shareholders.

Non-GAAP Measures

Taxable equivalent basis, adjusted cash earnings per common share, return on 
common shareholders' equity, return on assets, efficiency ratio, net interest 
margin, tangible common equity to risk-weighted assets, Tier 1 and total 
capital adequacy ratios, and average balances do not have standardized 
meanings prescribed by IFRS and therefore may not be comparable to similar 
measures presented by other financial institutions. The non-GAAP measures used 
in this MD&A are calculated as follows:
    --  taxable equivalent basis - described above;
    --  adjusted cash earnings per common share - diluted earnings per
        common share excluding the after-tax amortization of
        acquisition-related intangible assets and the non-tax
        deductible change in fair value of contingent consideration.
        These exclusions represent non-cash charges mainly related to
        the acquisition of National Leasing Group Inc. and are not
        considered to be indicative of ongoing business performance;
    --  return on common shareholders' equity - annualized net income
        available to common shareholders divided by average common
        shareholders' equity;
    --  return on assets - annualized net income available to common
        shareholders divided by average total assets;
    --  efficiency ratio - non-interest expenses divided by total
        revenues excluding the non-tax deductible change in fair value
        of contingent consideration;
    --  net interest margin - net interest income divided by average
        total assets;
    --  tangible common equity to risk-weighted assets - common
        shareholders' equity less subsidiary goodwill divided by
        risk-weighted assets, calculated in accordance with guidelines
        issued by the Office of the Superintendent of Financial
        Institutions Canada (OSFI);
    --  Basel II Tier 1 and total capital adequacy ratios - in
        accordance with guidelines issued by OSFI;
    --  Basel III common equity Tier 1, Tier 1 and total capital ratios
        - in accordance with CWB's interpretation of the Basel III
        capital requirements and OSFI proposed guidance; and
    --  average balances - average daily balances.

Forward-looking Statements

From time to time, Canadian Western Bank (the Bank) makes written and verbal 
forward-looking statements. Statements of this type are included in the Annual 
Report and reports to shareholders and may be included in filings with 
Canadian securities regulators or in other communications such as press 
releases and corporate presentations. Forward-looking statements include, but 
are not limited to, statements about the Bank's objectives and strategies, 
targeted and expected financial results and the outlook for the Bank's 
businesses or for the Canadian economy. Forward-looking statements are 
typically identified by the words "believe", "expect", "anticipate", "intend", 
"estimate", "may increase", "may impact" and other similar expressions, or 
future or conditional verbs such as "will", "should", "would" and "could."

By their very nature, forward-looking statements involve numerous assumptions. 
A variety of factors, many of which are beyond the Bank's control, may cause 
actual results to differ materially from the expectations expressed in the 
forward-looking statements. These factors include, but are not limited to, 
general business and economic conditions in Canada including the volatility 
and lack of liquidity in financial markets, fluctuations in interest rates and 
currency values, changes in monetary policy, changes in economic and political 
conditions, regulatory and legal developments, the level of competition in the 
Bank's markets, the occurrence of weather-related and other natural 
catastrophes, changes in accounting standards and policies, the accuracy of 
and completeness of information the Bank receives about customers and 
counterparties, the ability to attract and retain key personnel, the ability 
to complete and integrate acquisitions, reliance on third parties to provide 
components of the Bank's business infrastructure, changes in tax laws, 
technological developments, unexpected changes in consumer spending and saving 
habits, timely development and introduction of new products, and management's 
ability to anticipate and manage the risks associated with these factors. It 
is important to note that the preceding list is not exhaustive of possible 
factors.

These and other factors should be considered carefully and readers are 
cautioned not to place undue reliance on these forward-looking statements as a 
number of important factors could cause the Bank's actual results to differ 
materially from the expectations expressed in such forward looking statements. 
Unless required by securities law, the Bank does not undertake to update any 
forward-looking statement, whether written or verbal, that may be made from 
time to time by it or on its behalf.

Assumptions about the performance of the Canadian economy in 2013 and how it 
will affect CWB's businesses are material factors the Bank considers when 
setting its objectives. In setting minimum performance targets for fiscal 
2013, management's assumptions included: modest economic growth in Canada and 
relatively stronger performance in the four western provinces; relatively 
stable prices for energy and other commodities compared to the levels observed 
at October 31, 2012; sound credit quality with actual losses remaining within 
the Bank's historical range of acceptable levels; and, a lower net interest 
margin attributed to expectations for the continuation of a very low interest 
rate environment, a flat interest rate curve, competitive factors and ongoing 
uncertainties about global economic conditions. Potential risks that would 
have a material adverse impact on the Bank's current economic expectations and 
forecasts include a global economic recession spurred by unfavourable 
developments in the euro zone, the strength of economic recovery in the United 
States, a meaningful slowdown in China's economic growth, or a significant and 
sustained deterioration in Canadian residential real estate prices.

Consolidated Balance Sheets
                                 As at          As at          As at          As at      Change  
                                                                                           from

(unaudited)                 October 31        July 31     October 31     November 1     October  
                                                                                             31

($ thousands)                     2012           2012           2011           2010        2011  

Assets                                                                                           

Cash Resources                                                                                   

Cash and non-interest     $     33,690   $     59,470   $     73,318   $      8,965        (54) %
bearing deposits with
financial institutions

Interest bearing deposits      177,028        217,290        233,964        168,998        (24)  
with regulated financial
institutions      

Cheques and other items         26,265            112          5,053          9,981         420  
in transit
                               236,983        276,872        312,335        187,944        (24)  

Securities                                                                                       

Issued or guaranteed by        980,200        688,164        644,356        564,694          52  
Canada

Issued or guaranteed by a      478,622        272,826        380,031         88,478          26  
province or municipality

Other securities               877,278        839,519        901,317        857,015         (3)  
                             2,336,100      1,800,509      1,925,704      1,510,187          21  

Securities Purchased                 -              -              -        177,954           -  
Under Resale Agreements

Loans                                                                                            

Residential mortgages        3,352,735      3,311,330      3,008,545      2,479,957          11  

Other loans                 10,682,674     10,410,879      9,356,717      8,276,263          14  
                            14,035,409     13,722,209     12,365,262     10,756,220          14  

Allowance for credit          (81,723)       (79,795)       (71,980)       (81,523)          14  
losses     
                            13,953,686     13,642,414     12,293,282     10,674,697          14  

Other                                                                                            

Property and equipment          86,941         75,685         72,674         65,978          20  

Goodwill                        45,536         45,536         45,691         45,562           -  

Other intangible assets         31,956         33,245         37,420         43,420        (15)  

Insurance related               57,650         56,774         56,734         59,652           2  

Derivative                       1,951            130              -            134          nm  
related                  

Other assets                   122,466        101,860        105,301        116,200          16  
                               346,500        313,230        317,820        330,946           9  

Total Assets              $ 16,873,269   $ 16,033,025   $ 14,849,141   $ 12,881,728          14 %
                                                                                                 

Liabilities and                                                                                  
Shareholders' Equity

Deposits                                                                                         

Payable on demand         $    685,193   $    590,923   $    583,267   $    530,608          17 %

Payable after notice         3,773,611      3,763,642      3,407,590      2,999,599          11  

Payable on a fixed date      9,686,033      9,100,833      8,403,832      7,177,560          15  
                            14,144,837     13,455,398     12,394,689     10,707,767          14  

Other                                                                                            

Cheques and other items         54,030         78,726         45,986         39,628          17  
in transit

Insurance related              160,302        151,052        149,130        149,396           7  

Derivative                          10            238            436            992        (98)  
related                  

Securities sold under           70,089              -              -              -          nm  
repurchase agreements

Other liabilities              239,503        210,353        262,185        239,474         (9)  
                               523,934        440,369        457,737        429,490          14  

Debt                                                                                             

Debt securities                209,273        178,931         89,877        202,006         133  

Subordinated debentures        425,000        425,000        545,000        315,000        (22)  
                               634,273        603,931        634,877        517,006           -  

Equity                                                                                           

Preferred shares               209,750        209,750        209,750        209,750           -  

Common shares                  490,218        483,266        408,282        279,620          20  

Retained earnings              733,298        702,799        608,848        586,933          20  

Share-based payment             22,468         23,339         21,884         21,291           3  
reserve

Other reserves                   9,247          8,936          7,849         24,692          18  

Total Shareholders'          1,464,981      1,428,090      1,256,613      1,122,286          17  
Equity

Non-controlling interests      105,244        105,237        105,225        105,179           -  

Total Equity                 1,570,225      1,533,327      1,361,838      1,227,465          15  

Total Liabilities and     $ 16,873,269   $ 16,033,025   $ 14,849,141   $ 12,881,728          14 %
Shareholders' Equity

nm - not meaningful.

Consolidated Statements of Income
                      For the three months ended     Change       For the year ended    Change  


                                                   from                               from
(unaudited)       October     July 31     October   October     October      October   October   
                  31         2012          31        31         31            31        31
($ thousands,        2012                    2011                  2012         2011          
except per
share amounts) 
Interest Income                                                                                  
Loans           $ 177,191   $ 176,977   $ 162,945         9 % $ 686,534   $  625,048        10 % 
Securities         10,135      10,578      12,011      (16)      43,548       44,177       (1)   
Deposits with         567         500         808      (30)       2,389        4,062      (41)  
regulated
financial
institutions 
              187,893     188,055     175,764         7     732,471      673,287         9   
Interest                                                                                        
Expense 
Deposits           70,022      68,387      64,265         9     269,772      238,701        13   
Debt                6,604       6,537       8,448      (22)      28,270       34,193      (17)   
               76,626      74,924      72,713         5     298,042      272,894         9   
Net Interest      111,267     113,131     103,051         8     434,429      400,393         9  
Income 
Provision for       5,962       6,453       5,183        15      25,107       21,783        15  
Credit
Losses        
Net Interest                                                                                    
Income after 
Provision for     105,305     106,678      97,868         8     409,322      378,610         8  
Credit Losses 
Other Income                                                                                     
Credit related      5,284       5,026       4,638        14      19,705       18,307         8   
Trust and           4,725       4,587       4,336         9      19,065       19,050         -  
wealth
management
services 
Insurance,            946       6,251       4,943      (81)      17,353       20,250      (14)  
net        
Gains on            5,433       1,896     (3,103)        nm      12,449        7,283        71  
securities, net 
Retail services     2,310       2,249       2,289         1       9,227        9,486       (3)   
Foreign               965         812         930         4       3,255        3,488       (7)  
exchange gains 
Contingent              -           -     (3,539)        nm     (2,489)     (12,305)      (80)  
consideration
fair value
change  
Other                 269       2,112       2,995      (91)       3,345        6,544      (49)   
               19,932      22,933      13,489        48      81,910       72,103        14   
Net Interest      125,237     129,611     111,357        12     491,232      450,713         9  
and Other
Income 
Non-Interest                                                                                    
Expenses 
Salaries and       39,826      39,350      35,183        13     153,844      141,865         8  
employee
benefits 
Premises and       10,404       9,839       9,383        11      39,502       36,738         8  
equipment 
Other expenses     11,790       9,779      11,419         3      42,720       42,449         1   
Provincial            156         150         125        25         500        1,399      (64)  
capital taxes 


                   62,176      59,118      56,110        11     236,566      222,451         6  

Net Income         63,061      70,493      55,247        14     254,666      228,262        12  
before Income
Taxes

Income Taxes       14,445      16,915      13,773         5      60,209       56,541         6  

Net Income      $  48,616   $  53,578   $  41,474        17 % $ 194,457   $  171,721        13 %

Net Income                                                                                      
Attributable to

Non-Controlling     1,768       1,772       1,751         1       7,052        6,975         1  
Interests

Net Income                                                                                      
Attributable to

Shareholders of $  46,848   $  51,806   $  39,723        18 % $ 187,405   $  164,746        14 %
the Bank

Preferred share     3,802       3,802       3,802         -      15,208       15,208         -  
dividends  

Net Income                                                                                      
Available to

Common          $  43,046   $  48,004   $  35,921        20 % $ 172,197   $  149,538        15 %
Shareholders

Average number                                                                                  
of common

shares (in         78,506      77,527      75,376         4      76,841       72,205         6  
thousands)

Average number                                                                                  
of diluted
common

shares (in         78,911      78,107      76,959         3      77,460       76,705         1  
thousands)

Earnings Per                                                                                    
Common Share

Basic           $    0.55   $    0.62   $    0.48        15 % $    2.24   $     2.07         8 %

Diluted              0.55        0.61        0.47        17        2.22         1.95        14  

nm - not meaningful.

Consolidated Statements of Comprehensive Income
                       For the three months           For the year ended
                               ended

(unaudited)           October         October           October    October
($ thousands)              31              31                31         31
                         2012            2011              2012       2011

Net Income          $  48,616 $        41,474   $       194,457 $  171,721

Other Comprehensive                                                       
Income (Loss), net
of tax

Available-for-sale                                                        
securities:


Gains (losses)       3,426         (8,693)             9,580   (11,710) 
from change in 
fair value((1)) 
Reclassification   (3,984)           2,337           (9,129)    (5,133) 
to net income( 
(2)) 
                    (558)         (6,356)               451   (16,843) 
Derivatives                                                               
designated as cash
flow hedges: 
Losses from          1,514               -             1,430          - 
change in fair 
value((3)) 
Reclassification     (645)               -             (483)          - 
to net income( 
(4)) 
                      869               -               947          - 
                      311         (6,356)             1,398   (16,843) 
Comprehensive       $  48,927 $        35,118   $       195,855 $  154,878
Income for the
Period 
                                                                       
Comprehensive                                                             
income for the
period attributable
to: 
Shareholders of  $  47,159 $        33,367   $       188,803 $  147,903 
the Bank 
Non-controlling      1,768           1,751             7,052      6,975 
interests 
Comprehensive       $  48,927 $        35,118   $       195,855 $  154,878
Income for the
Period 
((1))     Net of income tax of $1,247 and $3,441 for the quarter and 
      year ended October 31, 2012, respectively (2011 - $3,553 and 


          $4,731).

((2))     Net of income tax of $1,450 and $3,320 for the quarter and
          year ended October 31, 2012, respectively (2011 - $824 and
          $2,093).

((3))     Net of income tax of $530 and $500 for the quarter and year
          ended October 31, 2012, respectively (2011 - nil).

((4))     Net of income tax of $226 and $169 for the quarter and year
          ended October 31, 2012, respectively (2011 - nil).



Consolidated Statements of Changes in Shareholders' Equity
                                                  For the year ended

(unaudited)                                    October 31   October 31


                                                 2012         2011
($ thousands)                                             
Retained Earnings                                                      
Balance at beginning of period               $    608,848 $    586,933 
Net income attributable to shareholders of        187,405      164,746
the Bank 
Dividends   - Preferred shares                   (15,208)     (15,208) 
        - Common shares                      (47,747)     (39,177) 
Warrants purchased and cancelled                        -     (88,446) 
Balance at end of period                          733,298      608,848 
Other Reserves                                                         
Balance at beginning of period                      7,849       24,692 
Changes in available-for-sale securities              451     (16,843) 
Changes in derivatives designated as cash             947            -
flow hedges 
Balance at end of period                            9,247        7,849 
Preferred Shares                                                       
Balance at beginning and end of period            209,750      209,750 
Common Shares                                                          
Balance at beginning of period                    408,282      279,620 
Issued on settlement of contingent                 63,399            -
consideration   
Issued under dividend reinvestment plan            12,252        5,941 
Transferred from share-based payment reserve        4,432        4,009
on the exercise or exchange of options 
Issued on exercise of options                       1,853        2,996 
Issued on exercise of warrants                          -      115,716 
Balance at end of period                          490,218      408,282 
Share-based Payment Reserve                                            
Balance at beginning of period                     21,884       21,291 
Amortization of fair value of options               5,016        4,602 
Transferred to common shares on the exercise      (4,432)      (4,009)
or exchange of options 
Balance at end of period                           22,468       21,884 
Total Shareholders' Equity                      1,464,981    1,256,613 
Non-Controlling Interests                                              
Balance at beginning of period                    105,225      105,179 
Net income attributable to non-controlling          7,052        6,975
interests 
Dividends to non-controlling interests            (7,033)      (6,929) 
Balance at end of period                          105,244      105,225 
Total Equity                                 $  1,570,225 $  1,361,838 
Consolidated Statements of Cash Flow 
                                              For the year ended 
(unaudited)                                    October 31    October 31 
                                                 2012          2011
($ thousands)                                             
Cash Flows from Operating                                              
Activities 


       Net income                           $     194,457 $     171,721
       Adjustments to determine                                        
       net cash flows:
         Provision for credit                      25,107        21,783
         losses
         Depreciation and                          17,261        19,748
         amortization
         Current income taxes                       8,981         5,036
         receivable and payable
         Amortization of fair                       5,016         4,602
         value of employee stock
         options
         Accrued interest                         (3,541)         2,529
         receivable and payable,
         net
         Deferred income taxes,                     (695)      (11,146)
         net
         Gain on securities, net                 (12,449)       (7,283)
         Other items, net                          24,283        51,352
                                                  258,420       258,342

Cash Flows from Financing                                              
Activities
       Deposits, net                            1,750,148     1,686,922
       Securities sold under                       70,089             -
       repurchase agreements, net
       Common shares issued, net                   14,004       124,653
       of issuance costs 
       Debt securities issued,                    226,249             -
       net of issuance costs
       Debt securities repaid                   (106,855)     (112,129)
       Dividends                                 (62,955)      (54,385)
       Distributions to                           (7,033)       (6,930)
       non-controlling interests
       Debentures redeemed                      (120,000)      (70,000)
       Debentures issued                                -       300,000
       Warrants purchased and                           -      (88,446)
       cancelled
                                                1,763,647     1,779,685

Cash Flows from Investing                                              
Activities
        Interest bearing deposits                  57,128      (65,414)
       with regulated financial
       institutions, net
       Securities, purchased                  (4,959,542)   (4,725,843)
       Securities, sale proceeds                2,855,832     2,095,077
       Securities, matured                      1,711,152     2,192,675
       Loans, net                             (1,685,511)   (1,640,368)
       Property and equipment                    (27,586)      (19,041)
       Securities purchased under                       -       177,954
       resale agreements, net
                                              (2,048,527)   (1,984,960)

Change in Cash and Cash                          (26,460)        53,067
Equivalents

Cash and Cash Equivalents at                       32,385      (20,682)
Beginning of Period

Cash and Cash Equivalents at End            $       5,925 $      32,385
of Period *

* Represented by:                                                      
       Cash and non-interest                $      33,690 $      73,318
       bearing deposits with
       financial institutions
       Cheques and other items in                  26,265         5,053
       transit (included in Cash
       Resources)
       Cheques and other items in                (54,030)      (45,986)
       transit (included in Other
       Liabilities)

Cash and Cash Equivalents at End            $       5,925 $      32,385
of Period
                                                                       
                                                                       

Supplemental Disclosure of Cash                                        
Flow Information
        Interest and dividends              $     724,759 $     672,271
       received
       Interest paid                              293,871       268,272
        Income taxes paid                          51,923        63,034



Larry M. Pollock Chief Executive Officer Canadian Western Bank Phone: (780) 
423-8888  Kirby Hill, CFA Director, Strategy and Communications Canadian 
Western Bank Phone: (780) 441-3770 E-mail:kirby.hill@cwbank.com

SOURCE: Canadian Western Bank

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/December2012/04/c5752.html

CO: Canadian Western Bank
ST: Alberta
NI: FIN ERN DIV CONF 

-0- Dec/04/2012 13:30 GMT


 
Press spacebar to pause and continue. Press esc to stop.