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CWB reports strong financial performance as total assets surpass $17 billion


CWB reports strong financial performance as total assets surpass $17 billion

Solid loan growth of 2% in the quarter and 12% over the past year

Quarterly dividend declared of $0.17 per CWB common share

Quarterly dividend declared on CWB preferred shares

First Quarter 2013 Highlights(1) (compared to the same period in the prior year)


    --  Net income available to common shareholders of $45.5 million,
        up 10%.
    --  Diluted earnings per common share of $0.57, up 6%; adjusted
        cash earnings per common share of $0.58, up 2%.
    --  Total revenues, on a taxable equivalent basis (teb), of $137.1
        million, up 9%.
    --  Total assets surpassed $17 billion based on strong loan growth
        of 12% over the past twelve months.
    --  Basel III regulatory capital position using the Standardized
        approach for calculating risk-weighted assets: 8.0% common
        equity Tier 1 (CET1) ratio, 9.7% Tier 1 ratio and 14.2% total
        capital ratio.
    --  Issued $250 million of subordinated debentures to support
        future growth and utilize a Basel III transition allowance.
    --  Completed the expansion of branch premises in St. Albert,
        Alberta and Regina, Saskatchewan to accommodate business
        growth.
    --  Obtained initial credit ratings of "R1 (low)" on short-term
        debt and "Pfd-3 (High)" on preferred shares from DBRS Limited,
        both with stable trends.
    --  On March 6, declared a quarterly dividend of $0.17 per CWB
        common share, unchanged from the prior quarter and up 13% over
        the quarterly dividend declared a year earlier.
         Highlights include certain non-IFRS measures - refer to
    (1)  definitions following the table of Selected Financial
         Highlights on page 4.

EDMONTON, March 7, 2013 /CNW/ - Canadian Western Bank (TSX: CWB) (CWB or the Bank) today announced strong financial performance marking the Bank's 99(th) consecutive profitable quarter, a period of almost 25 years. Net income available to common shareholders of $45.5 million increased 10% compared to the same quarter last year while adjusted cash earnings per common share reached $0.58, up 2%. Total revenues (teb) of $137.1 million represented a 9% increase over a year earlier reflecting the positive impact of solid loan growth and 19% ($3.6 million) higher other income, partially offset by an 11 basis point lower net interest margin (teb).

Compared to last quarter, net income available to common shareholders was 6% higher reflecting strong growth in other income, slightly higher net interest income (teb) and stable non-interest expenses. Adjusted cash earnings per common share increased 4%.

_____________________________________________________________________ |"Our 99(th) consecutive profitable quarter was marked by strong | |results that have CWB Group well positioned in relation to our 2013 | |performance targets," said Chris Fowler, President and COO. "Overall | |lending activity remains solid and we are optimistic that our growing| |market presence and continued economic growth in Western Canada will | |support another year of double-digit loan growth. We were pleased to | |see some stabilization in net interest margin this quarter, excluding| |the impact of our subordinated debt issue completed in December, but | |we expect the current interest rate environment and increased | |competition will lead to continued pressure on this measure across | |the banking industry." | | | |"As we officially transition to new leadership following Larry | |Pollock's extraordinary 23 year tenure as President and CEO, I am | |personally very excited to have this opportunity to lead our team and| |build on CWB Group's incredible track record," continued Mr. Fowler. | |"As always, our formula to deliver growth and performance for CWB | |shareholders is based on providing superior service and value for our| |clients. We plan to achieve this by continuing to refine and execute | |on our strategies to be seen as crucial to our clients." | |_____________________________________________________________________|

_____________________________________________________________________ |"As I step away, I am leaving our shareholders with a dedicated and | |highly competent management team overseeing an exceptional group of | |employees, a proven business model and a rock solid balance sheet," | |said Larry Pollock, CEO. "CWB has faced several economic cycles and | |numerous other challenges over the years and we have always succeeded| |by meeting these head on; never accepting the view that something | |couldn't be done. Today, this same approach is shared across our | |organization, and at the end of my final quarter as CEO, I'm proud to| |say that the outlook for CWB Group has never been brighter." | |_____________________________________________________________________|

On March 6, 2013, CWB's Board of Directors declared a cash dividend of $0.17 per common share, payable on March 28, 2013 to shareholders of record on March 21, 2013. This quarterly dividend was unchanged from the previous quarter and 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 April 30, 2013 to shareholders of record on April 18, 2013.

Fiscal 2013 Minimum Performance Targets and Outlook

The minimum performance targets established for the 2013 fiscal year together with CWB's actual year-to-date performance are presented in the table below:


                                                2013           2013
                                            Year-to-date      Minimum
                                             Performance      Targets

Net income available to common shareholders
growth((1))                                        10%            8%

Total revenue (teb) growth((1))                     9%            8%

Loan growth((2))                                   12%           10%

Provision for credit losses as a percentage
of average loans((3))                             0.18%   0.18% - 0.23%

Efficiency ratio (teb)((4))                       45.3%          46%

Return on common shareholders' equity((5))        14.2%          14%

Return on assets((6))                             1.06%         1.05%

  (1)  Year-to-date performance for earnings and revenue growth is the
       current year results over the same period in the prior year.

  (2)  Loan growth is the increase over the past twelve months.

  (3)  Year-to-date provision for credit losses, annualized, divided by
       average total loans.

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

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

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

Strong results through the first quarter have CWB well positioned to meet all 
of its 2013 minimum performance targets. Growth in net income available to 
common shareholders was driven by the combined benefit of solid loan growth, 
strong other income and the elimination of accounting charges related to 
contingent consideration. While total revenue growth was constrained by a 
lower net interest margin, the decrease compared to the previous quarter 
mainly resulted from higher average liquidity and a slight increase in overall 
funding costs attributed to the Bank's mid-December issuance of subordinated 
debentures. While lower average liquidity will likely help to offset margin 
pressure in future quarters, net interest margin will continue to be pressured 
by very low interest rates, a relatively flat interest rate curve and ongoing 
competitive factors. Continued loan growth will have a positive impact on net 
interest income in the future. A strategic focus on the Bank's higher yielding 
lending portfolios such as alternative mortgages and equipment financing 
should also contribute positively. The 2013 target for the efficiency ratio is 
expected to be achieved as expected revenue growth offsets the impact of 
higher non-interest expense from increased staff complement and ongoing 
investment to support business growth. Overall credit quality remains 
satisfactory and, based on our current view, we believe the annual provision 
for credit losses will remain at the low end of the 2013 target range.

General economic activity remains consistent with expectations for modest 
growth in Canada and comparatively stronger performance within the Bank's key 
western Canadian markets. Changes in mortgage industry lending guidelines have 
created business opportunities for the Bank's broker-sourced mortgage 
division, Optimum Mortgage. However, moderated construction and sales activity 
in certain Canadian residential real estate markets is expected to soften 
growth opportunities within other lending sectors. Ongoing improvements in the 
United States housing market appear to be driving a gradual recovery of this 
important economy, with positive implications for Canada's economic outlook. 
Although global economic growth is expected to remain subdued, risks of a 
significant global downturn appear to be somewhat diminished compared to prior 
periods. The Canadian economy is expected to grow modestly in 2013 and we are 
optimistic about continued growth opportunities for CWB Group.

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, Canadian Direct Insurance Incorporated, Valiant Trust Company, 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.

 
________________________________________________________________________________________________________________________
_________________
|Fiscal 2013 First Quarter Results Conference Call                                                                      

| |

| |CWB's first quarter results conference call is scheduled for Thursday, March 7, 2013 at 1:30 p.m. ET (11:30 a.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/investor_relations/webcast_events.htm.| |

| |A replay of the conference call will be available until March 21, 2013 by dialing 416-849-0833 (Toronto) or 1-855-859-2056 (toll-free) | |and entering passcode 95951376.

| |_______________________________________________________________________________________________________________________ __________________|

Selected Financial Highlights

 

For the three months ended Change

from

(unaudited) January 31 October 31 January 31 January


                                                                     31

($ thousands,
except per share           2013           2012           2012      2012     
amounts)

Results of                                                                  
Operations

  Net interest     $    114,749   $    113,246   $    107,509         7    %
  income (teb -
  see below)

  Less teb                1,915          1,979          2,620      (27)     
  adjustment

  Net interest          112,834        111,267        104,889         8     
  income per
  financial
  statements

  Other income           22,379         19,932         18,791        19     

  Total revenues        137,128        133,178        126,300         9     
  (teb)

  Total revenues        135,213        131,199        123,680         9     

  Net income             45,482         43,046         41,478        10     
  available to
  common
  shareholders

  Earnings per                                                              
  common share
     Basic((1))            0.58           0.55           0.55         5     
     Diluted(              0.57           0.55           0.54         6     
     (2))
     Adjusted              0.58           0.56           0.57         2     
     cash((3))

  Return on                14.2 %         13.8 %         15.5 %   (130)  bp(
  common                                                                (5))
  shareholders'
  equity((4))

  Return on                1.06           1.03           1.07       (1)     
  assets((6))

  Efficiency               45.3           46.7           43.7       160     
  ratio (teb)(
  (7))

  Efficiency               45.9           47.4           44.6       130     
  ratio

  Net interest             2.66           2.71           2.77      (11)     
  margin (teb)(
  (8))

  Net interest             2.62           2.67           2.70       (8)     
  margin

  Provision for            0.18           0.17           0.20       (2)     
  credit losses
  as a
  percentage of
  average loans

Per Common Share                                                            

  Cash dividends   $       0.17   $       0.16   $       0.15        13    %

  Book value              16.42          15.94          14.36        14     

  Closing market          30.84          29.56          26.47        17     
  value

  Common shares          78,992         78,743         75,694         4     
  outstanding
  (thousands)

Balance Sheet                                                               
and Off-Balance
Sheet Summary

  Assets           $ 17,161,437   $ 16,873,269   $ 15,484,048        11     

  Loans              14,299,112     13,953,686     12,744,891        12     

  Deposits           14,141,439     14,144,837     12,960,929         9     

  Debt                  860,661        634,273        685,049        26     

  Shareholders'       1,506,438      1,464,981      1,296,634        16     
  equity

  Assets under        7,306,557      7,171,826      6,912,244         6     
  administration

  Assets under          882,213        855,333        843,648         5     
  management

Capital Adequacy                                                            
((9))

  Common equity             8.0 %          n/a            n/a       n/a     
  Tier 1 ratio

  Tier 1 ratio              9.7           10.6 %         10.2 %     n/a     

  Total ratio              14.2           13.8           14.6       n/a     
      n/a - not applicable
       

((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.

((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 annualized
      net income available to common shareholders divided by average
      common shareholders' equity.

((5)) bp - basis point change.

((6)) Return on assets is calculated as annualized 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)) As of January 1, 2013, the Office of the Superintendent of
      Financial Institutions Canada (OSFI) adopted a new capital
      management framework called Basel III and capital is managed and
      reported in accordance with those requirements. Capital ratios
      prior to fiscal 2013 have been calculated using the previous
      framework, Basel II. Capital ratios calculated under Basel III
      are not directly comparable to the equivalent Basel II measures.

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 International Financial Reporting Standards (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-IFRS Measures

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

Management's Discussion and Analysis

This management's discussion and analysis (MD&A), dated March 6, 2013, should 
be read in conjunction with Canadian Western Bank's (CWB or the Bank) 
unaudited condensed interim consolidated financial statements for the period 
ended January 31, 2013, and the audited consolidated financial statements and 
MD&A for the year ended October 31, 2012, available on SEDAR at www.sedar.com 
and the Bank's website at www.cwbankgroup.com.

Overview

CWB is pleased to report strong financial performance for its 99(th) 
consecutive profitable quarter, a period spanning nearly 25 years. Net income 
available to common shareholders of $45.5 million represented growth of 10% 
($4.0 million) compared to the same quarter last year. Total revenues, on a 
taxable equivalent basis (teb), grew 9% ($10.8 million), mainly reflecting the 
positive impact of strong 12% loan growth and 19% higher other income. Loan 
growth also led to total assets surpassing $17 billion. The provision for 
credit losses measured as a percentage of average loans of 18 basis points 
decreased two basis points compared to the same period in 2012. Diluted 
earnings per common share increased 6% to $0.57 while adjusted cash earnings 
per common share was up 2% to $0.58. The difference in the rate of growth 
between diluted and adjusted cash earnings per share relates to the exclusion 
in adjusted cash earnings per share of the non-tax deductible change in fair 
value of contingent consideration. While the change in fair value of 
contingent consideration was eliminated in May 2012, it reduced other income 
in the first quarter of last year by $1.2 million. The lower growth rate of 
adjusted cash earnings per share compared with growth in net income available 
to common shareholders reflects the issuance of CWB common shares to settle 
the contingent consideration.

Compared to the previous quarter, net income available to common shareholders 
grew 6% ($2.4 million) as the combined benefit of 12% ($2.4 million) higher 
other income, 2% quarterly loan growth and stable non-interest expenses was 
partially offset by the impact of a five basis point reduction in net interest 
margin. The change in net interest margin largely reflects higher average 
liquidity and an increase in funding costs attributed to the Bank's 
mid-December subordinated debenture issue.

The quarterly return on common shareholders' equity (ROE) of 14.2% was down 
130 basis points from the same quarter in 2012, but up 40 basis points 
compared to the prior quarter. The decline in ROE year-over-year mainly 
reflects the combined impact of constrained profitability from margin pressure 
and additional CWB common shares outstanding. First quarter return on assets 
of 1.06% compares to 1.07% a year earlier and 1.03% last quarter.

Total Revenues (teb)

Total revenues, comprising both net interest income and other income, reached 
$137.1 million for the quarter, up 9% ($10.8 million) compared to a year 
earlier. Growth in net interest income of 7% ($7.2 million) reflects the 
positive impact of strong 12% loan growth, partially offset by an 11 basis 
point reduction in net interest margin. Other income increased 19% ($3.6 
million) largely resulting from the elimination of the contingent 
consideration fair value change, a gain on the sale of an insured residential 
mortgage portfolio, higher net insurance revenues and an increase in net gains 
on securities.

Total revenues were up 3% ($4.0 million) compared to the previous quarter as 
higher net insurance revenues and an increase in the 'other' category of other 
income more than offset the impact of lower net gains on securities and a 
modest decline in net interest margin.

Net Interest Income (teb)

Net interest income of $114.7 million grew 7% ($7.2 million) over the same 
quarter last year as the benefit of strong loan growth was partially offset by 
an 11 basis point reduction in net interest margin to 2.66%. The lower net 
interest margin was mainly attributed to reduced yields on loans and 
securities reflecting the combined impact of the sustained very low interest 
rate environment and flat interest rate curve, as well as ongoing competitive 
pressures. Downward pressure on net interest margin from lower yields was 
partially offset by more favourable fixed term deposit and subordinated 
debenture costs.

Compared to the previous quarter, net interest income was up 1% ($1.5 million) 
as the benefit of solid loan growth was moderated by a five basis point 
decline in net interest margin. The reduction in net interest margin in the 
quarter substantially resulted from higher average liquidity and increased 
funding costs attributable to the debenture issue. The quarterly impact on 
margin from lower yields on loans and securities was offset by comparable 
reductions in overall deposit costs.

Expected lower average liquidity related to the absorption of the debenture 
issue will likely result in modest improvement in net interest margin in 
future quarters. However, this key measure will continue to be constrained by 
very low interest rates, a relatively flat interest rate curve and ongoing 
competitive pressures. In the absence of increases in the prime lending 
interest rate and/or a significant steepening of the interest rate curve, net 
interest margin is likely to fluctuate close to the levels achieved in the 
past two quarters.

Note 14 to the unaudited interim consolidated financial statements summarizes 
the Bank's exposure to interest rate risk as at January 31, 2013. The 
estimated sensitivity of net interest income to a change in interest rates is 
presented in the table below. The amounts represent the estimated change in 
net interest income that would result over the following twelve months from a 
one-percentage point change in interest rates. The January 31, 2013 estimates 
are based on a number of assumptions and factors, which include:
    --  a constant structure in the interest sensitive asset and
        liability portfolios;
    --  floor levels for various deposit liabilities;
    --  interest rate changes affecting interest sensitive assets and
        liabilities by proportionally the same amount and applied at
        the appropriate repricing dates; and,
    --  no early redemptions.
                             January 31     October 31     January 31  

($ thousands)                      2013           2012           2012  
                                                                       

Estimated impact on net                                                
interest income of a 1%
increase in interest rates

  1 year                   $     13,916   $     15,086   $     13,519  

  1 year percentage change          3.4 %          3.8 %          3.7 %
                                                                       

Estimated impact on net                                                
interest income of a 1%
decrease in interest rates

  1 year                   $   (21,386)   $   (21,534)   $   (16,549)  

  1 year percentage change        (5.3) %        (5.4) %        (4.5) %
                                                                       

It is estimated that a one-percentage point increase in all interest rates at 
January 31, 2013 would decrease unrealized gains related to available-for-sale 
securities and the fair value of interest rate swaps designated as hedges, and 
result in a reduction in other comprehensive income of approximately $11.7 
million, net of tax (January 31, 2012 - $10.1 million); it is estimated that a 
one-percentage point decrease in all interest rates at January 31, 2013 would 
result in a higher level of unrealized gains related to available-for-sale 
securities and increase the fair value of interest rate swaps designated as 
hedges, which would increase other comprehensive income by approximately $11.7 
million, net of tax (January 31, 2012 - $10.1 million).

Management will continue to manage the asset liability structure and interest 
rate sensitivity within the Bank's established policies through pricing and 
product initiatives, as well as the use of interest rate swaps and other 
appropriate strategies.

Other Income

First quarter other income of $22.4 million increased 19% ($3.6 million) 
compared to the same quarter last year mainly reflecting the elimination of 
contingent consideration fair value changes (the fair value change in the 
first quarter of 2012 reduced other income by $1.2 million) and a $1.0 million 
contribution from the sale of a $28 million insured residential mortgage 
portfolio within Optimum Mortgage. Net insurance revenues increased $0.8 
million resulting from growth in net earned premiums and relatively stable 
claims experience. Gains on securities were $0.7 million (37%) higher 
reflecting favourable market opportunities and the ongoing strategic 
repositioning of the securities portfolio. Credit related fee income increased 
$0.5 million (9%), while trust and wealth management services revenues were up 
$0.3 million (6%). The 'other' component of other income increased $0.2 
million (20%) as the positive contribution from the previously mentioned 
portfolio sale was partially offset by the expiry of a lease servicing 
contract in the first quarter of 2012.

Compared to the previous quarter, other income was up 12% ($2.4 million) as a 
$4.3 million increase in net insurance revenues and a $0.8 million increase in 
the 'other' component of other income was partially offset by a $2.8 million 
reduction in net gains on securities. Following severe August hail storms in 
Alberta, net claims expense for insurance operations was abnormally high 
during the fourth quarter of 2012. More normalized claims experience in the 
current quarter was the main factor contributing to the significant increase 
in net insurance revenues. Other income also benefited from a combined $0.7 
million increase in trust and wealth management services, retail services and 
credit related fee income. Based on the current composition of the securities 
portfolio, management believes net gains on securities will continue to 
provide a source of revenue for the remainder of the year, however, at a lower 
level compared to that achieved in the current quarter.

Credit Quality

Strong overall credit quality reflects sound underwriting practices and a 
relatively solid level of economic activity in Western Canada despite slow 
growth in the global economy and low prices for natural gas. Gross impaired 
loans at January 31, 2013 were $55.7 million, compared to $66.8 million last 
quarter and $90.9 million a year earlier. This represented the 11(th) 
consecutive quarterly decrease in the dollar level of gross impaired loans. 
Management expects the dollar level of gross impaired loans to increase from 
the current very low level reflecting normal fluctuations through the credit 
cycle. Although the total number of accounts classified as impaired was up 8% 
compared to the previous quarter, new formations were smaller in magnitude, 
totaling $15.0 million, versus $18.8 million last quarter. The total number of 
accounts classified as impaired was down 3% compared to a year earlier.
                       For the three months ended        Change        
                                                           from

(unaudited)      January      October      January   January 31        
                      31           31           31

($ thousands)      2013         2012         2012         2012         

Gross         $   66,840   $   70,241   $   97,258         (31)       %
impaired
loans,
beginning of
period

  New             14,972       18,782       18,928         (21)        
  formations

  Reductions,   (12,906)     (17,561)     (20,787)         (38)        
  impaired
  accounts
  paid down
  or returned
  to
  performing
  status

  Write-offs    (13,172)      (4,622)      (4,542)          190        

Total((1))    $   55,734   $   66,840   $   90,857         (39)       %
                                                                       

Balance of    $   23,833   $   35,034   $   44,252         (46)       %
the ten
largest
impaired
accounts

Total number         135          125          139          (3)        
of accounts
classified as
impaired

Gross
impaired
loans as a
percentage of
total loans(
(3))                0.39 %       0.48 %       0.71 %         32 bp((2))

(1) Gross impaired loans includes foreclosed assets held for sale with
    a carrying value of $9,160 (October 31, 2012 - $10,462 and January
    31, 2012 - $4,683).

(2) bp - basis point change.

(3) Total loans do not include an allocation for credit losses or
    deferred revenue and premiums.
     

The dollar level of gross impaired loans represented 0.39% of total loans at 
quarter end, compared to 0.48% last quarter and 0.71% one year ago. As at 
January 31, 2013, the collective allowance for credit losses exceeded the 
balance of impaired loans, net of specific allowances. Net impaired loans 
after adjusting for the collective allowance for credit losses represented 
-0.14% of total loans, compared to -0.11% last quarter and +0.13% a year 
earlier. The dollar level of gross impaired loans goes up and down as loans 
become impaired and are subsequently resolved, and does not directly reflect 
the dollar value of expected write-offs given tangible security held against 
the Bank's lending positions. Specific allowances for expected write-offs are 
established through detailed analyses of both the overall quality and ultimate 
marketability of the security held against impaired accounts. More than half 
of the higher-than-average first quarter write-offs were attributed to three 
accounts, including two oil and gas production loans. The overall level of 
direct exposure to oil and gas production loans is low and actual credit 
losses are expected to remain within the Bank's historical range of acceptable 
levels.

The provision for credit losses measured against average loans was 18 basis 
points this quarter. Based on the current environment and expectations for 
credit quality looking forward, management believes the annual provision for 
credit losses will remain at the low end of the 2013 target range of 18 to 23 
basis points.

The total allowance for credit losses (collective and specific) represented 
137% of gross impaired loans at quarter end, compared to 122% last quarter and 
82% one year ago. The total allowance for credit losses was $76.4 million at 
January 31, 2013, compared to $81.7 million last quarter and $74.6 million a 
year earlier. The increase in the total allowance for credit losses compared 
to the same period last year was mainly attributed to a higher collective 
allowance to support ongoing loan growth. The collective allowance was $69.7 
million at January 31, 2013, compared to $67.3 million last quarter and $62.7 
million a year earlier.

Non-interest Expenses

One of management's key priorities is to maintain effective control of costs 
while ensuring the Bank is positioned to deliver strong growth over the long 
term. Effective execution of CWB's strategic plan will continue to require 
increased investment in certain areas. Significant anticipated expenditures 
relate to additional staff complement as well as expanded infrastructure and 
further investment in technology. This strategy is aligned with the Bank's 
commitment to maximize shareholder value and is expected to provide material 
benefits in future periods. A major program to implement a new core banking 
system was formally initiated during the quarter. Preliminary timelines 
anticipate implementation of the new system in 2015 with an initial estimated 
budget of $50 million. Expansions of existing branch premises in St. Albert, 
Alberta and Regina, Saskatchewan were completed in the first quarter. Upgrades 
and expansion of other branch infrastructure is underway and potential 
locations for additional new branches are under consideration. Compliance with 
an increasing level of regulatory rules and oversight for all Canadian banks 
requires the investment of both time and resources, which further contributes 
to higher non-interest expenses.

Compared to the same quarter last year, non-interest expenses of $62.1 million 
were up $6.4 million (11%). Salary and benefit costs increased $4.9 million 
(14%), premises and equipment expenses were up $0.8 million (9%), while other 
expenses increased $0.6 million (6%). The change in salary and benefit costs 
was driven by a combination of a higher staff complement to support ongoing 
growth and annual salary increments. The increase in premises and equipment 
relates to ongoing expansion, such as the new full-service branch in Winnipeg, 
Manitoba, opened in October 2012, as well as expenses related to investment in 
technology and infrastructure. Higher general expenses include marketing and 
business development costs related to initiatives to enhance awareness of 
CWB's brand and product offerings.

Compared to the previous quarter, non-interest expenses were down $0.1 million 
(0.2%) as $1.5 million (4%) higher salary and benefit costs were offset by 
reductions in other categories. General expenses were down $1.5 million (13%), 
including a $1.3 million reduction in advertising costs attributed to the 
timing of certain external awareness initiatives. Salary and benefit costs 
were higher mainly driven by annual salary increments and additional staff 
complement to facilitate business growth.

The first quarter efficiency ratio (teb), which measures non-interest expenses 
as a percentage of total revenues (teb), was 45.3%, compared to 43.7% last 
year and 46.7% in the previous quarter. In consideration of expected revenues 
and planned expenditures, management believes the 2013 target for the 
efficiency ratio of 46% or better will be achieved.

Income Taxes

The first quarter effective income tax rate (teb) was 25.7%, compared to 26.7% 
in the same quarter last year. The reduced tax rate mainly reflects a 150 
basis point decrease in the basic federal income tax rate effective on January 
1, 2012.

Comprehensive Income

Comprehensive income is comprised of net income and other comprehensive income 
(OCI), all net of income taxes, and totaled $54.6 million for the first 
quarter, compared to $52.9 million in the same period last year. The net 
increase in comprehensive income was driven by 9% ($4.0 million) higher net 
income, offset by lower changes in fair value, net of taxes, on 
available-for-sale securities. While the combined dollar investment in 
preferred shares and common equities is relatively small in relation to total 
liquid assets, it increases the potential for comparatively larger 
fluctuations in OCI.

Balance Sheet

Total assets of $17,161 million surpassed $17 billion on growth of 2% ($288 
million) in the quarter and 11% ($1,677 million) in the past year. 

Cash and Securities

Cash, securities and securities purchased under resale agreements totaled 
$2,517 million at January 31, 2013, compared to $2,573 million last quarter 
and $2,429 million one year ago (refer to the Treasury Management section of 
this MD&A for additional details). Net unrealized gains recorded on the 
balance sheet of $16.0 million compares to $11.3 million last quarter, with 
the difference mainly reflecting increased market values of both preferred and 
common equities. Net unrealized gains were down $2.8 million from a year 
earlier, largely resulting from net gains realized on disposition of preferred 
equities throughout the year. The securities portfolio is primarily comprised 
of high quality debt instruments, preferred shares and common shares that are 
not held for trading purposes and, where applicable, are typically held until 
maturity. Fluctuations in value are generally attributed to changes in 
interest rates, movements in market credit spreads and shifts in the interest 
rate curve. Volatility in equity markets also leads to fluctuations in value, 
particularly for common shares.

Net realized gains on securities in the first quarter of $2.7 million compares 
to $1.9 million in the same period last year and $5.4 million in the previous 
quarter. Net gains compared to the first quarter of 2012 reflect favourable 
market opportunities and the ongoing strategic repositioning of the securities 
portfolio. Based on the current composition of the securities portfolio, 
management believes net gains on securities will continue to provide a source 
of revenue for the remainder of the year, however, at a lower level of 
contribution than the current quarter. The Bank has no direct investment in 
any non-Canadian sovereign debt or other securities issued outside of Canada 
or the United States.

Treasury Management

Higher average liquidity compared to the previous quarter mainly resulted from 
the mid-December issue of subordinated debentures. The corresponding increase 
in cash balances and low yielding government securities had a negative 
influence on net interest margin, and, on a net basis, accounted for much of 
the five basis point decline compared to last quarter. Average liquidity 
remained below the relatively high level maintained in the first quarter of 
2012, when global macroeconomic risks were elevated. Management will continue 
to closely monitor macroeconomic events and the outlook for domestic economic 
growth, and adjust its liquidity strategy accordingly. Subsequent to quarter 
end, average liquidity has returned to levels consistent with expectations for 
a relatively normal operating environment.

DBRS Limited maintains published credit ratings on the Bank's senior debt 
(deposits), short term debt, subordinated debentures and preferred shares of 
"A (low)", "R1 (low)", "BBB (high)", and "Pfd-3 (high)", respectively, all 
with stable outlooks. DBRS ratings on short-term debt and preferred shares 
were initiated during the first quarter. Credit ratings do not comment on 
market price or suitability of any financial instrument for a particular 
investor and are not recommendations to purchase, sell or hold securities. 
Ratings are subject to revision or withdrawal at any time by the rating 
organization. Management believes the ratings widen the base of clients and 
investors who can participate in CWB's deposit and debt offerings, while also 
lowering overall funding costs and the cost of capital.

The Basel Committee on Banking Supervision (the Basel Committee) has issued a 
framework document outlining two new liquidity standards. The document 
prescribes the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio 
(NSFR) as minimum regulatory standards effective January 1, 2015 and January 
1, 2018, respectively. The LCR establishes a common measure of liquidity risk 
and requires institutions to maintain sufficient liquid assets to cover a 
minimum of 30 days of cash flow requirements in a stressed situation. The NSFR 
describes a second common measure of liquidity establishing a minimum 
acceptable amount of stable funding based on the liquidity characteristics of 
a financial institution's assets and activities over a one-year horizon. This 
quarter, the Basel Committee issued additional guidance expanding the asset 
classes to be considered liquid assets, and allowing supervisors the ability 
to reduce the liquidity requirements for certain deposits. The Basel 
Committee has introduced a phase-in period for compliance with LCR guidelines 
beginning in 2015. It is anticipated that Canadian banks will be required to 
fully comply with the LCR regulations in 2015 with no phase-in. Although the 
rules are not yet finalized, CWB believes it is well positioned to comply with 
the new requirements.

Loans

Total loans grew 2% ($345 million) in the quarter and 12% ($1,554 million) in 
the past twelve months to reach $14,299 million. Compared to a year earlier, 
double-digit growth is apparent across almost all lending sectors and each 
geographic market. The strongest year-over-year growth was in equipment 
financing and leasing, up 21% ($442 million), followed closely by 16% ($435 
million) growth in general commercial loans. Based on the current outlook for 
new loans, management believes ongoing activity within these sectors will 
continue to provide the strongest overall growth contribution for fiscal 2013. 
Looking forward, a relatively slower level of growth is expected in real 
estate project loans, commercial mortgages and oil and gas production loans.  

The level of quarterly growth by sector was led by activity in real estate 
project loans ($157 million), equipment financing and leasing ($96 million) 
and commercial mortgages ($64 million). Net of the sale of a $28 million 
residential mortgage portfolio, personal loans and mortgages were up $24 
million. First quarter increases in general commercial and corporate loans 
were $42 million and $16 million, respectively. Oil and gas production loans 
decreased $59 million driven by a combination of fewer new lending 
opportunities, payouts and write-offs. While all provinces delivered positive 
loan growth, lending activity in British Columbia contributed the highest 
percentage increase in the quarter.

(unaudited)                January 31     October 31       January 31  

($ millions)                    2013           2012             2012   

General commercial loans $      3,221   $      3,179     $      2,786  

Commercial mortgages            2,852          2,788            2,702  

Equipment financing and         2,594          2,498            2,152  
leasing

Personal loans and              2,316          2,292            2,095  
mortgages

Real estate project             2,181          2,024            1,962  
loans

Corporate loans((1))              928            912              761  

Oil and gas production            283            342              361  
loans

Total loans outstanding
((2))                    $     14,375   $     14,035     $     12,819  

(1)      Corporate loans represent a diversified portfolio that is
         centrally sourced and administered through a designated
         lending group located in Edmonton. These loans include
         participation in select syndications that are structured and
         led primarily by the major Canadian banks, but exclude
         participation in various other syndicated facilities sourced
         through relationships developed at CWB branches.

(2)      Loans by lending sector exclude the allowance for credit
         losses.
          

While elevated competition continues across most lending areas, management 
believes market share will be gained from the combined positive influences of 
an expanded market presence, increased brand awareness in core geographic 
markets and effective execution of CWB's strategic plan focused on further 
enhancing existing competitive advantages in business banking.

Following a slowdown in the second half of 2012, growth in Canada's domestic 
economy is expected to improve modestly in 2013. The Bank's key markets in 
Western Canada are generally expected to perform better relative to the rest 
of Canada. While strong competition from domestic banks and other financial 
services firms is expected to persist, the current overall outlook for 
generating new business opportunities continues to be positive.

Affordability in most Canadian residential real estate markets remains within 
historical ranges largely reflecting very low interest rates; however, the 
combination of high price levels, particularly in certain geographical areas, 
relatively high levels of Canadian consumer debt and the potential for 
increasing interest rates in the future could slow construction and other 
related lending activity. Low natural gas prices and a shortfall in pipeline 
capacity have adversely impacted the financial flexibility and cash flows of 
many exploration and production companies. These circumstances have also 
contributed to reduced overall investment in the resource sector and led to a 
lower level of drilling activity in Western Canada. While the Bank's direct 
exposure to the resource sector remains low, and fallout from a sustained 
period of low natural gas prices is not expected to materially impact overall 
portfolio quality, related growth opportunities will continue to be 
constrained. Despite these challenges, management believes the current level 
of overall activity and a relatively positive economic outlook within the 
Bank's key markets will support the achievement of the 10% minimum loan growth 
target for 2013.

Total loans within Optimum Mortgage reached $1,103 million on growth of 1% 
($13 million) in the quarter and 11% ($108 million) over the past year. 
Adjusting for the $28 million insured residential mortgage portfolio sold 
during this quarter, quarterly loan growth within Optimum was 3%, driven 
almost exclusively by alternative mortgages secured via conventional 
residential first mortgages carrying a weighted average loan-to-value ratio at 
initiation of approximately 70%. The book value of alternative mortgages 
represented approximately 74% of Optimum's total portfolio at quarter end. 
Recent regulatory changes, including more stringent residential mortgage 
underwriting criteria, have resulted in a more favourable competitive 
environment for Optimum in the short term, but the long-term impacts of these 
changes remain unknown.

Securitized leases are reported on-balance sheet as part of total loans. The 
gross amount of securitized leases at January 31, 2013 totaled $214 million, 
compared to $238 million last quarter and $150 million one year ago. There 
were no leases securitized during the first quarter.

Residential Mortgage Exposure

In accordance with OSFI Guideline B20 - Residential Mortgage Underwriting 
Practices and Procedures, commencing this quarter, additional information is 
provided regarding CWB's residential mortgage exposure. This exposure, 
including home equity lines of credit (HELOCs), is sourced through Optimum 
Mortgage's third-party channels and CWB branches. Canadian bank and trust 
companies are restricted to providing residential real estate loans of no more 
than 80% of the collateral value. Advances exceeding 80% loan-to-value (LTV) 
require mortgage insurance. Although mortgage insurance protects the Bank from 
losses resulting from mortgagor default, it does not replace prudent lending 
practices, including the making of and administration of insured loans, the 
collection of payments and the protection of the loan security.

A geographic breakdown of insured and uninsured loans secured by residential 
property, including HELOCs, outstanding at January 31, 2013 is included in the 
following table:

(unaudited)                                                                            

($                     Insured                 Uninsured                               
thousands)
                            % of                      % of                 Provincial  
                           Total                     Total                          %

Province       Balance   Balance       Balance     Balance         Total     of Total  
                                                                 Balance

Alberta      $ 217,655        26 % $   618,818          74 % $   836,473           42 %

British        112,837        16       608,468          84       721,305           37  
Columbia

Manitoba         9,333        16        49,597          84        58,930            3  

Ontario         15,818         7       195,941          93       211,759           11  

Saskatchewan    29,432        21       107,689          79       137,121            7  

Other              113        45           140          55           253            0  
             $ 385,188        20 % $ 1,580,653          80 % $ 1,965,841          100 %
                                                                                       

The approximate average LTV ratios for newly originated and acquired uninsured 
residential mortgages and HELOCs during the quarter ending January 31, 2013 
are included in the following table:
                       British
            Alberta   Columbia   Manitoba   Ontario   Saskatchewan   Other   Total  

Uninsured       64%        62%        71%       71%            60%     74%     65%  
                                                                                    

The Bank's loans secured by residential property, including HELOCs, 
outstanding at January 31, 2013, categorized by amortization period are 
included in the following table:

(unaudited)                            % of Total  

($ thousands)              Balance        Balance  

Amortization (Years)                               

5 or less              $    34,005              2 %

> 5 to 10                   21,613              1  

> 10 to 15                  49,075              3  

> 15 to 20                 140,272              7  

> 20 to 25                 929,582             47  

> 25 to 30                 602,102             31  

> 30 to 35                 185,207              9  

> 35                         3,985              0  
                       $ 1,965,841            100 %
                                                   

In the event of an economic downturn the potential impact on CWB's residential 
mortgage portfolio is considered moderate as the total residential mortgage 
portfolio is well secured with an average LTV of less than 65%.

Deposits

Total deposits at quarter end were $14,141 million, unchanged from the 
previous quarter and up 9% ($1,181 million) over the past year. Personal 
deposits represented 63% of total deposits at January 31, 2013, unchanged from 
October 31, 2012 and down from 65% one year ago.

One of management's strategic objectives is to increase the level of personal 
and business deposits raised within the branch network, trust companies and 
Canadian Direct Financial, the Internet-based division of the Bank. Specific 
emphasis is placed on growing deposit classes that are lower cost, provide 
associated transactional fee income and receive favourable treatment under the 
proposed Basel III LCR and NSFR liquidity requirements. One specific 
initiative to support the Bank's focus on growing branch-raised deposits 
includes meaningful enhancements to CWB's cash management offerings. The 
recently launched product bundle combines a competitive business demand 
account with online banking and other cash management products and services to 
better meet the banking needs of business clients. CWB's expanding market 
presence, including ongoing expansion and upgrades to existing branches and 
the recent opening of a second full-service branch in Winnipeg, Manitoba, also 
supports objectives to generate branch-raised deposits.

Management remains committed to further enhance and diversify all funding 
sources to support ongoing growth while maintaining acceptable net interest 
margins. The deposit broker network remains a valued source for raising 
insured fixed term retail deposits and has proven to be an extremely effective 
and efficient way to access funding and liquidity over a wide geographic base. 
Selectively utilizing the debt capital markets is also part of management's 
strategy to further diversify the funding base over time. On December 7, 2012, 
DBRS Limited initiated a rating of "R-1 (low)" on CWB's short term 
instruments, with a stable trend. This credit rating will enable CWB to access 
an additional source of funding through the potential issuance of bearer 
deposit notes. Management continues to evaluate the funding potential 
available through securitization of portfolios such as equipment financing and 
residential mortgages.

Other Assets and Other Liabilities

Other assets at January 31, 2013 totaled $345 million, compared to $347 
million last quarter and $310 million one year ago. Other liabilities at 
quarter end were $548 million, compared to $524 million the previous quarter 
and $436 million a year earlier.

Off-Balance Sheet

Off-balance sheet items include assets under administration and assets under 
management. Total assets under administration, which are comprised of trust 
assets under administration and third-party leases and mortgages under service 
agreements totaled $7,307 million at January 31, 2013, compared to $7,172 
million last quarter and $6,912 million one year ago. Assets under management 
were $882 million at quarter end, compared to $855 million last quarter and 
$844 million one year ago.

Other off-balance sheet items are comprised of standard industry credit 
instruments (guarantees, standby letters of credit and commitments to extend 
credit). CWB does not utilize, nor does it have exposure to, collateralized 
debt obligations or credit default swaps. For additional information regarding 
other off-balance sheet items refer to Note 12 of the unaudited interim 
consolidated financial statements for the period ended January 31, 2013, as 
well as Notes 11 and 20 of the audited consolidated financial statements on 
pages 81 and 91, respectively, in the Bank's 2012 Annual Report.

Capital Management

Effective January 1, 2013, the Office of the Superintendent of Financial 
Institutions Canada (OSFI) requires Canadian financial institutions to manage 
and report regulatory capital in accordance with a new capital management 
framework, commonly referred to as Basel III. The required minimum regulatory 
capital ratios, including a 250 basis point capital conservation buffer, are 
7.0% common equity Tier 1 (CET1) effective Q1 2013, and 8.5% Tier 1 and 10.5% 
total capital effective Q1 2014. The Basel III rules provide for transitional 
adjustments whereby certain aspects of the new rules will be phased in between 
2013 and 2019. The only available transition allowance in the Basel III 
capital standards permitted by OSFI for Canadian banks relates to the 
multi-year phase out of non-qualifying capital instruments.

At January 31, 2013, the Bank's capital ratios were 8.0% CET1, 9.7% Tier 1 
and14.2% total capital. This compares to the Bank's Basel III October 31, 2012 
pro forma ratios of 8.1% CET1, 9.9% Tier 1 and 13.1% total capital. Further 
details regarding CWB's regulatory capital and capital adequacy ratios are 
included in the following table:
                               As at          As at          As at  

(unaudited)               January 31     October 31     January 31  

($ millions)              2013((1))       2012((2))     2012((2))   

Regulatory capital                                                  

  CET1 capital before   $      1,294   $        n/a   $        n/a  
  deductions

  Net CET1 deductions          (101)            n/a            n/a  

  CET1 capital                 1,193            n/a            n/a  

  Tier 1 capital before        1,476          1,561          1,388  
  deductions

  Net deductions                (26)          (100)           (98)  

  Tier 1 capital               1,450          1,461          1,290  

  Total capital before         2,128          1,959          1,908  
  deductions

  Net deductions                 (9)           (55)           (53)  

  Total capital         $      2,119   $      1,904   $      1,855  

Risk-Weighted Assets    $     14,927   $     13,775   $     12,667  

Capital Adequacy Ratios                                             
    CET1                         8.0 %          n/a %          n/a %
    Tier 1                       9.7           10.6           10.2  
    Total                       14.2           13.8           14.6  

n/a -      not applicable

(1)        Basel III capital balances at January 31, 2013 exclude 10%
           of existing non-common equity instruments that do not
           include non-viability contingent capital clauses. At January
           31, 2013, a combined $31 million of outstanding Innovative
           Tier 1 capital (disclosed in non-controlling interest) and
           preferred shares, as well as $68 million of outstanding
           subordinated debentures were excluded from Basel III
           regulatory capital.

(2)        Capital is managed and reported in accordance with the new
           capital management framework called Basel III, which was
           adopted by OSFI on January 1, 2013. Capital ratios prior to
           fiscal 2013 have been calculated using the previous
           framework, Basel II. Capital ratios calculated under Basel
           III are not directly comparable to the equivalent Basel II
           measures.
            

The mid-December issue of $250 million of subordinated debentures strengthened 
total capital compared to prior periods and qualifies for the Basel III 
transition allowance applicable for Canadian banks. Capital ratios exceed the 
Basel III targets established through CWB's Internal Capital Adequacy 
Assessment Process (ICAAP) and are supportive of CWB Group's growth 
expectations and strategic priorities. The ongoing retention of earnings 
should support capital requirements associated with the anticipated 
achievement of the 2013 minimum performance targets.

CWB currently reports its regulatory capital ratios using the Standardized 
approach for calculating risk-weighted assets. Management believes this 
approach requires the Bank to carry significantly more capital for certain 
credit exposures compared to requirements under the Advanced Internal Ratings 
Based (AIRB) methodology used by many other financial institutions. For this 
reason, regulatory capital ratios of banks that utilize the Standardized 
approach versus the AIRB methodology are not directly comparable. Required 
resources, costs and potential timelines related to the Bank's possible 
transition to an AIRB methodology for managing credit risk and calculating 
risk-weighted assets are still being evaluated. Preliminary analysis confirms 
a multi-year timeframe would be required. CWB's new core banking system, 
expected to be implemented in 2015, is a critical component for a number of 
requirements necessary for AIRB compliance, including the collection and 
analysis of certain types of data.

Further information relating to the Bank's capital position is provided in 
Note 15 of the unaudited interim consolidated financial statements as well as 
the audited consolidated financial statements and MD&A for the year ended 
October 31, 2012.

Book value per common share at January 31, 2013 was $16.42, compared to $15.94 
last quarter and $14.36 one year ago.

Common shareholders received a quarterly cash dividend of $0.17 per common 
share on January 4, 2013. On March 6, 2013, CWB's Board of Directors declared 
a cash dividend of $0.17 per common share, payable on March 28, 2013 to 
shareholders of record on March 21, 2013. This quarterly dividend was 
unchanged from the previous quarter and 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 April 30, 2013 to 
shareholders of record on April 18, 2013.

Changes in Accounting Policies

There were no new significant accounting policies adopted during the quarter 
for purposes of presenting the Bank's financial statements under International 
Financial Reporting Standards (IFRS).

Future Accounting Changes

A number of standards and amendments have been issued by the International 
Accounting Standards Board (IASB) and are noted on page 51 of the 2012 Annual 
Report. There have been no changes to these items during the first quarter of 
2013. The standards and amendments may impact the Bank's future financial 
statements, and CWB is currently reviewing these changes to determine the 
impact, if any, on the financial statements.

CWB continues to monitor activities of the IASB as well as proposed changes to 
IFRS. Several accounting standards that are in the process of being amended by 
the IASB (i.e. loan impairment, leases and insurance) may have a significant 
impact on the Bank's future consolidated financial statements.

Controls and Procedures

There were no changes in the Bank's internal controls over financial reporting 
that occurred during the quarter ended January 31, 2013 that have materially 
affected, or are reasonably likely to materially affect, the Bank's internal 
controls over financial reporting.

Prior to its release, this quarterly report to shareholders was reviewed by 
the Audit Committee and, on the Audit Committee's recommendation, approved by 
the Board of Directors of Canadian Western Bank.

Updated Share Information

As at March 1, 2013, there were 79,023,342 CWB common shares outstanding. Also 
outstanding were employee stock options, which are or will be exercisable for 
up to 3,786,946 common shares for maximum proceeds of $97 million.

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 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 
www.cwbankgroup.com/investor_relations/drip. 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).

Normal Course Issuer Bid

On February 27, 2013, CWB received approval from the Toronto Stock Exchange 
for a Normal Course Issuer Bid (NCIB) to purchase, for cancellation, up to up 
to 826,120 Non-Cumulative 5-Year Rate Reset Preferred Shares Series 3 
("preferred shares"). The NCIB commenced March 1, 2013 and will expire 
February 28, 2014. To date, no preferred shares have been purchased or 
cancelled under the NCIB. Security holders may contact the Bank to obtain, 
without charge, a copy of the notice filed with the TSX. Additionally, a copy 
of the news release is available on the Bank's website and on SEDAR at 
www.sedar.com.

Summary of Quarterly Financial Information
              
                  2013                                2012                               2011

($                Q1          Q4        Q3          Q2        Q1          Q4        Q3          Q2
thousands)

Total        $ 137,128   $ 133,178 $ 138,150   $ 127,854 $ 126,300   $ 119,673 $ 122,753   $ 119,766
revenues
(teb)

Total          135,213     131,199   136,064     125,396   123,680     116,540   119,956     117,381
revenues

Net income      51,062      48,616    53,578      45,212    47,051      41,474    44,393      42,440

Net income      45,482      43,046    48,004      39,669    41,478      35,921    38,824      36,941
available to
common
shareholders

Earnings per                                                                                        
common share

  Basic           0.58        0.55      0.62        0.52      0.55        0.48      0.52        0.52

  Diluted         0.57        0.55      0.61        0.52      0.54        0.47      0.50        0.48

  Adjusted        0.58        0.56      0.63        0.55      0.57        0.53      0.54        0.55
  cash

Total assets    17,161      16,873    16,033      15,713    15,484      14,849    14,097      13,726
($ millions)
                                                                                            

The financial results for each of the last eight quarters are summarized 
above. In general, CWB's performance reflects a relatively consistent trend 
although the second quarter contains three fewer revenue earning days, or two 
fewer days in a leap year such as 2012.

The Bank's quarterly financial results are subject to some fluctuation due to 
its exposure to property and casualty insurance. Insurance operations, which 
are primarily reflected in other income, are subject to seasonal weather 
conditions, cyclical patterns of the industry and natural catastrophes. 
Mandatory participation in the Alberta auto risk sharing pools can also result 
in unpredictable quarterly fluctuations.

Among other things, quarterly results can also fluctuate from the recognition 
of periodic income tax items.

For additional details on variations between the prior quarters, refer to the 
summary of quarterly results section of the Bank's MD&A for the year ended 
October 31, 2012 and the individual quarterly reports to shareholders which 
are available on SEDAR at www.sedar.com and on CWB's website at 
www.cwbankgroup.com.

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-IFRS Measures

Taxable equivalent basis, adjusted cash earnings per common share, return on 
common shareholders' equity, return on assets, efficiency ratio, net interest 
margin, common equity Tier 1, 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-IFRS 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;
    --  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 guidelines issued by OSFI; 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 
aided by positive relative performance in the four western provinces; 
relatively stable energy and other commodity prices; 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 a 
prolonged period of very low interest rates due to uncertainties about the 
strength of global economic recovery and global macroeconomic uncertainty. 
Management's assumptions at the end of the first quarter remained relatively 
unchanged compared to those at the 2012 fiscal year end.

Potential risks that would have a material adverse impact on the Bank's 
economic expectations and forecasts include a global economic recession 
spurred by unfavourable developments in the euro zone, a recession in the 
United States, a meaningful slowdown in China's economic growth, or a 
significant and sustained deterioration in Canadian residential real estate 
prices. At the end of the first quarter, management's expectations and view of 
the potential risks were relatively consistent with the fiscal year end. 
However, significant and ongoing oil price differentials owing to capacity 
challenges for exporting Canadian crude oil may have a greater than expected 
impact on both the overall level of capital investment and government fiscal 
flexibility.

Consolidated Balance Sheets
                               As at          As at          As at      Change  
                                                                          from

(unaudited)               January 31     October 31     January 31     January  
                                                                            31

($ thousands)                   2013           2012           2012        2012  

Assets                                                                          

Cash Resources                                                                  

  Cash and              $     36,298   $     33,690   $     44,745        (19) %
  non-interest
  bearing deposits
  with financial
  institutions

  Interest     (Note         170,998        177,028        182,427         (6)  
  bearing        4)
  deposits
  with
  regulated
  financial
  institutions

  Cheques and other              229         26,265          1,792        (87)  
  items in transit
                             207,525        236,983        228,964         (9)  

Securities     (Note                                                            
                 4)

  Issued or                  881,434        980,200        680,933          29  
  guaranteed by
  Canada

  Issued or                  537,782        478,622        415,166          30  
  guaranteed by a
  province or
  municipality

  Other securities           890,209        877,278        983,692        (10)  
                           2,309,425      2,336,100      2,079,791          11  

Securities Purchased               -              -        119,999          nm  
Under Resale
Agreements

Loans          (Notes                                                           
               5 and
                 7)

  Personal                 2,315,616      2,292,388      2,095,429          11  

  Business                12,059,864     11,743,021     10,724,018          12  
                          14,375,480     14,035,409     12,819,447          12  

  Allowance    (Note        (76,368)       (81,723)       (74,556)           2  
  for credit     6)
  losses     
                          14,299,112     13,953,686     12,744,891          12  

Other                                                                           

  Property and                63,915         68,938         61,274           4  
  equipment

  Goodwill                    45,536         45,536         45,691           -  

  Intangible assets           50,608         49,959         46,296           9  

  Insurance related           60,259         57,650         56,058           7  

  Derivative   (Note           2,776          1,951              -          nm  
  related        8)

  Other assets               122,281        122,466        101,084          21  
                             345,375        346,500        310,403          11  

Total Assets            $ 17,161,437   $ 16,873,269   $ 15,484,048          11 %
                                                                                

Liabilities and                                                                 
Shareholders' Equity

Deposits                                                                        

  Personal              $  8,968,461   $  8,960,118   $  8,476,551           6 %

  Business and             5,172,978      5,184,719      4,484,378          15  
  government
                          14,141,439     14,144,837     12,960,929           9  

Other                                                                           

  Cheques and other           43,479         54,030         32,874          32  
  items in transit

  Insurance related          154,606        160,302        144,468           7  

  Derivative   (Note              14             10            539        (97)  
  related        8)

  Securities sold            125,075         70,089              -          nm  
  under repurchase
  agreements

  Other liabilities          224,498        239,503        258,330        (13)  
                             547,672        523,934        436,211          26  

Debt                                                                            

  Debt securities            185,661        209,273        140,049          33  

  Subordinated (Note         675,000        425,000        545,000          24  
  debentures     9)
                             860,661        634,273        685,049          26  

Equity                                                                          

  Preferred    (Note         209,750        209,750        209,750           -  
  shares        10)

  Common       (Note         495,587        490,218        412,120          20  
  shares        10)

  Retained earnings          765,392        733,298        639,004          20  

  Share-based payment         22,943         22,468         22,079           4  
  reserve

  Other reserves              12,766          9,247         13,681         (7)  

Total Shareholders'        1,506,438      1,464,981      1,296,634          16  
Equity

  Non-controlling            105,227        105,244        105,225           0  
  interests

Total Equity               1,611,665      1,570,225      1,401,859          15  

Total Liabilities and   $ 17,161,437   $ 16,873,269   $ 15,484,048          11 %
Equity

nm - not meaningful

The accompanying notes are an integral part of the interim consolidated 
financial statements.

Consolidated Statements of Income
                             For the three months ended        Change  
                                                                 from

(unaudited)              January     October     January   January 31  
                              31          31          31

($ thousands, except        2013        2012        2012         2012  
per share amounts)

Interest Income                                                        

  Loans                $ 179,041   $ 177,191   $ 166,300            8 %

  Securities              11,224      10,135      11,821          (5)  

  Deposits with              437         567       1,025         (57)  
  regulated financial
  institutions
                         190,702     187,893     179,146            6  

Interest Expense                                                       

  Deposits                70,215      70,022      66,255            6  

  Debt                     7,653       6,604       8,002          (4)  
                          77,868      76,626      74,257            5  

Net Interest Income      112,834     111,267     104,889            8  

Provision    (Note 6)      6,327       5,962       6,429          (2)  
for Credit
Losses      

Net Interest Income 106,507 105,305 98,460 8 after Provision for Credit Losses

Other Income

Credit related 5,434 5,284 4,967 9

Insurance, (Note 3) 5,202 946 4,402 18 net

Trust and wealth 5,043 4,725 4,769 6 management services

Gains on securities, 2,662 5,433 1,938 37 net

Retail services 2,468 2,310 2,356 5

Foreign exchange 502 965 669 (25) gains

Contingent - - (1,200) nm consideration fair value change

Other 1,068 269 890 20

22,379 19,932 18,791 19

Net Interest and Other 128,886 125,237 117,251 10 Income

Non-Interest Expenses

Salaries and 41,355 39,826 36,407 14 employee benefits

Premises and 10,254 10,404 9,433 9 equipment

Other expenses 10,278 11,790 9,702 6

Provincial capital 180 156 125 44 taxes

62,067 62,176 55,667 11

Net Income before 66,819 63,061 61,584 9 Income Taxes

Income Taxes 15,757 14,445 14,533 8

Net Income $ 51,062 $ 48,616 $ 47,051 9 %

Net Income 1,778 1,768 1,771 - Attributable to Non-Controlling Interests

Net Income $ 49,284 $ 46,848 $ 45,280 9 % Attributable to Shareholders of the Bank

Preferred (Note 10) 3,802 3,802 3,802 - share dividends

Net Income Available $ 45,482 $ 43,046 $ 41,478 10 % to Common Shareholders

Average number of 78,801 78,506 75,528 4 common shares (in thousands)

Average number of 79,266 78,911 76,288 4 diluted common shares (in thousands)

Earnings Per Common Share

Basic $ 0.58 $ 0.55 $ 0.55 5 %

Diluted 0.57 0.55 0.54 6

nm - not meaningful

The accompanying notes are an integral part of the interim consolidated financial statements.

Consolidated Statements of Comprehensive Income

For the three months ended

(unaudited) January 31 January 31

($ thousands) 2013 2012

Net Income $ 51,062 $ 47,051

Other Comprehensive Income (Loss), net of tax

Available-for-sale securities:

Gains (losses) from change in fair value( (1)) 5,324 7,355

Reclassification to net income((2)) (1,942) (1,424)


                                                   3,382         5,931

  Derivatives designated as cash flow        
  hedges:                                                             

  Gains (losses) from change in fair value(  
  (3))                                               618         (395)

  Reclassification to net income((4))              (481)           296
                                                     137          (99)
                                                   3,519         5,832

Comprehensive Income for the Period         $     54,581 $      52,883
                                                                      

  Comprehensive income for the period        
  attributable to:                                                    

  Shareholders of the Bank                  $     52,803 $      51,112

  Non-controlling interests                        1,778         1,771

Comprehensive Income for the Period         $     54,581 $      52,883

((1))     Net of income tax of $1,989 (2012 - $2,610).

((2))     Net of income tax of $720 (2012 - $514).

((3))     Net of income tax of $207 (2012 - $138).

((4))     Net of income tax of $161 (2012 - $104).

 

All items presented in other comprehensive income will be reclassified to the 
Consolidated Statement of Income in subsequent periods.

The accompanying notes are an integral part of the interim consolidated 
financial statements.

Consolidated Statements of Changes in Equity
                                             For the three months ended

(unaudited)                                    January 31    January 31

($ thousands)                                        2013          2012

Retained Earnings                                                      

  Balance at beginning of period             $    733,298 $     608,848

  Net income attributable to shareholders of       49,284        45,280
  the Bank

  Dividends  - Preferred shares                   (3,802)       (3,802)

  - Common shares                                (13,388)      (11,322)

  Balance at end of period                        765,392       639,004

Other Reserves                                                         

  Balance at beginning of period                    9,247         7,849

  Changes in available-for-sale securities          3,382         5,931

  Changes in derivatives designated as cash           137          (99)
  flow hedges

  Balance at end of period                         12,766        13,681

Preferred Shares                (Note 10)                              

  Balance at beginning and end of period          209,750       209,750

Common Shares                   (Note 10)                              

  Balance at beginning of period                  490,218       408,282

  Issued under dividend reinvestment plan           3,761         2,492

  Transferred from share-based payment                983           967
  reserve on the exercise or exchange of
  options

  Issued on exercise of options                       625           379

  Balance at end of period                        495,587       412,120

Share-based Payment Reserve                                            

  Balance at beginning of period                   22,468        21,884

  Amortization of fair          (Note 11)           1,458         1,162
  value of options

  Transferred to common shares on the               (983)         (967)
  exercise or exchange of options

  Balance at end of period                         22,943        22,079

Total Shareholders' Equity                      1,506,438     1,296,634

Non-Controlling Interests                                              

  Balance at beginning of period                  105,244       105,225

  Net income attributable to non-controlling        1,778         1,771
  interests

  Dividends to non-controlling interests          (1,795)       (1,771)

  Balance at end of period                        105,227       105,225

Total Equity                                 $  1,611,665 $   1,401,859

The accompanying notes are an integral part of the interim consolidated 
financial statements.

Consolidated Statements of Cash Flow
                                          For the three months ended

(unaudited)                              January 31         January 31

($ thousands)                                  2013               2012

Cash Flows from Operating Activities                                  
       Net income                     $      51,062 $           47,051
       Adjustments to determine net                                   
       cash flows:
         Provision for credit losses          6,327              6,429
         Depreciation and                     5,159              4,941
         amortization
         Current income taxes               (9,521)                509
         receivable and payable
         Amortization of    (Note 11)         1,458              1,162
         fair value of
         employee stock
         options
         Accrued interest receivable        (1,118)              (931)
         and payable, net
         Deferred income taxes, net           (354)                 37
         Gain on securities, net            (2,662)            (1,938)
       Change in operating assets and                                 
       liabilities:
         Deposits, net                      (3,398)            566,240
         Loans, net                       (351,753)          (458,038)
         Securities sold under               54,986                  -
         repurchase agreements, net
         Securities purchased under               -          (119,999)
         resale agreements, net
         Other items, net                  (11,446)            (9,957)
                                          (261,260)             35,506

Cash Flows from Financing Activities                                  
       Common shares issued (Note 10)         4,386              2,871
       Debentures issued                    250,000                  -
       Debt securities issued                     -             86,550
       Debt securities repaid              (23,611)          (36,379) 
       Dividends                           (17,190)           (15,124)
       Distributions to                     (1,795)            (1,771)
       non-controlling interests
                                            211,790             36,147

Cash Flows from Investing Activities                                  
       Interest bearing deposits with         6,025             51,655
       regulated financial
       institutions, net
       Securities, purchased            (1,703,525)        (1,018,273)
       Securities, sale proceeds          1,228,771            298,641
       Securities, matured                  507,020            579,603
       Property, equipment and              (1,699)            (2,001)
       software costs
                                             36,592           (90,375)

Change in Cash and Cash Equivalents        (12,878)           (18,722)

Cash and Cash Equivalents at                  5,926             32,385
Beginning of Period

Cash and Cash Equivalents at End of   $     (6,952) $           13,663
Period *

* Represented by:                                                     
       Cash and non-interest bearing  $      36,298 $           44,745
       deposits with financial
       institutions
       Cheques and other items in               229              1,792
       transit (included in Cash
       Resources)
       Cheques and other items in          (43,479)           (32,874)
       transit (included in Other
       Liabilities)

Cash and Cash Equivalents at End of   $     (6,952) $           13,663
Period
                                                                      
                                                                      

Supplemental Disclosure of Cash Flow                                  
Information
       Interest and dividends         $     199,621 $          183,805
       received
       Interest paid                         81,726             75,591
       Income taxes paid                     25,481             13,926
                                         

The accompanying notes are an integral part of the interim consolidated 
financial statements.

Notes to Interim Consolidated Financial Statements

(unaudited)
($ thousands, except per share amounts)

1. Basis of Presentation and Significant Accounting Policies

These unaudited condensed interim consolidated financial statements of 
Canadian Western Bank (CWB or the Bank) have been prepared in accordance with 
International Accounting Standard (IAS) 34 - Interim Financial Reporting as 
issued by the International Accounting Standards Board (IASB) using the same 
accounting policies as the audited consolidated financial statements for the 
year ended October 31, 2012. These interim consolidated financial statements 
of CWB, domiciled in Canada, have been prepared in accordance with subsection 
308 (4) of the Bank Act and the accounting requirements of the Office of the 
Superintendent of Financial Institutions Canada (OSFI). Under IFRS, additional 
disclosures are required in annual financial statements and accordingly, these 
unaudited interim consolidated financial statements should be read in 
conjunction with the audited consolidated financial statements for the year 
ended October 31, 2012 as set out on pages 64 to 109 of the Bank's 2012 Annual 
Report.

The interim consolidated financial statements were authorized for issue by the 
Board of Directors on March 6, 2013.

2. Future Accounting Changes

CWB continues to monitor the IASB's proposed changes to accounting standards. 
Although not expected to materially impact the Bank's 2013 consolidated 
financial statements, these proposed changes may have a significant impact on 
future financial statements. Additional discussion on certain accounting 
standards that may impact the Bank is included in the audited consolidated 
financial statements within the Bank's 2012 Annual Report.

3. Insurance Revenues, Net

Insurance revenues, net, as reported in other income on the consolidated 
statement of income are presented net of net claims and adjustment expenses, 
and policy acquisition costs.
                                         For the three months ended
                                  January 31   October 31   January 31
                                        2013         2012         2012

 Net earned premiums            $     31,495 $     31,239 $     30,454

Commissions and processing fees          437          433          455

Net claims and adjustment           (20,685)     (24,849)     (20,327)
expenses

Policy acquisition costs             (6,045)      (5,877)      (6,180)

Total, net                      $      5,202 $        946 $      4,402
                                                             

4. Securities

Net unrealized gains (losses) reflected on the balance sheet follow:
                                       As at         As at        As at
                                   January 31   October 31   January 31
                                         2013         2012         2012

Interest bearing deposits with   $        471 $        482 $        477
regulated financial institutions

Securities issued or guaranteed                                        
by
       Canada                             157          176        (210)
       A province or                     (60)         (67)         (82)
       municipality

Other debt securities                   1,605        1,637        1,588

Equity securities                                                      
       Preferred shares                 8,411        6,971       16,091
       Common shares                    5,422        2,114          892

Unrealized gains, net            $     16,006 $     11,313 $     18,756
                                                            

The securities portfolio is primarily comprised of high quality debt 
instruments, preferred shares and common shares that are not held for trading 
purposes and, where applicable, are typically held until maturity. 
Fluctuations in value are generally attributed to changes in interest rates, 
market credit spreads and shifts in the interest rate curve. Volatility in 
equity markets also leads to fluctuations in value, particularly for common 
shares. The Bank has assessed the securities with unrealized losses and, based 
on available objective evidence, no impairment charges (2012 - nil) were 
included in gains on securities, net.

5. Loans

The composition of the Bank's loan portfolio by geographic region and industry 
sector follows:
                                                                                       Composition Percentage
                                                                                  January   October   January  
                                                                                  31        31        31

($ millions)        BC        AB        ON      SK      MB     Other      Total      2013      2012      2012  
                                                                                                               

Personal       $   810   $   985   $   301 $   154   $  65   $     1   $  2,316        16 %      16 %      16 %
                                                                                                               

Business                                                                                                       

  Commercial     1,272     1,858       414     189      93       104      3,930        28        28        26  

  Construction   2,313     2,144       310     329     108        22      5,226        36        36        38  
  and real
  estate

  Equipment        496     1,321       500     218      92       276      2,903        20        20        20  
  financing
  and energy(
  (1))
                 4,081     5,323     1,224     736     293       402     12,059        84        84        84  

Total Loans(   $ 4,891   $ 6,308   $ 1,525 $   890   $ 358   $   403   $ 14,375       100 %     100 %     100 %
(2))

Composition                                                                                                    
Percentage

  January 31,       34 %      44 %      11 %     6 %     2 %       3 %      100 %                              
  2013

  October 31,       33 %      45 %      10 %     6 %     3 %       3 %      100 %                              
  2012

  January 31,       33 %      46 %      10 %     6 %     3 %       2 %      100 %                              
  2012

((1)) Includes securitized leases reported on-balance sheet of $214
      (October 31, 2012 - $238; January 31, 2012 - $150).

((2)) This table does not include an allocation for credit losses.
       

6. Allowance for Credit Losses

The following table shows the changes in the allowance for credit losses:
                 For the three months ended          For the three months ended
                      January 31, 2013                    October 31, 2012
                         Collective
                                                             Collective
                          Allowance                           Allowance
                               for                                  for
             Specific        Credit               Specific       Credit
             Allowance       Losses      Total   Allowance       Losses     Total

Balance at $    14,379 $     67,344 $   81,723 $    12,762 $     67,033 $  79,795
beginning
of period

Provision        3,970        2,357      6,327       5,651          311     5,962
for credit
losses

Write-offs    (13,172)            -   (13,172)     (4,622)            -   (4,622)

Recoveries       1,490            -      1,490         588            -       588

Balance at $     6,667 $     69,701 $   76,368 $    14,379 $     67,344 $  81,723
end of
period
                                                                         
                                                     For the three months ended
                                                          January 31, 2012
                                                             Collective
                                                              Allowance
                                                                    for
                                                  Specific       Credit
                                                 Allowance       Losses     Total

Balance at                                     $    10,650 $     61,330 $  71,980
beginning
of period

Provision                                            5,088        1,341     6,429
for credit
losses

Write-offs                                         (4,524)            -   (4,524)

Recoveries                                             671            -       671

Balance at                                     $    11,885 $     62,671 $  74,556
end of
period
                                                

7. Impaired and Past Due Loans

Outstanding gross loans and impaired loans, net of allowance for credit 
losses, by loan type, are as follows:
                               As at January 31, 2013                         As at October 31, 2012
                              Gross                    Net
                            Impaired               Impaired                   Gross                    Net
                   Gross               Specific                    Gross   Impaired    Specific   Impaired
                   Amount     Amount   Allowance      Loans       Amount     Amount   Allowance      Loans

Personal     $  2,315,616 $   14,999 $       530 $   14,469 $  2,292,388 $   13,404 $       459 $   12,945

Business                                                                                                  

  Real          5,226,547     16,954       1,253     15,701    5,001,041     23,022       2,605     20,417
  estate((1)
  )

  Equipment     2,903,173      8,683       3,879      4,804    2,874,423      8,133       3,570      4,563
  financing
  and energy

  Commercial    3,930,144     15,098       1,005     14,093    3,867,557     22,281       7,745     14,536

Total((2))   $ 14,375,480 $   55,734 $     6,667     49,067 $ 14,035,409 $   66,840 $    14,379     52,461

Collective                                         (69,701)                                       (67,344)
allowance(
(3))

Net impaired                                     $ (20,634)                                     $ (14,883)
loans after
collective
allowance
                                                                                                   
                                                                              As at January 31, 2012
                                                                              Gross                    Net
                                                                   Gross   Impaired    Specific   Impaired
                                                                  Amount     Amount   Allowance      Loans

Personal                                                    $  2,095,429 $   19,924 $     1,206 $   18,718

Business                                                                                                  

  Real                                                         4,809,796     44,221       3,130     41,091
  estate((1)
  )

  Equipment                                                    2,549,898     10,851       4,551      6,300
  financing
  and energy

  Commercial                                                   3,364,324     15,861       2,998     12,863

Total((2))                                                  $ 12,819,447 $   90,857 $    11,885     78,972

Collective                                                                                        (62,671)
allowance(
(3))

Net impaired                                                                                    $   16,301
loans after
collective
allowance

((1)) Multi-family residential mortgages are included in real estate
      loans.

((2)) Gross impaired loans include foreclosed assets with a carrying
      value of $9,160 (October 31, 2012 - $10,462 and January 31, 2012
      - $4,683) which are held for sale. The Bank pursues timely
      realization on foreclosed assets and does not use the assets for
      its own operations.

((3)) The collective allowance for credit risk is not allocated by loan
      type.
       

Outstanding impaired loans, net of allowance for credit losses, by provincial 
location of security, are as follows:
                  As at January 31, 2013        As at October 31, 2012
               Gross                  Net     Gross                  Net
             Impaired  Specific  Impaired  Impaired  Specific   Impaired
               Amount Allowance      Loans   Amount Allowance      Loans

Alberta      $ 23,576 $   3,159 $   20,417 $ 36,769 $   9,711 $   27,058

British        23,576       848     22,728   22,629     2,190     20,439
Columbia

Ontario         4,672     1,347      3,325    3,081     1,167      1,914

Saskatchewan    1,877       455      1,422    2,309       456      1,853

Manitoba          463       205        258      615       203        412

Other           1,570       653        917    1,437       652        785

Total        $ 55,734 $   6,667     49,067 $ 66,840 $  14,379     52,461

Collective                        (69,701)                      (67,344)
allowance(
(1))

Net impaired                    $ (20,634)                    $ (14,883)
loans after
collective
allowance
                                                                 
                                                As at January 31, 2012
                                              Gross                  Net
                                           Impaired  Specific   Impaired
                                             Amount Allowance      Loans

Alberta                                    $ 45,362 $   6,150 $   39,212

British                                      38,434     2,199     36,235
Columbia

Ontario                                       2,282     1,439        843

Saskatchewan                                  2,545       760      1,785

Manitoba                                        845       265        580

Other                                         1,389     1,072        317

Total                                      $ 90,857 $  11,885     78,972

Collective                                                      (62,671)
allowance(
(1))

Net impaired                                                  $   16,301
loans after
collective
allowance

((1)) The collective allowance for credit risk is not allocated by
      province.
       

Gross impaired loans exclude certain past due loans where payment of interest 
or principal is contractually in arrears. Details of such past due loans that 
have not been included in the gross impaired amount are as follows:
                                     As at January 31, 2013
                                                  More than
            1 - 30 days 31 - 60 days 61 - 90 days   90 days    Total

Personal    $    11,833 $      8,360 $      2,111 $   1,003 $ 23,307

Business         19,026       17,980        2,618    10,910   50,534
            $    30,859 $     26,340 $      4,729 $  11,913 $ 73,841
                                                                    

Total as at $    25,849 $     27,799 $      4,194 $     375 $ 58,217
October 31,
2012

Total as at $    30,069 $     34,320 $      4,301 $     620 $ 69,310
January 31,
2012
                                                               

8. Derivative Financial Instruments

The Bank designates certain derivative financial instruments as either a hedge 
of the fair value of recognized assets or liabilities or firm commitments 
(fair value hedges), or a hedge of highly probable future cash flows 
attributable to a recognized asset or liability or a forecasted transaction 
(cash flow hedges). On an ongoing basis, the derivatives used in hedging 
transactions are assessed to determine whether they are effective in 
offsetting changes in fair values or cash flows of the hedged items. If a 
hedging transaction becomes ineffective or if the derivative is not designated 
as a cash flow hedge, any subsequent change in the fair value of the hedging 
instrument is recognized in net income.

For the three months ended January 31, 2013, $618 of net unrealized after tax 
gains (2012 - $395 after tax losses) were recorded in other comprehensive 
income for changes in fair value of the effective portion of equity and 
interest rate swap derivatives designated as cash flow hedges, and no amounts 
(2012 - nil) were recorded in other income for changes in fair value of the 
ineffective portion of derivatives classified as cash flow hedges. Amounts 
accumulated in other comprehensive income are reclassified to net income in 
the same period that the hedged items affects income. For the three months 
ended January 31, 2013, $481 of net gains after tax (2012 - $296 net losses 
after tax) were reclassified to net income.

The following table shows the notional value outstanding for derivative 
financial instruments and the related fair value:
                  As at January 31, 2013            As at October 31, 2012
             Notional   Positive   Negative    Notional   Positive   Negative
                                                 Amount       Fair       Fair
               Amount       Fair       Fair                  Value      Value
                           Value      Value

Interest   $  350,000 $      147 $      (7)  $  225,000 $      154 $        -
rate swaps
designated
as hedges(
(1))

Equity         15,445      2,610          -      15,445      1,778          -
swaps
designated
as hedges(
(2))

Foreign         3,746         19        (7)       2,450         19       (10)
exchange
contracts(
(3))

Derivative $  369,191 $    2,776 $     (14)  $  242,895 $    1,951 $     (10)
related
amounts
                                                                      
                                                    As at January 31, 2012
                                               Notional   Positive   Negative
                                                 Amount       Fair       Fair
                                                             Value      Value

Interest                                     $        - $        - $        -
rate swaps
designated
as hedges

Equity                                           14,214          -      (533)
swaps
designated
as hedges

Foreign                                           3,517          -        (6)
exchange
contracts

Derivative                                   $   17,731 $        - $    (539)
related
amounts

((1)) Interest rate swaps designated as hedges outstanding at January
      31, 2013 mature between March 2013 and January 2014.

Equity swaps designated as hedges outstanding at January 31, 2013 ((2)) mature between June 2013 and June 2015. Equity swaps are used to

reduce the earnings volatility from restricted share units linked


      to the Bank's common share price.

((3)) Foreign exchange contracts outstanding at January 31, 2013 mature
      between February and September 2013.
       

There were no forecasted transactions that failed to occur during the three 
months ended January 31, 2013.

9. Subordinated Debentures

On December 17, 2012, the Bank issued $250,000 of subordinated debentures with 
a fixed interest rate of 3.463% until December 17, 2019. Thereafter, the rate 
will be set quarterly at the 3-month Canadian dollar CDOR rate plus 160 basis 
points until maturity on December 17, 2024. The Debentures are redeemable by 
the Bank on or after December 17, 2019, subject to the prior written consent 
of OSFI.

10. Capital Stock

Share Capital
                                        For the three months ended
                              January 31, 2013       January 31, 2012
                             Number of              Number of  
                                Shares    Amount       Shares    Amount

Preferred Shares - Series                                              
3
     Outstanding at          8,390,000 $ 209,750    8,390,000 $ 209,750
     beginning and end of
     period((1))
    Common Shares                                                       
     Outstanding at         78,742,812   490,218   75,461,981   408,282
     beginning of period
     Issued under              133,439     3,761       97,693     2,492
     dividend
     reinvestment plan(
     (2))
     Issued on exercise        115,645       625      134,116       379
     or exchange of
     options
     Transferred from                -       983            -       967
     contributed surplus
     on exercise or
     exchange of options
     Outstanding at end     78,991,896   495,587   75,693,790   412,120
     of period

Share Capital                          $ 705,337              $ 621,870

((1)) Holders of the Preferred Shares - Series 3 are entitled to
      receive non-cumulative quarterly fixed dividends for the initial
      five-year period ending April 30, 2014 of 7.25% per annum,
      payable quarterly, as and when declared. For further information
      on dividend rates after April 30, 2014, refer to Note 17 of the
      audited consolidated financial statements for the year ended
      October 31, 2012 (see page 87 of the 2012 Annual Report).

((2)) Shares were issued at a 2% discount from the average closing
      price of the five trading days preceding the dividend payment
      date.
       

Preferred Share Normal Course Issuer Bid  
On February 27, 2013, CWB received approval from the Toronto Stock Exchange 
for a Normal Course Issuer Bid (NCIB) to purchase, for cancellation, up to up 
to 826,120 Non-Cumulative 5-Year Rate Reset Preferred Shares Series 3 
("preferred shares"). The NCIB commenced March 1, 2013 and will expire 
February 28, 2014. To date, no preferred shares have been purchased or 
cancelled under the NCIB. 
11. Share-based Payments

Stock Options
                                       For the three months ended
                              January 31, 2013       January 31, 2012
                                       Weighted               Weighted
                                        Average                Average
                           Number of   Exercise   Number of   Exercise
                             Options      Price     Options      Price

Options                                                               

Balance at beginning of 3,441,100 $ 24.51 3,542,072 $ 21.36

period


    Granted                   824,667      28.09     729,830      25.46
    Exercised or exchanged  (236,526)      18.19   (326,880)      16.70
    Expired                 (162,075)      31.18           -          -
    Forfeited                 (9,852)      27.88    (25,574)      23.49

Balance at end of period   3,857,314 $    25.37   3,919,448 $    22.50
                                                             

The terms of the share incentive plan allow the holders of vested options a 
cashless settlement alternative whereby the option holder can either (i) elect 
to receive shares by delivering cash to the Bank in the amount of the option 
exercise price or (ii) elect to receive the number of shares equivalent to the 
excess of the market value of the shares under option, determined at the 
exercise date, over the exercise price. Of the 236,526 (2012 - 326,880) 
options exercised or exchanged in the three months ended January 31, 2013, 
option holders exchanged the rights to 203,281 (2012 - 300,580) options and 
received 82,400 (2012 - 107,816) shares in return under the cashless 
settlement alternative.

For the three months ended January 31, 2013, salary expense of $1,458 (2012 - 
$1,162) was recognized relating to the estimated fair value of options 
granted.  The fair value of options granted was estimated using a binomial 
option pricing model with the following variables and assumptions: (i) 
risk-free interest rate of 1.4% (2012 - 1.1%), (ii) expected option life of 
4.0 (2012 - 4.0) years, (iii) expected annual volatility of 25% (2012 - 31%), 
and (iv) expected annual dividends of 2.5% (2012 - 2.4%). The weighted average 
fair value of options granted was estimated at $4.61 (2012 - $4.70) per share.

Further details relating to stock options outstanding and exercisable at 
January 31, 2013 follow:
                           Options Outstanding     Options Exercisable
                               Weighted
                                Average   Weighted             Weighted
                              Remaining    Average              Average
                 Number of  Contractual   Exercise Number of   Exercise
                   Options Life (years)      Price   Options      Price

$  8.58 to         193,540          0.9 $    11.70   193,540 $    11.70
$11.76

$16.89 to $21.45   249,200          1.4      16.94   249,200      16.94

$22.09 to $26.40 1,881,611          3.3      24.93   377,013      22.84

$28.09 to $30.76 1,532,963          3.8      29.02         -          -

Total            3,857,314          3.3 $    25.37   819,753 $    18.42
                                                                

Restricted Share Units

For the three months ended January 31, 2013, salary expense of $2,182 (2012 - 
$1,275) was recognized related to the Restricted Share Units (RSUs). As at 
January 31, 2013, the liability for the RSUs held under this plan was $11,719 
(2012 - $10,064). At the end of each period, the liability and salary expense 
are adjusted to reflect changes in the fair value of the RSUs. As at January 
31, 2013, 591,196 RSUs were outstanding (2012 - 535,014).

Deferred Share Units

For the three months ended January 31, 2013, non-interest expenses "other 
expenses" included $303 (2012 - $90 recovery) related to the Deferred Share 
Units (DSUs).  As at January 31, 2013, the liability for DSUs held under this 
plan was $2,454 (2012 - $1,377). At the end of each period, the liability and 
expense are adjusted to reflect changes in the fair value of the DSUs. As at 
January 31, 2013, 79,556 DSUs were outstanding (2012 - 51,745).

12. Contingent Liabilities and Commitments

In the normal course of business, the Bank enters into various commitments and 
has contingent liabilities, which are not reflected in the consolidated 
balance sheets. At January 31, 2013, these items include guarantees and 
standby letters of credit of $290,538 (October 31, 2012 - $286,676). 
Significant contingent liabilities and commitments, including guarantees 
provided to third parties, are discussed in Note 20 of the Bank's audited 
consolidated financial statements for the year ended October 31, 2012 (see 
page 91 of the 2012 Annual Report).

In the ordinary course of business, the Bank and its subsidiaries are party to 
legal proceedings. Based on current knowledge, CWB does not expect the outcome 
of any of these proceedings to have a material effect on the consolidated 
financial position or results of operations.

13. Fair Value of Financial Instruments

The Bank categorizes its fair value measurements of financial instruments 
recorded on the consolidated balance sheets according to a three-level 
hierarchy. Level 1 fair value measurements reflect published market prices 
quoted in active markets.  Level 2 fair value measurements were estimated 
using a valuation technique based on observable market data. Level 3 fair 
value measurements were determined using a valuation technique based on 
unobservable market data.

Further information on how the fair value of financial instruments is 
determined is included in Note 29 of the October 31, 2012 consolidated audited 
financial statements (see page 99 of the 2012 Annual Report).

The following table presents the Bank's financial assets and liabilities that 
are carried at fair value, categorized by level under the fair value hierarchy:
                                                Valuation Technique

As at January 31, 2013      Fair Value     Level 1   Level 2   Level 3

Financial assets                                                      
    Cash resources        $    207,525 $   207,525 $       - $       -
    Securities               2,309,425   2,309,425         -         -
    Derivative related           2,776           -     2,776         -
                          $  2,519,726 $ 2,516,950 $   2,776 $       -
                                                                      

Financial liabilities                                                 
    Securities sold under $    125,075 $         - $ 125,075 $       -
    repurchase agreements
    Derivative related              14           -        14         -
                          $    125,089 $         - $ 125,089 $       -
                                                                
                                                Valuation Technique

As at October 31, 2012      Fair Value     Level 1   Level 2   Level 3

Financial assets                                                      
    Cash resources        $    236,983 $   236,983 $       - $       -
    Securities               2,336,100   2,336,100         -         -
    Derivative related           1,951           -     1,951         -
                          $  2,575,034 $ 2,573,083 $   1,951 $       -
                                                                      

Financial liabilities                                                 
    Derivative related    $         10 $         - $      10 $       -
                                                                      
                                                Valuation Technique

As at January 31, 2012      Fair Value     Level 1   Level 2   Level 3

Financial assets                                                      
    Cash resources        $    228,964 $   206,883 $  22,081 $       -
    Securities               2,079,791   2,079,791         -         -
    Securities purchased       119,999           -   119,999         -
    under resale
    agreements
                          $  2,428,754 $ 2,286,674 $ 142,080 $       -
                                                                      

Financial liabilities                                                 
    Other liability       $     62,211 $         - $       - $  62,211
    Derivative related             539           -       539         -
                          $     62,750 $         - $     539 $  62,211
                                                                      

14. Interest Rate Sensitivity

The Bank's exposure to interest rate risk as a result of a difference or gap 
between the maturity or repricing behavior of interest sensitive assets and 
liabilities, including derivative financial instruments, is discussed in Note 
28 of the audited consolidated financial statements for the year ended October 
31, 2012 (see page 98 of the 2012 Annual Report). The following table shows 
the gap position for selected time intervals.

Asset Liability Gap Positions
                                                                1
              Floating                     3      Total      Year     More 

Rate and Months Within to than Non-($ Within 1 1 to 3 to 1 1 5 5 interest millions) Month Months Year Year Years Years Sensitive Total

January 31, 2013

Assets

Cash $ 290 $ 569 $ 843 $ 1,702 $ 555 $ 163 $ 97 $ 2,517 resources and securities

Loans 6,648 703 1,767 9,118 5,173 76 (68) 14,299

Other - - - - - - 345 345 assets

Derivative - 50 307 357 8 - 4 369 financial instruments ((1))

Total 6,938 1,322 2,917 11,177 5,736 239 378 17,530

Liabilities and Equity

Deposits 5,053 1,432 3,123 9,608 4,549 - (16) 14,141

Other 129 6 29 164 39 9 336 548 liabilities

Debt 5 14 109 128 482 250 - 860

Equity - - - - 105 - 1,507 1,612

Derivative 365 - - 365 - - 4 369 financial instruments ((1))

Total 5,552 1,452 3,261 10,265 5,175 259 1,831 17,530

Interest $ 1,386 $ (130) $ (344) $ 912 $ 561 $ (20) $ (1,453) $ - Rate Sensitive Gap

Cumulative $ 1,386 $ 1,256 $ 912 $ 912 $ 1,473 $ 1,453 $ - $ - Gap

Cumulative 7.9 % 7.2 % 5.2 % 5.2 % 8.4 % 8.3 % - % - % Gap as a Percentage of Total Assets

October 31, 2012

Cumulative $ 1,560 $ 1,586 $ 773 $ 773 $ 1,211 $ 1,437 $ - $ - Gap

Cumulative 9.1 % 9.3 % 4.5 % 4.5 % 7.1 % 8.4 % - % - % Gap as a Percentage of Total Assets

January 31, 2012

Cumulative $ 1,381 $ 1,717 $ 490 $ 490 $ 1,174 $ 1,300 $ - $ - Gap

Cumulative 8.9 % 11.1 % 3.2 % 3.2 % 7.6 % 8.4 % - % - % Gap as a Percentage of Total Assets

((1)) Derivative financial instruments are included in this table at

the notional amount.

((2)) Accrued interest is excluded in calculating interest sensitive


      assets and liabilities.

((3)) Potential prepayments of fixed rate loans and early redemption of
      redeemable fixed term deposits have not been estimated.
      Redemptions of fixed term deposits where depositors have this
      option are not expected to be material. The majority of fixed
      rate loans, mortgages and leases are either closed or carry
      prepayment penalties.
       

The effective, weighted average interest rates of financial assets and 
liabilities are shown below:
                                                              1
            Floating                     3      Total      Year      More

Rate and Months Within to than January 31, Within 1 1 to 3 to 1 1 5 5 2013 Month Months Year Year Years Years Total

Total 3.8 % 2.5 % 3.7 % 3.6 % 5.0 % 5.0 % 4.0 % assets

Total 1.3 2.0 2.3 1.7 2.5 3.3 2.0 liabilities

Interest 2.5 % 0.5 % 1.4 % 1.9 % 2.5 % 1.7 % 2.0 % rate sensitive gap

October 31, 2012

Total 3.8 % 2.7 % 3.7 % 3.6 % 5.0 % 5.0 % 4.1 % assets

Total 1.3 2.1 2.3 1.7 2.5 - 2.0 liabilities

Interest 2.5 % 0.6 % 1.4 % 1.9 % 2.5 % 5.0 % 2.1 % rate sensitive gap

January 31, 2012

Total 3.9 % 2.4 % 4.5 % 3.8 % 5.3 % 5.3 % 4.3 % assets

Total 1.2 2.4 2.4 1.7 2.7 5.0 2.1 liabilities

Interest 2.7 % - % 2.1 % 2.1 % 2.6 % 0.3 % 2.2 % rate sensitive gap


                                                                                     

Based on the current interest rate gap position, it is estimated that a 
one-percentage point increase in all interest rates would increase net 
interest income by approximately 3.4% or $13,916 (October 31, 2012 - 3.8% or 
$15,086) and decrease other comprehensive income $11,674 (October 31, 2012 - 
$12,594) net of tax, respectively over the following twelve months. A 
one-percentage point decrease in all interest rates would decrease net 
interest income by approximately 5.3% or $21,386 (October 31, 2012 - 5.4% or 
$21,534) and increase other comprehensive income $11,674 (October 31, 2012 - 
$12,594) net of tax.

15. Capital Management

Beginning this quarter, capital for Canadian financial institutions is managed 
and reported in accordance with a capital management framework specified by 
OSFI commonly called Basel III. Further details are available in the Capital 
Management section in the Q1 2013 Management's Discussion and Analysis.

Capital funds are managed in accordance with policies and plans that are 
regularly reviewed and approved by the Board of Directors and take into 
account forecasted capital needs and markets. The goal is to maintain adequate 
regulatory capital to be considered well capitalized, protect customer 
deposits and provide capacity for internally generated growth and strategic 
opportunities that do not otherwise require accessing the public capital 
markets, all while providing a satisfactory return for shareholders.

Additional information about the Bank's capital management practices is 
provided in Note 31 to the fiscal 2012 audited consolidated financial 
statements within 2012 Annual Report.

Capital Structure and Regulatory Ratios
                                 As at           As at          As at  
                            January 31      October 31     January 31
                                   2013      2012((1))      2012((1))

Regulatory capital, net                                                
of deductions
    Common equity Tier 1   $   1,192,981   $        n/a   $        n/a  
    Tier 1                     1,450,377      1,460,776      1,289,705  
    Total                      2,118,614      1,903,790      1,854,871  

Capital ratios                                                         
    Common equity Tier 1             8.0 %          n/a            n/a  
    Tier 1                           9.7           10.6 %         10.2 %
    Total                           14.2           13.8           14.6  

Asset to capital multiple           7.9 x          8.8 x          8.3 x

((1)) Capital ratios prior to fiscal 2013 have been calculated using
      the previous capital framework, Basel II. Capital ratios
      calculated under Basel III are not directly comparable to the
      equivalent Basel II measures.
       

During the quarter ended January 31, 2013, the Bank complied with all internal 
and external capital requirements.

During the quarter, the Bank issued $250 million of conventional subordinated 
debentures which qualify as Total capital (refer to Note 9), subject to a 
transitional allowance.

16. Comparative Figures

Certain comparative figures have been reclassified to conform to the current 
period's presentation.

Shareholder Information

Head Office                                                             Transfer Agent and Registrar
Canadian Western Bank & Trust                                           Valiant Trust Company
Suite 3000, Canadian Western Bank Place                                 Suite 310, 606 - 4(th) Street S.W.
10303 Jasper Avenue                                                     Calgary, AB T2P 1T1
Edmonton, AB T5J 3X6                                                    Telephone: (403) 233-2801
Telephone: (780) 423-8888                                               Fax: (403) 233-2857
Fax: (780) 423-8897                                                     Website: www.valianttrust.com
www.cwbankgroup.com            Email: inquiries@valianttrust.com

Subsidiary Offices                                                      Eligible Dividends Designation
National Leasing Group Inc.                                             CWB designates all dividends for both common 
and
1525 Buffalo Place                                                      preferred shares paid to Canadian residents as
Winnipeg, MB R3T 1L9                                                    "eligible dividends", as defined in the Income 
Tax Act
Toll-free: 1-800-665-1326                                               (Canada), unless otherwise noted.
Toll-free fax: 1-866-408-0729
www.nationalleasing.com    Dividend Reinvestment Plan

CWB's dividend reinvestment plan allows common Canadian Western Trust Company and preferred shareholders to purchase additional Suite 600, 750 Cambie Street common shares by reinvesting their cash dividend Vancouver, BC V6B 0A2 without incurring brokerage and commission fees. Toll-free: 1-800-663-1124 For information about participation in the plan, Fax: (604) 669-6069 please contact the Transfer Agent and Registrar or www.cwt.ca visit www.cwbankgroup.com.

Valiant Trust Company Investor Relations Suite 310, 606 - 4(th) Street S.W. Investor & Public Relations Calgary, AB T2P 1T1 Canadian Western Bank Toll-free: 1-866-313-1872 Telephone: (780) 441-3770 Fax: (403) 233-2857 Toll-free: 1-800-836-1886 www.valianttrust.com Fax: (780) 969-8326

Email: InvestorRelations@cwbank.com Canadian Direct Insurance Incorporated Suite 600, 750 Cambie Street Online Investor Information Vancouver, BC V6B 0A2 Additional investor information including Telephone: (604) 699-3678 supplemental financial information and corporate Fax: (604) 699-3851 presentations are available on CWB's website at www.canadiandirect.com www.cwbankgroup.com.

Adroit Investment Management Ltd. Quarterly Conference Call and Webcast Suite 1250, Canadian Western Bank Place CWB's quarterly conference call and live audio 10303 Jasper Avenue webcast will take place on March 7, 2013 at 1:30 Edmonton, AB T5J 3N6 p.m. ET (11:30 a.m. MT). The webcast will be Telephone: (780) 429-3500 archived on the Bank's website at Fax: (780) 429-9680 www.cwbankgroup.com for sixty days. A replay www.adroitinvestments.ca of

the conference call will be available until March 21, Stock Exchange Listings 2013 by dialing (416) 849-0833 or toll-free (855) The Toronto Stock Exchange 859-2056 and entering passcode 95951376. Common Shares: CWB Series 3 Preferred Shares: CWB.PR.A

Chris Fowler President and Chief Operating Officer Canadian Western Bank Phone: (780) 423-8888

Kirby Hill, CFA Director, Strategy and Communications Canadian Western Bank Phone: (780) 441-3770 Email: 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/March2013/07/c2699.html

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

-0- Mar/07/2013 13:30 GMT

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