CWB celebrates 100 consecutive profitable quarters

Common share dividend declared of $0.18 per share, up 13% over the dividend 
declared a year earlier
Quarterly dividend declared on CWB preferred shares 
Second Quarter 2013 Highlights(1) (compared to the same period in the prior 
year) 


    --  Net income available to common shareholders of $43.0 million,
        up 8%.
    --  Diluted earnings per common share of $0.54, up 4%; adjusted
        cash earnings per common share of $0.55, unchanged.
    --  Total revenues, on a taxable equivalent basis (teb), of $137.0
        million, up 7%.
    --  Very strong quarterly loan growth of 4%; 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 14.1% total
        ratio.
    --  Announced acquisition of 55% ownership of McLean & Partners
        Wealth Management Ltd., a Calgary-based wealth management firm.
    (1)      Highlights include certain non-IFRS measures - refer to
             definitions following the table of Selected Financial
             Highlights on page 4.



EDMONTON, June 6, 2013 /CNW/ - Canadian Western Bank (TSX: CWB) (CWB or the 
Bank) today announced solid financial performance and the achievement of 100 
consecutive profitable quarters. This unique track-record of consistent 
profitability every quarter over the past 25 years sets CWB apart from all 
other Schedule I banks in Canada.

Second quarter net income available to common shareholders of $43.0 million 
increased 8% compared to the same quarter last year, while diluted earnings 
per share was up 4% to $0.54. Adjusted cash earnings per common share, which 
excludes the after-tax amortization of acquisition-related intangible assets 
and the non-tax deductible change in fair value of contingent consideration, 
was unchanged at $0.55. The difference in growth in net income available to 
common shareholders and adjusted cash earnings per share mainly reflects the 
combined impact of an issuance of CWB common shares and the settlement of 
contingent consideration in the third quarter of 2012, both related to the 
2010 acquisition of National Leasing Group Inc. Total revenues (teb) of $137.0 
million represent a 7% increase over a year earlier as the positive 
contribution from strong 12% loan growth and 15% higher other income was 
partially offset by a 16 basis point lower net interest margin (teb), 
increased non-interest expenses and one less revenue-earning day.

Compared to last quarter, net income available to common shareholders was 5% 
($2.5 million) lower as the benefit of very strong 4% loan growth and 
increased other income was more than offset by the impact of three fewer 
revenue-earning days and higher non-interest expenses. Adjusted cash earnings 
per share was also lower by 5% ($0.03). The quarterly net interest margin 
(teb) of 2.65% was consistent with the prior quarter, but continued to be 
constrained by very low interest rates, a flat interest rate curve and ongoing 
competitive pressures.

Year-to-date net income available to common shareholders of $88.5 million 
increased 9% compared to the same period last year as the benefit of strong 
growth in loans and other income was partially offset by a 14 basis point 
decline in net interest margin (teb) and increased non-interest expenses. 
Diluted earnings per common share increased 5% over the same period last year, 
while adjusted cash earnings per share was up 1% to $1.13.

 _____________________________________________________________________
|"Attaining 100 consecutive profitable quarters is a tremendous       |
|milestone for CWB Group and we're actively celebrating this          |
|achievement. We're very proud of the growth and stability we've      |
|delivered for our shareholders over the past 25 years, and our       |
|primary focus is to continue building on this outstanding history of |
|performance," said Chris Fowler, President and CEO. "In support of   |
|our commitment to give back to our communities, one element of our   |
|celebration was to make a meaningful contribution to a group of      |
|worthy charities, as chosen by our 2,000-plus employees. Based on the|
|results of an employee vote, CWB Group is pleased to report that we  |
|will be donating a total of $100,000 to children's hospitals located |
|throughout our key geographic markets. Another achievement,          |
|subsequent to quarter end, was CWB Group's recognition by Alberta    |
|Venture Magazine as Alberta's Best Overall Workplace with more than  |
|750 employees."                                                      |
|_____________________________________________________________________|

 _____________________________________________________________________
|"Acquisitions have been an important part of our success, and we were|
|very pleased in the second quarter to announce our intent to invest  |
|in 55% ownership of McLean & Partners, a Calgary-based wealth        |
|management company. The investment closed in May and we're excited to|
|welcome this entire team to the CWB Group. The acquisition represents|
|an extension of our wealth management strategy, which is focused on  |
|future earnings growth, revenue diversification and deeper           |
|relationships with our clients."                                     |
|                                                                     |
|"Within our core businesses, second quarter loan growth was very     |
|strong and largely reflects our ongoing success in serving the needs |
|of small- to mid-sized business clients," continued Mr. Fowler. "We  |
|have seen some stabilization of net interest margin; however, this   |
|key measure will remain under pressure until we see some movement    |
|toward higher interest rates. Credit quality remains strong and we   |
|are optimistic about the overall positive levels of activity across  |
|our key geographic markets."                                         |
|_____________________________________________________________________|

On June 5, 2013, CWB's Board of Directors declared a cash dividend of $0.18 
per common share, payable on June 27, 2013 to shareholders of record on June 
20, 2013. This quarterly dividend was 6% ($0.01) higher than the previous 
quarter and 13% ($0.02) 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 July 31, 2013 to shareholders of record on 
July 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))                                         9%            8%

Total revenue (teb) growth((1))                     8%            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))                       46.3%          46%

Return on common shareholders' equity((5))        13.8%          14%

Return on assets((6))                             1.03%         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.
          

Solid financial performance through the first six months has CWB 
well-positioned in relation to the majority of our 2013 minimum performance 
targets. Growth in total revenues and net income available to common 
shareholders was largely driven by strong year-over-year lending activity 
across almost all of our key sectors. Double-digit growth across most 
categories of other income also made meaningful contributions and helped to 
mitigate the effects of a lower net interest margin. The volume in the 
pipeline for new loans remains strong and ongoing loan growth will continue to 
have a positive impact on revenues and earnings for the rest of the year. 
However, we expect net interest margin will continue to be constrained and 
achieving meaningful improvement in this measure over the near-term will be 
difficult. Net interest margin challenges and the resulting impact on total 
revenues are additionally apparent in our key profitability measures and the 
efficiency ratio. While we will continue to strategically invest in people, 
technology and infrastructure to support future long-term growth, we also 
remain very attentive to the rate of growth in non-interest expenses. We will 
continue to manage business investment and resulting growth in non-interest 
expenses in consideration of expected revenue growth and our 2013 target 
efficiency ratio of 46% or less. Overall credit quality remains consistent 
with expectations of the credit cycle and supports our view that the annual 
provision for credit losses will remain at the low end of the 2013 target 
range.

The Canadian economy is showing moderate expansion in 2013, with comparatively 
stronger performance across the Bank's key western Canadian markets. Demand 
for Canadian resource exports and manufactured goods remains relatively stable 
and should help to offset potential pressures from adjustments in the housing 
sector and slower growth in personal borrowing. Although recessionary 
conditions and political uncertainty persist in Europe, many economic trends 
in the U.S. continue to be encouraging, including improving employment, 
strengthening domestic demand and increasing activity in the housing market. 
These positive developments, which align with consensus forecasts for 
accelerated domestic growth in 2014, support our outlook for continued 
profitable growth opportunities. Overall, we remain optimistic about the 
domestic economic outlook and look forward to delivering continued growth and 
value for CWB shareholders over the long term.

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., McLean & Partners Wealth 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.cwb.com for additional information.

 
________________________________________________________________________________________________________________________
_________________
|Fiscal 2013 Second Quarter Results Conference Call                                                                     


              |
|CWB's second quarter results conference call is scheduled for Thursday, June 6, 2013 at 3:00 p.m. ET (1:00 p.m. MT). 
The Bank's          |
|executives will comment on financial results and respond to questions from analysts and institutional investors.        
              |
|                                                                                                                        
              |
|The conference call may be accessed on a listen-only basis by dialing 647-427-7450 or toll-free 1-888-231-8191. The 
call will also be    |
|webcast live on the Bank's website:                                                                                     
              |
|                                                                                                                        
              |
|www.cwbankgroup.com/investor_relations/webcast_events.htm.|
|                                                                                                                        
              |
|A replay of the conference call will be available until June 20, 2013 by dialing 416-849-0833 (Toronto) or 1-855-859-2056 (toll-free) and|
|entering passcode 65242639.                                                                                             
              |
|_______________________________________________________________________________________________________________________
__________________| 
Selected Financial Highlights 


                               For the three months ended                    For the six months ended             

(unaudited)                                                                                                  

($ thousands,                                                     April    April                        April
except per share      April 30     January 31       April 30         30       30               April       30
amounts)                                 2013           2012       2012     2013             30 2012     2012

Results of                                                      
Operations                                                                                                        

  Net interest                                                  
  income (teb -
  see below)      $    113,576   $    114,749   $    107,600          6  %     $ 228,325   $ 215,109        6    %

  Less teb                                                      
  adjustment             2,000          1,915          2,458       (19)            3,915       5,078     (23)     

  Net interest                                                  
  income per                                                                                                      
     financial                                                  
     statements        111,576        112,834        105,142          6          224,410     210,031        7     

  Other income          23,390         22,379         20,254         15           45,769      39,045       17     

  Total revenues                                                
  (teb)                136,966        137,128        127,854          7          274,094     254,154        8     

  Total revenues       134,966        135,213        125,396          8          270,179     249,076        8     

  Net income                                                    
  available to                                                                                                    
     common                                                     
     shareholders       42,988         45,482         39,669          8           88,470      81,147        9     

  Earnings per                                                  
  common share                                                                                                    
     Basic((1))           0.54           0.58           0.52          4             1.12        1.07        5     
     Diluted((2))         0.54           0.57           0.52          4             1.11        1.06        5     
     Adjusted                                                   
     cash((3))            0.55           0.58           0.55          -             1.13        1.12        1     

  Return on                                                     
  common
  shareholders'                                                                                                bp(
  equity((4))             13.4 %         14.2 %         14.6 %    (120) bp          13.8 %      15.0 %  (120) (5))

  Return on                                                     
  assets((6))             1.00           1.06           1.03        (3)             1.03        1.05      (2)     

  Efficiency                                                    
  ratio (teb)(
  (7))                    47.3           45.3           46.2        110             46.3        44.9      140     

  Efficiency                                                    
  ratio                   48.0           45.9           47.1         90             47.0        45.8      120     

  Net interest                                                  
  margin (teb)(
  (8))                    2.65           2.66           2.81       (16)             2.65        2.79     (14)     

  Net interest                                                  
  margin                  2.60           2.62           2.74       (14)             2.61        2.72     (11)     

  Provision for                                                 
  credit losses
  as a                                                                                                            
     percentage                                                 
     of average
     loans                0.19           0.18           0.19          -             0.18        0.20      (2)     

Per Common Share                                                                                                  

  Cash dividends  $       0.17   $       0.17   $       0.15         13  %     $    0.34   $    0.30       13    %

  Book value             16.82          16.42          14.73         14            16.82       14.73       14     

  Closing market                                                
  value                  28.46          30.84          28.69        (1)            28.46       28.69      (1)     

  Common shares                                                 
  outstanding
  (thousands)           79,171         78,992         75,909          4           79,171      75,909        4     

Balance Sheet and                                               
Off-Balance
Sheet Summary                                                                                                     

  Assets          $ 17,779,280   $ 17,161,437   $ 15,713,443         13  %                                        

  Loans             14,884,553     14,299,112     13,281,729         12                                           

  Deposits          14,780,315     14,141,439     13,219,077         12                                           

  Debt                 897,183        860,661        602,675         49                                           

  Shareholders'                                                 
  equity             1,540,971      1,506,438      1,327,783         16                                           

  Assets under                                                  
  administration     7,821,089      7,306,557      6,843,070         14                                           

  Assets under                                                  
  management           904,730        882,213        826,299          9                                           

Capital Adequacy(                                               
(9))                                                                                                              

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

  Tier 1 ratio             9.7            9.7            9.9       (20)                                           

  Total ratio             14.1           14.2           13.2         90                                           
           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 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 June 5, 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 April 30, 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.cwb.com.

Overview

CWB is pleased to report solid financial performance to mark its 100(th) 
consecutive profitable quarter. Net income available to common shareholders of 
$43.0 million represented growth of 8% ($3.3 million) compared to the same 
quarter last year. Total revenues, on a taxable equivalent basis (teb), grew 
7% ($9.1 million), reflecting the positive impact of strong 12% loan growth 
and 15% ($3.1 million) higher other income, partially offset by a 16 basis 
point reduction in net interest margin. Diluted earnings per common share 
increased 4% to $0.54, while adjusted cash earnings per common share was 
unchanged at $0.55. 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 and the after-tax amortization of acquisition-related 
intangible assets, both related to the 2010 acquisition of National Leasing 
Group Inc. While contingent consideration was eliminated in May 2012, the 
related expense reduced other income in the second quarter of last year by 
$1.3 million. The lower growth rate of adjusted cash earnings per share 
compared to net income available to common shareholders reflects the 
foregoing, as well as the impact of CWB common shares issued in the third 
quarter of 2012 in settlement of the contingent consideration.

Compared to the previous quarter, net income available to common shareholders 
was lower by 5% ($2.5 million) as the positive revenue impacts of very strong 
4% quarterly loan growth and 5% ($1.0 million) higher other income were offset 
by three fewer revenue-earning days and a 4% increase ($2.8 million) in 
non-interest expenses. Quarterly net interest margin (teb) of 2.65% was 
consistent with the previous quarter.

On a year-to-date basis, net income available to common shareholders of $88.5 
million was up 9% while adjusted cash earnings per common share increased 1% 
to $1.13. The difference in the growth rate of net income available to common 
shareholders and adjusted cash earnings per share reflects the items noted 
above. Growth in total revenues (teb) of 8% ($19.9 million) was driven by a 6% 
($13.2 million) increase in net interest income (teb) and 17% ($6.7 million) 
growth in other income. The year-to-date net interest margin of 2.65% was 14 
basis points lower than the prior year while non-interest expenses were up 10% 
($11.6 million).

The quarterly return on common shareholders' equity (ROE) of 13.4% was 120 
basis points lower compared to the same quarter in 2012 mainly resulting from 
the combined impact of margin compression and the issuance of common shares. 
ROE declined 80 basis points compared to the prior quarter, reflecting three 
fewer revenue-earning days and higher non-interest expenses. Year-to-date ROE 
of 13.8% was 120 basis points lower than same period last year. Second quarter 
return on assets of 1.00% compares to 1.03% a year earlier and 1.06% last 
quarter.

Total Revenues (teb)

Total revenues, comprising both net interest income (teb) and other income, 
reached $137.0 million for the quarter, up 7% ($9.1 million) compared to a 
year earlier. Growth in net interest income of 6% ($6.0 million) reflects the 
positive impact of strong 12% loan growth, partially offset by a 16 basis 
point reduction in net interest margin. Other income increased 15% ($3.1 
million) largely resulting from higher credit related and retail services fee 
income, an increase in net insurance revenues and the elimination of charges 
for the change in fair value of contingent consideration.

Total revenues were consistent with the previous quarter as the benefit of 
very strong loan growth and higher other income was offset by fewer days. 
Year-to-date total revenues of $274.1 million increased 8% ($19.9 million) as 
contributions from strong loan growth and other income offset the impact of a 
reduced net interest margin.

Net Interest Income (teb)

Net interest income of $113.6 million was up 6% ($6.0 million) over the same 
quarter last year as the benefit of strong loan growth was partially offset by 
a 16 basis point reduction in net interest margin. The reduction in net 
interest margin to 2.65% mainly resulted from lower loan yields reflecting the 
combined impact of the sustained very low interest rate environment and flat 
interest rate curve, as well as ongoing competitive pressures, partially 
offset by more favourable fixed term deposit costs.

Compared to the previous quarter, net interest income was down 1% ($1.2 
million) as the revenue contribution from very strong loan growth was offset 
by the impact of three fewer days. Net interest margin was relatively 
unchanged as the combined positive impacts from a reduction in fixed term 
deposit costs, lower average liquidity and higher yields on securities was 
offset by lower loan yields and interest expense on a higher balance of 
debentures outstanding.

On a year-to-date basis, net interest income of $228.3 million increased 6% 
($13.2 million) as strong loan growth was partially offset by a 14 basis point 
reduction in net interest margin. The lower margin reflects similar factors as 
noted above.

Going forward, meaningful improvement in net interest margin is unlikely in 
the absence of increases in the prime lending interest rate and/or a 
steepening of the interest rate curve. However, management remains focused on 
mitigating margin pressures through an emphasis on achieving higher relative 
growth in better yielding loan portfolios, improving the deposit mix to lower 
the overall cost of funds, increasing the level of contributions from other 
income and prudently managing liquidity levels.

Note 13 to the unaudited interim consolidated financial statements summarizes 
the Bank's exposure to interest rate risk as at April 30, 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 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.


                         April 30     January 31     April 30  
($ thousands)                    2013           2013         2012 
                                                                
Estimated impact on net                                            
interest income of a 1%
increase in interest rates 
1 year                   $   20,425   $     13,916   $   12,418   
1 year percentage change        4.9 %          3.4 %        3.2 % 
                                                                
Estimated impact on net                                            
interest income of a 1%
decrease in interest rates 
1 year                   $ (28,260)   $   (21,386)   $ (17,239)   
1 year percentage change      (6.8) %        (5.3) %      (4.4) % 
                                                                
In addition to the projected changes in net interest income noted above, it is 
estimated that a one-percentage point increase in all interest rates at April 
30, 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 $9.5 
million, net of tax (April 30, 2012 - $10.8 million). It is estimated that a 
one-percentage point decrease in all interest rates at April 30, 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 $9.5 
million, net of tax (April 30, 2012 - $10.8 million). 
Management maintains 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 
Second quarter other income of $23.4 million increased 15% ($3.1 million) 
compared to the same quarter last year reflecting growth in credit related and 
retail services fee income of 14% ($0.6 million) and 20% ($0.5 million), 
respectively. Net insurance revenues were up 8% ($0.4 million) based on growth 
in net earned premiums and relatively stable claims experience, while trust 
and wealth management services fees also increased by 8% ($0.4 million). 
Year-over-year growth also benefitted from the elimination of contingent 
consideration fair value changes, which reduced other income in the second 
quarter of 2012 by $1.3 million. Quarterly net gains on securities of $3.1 
million were down slightly compared to the prior year. Based on the current 
composition of the securities portfolio, management believes net gains on 
securities will continue to provide a relatively consistent source of revenue 
for the remainder of the year. 
Other income was up 5% ($1.0 million) compared to the previous quarter as the 
combined benefit of a $1.0 million increase in net insurance revenues, $0.4 
million higher net gains on securities and positive growth contributions from 
other areas was partially offset by a $1.0 million decline in the 'other' 
category of other income and $0.4 million lower credit related fee income. 
Higher net insurance revenues mainly reflect improved claims experience. The 
'other' category of other income was unusually high in the first quarter as a 
result of a $1.0 million contribution from the sale of residential mortgages. 
Year-to-date other income of $45.8 million was up 17% ($6.7 million) compared 
to 2012 driven by solid increases in all categories except foreign exchange 
gains. Net insurance revenues and credit related fee income were up $1.2 
million and $1.1 million, respectively. Net insurance revenues benefited from 
stable claims experience and growth in net earned premiums, while credit 
related fee income grew in line with overall loan growth. Trust and wealth 
management fees were up $0.7 million, while net gains on securities and retail 
service fees each increased by $0.6 million. The elimination of charges for 
contingent consideration fair value changes accounted for $2.5 million of the 
positive difference in other income compared to the same period in 2012. 
Credit Quality 
Overall credit quality reflects continuing strong underwriting practices and 
relatively stable levels of economic activity in Western Canada despite slower 
growth in the global economy. Gross impaired loans at April 30, 2013 of $61.6 
million remained very low in relation to total loans outstanding, and compared 
to $55.7 million last quarter and $87.9 million a year earlier. The increase 
in the dollar level of gross impaired loans this quarter follows 11 
consecutive quarterly declines and is consistent with normal fluctuations and 
expectations of the credit cycle. 


                       For the three months ended

(unaudited)
                                                        Change
                               January                    from


            April 30            31     April 30   April 30
($ thousands)        2013         2013         2012       2012         
                                                                   
Gross
impaired
loans,
beginning of
period        $    55,734   $   66,840   $   90,857       (39) % 
New
  formations       19,923       14,972       29,589       (33)         
Reductions,
  impaired
  accounts
  paid down
  or returned
  to
  performing
  status         (10,158)     (12,906)     (26,840)       (62)         
Write-offs      (3,876)     (13,172)      (5,733)       (32)         
Total((1))    $    61,623   $   55,734   $   87,873       (30) % 


                                                                      

Balance of
the ten
largest
impaired
accounts      $    33,189   $   23,833   $   50,859       (35) %

Total number
of accounts
classified as
impaired((3))         131          135          124          6        

Gross
impaired
loans as a
percentage of
total loans(
(4))                 0.41 %       0.39 %       0.66 %     (25) bp((2))

((1)) Gross impaired loans include foreclosed assets held for sale with
      a carrying value of $7,256 (January 31, 2013 - $9,160 and April
      30, 2012 - $877).

((2)) bp - basis point change.

((3)) Total number of accounts excludes National Leasing.

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

The dollar level of gross impaired loans represented 0.41% of total loans at 
quarter end, compared to 0.39% last quarter and 0.66% one year ago. As at 
April 30, 2013, the collective allowance for credit losses exceeded the 
balance of impaired loans, net of specific allowances. The dollar level of 
gross impaired loans fluctuates as loans become impaired and are subsequently 
resolved, and does not directly reflect the dollar value of expected 
write-offs given tangible security held in support of the Bank's lending 
exposures. 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. 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 19 basis 
points in the quarter and 18 basis points year-to-date. This compares to 18 
basis points in the previous quarter and 20 basis points through the first 
half of last year. 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 
129% of gross impaired loans at quarter end, compared to 137% last quarter and 
86% one year ago. The total allowance for credit losses was $79.5 million at 
April 30, 2013, compared to $76.4 million last quarter and $75.5 million a 
year earlier.

Non-interest Expenses

Ensuring the Bank is positioned to deliver strong growth over the long term 
while maintaining effective control of costs remains one of management's key 
priorities. Successful execution of CWB's strategic plan will continue to 
require investment in certain areas. Significant anticipated expenditures 
relate to additional staff complement to support ongoing growth, as well as 
expanded infrastructure and further investment in technology. This strategy is 
aligned with a commitment to maximize long-term shareholder value and is 
expected to provide material benefits in future periods. Work on the Bank's 
major program to implement a new core banking system continues. Preliminary 
timelines anticipate core banking implementation in 2015 based on a capital 
budget of $50 million. Upgrades and expansion of branch infrastructure is 
ongoing. 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.

Quarterly non-interest expenses of $64.8 million were up 9% ($5.2 million) 
compared to the same quarter last year reflecting increases in salaries and 
benefits, and premises and equipment expenses of 11% ($4.0 million) and 9% 
($0.9 million), respectively. The change in salaries and benefits primarily 
resulted from a higher staff complement to support ongoing growth, as well as 
annual salary increments. Higher premises and equipment expense was driven by 
increases in direct computer costs and depreciation related to ongoing 
expansion and upgrades to existing technology and infrastructure, including 
the addition of a new full-service branch in Winnipeg, Manitoba in the latter 
part of 2012. General expenses include higher 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 up 4% ($2.8 
million), including $1.2 million higher advertising expense. Salaries and 
benefits were up 2% ($0.9 million), while expense related to premises and 
equipment was higher by 5% ($0.5 million).

Year-to-date non-interest expenses increased 10% ($11.6 million) over 2012 
reflecting a 12% ($9.0 million) increase in salaries and benefits driven by 
staff complement, annual salary increments and higher stock-based and variable 
compensation. Premises and equipment costs were up 9% ($1.7 million) 
reflecting the factors noted above, while general expenses increased 4% ($0.8 
million).

The second quarter efficiency ratio (teb), which measures non-interest 
expenses as a percentage of total revenues (teb), was 47.3%, compared to 46.2% 
last year and 45.3% in the previous quarter. The increase compared to the 
prior quarter reflects the impact of three fewer days and higher non-interest 
expenses. Compared to the same quarter last year, constrained revenue growth 
due to a 16 basis point decline in net interest margin and one less 
revenue-earning day combined with increased expenses to drive the ratio 
higher. Based on the year-to-date efficiency ratio of 46.3%, and in 
consideration of expected revenues and planned expenditures, management 
believes its 2013 efficiency ratio target of 46% or better is attainable, but 
will be challenging.

Income Taxes

The second quarter effective income tax rate (teb) was 25.9%, compared to 
27.1% in the same quarter last year. The decrease in the tax rate mainly 
reflects the non-tax deductible charge related to the 2012 fair value 
contingent consideration changes. The effective income tax rate (teb) for the 
first six months of 2013 was 25.8%, down 110 basis points from 26.9% during 
the same period one year ago reflecting the contingent consideration factor 
outlined above and 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 $48.4 million for the second 
quarter, compared to $43.5 million in the same period last year. The net 
increase in comprehensive income was driven by the combined impact of 7% ($3.3 
million) higher net income and a $2.2 million increase in fair value, net of 
taxes, of 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.

Year-to-date comprehensive income of $103.0 million compared to $96.4 million 
in 2012 with the change mainly resulting from an 8% ($7.3 million) increase in 
net income, slightly offset by losses from the change in fair value of 
derivatives designated as cash flow hedges.

Balance Sheet

Total assets increased 4% ($618 million) in the quarter, 5% ($906 million) 
year-to-date and 13% ($2,066 million) in the past year to reach $17,779 
million at April 30, 2013.

Cash and Securities

Cash and securities totaled $2,545 million at April 30, 2013, compared to 
$2,517 million at the end of last quarter; although average liquidity through 
the second quarter was lower (refer to the Treasury Management section of this 
MD&A for additional details). As at April 30, 2012, cash, securities and 
securities purchased under resale agreements totaled $2,110 million. Net 
unrealized gains recorded on the balance sheet of $16.5 million compares to 
$16.0 million both last quarter and a year earlier, with the differences 
mainly reflecting an increased market value of debt securities, offset by 
gains realized through the income statements on disposition of common equities 
and the redemption of preferred shares. The securities portfolio is primarily 
comprised of high quality debt instruments, preferred shares and common 
equities 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 second quarter of $3.1 million compare 
to $3.2 million in the same period last year and $2.7 million in the previous 
quarter. Net gains reflect both favourable market conditions and opportunistic 
management of the securities portfolio. Based on the current composition of 
the portfolio, management believes net gains on securities will continue to 
provide a relatively consistent source of revenue for the remainder of the 
year. 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

Lower average liquidity compared to the previous quarter mainly resulted from 
the deployment of cash and securities to support ongoing loan growth and the 
redemption of maturing floating rate notes. Given the current economic 
environment and based on ongoing scenario modeling and stress testing, 
management has implemented a plan to prudently reduce liquidity levels. A 
gradual reduction in average liquidity is expected to provide modest relief 
for net interest margin pressure going forward.

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. 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 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 beginning in 2015 and 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. 
Although the Basel Committee has introduced a phase-in period for compliance 
with LCR guidelines, Canadian banks will be required to fully comply with the 
LCR regulations in 2015 with no phase-in. CWB believes it is well positioned 
to comply with these new requirements.

Loans

Total loans grew 4% ($585 million) in the quarter, 7% ($931 million) 
year-to-date and 12% ($1,603 million) in the past twelve months to reach 
$14,885 million. Measured in dollar terms, sequential quarterly growth by 
lending sector was led by equipment financing and leasing ($172 million), 
commercial mortgages ($133 million), general commercial loans ($91 million) 
and corporate lending ($83 million). Personal loans and mortgages grew $62 
million during the quarter, while growth in real estate project loans 
moderated in certain markets with an overall increase of $49 million. Oil and 
gas production loans declined by $1 million.

Equipment financing and leasing also led growth by lending sector on a 
year-to-date and year-over-year basis, with growth in dollar terms of $268 
million and $471 million, respectively. General commercial lending activity 
followed closely in the year-over-year comparison with growth of $452 million. 
Based on the current outlook for new loans, management believes ongoing 
activity within these two sectors will continue to provide the strongest 
overall growth in fiscal 2013, while relatively slower growth is expected in 
real estate project loans, commercial mortgages and oil and gas production 
loans. Over the past twelve months, commercial mortgages and oil and gas 
production loans were the only sectors that did not show double-digit growth. 
Measured by geographic concentration, lending activity in British Columbia 
showed the highest growth in dollar terms, followed by Alberta, Saskatchewan 
and Manitoba.

(unaudited)            April 30                                       


                              January 31   October 31   April 30
($ millions)               2013         2013         2012       2012   


                                                                      

General commercial                                                    
loans                $    3,312   $    3,221   $    3,179   $  2,860

Commercial mortgages      3,124        2,991        2,930      2,959  

Equipment financing                                                   
and leasing               2,766        2,594        2,498      2,295

Personal loans and                                                    
mortgages                 2,378        2,316        2,292      2,155

Real estate project                                                   
loans                     2,091        2,042        1,882      1,904

Corporate lending (                                                   
(1))                      1,011          928          912        824

Oil and gas                                                           
production loans            282          283          342        360

Total loans                                                           
outstanding ((2))    $   14,964   $   14,375   $   14,035   $ 13,357

((1))  Corporate lending represents 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 competitive factors continue to have a meaningful impact across most 
lending areas, management believes market share will be gained from the 
combined positive influences of a strong client value proposition, expanded 
market presence and increased brand awareness in core geographic markets. 
CWB's strategic plan is focused on further enhancing existing competitive 
advantages in business banking, with complementary offerings in personal 
banking, equipment leasing and other key business areas.

Consensus forecasts for Canada's domestic economy call for modest expansion in 
2013, with the strongest regional growth expected in the western provinces. 
Favourable employment levels, strengthening domestic demand and benefits from 
the ongoing housing recovery in the U.S. have combined to stabilize demand for 
Canadian exports, including natural resources. While strong competition from 
domestic banks and other financial services firms is expected to persist, the 
current overall outlook for generating profitable double-digit loan growth 
remains positive.

Residential real estate markets have softened in certain regions leading to 
fewer new lending opportunities in real estate construction. Although housing 
affordability remains within historical ranges, largely reflecting Canada's 
very low interest rates and stable employment levels, the expected rate of 
growth in real estate project loans is expected to be slower than growth in 
the portfolio as a whole. Subdued expectations primarily reflect elevated 
price levels in specific geographical areas and relatively high levels of 
Canadian consumer debt.

An increase in natural gas prices from very low levels and incremental 
improvements in pipeline capacity may gradually improve the financial 
flexibility and cash flows of exploration and production companies. However, 
it may take time for these positive developments to result in an escalation of 
drilling and construction activity directly related to these factors. 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 the 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 the broker-sourced residential mortgage business, Optimum 
Mortgage (Optimum), reached $1,146 million on growth of 4% ($43 million) in 
the quarter, 5% ($56 million) year-to-date and 11% ($118 million) over the 
past year. Net of whole loan sales completed in the first quarter of 2013 and 
the third quarter of 2012, Optimum's growth rate was 8% year-to-date and 19% 
year-over-year. Growth was 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. However, these factors 
have also resulted in moderated overall demand for mortgages and are expected 
to reduce the volume of residential real estate transactions going forward. 
Despite these challenges, Optimum continues to deliver strong performance and 
management is optimistic about continued opportunities within this business.

Securitized leases are reported on-balance sheet as part of total loans. The 
gross amount of securitized leases at April 30, 2013 totaled $255 million, 
compared to $214 million last quarter and $196 million one year ago. Leases 
securitized in the second quarter and year-to-date totaled $59 million.

Residential Mortgage Exposure

In accordance with OSFI Guideline B20 - Residential Mortgage Underwriting 
Practices and Procedures additional information is provided regarding CWB's 
residential mortgage exposure. This exposure, including home equity lines of 
credit (HELOCs), is sourced through Optimum's third-party channels and CWB 
branches. Bank and trust companies in Canada are prohibited from providing 
mortgages with a loan-to-value (LTV) of more than 80% unless supported by 
third-party mortgage insurance. Although mortgage insurance protects the Bank 
from losses resulting from mortgagor default, it does not replace prudent 
lending practices, including the underwriting and administration of insured 
loans, the collection of payments and the protection of loan security.

A geographical breakdown of insured and uninsured loans secured by residential 
property, including HELOCs, follow:

(unaudited)                                          As at April 30, 2013

($                     Insured                 Uninsured                               
thousands)
                            % of                      % of                 Provincial


                      Total                     Total          Total 
Province    Balance   Balance       Balance     Balance       Balance   % of Total   
Alberta      $ 195,843        24 % $   631,689          76 % $   827,532           42 % 
British        105,826        14       628,670          86       734,496           37  
Columbia 
Manitoba         9,273        15        51,625          85        60,898            3   
Ontario         17,252         8       211,724          92       228,976           11   
Saskatchewan    30,941        22       110,090          78       141,031            7   
Other              111       100             -           -           111            -   


             $ 359,246        18 % $ 1,633,798          82 % $ 1,993,044          100 %
                                                                                       
                                                  As at January 31, 2013               
                       Insured                 Uninsured                               
                            % of                      % of


                       Total                     Total         Total   Provincial 
Province    Balance   Balance       Balance     Balance       Balance   % of Total   
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            -   
         $ 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 follow: 


                            For the three months ending  

(unaudited)        April 30, 2013    January 31, 2013    

Alberta                        65  %               64   %

British Columbia               61                  62    

Manitoba                       66                  71    

Ontario                        72                  71    

Saskatchewan                   64                  60    

Other                          41                  74    
                               65  %               65   %
                                      

Total loans secured by residential property, including HELOCs, and categorized 
by amortization period follow:
                          As at April 30, 2013        As at January 31,
                                                            2013

(unaudited)                              % of                     % of
($                                       Total                   Total
thousands)                 Balance     Balance         Balance Balance  

Amortization                                                            
(years)
    5 or less           $    39,329           2 %   $    34,005       2 %

> 5 to 10                   21,553           1          21,613       1  

> 10 to 15                  47,828           2          49,075       3  

> 15 to 20                 147,213           7         140,272       7  

> 20 to 25                 950,864          48         929,582      47  

> 25 to 30                 610,514          31         602,102      31  

> 30 to 35                 172,281           9         185,207       9  

> 35                         3,462           -           3,985       -  
                       $ 1,993,044         100 %   $ 1,965,841     100 %
                                                                        

The total residential mortgage portfolio is well secured with an average LTV 
of less than 65%. In the event of a significant economic downturn and/or 
contraction in real estate prices, the Bank's strong collateral position would 
mitigate potential losses within this portfolio.

Deposits

Total deposits at quarter end were $14,780 million, up 5% ($639 million) over 
the previous quarter, 5% ($635 million) year-to-date, and 12% ($1,561 million) 
over the past year. Personal deposits represented 63% of total deposits at 
April 30, 2013, unchanged from the prior quarter and down from 65% one year 
ago. Total branch-raised deposits represented 56% of total deposits at April 
30, 2013, unchanged from the previous quarter and down from 58% one year ago. 
Demand and notice deposits were 33% of total deposits, unchanged from both the 
previous quarter and the same period last year.

Total branch deposits, including trust services deposits, of $8,287 increased 
4% ($306 million) in the second quarter, 6% ($464 million) year-to-date and 8% 
($640 million) over the past twelve months. The demand and notice component 
within branch-raised deposits, which includes lower cost deposits, was up 5% 
($238 million) from last quarter, 9% ($412 million) year-to-date and 12% ($520 
million) from the same time last year to reach $4,871 million. 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 deposits that are lower cost, provide associated 
transactional fee income and strengthen relationships by providing clients 
with relevant tools for managing their business and personal finances. 
Meaningful enhancements to CWB's cash management offerings continue to support 
this focus on growing branch-raised deposits, as do new training programs 
currently underway that reach a significant number of branch employees. CWB's 
expanding market presence, including ongoing expansion and upgrades to 
existing branches, also supports objectives to generate branch-raised deposits.

Management remains committed to further enhance and diversify all funding 
sources to support growth, manage the impact of competitive pressures and 
augment 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 debt capital markets is also part 
of management's strategy to further diversify the funding base over time. At 
the end of the second quarter, there was a total of $1,000 million term 
deposits raised through debt capital markets, representing 7% of total 
deposits. In the previous quarter, DBRS Limited initiated a rating of "R-1 
(low)" with a stable trend on CWB's short term instruments, enabling the Bank 
to explore access to an additional source of funding through the issuance of 
bearer deposit notes (BDN). Management expects to launch its BDN program 
before the end of the year, and will also continue to evaluate the funding 
potential available through securitization of portfolios that may include 
equipment loans, residential mortgages and/or commercial mortgages.

Other Assets and Other Liabilities

Other assets at April 30, 2013 totaled $350 million, compared to $345 million 
last quarter and $322 million one year ago. Other liabilities at quarter end 
were $456 million, compared to $548 million the previous quarter and $459 
million a year earlier. The decrease in other liabilities compared to the 
prior quarter relates primarily to a reduction in securities sold under 
repurchase agreements.

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 and third-party leases under administration, as well as mortgages under 
service agreements, totaled $7,821 million at April 30, 2013, compared to 
$7,307 million last quarter and $6,843 million one year ago. Assets under 
management were $905 million at quarter end, compared to $882 million last 
quarter and $826 million a year earlier. With the Bank's recently announced 
acquisition of McLean & Partners, assets under management will essentially 
double compared to the level at April 30, 2013.

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 11 of the unaudited interim 
consolidated financial statements for the period ended April 30, 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 in the first quarter of 2013, and 
8.5% Tier 1 and 10.5% total capital effective in the first quarter of 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 April 30, 2013, the Bank's capital ratios were 8.0% CET1, 9.7% Tier 1 and 
14.1% total capital, essentially unchanged from the previous quarter. Further 
details regarding CWB's regulatory capital and capital adequacy ratios are 
included in the following table:

(unaudited)                                                            
                                   As at          As at         As at


                            April 30     January 31      April 30
($ millions)                   2013((1))      2013((1))     2012((2)) 
Regulatory capital                                                      
CET1 capital before                                                  
  deductions                 $     1,331   $      1,294   $       n/a 
Net CET1 deductions              (101)          (101)           n/a   
CET1 capital                     1,230          1,193           n/a   
Tier 1 capital                                                       
  before deductions                1,513          1,476         1,421 
Net deductions                    (10)           (26)         (102)   
Tier 1 capital                   1,503          1,450         1,319   
Total capital before                                                 
  deductions                       2,181          2,128         1,817 
Net deductions                     (1)            (9)          (56)   
Total capital              $     2,180   $      2,119   $     1,761   
Risk-weighted assets         $    15,446   $     14,927   $    13,318   
Capital adequacy ratios 


    CET1                             8.0 %          8.0 %         n/a  
    Tier 1                           9.7            9.7           9.9 %
    Total                           14.1           14.2          13.2  

n/a - not applicable

((1))     Basel III capital balances at April 30 and January 31, 2013
          exclude 10% of existing non-common equity instruments that do
          not include non-viability contingent capital clauses. In both
          periods, 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.
           

Capital ratios exceed the Basel III targets established through CWB's Internal 
Capital Adequacy Assessment Process (ICAAP) and are supportive of 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. 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 larger Canadian 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 
continue to be evaluated. Preliminary analysis confirms a multi-year timeframe 
will 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 14 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 April 30, 2013 was $16.82, compared to $16.42 
last quarter and $14.73 one year ago.

Common shareholders received a quarterly cash dividend of $0.17 per common 
share on March 28, 2013. On June 5, 2013, CWB's Board of Directors declared a 
cash dividend of $0.18 per common share, payable on June 27, 2013 to 
shareholders of record on June 20, 2013. This quarterly dividend was 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 July 31, 2013 to shareholders of record on July 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 were no changes to these items through the second quarter of 
2013. The standards and amendments may impact the presentation of financial 
statements in the future and management is currently reviewing these changes 
to determine the likely impact, if any.

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

Controls and Procedures

There were no changes in the Bank's internal controls over financial reporting 
that occurred during the quarter ended April 30, 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 CWB.

Updated Share Information

As at May 27, 2013, there were 79,173,712 CWB common shares outstanding. Also 
outstanding were employee stock options, which are or will be exercisable for 
up to 3,722,703 common shares for maximum proceeds of $95 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).

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. During the quarter, 4,038 preferred shares were purchased 
and 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

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

Total        $ 136,966 $ 137,128     $ 133,178 $ 138,150 $ 127,854 $ 126,300     $ 119,673 $ 122,753   
revenues
(teb)

Total          134,966   135,213       131,199   136,064   125,396   123,680       116,540   119,956   
revenues

Net income      48,534    51,062        48,616    53,578    45,212    47,051        41,474    44,393   

Net income
available
  to common
shareholders    42,988    45,482        43,046    48,004    39,669    41,478        35,921    38,824  

Earnings per                                                                                           
common share

  Basic           0.54      0.58          0.55      0.62      0.52      0.55          0.48      0.52   

  Diluted         0.54      0.57          0.55      0.61      0.52      0.54          0.47      0.50   

  Adjusted        0.55      0.58          0.56      0.63      0.55      0.57          0.53      0.54   
  cash

Total assets    17,779    17,161        16,873    16,033    15,713    15,484        14,849    14,097   
($ 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 second 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 second quarter, management's expectations and view 
of the potential risks were relatively consistent with the 2012 fiscal year 
end. However, ongoing differentials in oil prices 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  
        As at     Change  
                                                                                                                        
                    from

(unaudited)                                                                     April 30     January 31     October 31  
     April 30      April  
                                                                                                                        
                      30

($ thousands)                                                                       2013           2013           2012  
         2012       2012  

Assets                                                                                                                  
                          

Cash Resources                                                                                                          
                          

  Cash and non-interest bearing deposits with financial                     $     48,506   $     36,298   $     33,690  
 $     55,037       (12) %
  institutions                                                             

  Interest bearing deposits with regulated financial institutions                107,683        170,998        177,028  
      158,518       (32)  
                                                                   (Note 4)

  Cheques and other items in transit                                               5,251            229         26,265  
        4,054         30  
                                                                                 161,440        207,525        236,983  
      217,609       (26)  

Securities                                                         (Note 4)                                             
                          

  Issued or guaranteed by Canada                                                 736,092        881,434        980,200  
      546,803         35  

  Issued or guaranteed by a province or municipality                             600,257        537,782        478,622  
      360,465         67  

  Other securities                                                             1,046,854        890,209        877,278  
      915,150         14  
                                                                               2,383,203      2,309,425      2,336,100  
    1,822,418         31  

Securities Purchased Under Resale Agreements                                           -              -              -  
       69,808      (100)  

Loans                                                              (Notes 5                                             
                          
                                                                     and 7)

  Personal                                                                     2,378,451      2,315,616      2,292,388  
    2,155,033         10  

  Business                                                                    12,585,573     12,059,864     11,743,021  
   11,202,185         12  


                                                                          14,964,024     14,375,480     14,035,409   
13,357,218         12   
Allowance for credit losses                                      (Note 6)     (79,471)       (76,368)       (81,723)   
 (75,489)          5   
                                                                          14,884,553     14,299,112     13,953,686   
13,281,729         12   
Other                                                                                                                    
                       
Property and equipment                                                          64,860         63,915         68,938   
   60,588          7   
Goodwill                                                                        45,536         45,536         45,536   
   45,536          -   
Intangible assets                                                               53,141         50,608         49,959   
   47,902         11   
Insurance related                                                               56,853         60,259         57,650   
   55,171          3   
Derivative related                                               (Note 8)        1,468          2,776          1,951   


          740         98  

  Other assets                                                                   128,226        122,281        122,466  
      111,942         15  
                                                                                 350,084        345,375        346,500  
      321,879          9  

Total Assets                                                                $ 17,779,280   $ 17,161,437   $ 16,873,269  
 $ 15,713,443         13 %
                                                                                                                        
                          

Liabilities and Shareholders' Equity                                                                                    
                          

Deposits                                                                                                                
                          

  Personal                                                                  $  9,293,391   $  8,968,461   $  8,960,118  
 $  8,589,855          8 %

  Business and government                                                      5,486,924      5,172,978      5,184,719  
    4,629,222         19  


                                                                          14,780,315     14,141,439     14,144,837   
13,219,077         12   
Other                                                                                                                    
                       
Cheques and other items in transit                                              68,708         43,479         54,030   
   41,891         64   
Insurance related                                                              153,837        154,606        160,302   
  144,935          6   
Derivative related                                               (Note 8)           18             14             10   
       39       (54)   
Securities sold under repurchase agreements                                          -        125,075         70,089   


            -          -  

  Other liabilities                                                              233,006        224,498        239,503  
      271,800       (14)  
                                                                                 455,569        547,672        523,934  
      458,665        (1)  

Debt                                                                                                                    
                          

  Debt securities                                                                222,183        185,661        209,273  
      177,675         25  

  Subordinated                                                                   675,000        675,000        425,000  


  425,000         59  
  debentures                                                                
                                                                             897,183        860,661        634,273   
  602,675         49   
Equity                                                                                                                   
                       
Preferred shares                                                 (Note 9)      209,649        209,750        209,750   
  209,750          -   
Common shares                                                    (Note 9)      499,730        495,587        490,218   
  416,421         20   
Retained earnings                                                              794,944        765,392        733,298   
  667,305         19   
Share-based payment reserve                                                     24,026         22,943         22,468   
   22,322          8   
Other reserves                                                                  12,622         12,766          9,247   
   11,985          5   
Total Shareholders' Equity                                                     1,540,971      1,506,438      1,464,981   
1,327,783         16   
Non-controlling interests                                                      105,242        105,227        105,244   
  105,243          -   
Total Equity                                                                   1,646,213      1,611,665      1,570,225   


    1,433,026         15  

Total Liabilities and Equity                                                $ 17,779,280   $ 17,161,437   $ 16,873,269  
 $ 15,713,443         13 %

nm - not meaningful

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

Consolidated Statements of Income
                                                                                                               
                                                                                  For the six months
                                  For the three months ended                             ended                 


                                                              Change                               Change
(unaudited)                                                                                                   
                                                                     April
($ thousands, except             April     January       April              30                 April       30
per share amounts)                                                        2013               30 2012     2012 
Interest Income                                                                                                 


       Loans                 $ 177,159   $ 179,041   $ 166,066         7     % $ 356,200   $ 332,366        7 %
       Securities               11,272      11,224      11,014         2          22,496      22,835      (1)  
       Deposits                                                                                       
       with
       regulated                                                                                               
         financial                                                                                    
       institutions                419         437         297        41             856       1,322     (35)  
                               188,850     190,702     177,377         6         379,552     356,523        6  

Interest Expense                                                                                               
       Deposits                 68,853      70,215      65,108         6         139,068     131,363        6  
       Debt                      8,421       7,653       7,127        18          16,074      15,129        6  
                                77,274      77,868      72,235         7         155,142     146,492        6  

Net Interest Income            111,576     112,834     105,142         6         224,410     210,031        7  

Provision for Credit                                                                                  
Losses                (Note
                      6)         6,684       6,327       6,263         7          13,011      12,692        3  

Net Interest Income                                                                                   
after                                                                                                          

  Provision for                                                                                       
Credit Losses                  104,892     106,507      98,879         6         211,399     197,339        7  

Other Income                                                                                                   
       Credit                                                                                         
       related                   5,053       5,434       4,428        14          10,487       9,395       12  
       Insurance,     (Note                                                                           
       net            3)         6,201       5,202       5,754         8          11,403      10,156       12  
       Trust and                                                                                      
       wealth
       management                                                                                              
       services                  5,371       5,043       4,984         8          10,414       9,753        7  
       Gains on                                                                                       
       securities,
       net                       3,074       2,662       3,182       (3)           5,736       5,120       12  
       Retail                                                                                         
       services                  2,774       2,468       2,312        20           5,242       4,668       12  
       Foreign                                                                                        
       exchange gains              804         502         809       (1)           1,306       1,478     (12)  
       Contingent                                                                                     
       consideration
       fair                                                                                                    
         value change                -           -     (1,289)     (100)               -     (2,489)    (100)  
       Other                       113       1,068          74        53           1,181         964       23  
                                23,390      22,379      20,254        15          45,769      39,045       17  

Net Interest and                                                                                      
Other Income                   128,282     128,886     119,133         8         257,168     236,384        9  

Non-Interest Expenses                                                                                          
       Salaries and                                                                                   
       employee
       benefits                 42,287      41,355      38,261        11          83,642      74,668       12  
       Premises and                                                                                   
       equipment                10,730      10,254       9,826         9          20,984      19,259        9  
       Other expenses           11,623      10,278      11,448         2          21,901      21,150        4  
       Provincial                                                                                     
       capital taxes               187         180          70       167             367         195       88  
                                64,827      62,067      59,605         9         126,894     115,272       10  

Net Income before                                                                                     
Income Taxes                    63,455      66,819      59,528         7         130,274     121,112        8  

Income Taxes                    14,921      15,757      14,316         4          30,678      28,849        6  

Net Income                   $  48,534   $  51,062   $  45,212         7     % $  99,596   $  92,263        8 %

Net Income                                                                                            
Attributable to                                                                                                

  Non-Controlling                                                                                     
Interests                        1,739       1,778       1,741         -           3,517       3,512        -  

Net Income                                                                                            
Attributable to                                                                                                

  Shareholders of the                                                                                 
Bank                         $  46,795   $  49,284   $  43,471         8     % $  96,079   $  88,751        8 %

Preferred share       (Note                                                                           
dividends             9)         3,800       3,802       3,802         -           7,602       7,604        -  

Premium paid on                                                                                       
preferred shares 
purchased for         (Note
cancellation          9)             7           -           -        nm               7           -       nm  

Net Income Available                                                                                  
to                                                                                                             

  Common Shareholders        $  42,988   $  45,482   $  39,669         8     % $  88,470   $  81,147        9 %

Average number of                                                                                     
common                                                                                                         


shares (in                                                                                         
thousands)                      79,075      78,801      75,779         4          78,936      75,652        4   
Average number of                                                                                     
diluted common                                                                                                  
shares (in                                                                                         
thousands)                      79,471      79,266      76,511         4          79,362      76,398        4   
Earnings Per Common                                                                                   
Share                                                                                                           
   Basic                 $    0.54   $    0.58   $    0.52         4       $    1.12   $    1.07        5   


       Diluted                    0.54        0.57        0.52         4            1.11        1.06        5  

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       For the six months ended

(unaudited)            April 30    April 30     April 30      April 30
($ thousands)               2013       2012          2013         2012

Net Income           $    48,534 $   45,212   $    99,596 $     92,263

Other Comprehensive                          
Income (Loss), net
of tax                                                                

  Available-for-sale                         
  securities:                                                         

  Gains from change                          
  in fair value((1))       2,572        342         7,896        7,697

  Reclassification                           
  to net income((2))     (2,241)    (2,346)       (4,183)      (3,770)
                             331    (2,004)         3,713        3,927

  Derivatives                                
  designated as cash
  flow hedges:                                                        

  Gains (losses)                             
  from change in
  fair value((3))          (983)        903         (365)          508

  Reclassification                           
  to net income((4))         508      (595)            27        (299)
                           (475)        308         (338)          209
                           (144)    (1,696)         3,375        4,136

Comprehensive Income                         
for the Period       $    48,390 $   43,516   $   102,971 $     96,399
                                                                      

  Comprehensive                              
  income for the
  period
  attributable to:                                                    

  Shareholders of                            
  the Bank           $    46,651 $   41,775   $    99,454 $     92,887

  Non-controlling                            
  interests                1,739      1,741         3,517        3,512

Comprehensive Income                         
for the Period       $    48,390 $   43,516   $   102,971 $     96,399
                   

((1) )  Net of income tax of $960 and $2,949 for the three and
six months ended April 30, 2013, respectively (2012 - $122 and
$2,703).

((2) )  Net of income tax of $833 and $1,553 for the three and
six months ended April 30, 2013, respectively (2012 - $840 and
$1,350).

((3)   )Net of income tax of $330 and $123 for the three and
six months ended April 30, 2013, respectively (2012 - $315 and
$177).

((4) )  Net of income tax of $170 and $9 for the three and six
months ended April 30, 2013, respectively (2012 - $208 and
$103).


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 six months ended 
(unaudited)                                                  
($ thousands)                                                  April 30 
                                                               2012 
Retained Earnings                                                       
Balance at beginning of period               $   733,298 $    608,848 
Net income attributable to                        96,079       88,751
  shareholders of the Bank                     
Dividends   - Preferred shares                   (7,602)      (7,604) 
          - Common shares                     (26,824)     (22,690) 
Premium paid on preferred shares                     (7)            -
  purchased for cancellation                   
Balance at end of period                         794,944      667,305 
Other Reserves                                                          
Balance at beginning of period                     9,247        7,849 
Changes in available-for-sale                      3,713        3,927
  securities                                   
Changes in derivatives designated                  (338)          209
  as cash flow hedges                          
Balance at end of period                          12,622       11,985 
Preferred Shares                      (Note 9)                          
Balance at beginning and end of                  209,750      209,750
  period                                       
Purchase of preferred shares for                   (101)            -
  cancellation                                 
Balance at end of period                         209,649      209,750 
Common Shares                         (Note 9)                          
Balance at beginning of period                   490,218      408,282 
Issued under dividend reinvestment                 7,172        5,336
  plan                                         
Transferred from share-based                       1,389        1,924
  payment reserve on the exercise or
  exchange of options                          
Issued on exercise of options                        951          879 
Balance at end of period                         499,730      416,421 
Share-based Payment Reserve                                             
Balance at beginning of period                    22,468       21,884 
Amortization of fair value of                      2,947        2,362
  options                            (Note 10) 
Transferred to common shares on                  (1,389)      (1,924)
  the exercise or exchange of
  options                                      
Balance at end of period                          24,026       22,322 
Total Shareholders' Equity                       1,540,971    1,327,783 
Non-Controlling Interests                                               
Balance at beginning of period                   105,244      105,225 
Net income attributable to                         3,517        3,512
  non-controlling interests                    
Dividends to non-controlling                     (3,519)      (3,494)
  interests                                    
Balance at end of period                         105,242      105,243 
Total Equity                                   $ 1,646,213 $  1,433,026 
The accompanying notes are an integral part of the interim consolidated
financial statements. 
Consolidated Statements of Cash Flow 
                                          For the six months ended 
(unaudited)                                                 
($ thousands)                                                  April 30 


                                                                   2012

Cash Flows from Operating                                              
Activities
       Net income                           $      99,596 $      92,263
       Adjustments to                                                  
       determine net cash
       flows:
         Provision for                             13,011        12,692
         credit losses
         Depreciation and                          10,338        10,320
         amortization
         Current income                          (12,420)           764
         taxes receivable
         and payable
         Amortization of        (Note 10)           2,947         2,362
         fair value of
         employee stock
         options  
         Accrued interest                           8,517         2,226
         receivable and
         payable, net
         Deferred income                            2,196       (1,280)
         taxes, net
         Gain on                                  (5,736)       (5,120)
         securities, net
       Change in                                                       
       operating assets
       and liabilities:
         Deposits, net                            635,478       824,388
         Loans, net                             (943,878)   (1,001,139)
         Securities sold                         (70,089)             -
         under repurchase
         agreements, net
         Securities                                     -      (69,808)
         purchased under
         resale
         agreements, net
         Other items, net                        (16,062)       (7,739)
                                                (276,102)     (140,071)

Cash Flows from Financing                                              
Activities
       Common shares            (Note 10)           8,123         6,215
       issued 
       Preferred shares         (Note 10)           (108)             -
       purchased and
       cancelled
       Debentures issued                          250,000              
       Debentures                                       -     (120,000)
       redeemed
       Debt securities                             59,321       145,403
       issued
       Debt securities                           (46,410)      (57,606)
       repaid
       Dividends                                 (34,426)      (30,294)
       Distributions to                           (3,519)       (3,494)
       non-controlling
       interests
                                                  232,981      (59,776)

Cash Flows from Investing                                              
Activities
       Interest bearing                            69,547        75,405
       deposits with
       regulated
       financial
       institutions, net
       Securities,                            (3,208,919)   (1,864,186)
       purchased
       Securities, sale                         2,003,746       924,038
       proceeds
       Securities,                              1,167,732     1,057,113
       matured
       Property,                                  (9,862)       (7,708)
       equipment and
       software costs
                                                   22,244       184,662

Change in Cash and Cash                          (20,877)      (15,185)
Equivalents

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

Cash and Cash Equivalents                   $    (14,951) $      17,200
at End of Period *

* Represented by:                                                      
       Cash and                             $      48,506 $      55,037
       non-interest
       bearing deposits
       with financial
       institutions
       Cheques and other                            5,251         4,054
       items in transit
       (included in Cash
       Resources)
       Cheques and other                         (68,708)      (41,891)
       items in transit
       (included in Other
       Liabilities)

Cash and Cash Equivalents                   $    (14,951) $      17,200
at End of Period
                                                                       
                                                                       

Supplemental Disclosure                                                
of Cash Flow Information
       Interest and                         $     395,296 $     364,187
       dividends received
       Interest paid                              151,009       143,331
       Income taxes paid                           40,671        27,427

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 also 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 June 5, 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      For the six months
                                                                ended
              April 30    January 31   April 30   April 30   April 30
                   2013         2013       2012       2013       2012

Net earned  $    30,701 $     31,495 $   30,035 $   62,196 $   60,489
premiums

Commissions         404          437        478        841        933
and
processing
fees

Net claims     (18,312)     (20,685)   (18,662)   (38,997)   (38,989)
and
adjustment
expenses

Policy          (6,592)      (6,045)    (6,097)   (12,637)   (12,277)
acquisition
costs

Total, net  $     6,201 $      5,202 $    5,754 $   11,403 $   10,156

4. Securities

Net unrealized gains (losses) reflected on the balance sheet follow:
                                        As at        As at        As at
                                     April 30   January 31   October 31
                                         2013         2013         2012

Interest bearing deposits with     $      672 $        471 $        482
regulated financial institutions

Securities issued or guaranteed by                                     
       Canada                             495          157          176
       A province or municipality         253         (60)         (67)

Other debt securities                   1,916        1,605        1,637

Equity securities                                                      
       Preferred shares                 8,451        8,411        6,971
       Common shares                    4,681        5,422        2,114

Unrealized gains, net              $   16,468 $     16,006 $     11,313

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. For the three and six months ended April 30, 2013, 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
                                                                                   April   January   October


                                                                                  30        31        31
($ millions)         BC        AB        ON      SK      MB     Other      Total    2013      2013      2012   
                                                                                                           
Personal        $   826   $ 1,005   $   317 $   160   $  69   $     1   $  2,378      16 %      16 %      16 % 
                                                                                                           
Business                                                                                                       
Real estate     2,434     2,179       359     339     114        24      5,449      36        36        36   
Commercial      1,315     1,863       457     207      98       122      4,062      27        28        28   
Equipment                                            
  financing and
  energy((1))       545     1,347       537     237      99       310      3,075      21        20        20   
              4,294     5,389     1,353     783     311       456     12,586      84        84        84   
Total Loans(                                          $
(2))            $ 5,120   $ 6,394   $ 1,670 $   943     380   $   457   $ 14,964     100 %     100 %     100 % 
Composition                                            
Percentage                                                                                                     
April 30,                                            
  2013               34 %      43 %      11 %     6 %     3 %       3 %      100 %                             
January 31,                                          
  2013               34 %      44 %      11 %     6 %     2 %       3 %      100 %                             
October 31,                                          
  2012               33 %      45 %      10 %     6 %     3 %       3 %      100 %                             
((1)) Includes securitized leases reported on-balance sheet of $255 


      (January 31, 2013 - $214; October 31, 2012 - $238).

((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
                       April 30, 2013                    January 31, 2013
                         Collective                                     
                                                            Collective
                         Allowance
                         for Credit                          Allowance
             Specific                            Specific   for Credit
             Allowance       Losses     Total   Allowance       Losses      Total

Balance at $           $            $         $           $            $
beginning
of period        6,667       69,701    76,368      14,379       67,344     81,723

Provision                                                               
for credit
losses           5,885          799     6,684       3,970        2,357      6,327

Write-offs     (3,876)            -   (3,876)    (13,172)            -   (13,172)

Recoveries         295            -       295       1,490            -      1,490

Balance at $           $            $         $           $            $
end of
period           8,971       70,500    79,471       6,667       69,701     76,368
                                           For the three months ended
                                                 April 30, 2012
                                                   Collective  
                                                    Allowance
                                        Specific   for Credit
                                       Allowance       Losses     Total

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

Provision for credit losses                4,163        2,100     6,263

Write-offs                               (5,733)            -   (5,733)

Recoveries                                   403            -       403

Balance at end of period             $    10,718 $     64,771 $  75,489
                  For the six months ended             For the six months ended
                       April 30, 2013                       April 30, 2012
                         Collective                                      
                                                             Collective
                         Allowance
                         for Credit                           Allowance
              Specific                            Specific   for Credit
             Allowance       Losses      Total   Allowance       Losses      Total

Balance at $           $            $          $           $            $
beginning
of period       14,379       67,344     81,723      10,650       61,330     71,980

Provision                                                                
for credit
losses           9,855        3,156     13,011       9,251        3,441     12,692

Write-offs    (17,048)            -   (17,048)    (10,257)            -   (10,257)

Recoveries       1,785            -      1,785       1,074            -      1,074

Balance at $           $            $          $           $            $
end of
period           8,971       70,500     79,471      10,718       64,771     75,489

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 April 30, 2013                          As at January 31, 2013
                              Gross                    Net                    Gross                    Net
                    Gross   Impaired    Specific   Impaired        Gross   Impaired    Specific   Impaired
                   Amount     Amount   Allowance      Loans       Amount     Amount   Allowance      Loans

Personal     $  2,378,451 $   14,561 $       715 $   13,846 $  2,315,616 $   14,999 $       530 $   14,469

Business                                                                                                  

  Real
  estate((1)
  )             5,448,703     28,664       3,453     25,211    5,226,547     16,954       1,253     15,701

  Commercial    4,062,170      9,586       1,231      8,355    3,930,144     15,098       1,005     14,093

  Equipment
  financing
  and energy    3,074,700      8,812       3,572      5,240    2,903,173      8,683       3,879      4,804

Total((2))   $ 14,964,024 $   61,623 $     8,971     52,652 $ 14,375,480 $   55,734 $     6,667     49,067

Collective
allowance(
(3))                                               (70,500)                                       (69,701)

Net impaired
loans after
collective
allowance                                        $ (17,848)                                     $ (20,634)
                                          As at October 31, 2012
                                           Gross                    Net
                                Gross   Impaired    Specific   Impaired
                               Amount     Amount   Allowance      Loans

Personal              
                         $  2,292,388 $   13,404 $       459 $   12,945

Business              
                                                                       

  Real estate((1) )   
                            5,001,041     23,022       2,605     20,417

  Commercial                3,867,557     22,281       7,745     14,536

  Equipment           
  financing and
  energy                    2,874,423      8,133       3,570      4,563

Total((2))            
                         $ 14,035,409 $   66,840 $    14,379     52,461

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

Net impaired loans    
after collective
allowance                                                    $ (14,883)

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

((2)) Gross impaired loans include foreclosed assets with a carrying
      value of $7,256 (January 31, 2013 - $9,160 and October 31, 2012 -
      $10,462) 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 April 30, 2013             As at January 31, 2013
                         Gross                    Net                          
                       Impaired               Impaired      Gross                    Net
                                  Specific               Impaired    Specific   Impaired
                         Amount   Allowance      Loans     Amount   Allowance      Loans

Alberta              $   31,958 $     5,479 $   26,479 $   23,576 $     3,159 $   20,417

British                                                                        
Columbia                 21,866       1,027     20,839     23,576         848     22,728

Ontario                   4,607       1,170      3,437      4,672       1,347      3,325

Saskatchewan              1,392         520        872      1,877         455      1,422

Manitoba                    308         188        120        463         205        258

Other                     1,492         587        905      1,570         653        917

Total                $   61,623 $     8,971     52,652 $   55,734 $     6,667     49,067

Collective                                                                     
allowance(
(1))                                          (70,500)                          (69,701)

Net impaired                                $                                 $
loans after
collective
allowance                                     (17,848)                          (20,634)
                                         As at October 31, 2012
                                      Gross                    Net
                                   Impaired    Specific   Impaired
                                     Amount   Allowance      Loans

Alberta                          $   36,769 $     9,711 $   27,058

British Columbia                     22,629       2,190     20,439

Ontario                               3,081       1,167      1,914

Saskatchewan                          2,309         456      1,853

Manitoba                                615         203        412

Other                                 1,437         652        785

Total                            $   66,840 $    14,379     52,461

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

Net impaired loans after                                $
collective allowance                                      (14,883)

((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 April 30, 2013
                     1 - 30   31 - 60   61 - 90   More than   
                       days      days      days      90 days    Total

Personal           $ 14,714 $   1,726 $     282 $      1,858 $ 18,580

Business             32,920     5,846     2,959            -   41,725
                   $ 47,634 $   7,572 $   3,241 $      1,858 $ 60,305
                                                                     

Total as           $        $         $   4,729 $            $ 73,841
at January
31, 2013             30,859    26,340                 11,913

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

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 and six months ended April 30, 2013, $983 and $365 of net 
unrealized after tax losses (2012 - $903 and $508 after tax gains) 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 and six months ended April 30, 2013, $508 and $27 of net 
losses after tax (2012 - $595 and $299 after tax gains) were reclassified to 
net income.

The following table shows the notional value outstanding for derivative 
financial instruments and the related fair value:
                    As at April 30, 2013           As at January 31, 2013
                        Positive   Negative
             Notional                                    Positive   Negative
                            Fair       Fair   Notional       Fair       Fair
               Amount      Value      Value     Amount      Value      Value

Interest
rate swaps
designated
as
   hedges(
(1))       $  325,000 $      102 $      (7) $  350,000 $      147 $      (7)

Equity
swaps
designated
as
   hedges(
(2))           15,445      1,342          -     15,445      2,610          -

Foreign
exchange
contracts(
(3))           11,639         24       (11)      3,746         19        (7)

Derivative
related
amounts    $  352,084 $    1,468 $     (18) $  369,191 $    2,776 $     (14)
                                           As at October 31, 2012
                                   Notional     Positive     Negative
                                     Amount   Fair Value   Fair Value

Interest rate swaps              $  225,000 $        154 $          -
designated as hedges

Equity swaps                         15,445        1,778            -
designated as hedges

Foreign exchange                      2,450           19         (10)
contracts

Derivative related               $  242,895 $      1,951 $       (10)
amounts

((1)) Interest rate swaps designated as hedges outstanding at April 30,
      2013 mature between May 2013 and April 2014.

((2)) Equity swaps designated as hedges outstanding at April 30, 2013
      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 April 30, 2013 mature
      between May 2013 and February 2014.

There were no forecasted transactions that failed to occur during the three 
and six months ended April 30, 2013.

9. Capital Stock

Share Capital
                                          For the six months ended
                               April 30, 2013          April 30, 2012
                              Number            
                                 of               Number of
                              Shares    Amount       Shares      Amount

Preferred Shares -                              
Series 3                                                               


Outstanding at                                
beginning and 
end of period( 
(1))                    8,390,000 $ 209,750    8,390,000 $   209,750 
Purchased for                                 
cancellation              (4,038)     (101)            -           - 
Outstanding at                                
end of period           8,385,962   209,649    8,390,000     209,750 
Common Shares                                                           
Outstanding at                                
beginning of 
period                 78,742,812   490,218   75,461,981     408,282 
Issued under                                  
dividend 
reinvestment 
plan((2))                 257,795     7,172      197,771       5,336 
Issued on                                     
exercise or 
exchange of 
options                   169,910       951      249,324         879 
Transferred from                              
contributed 
surplus on 
exercise or 
exchange of 
options                         -     1,389            -       1,924 
Outstanding at                                
end of period          79,170,517   499,730   75,909,076     416,421 
Share Capital                        $ 709,379              $   626,171 
((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, the Bank received approval from the Toronto Stock 
Exchange (TSX) to institute a Normal Course Issuer Bid (NCIB) to purchase and 
cancel up to 826,120 of its Non-Cumulative 5-Year Rate Reset Preferred Shares 
Series 3, being 10% of the issued preferred shares. The NCIB commenced March 
1, 2013 and will expire February 28, 2014. During the quarter ended April 
30, 2013, the Bank purchased and cancelled 4,038 preferred shares for a total 
of $108, of which $101 reduced the outstanding balance of preferred shares and 
the $7 premium paid above book value was charged to retained earnings.

10. Share-based Payments

Stock Options
                                        For the three months ended
                                April 30, 2013         April 30, 2012
                                       Weighted                Weighted
                                        Average                 Average
                          Number of    Exercise    Number of   Exercise
                             Options       Price     Options      Price

Options                                                                


Balance at beginning              $                       $ 
of period               3,857,314       25.37   3,919,448      22.50 
Exercised or exchanged  (107,196)       17.44   (252,861)      18.11 


    Forfeited                (14,300)       27.05    (16,211)      25.37

Balance at end of period   3,735,818 $     25.60   3,650,376 $    22.79
                                         For the six months ended
                                April 30, 2013         April 30, 2012
                                       Weighted                Weighted
                                        Average                 Average
                          Number of    Exercise    Number of   Exercise
                             Options       Price     Options      Price

Options                                                                


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


    Granted                   824,667       28.09     729,830      25.46
    Exercised or exchanged  (343,722)       17.96   (579,741)      17.31
    Expired                 (162,075)       31.18           -          -
    Forfeited                (24,152)       27.39    (41,785)      24.22

Balance at end of period   3,735,818 $     25.60   3,650,376 $    22.79

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 343,722 (2012 - 579,741) 
options exercised or exchanged in the six months ended April 30, 2013, option 
holders exchanged the rights to 291,140 (2012 - 516,391) options and received 
117,328 (2012 - 185,974) shares in return under the cashless settlement 
alternative.

For the six months ended April 30, 2013, salary expense of $2,947 (2012 - 
$2,362) 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 April 
30, 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                          $                    $
$11.76         138,590          0.6      11.70   138,590      11.70

$16.89 to                                                 
$21.45         238,100          1.1      16.94   238,100      16.94

$22.09 to                                                 
$26.40       1,836,957          3.1      24.93   343,056      22.67

$28.09 to                                                 
$30.76       1,522,171          3.6      29.02         -          -

Total        3,735,818          3.1 $    25.60   719,746 $    18.66

Restricted Share Units

For the six months ended April 30, 2013, salary expense of $4,192 (2012 - 
$3,160) was recognized related to the Restricted Share Units (RSUs). As at 
April 30, 2013, the liability for the RSUs held under this plan was $12,939 
(2012 - $12,099). At the end of each period, the liability is adjusted through 
salary expense to reflect changes in the fair value of the RSUs. As at April 
30, 2013, 583,633 RSUs were outstanding (2012 - 530,282).

Deferred Share Units

For the six months ended April 30, 2013, non-interest expenses "other 
expenses" included $132 (2012 - $394) related to the Deferred Share Units 
(DSUs). As at April 30, 2013, the liability for DSUs held under this plan 
was $2,150 (2012 - $2,235). At the end of each period, the liability is 
adjusted through salary expense to reflect changes in the fair value of the 
DSUs. As at April 30, 2013, 75,531 DSUs were outstanding (2012 - 77,912).

11. 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 April 30, 2013, these items include guarantees and standby 
letters of credit of $315,837 (January 31, 2013 - $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.

12. 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 April 30, 2013        Fair Value     Level 1   Level 2   Level 3

Financial assets                                                      
    Cash resources        $    161,440 $   130,140 $  31,300 $       -
    Securities               2,383,203   2,383,203         -         -
    Derivative related           1,468           -     1,468         -
                          $  2,546,111 $ 2,513,343 $  32,768 $       -
                                                                      

Financial liabilities                                                 
    Derivative related    $         18 $         - $      18 $       -
                                                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         -         -
    Securities purchased         1,951           -     1,951         -
    under resale
    agreements
                          $  2,575,034 $ 2,573,083 $   1,951 $       -
                                                                      

Financial liabilities                                                 
    Derivative related    $         10 $         - $      10 $       -
                                                                      

13. 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
               Rate and                Months     Within        to                        Non-


           Within 1     1 to 3       to 1          1         5     More than      interest
($ millions)      Month     Months       Year       Year     Years       5 Years     Sensitive      Total   
April 30,                             
2013                                                                                                        
Assets                                                                                                      
Cash                                 $
resources
and
securities   $      342   $    837        665   $  1,844   $   417   $       183   $       100   $  2,544   
Loans             6,855        750      1,813      9,418     5,423            98          (54)     14,885   
Other assets          -          -          -          -         -             -           350        350   
Derivative                            
financial 
instruments(
(1))                 25          7        300        332         8             -            12        352   
Total             7,222      1,594      2,778     11,594     5,848           281           408     18,131   
Liabilities                           
and Equity                                                                                                  
Deposits          5,506        829      3,488      9,823     4,972             -          (15)     14,780   
Other                                 
liabilities           4          8         34         46        31             7           372        456   
Debt                  8         65         67        140       507           250             -        897   
Equity                -          -          -          -       105             -         1,541      1,646   
Derivative                            
financial 
instruments(
(1))                340          -          -        340         -             -            12        352   
Total             5,858        902      3,589     10,349     5,615           257         1,910     18,131   
Interest                             $
Rate
Sensitive
Gap          $    1,364   $    692      (811)   $  1,245   $   233   $        24   $   (1,502)   $      -   
Cumulative                           $
Gap          $    1,364   $  2,056      1,245   $  1,245   $ 1,478   $     1,502   $         -   $      -   
Cumulative                            
Gap as a
  Percentage
of Total
Assets              7.5 %     11.3 %      6.9 %      6.9 %     8.2 %         8.3 %           - %        - % 
                                                                                                        
January 31,                           
2013                                                                                                        
Cumulative                           $
Gap          $    1,386   $  1,256        912   $    912   $ 1,473   $     1,453   $         -   $      -   
Cumulative                            
Gap as a 
 Percentage
of Total
Assets              7.9 %      7.2 %      5.2 %      5.2 %     8.4 %         8.3 %           - %        -  % 
                                                                                                         
October 31,                           
2012                                                                                                         
Cumulative                           $
Gap          $    1,560   $  1,586        773   $    773   $ 1,211   $     1,437   $         -   $      -    
Cumulative                            
Gap as a 
 Percentage
of Total
Assets              9.1 %      9.3 %      4.5 %      4.5 %     7.1 %         8.4 %           - %        -  % 
((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:
                    Floating                                        1                      
                    Rate and                     3    Total      Year      More


                Within 1                Months   Within        to      than
April 30,              Month     1 to 3       to 1        1         5         5
2013                             Months       Year     Year     Years     Years     Total 
Total                    3.8 %          %          %    3.6 %     4.9 %     4.9 %     4.0 %
assets                              2.4        3.8                                  
Total                    1.3                            1.6       2.4       3.4       1.9  
liabilities                         2.1        2.1                                  
Interest                 2.5 %          %          %    2.0 %     2.5 %     1.5 %     2.1 %
rate
sensitive
gap                                 0.3        1.7                                  
                                                                                        
January 31,                                                                                
2013                                                                                
Total                    3.8 %          %          %    3.6 %     5.0 %     5.0 %     4.0 %
assets                              2.5        3.7                                  
Total                    1.3                            1.7       2.5       3.3       2.0  
liabilities                         2.0        2.3                                  
Interest                 2.5 %          %          %    1.9 %     2.5 %     1.7 %     2.0 %
rate
sensitive
gap                                 0.5        1.4                                  
                                                                                        
October 31,                                                                                
2012                                                                                
Total                    3.8 %          %          %    3.6 %     5.0 %     5.0 %     4.1 %
assets                              2.7        3.7                                  
Total                    1.3                            1.7       2.5         -       2.0  
liabilities                         2.1        2.3                                  
Interest                 2.5 %          %          %    1.9 %     2.5 %     5.0 %     2.1 %
rate
sensitive
gap                                 0.6        1.4                                  


                                                                                           

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 4.9% or $20,425 (January 31, 2013 - 3.4% or 
$13,916) and decrease other comprehensive income $9,464 (January 31, 2013 - 
$11,674) 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 6.8% or $28,260 (January 31, 2013 - 5.3% or 
$21,386) and increase other comprehensive income $9,464 (January 31, 2013 - 
$11,674) net of tax.

14. Capital Management

Beginning January 1, 2013, 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 Q2 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.

During May 2013, the Bank received OSFI approval for the redemption of its 
outstanding $50,000 subordinated debentures which are redeemable on June 27, 
2013.

Capital Structure and Regulatory Ratios
                                As at           As at         As at  
                             April 30      January 31      April 30
                                  2013           2013     2012((1))

Regulatory capital, net of                                           
deductions                                                         
    Common equity Tier 1    $ 1,229,936   $  1,192,981   $       n/a  
    Tier 1                    1,503,325      1,450,377     1,318,999  
    Total                     2,180,295      2,118,614     1,760,892  

Capital ratios                                                       
    Common equity Tier 1            8.0 %          8.0 %         n/a %
    Tier 1                          9.7            9.7           9.9  
    Total                          14.1           14.2          13.2  

Asset to capital multiple          8.0 x          7.9 x         9.0 x
        


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


       equivalent Basel II measures.

During the three and six months ended April 30, 2013, the Bank complied with 
all internal and external capital requirements.

15. Subsequent Event

On May 17, 2013, the Bank acquired 55% ownership of McLean & Partners Wealth 
Management Ltd, a Calgary, Alberta based wealth management firm.

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 Group                                              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
                                                                        

Canadian Western Trust Company                                           Dividend Reinvestment Plan
Suite 600, 750 Cambie Street                                             CWB's dividend reinvestment plan allows common
Vancouver, BC V6B 0A2                                                    and preferred shareholders to purchase 
additional
Toll-free: 1-800-663-1124                                                common shares by reinvesting their cash 
dividend
Fax: (604) 669-6069                                                      without incurring brokerage and commission 
fees.
www.cwt.ca                               For information about participation in the plan, please
                                                                         contact the Transfer Agent and Registrar or
                                                                         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                                   Online Investor Information
Suite 600, 750 Cambie Street                                             Additional investor information including
Vancouver, BC V6B 0A2                                                    supplemental financial information and 
corporate
Telephone: (604) 699-3678                                                presentations are available on CWB's website 
at
Fax: (604) 699-3851                                                      www.cwbankgroup.com.
www.canadiandirect.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 June 6, 2013 at 
3:00 p.m.
Edmonton, AB T5J 3N6                                                     ET (1:00 p.m. MT). The webcast will be 
archived on
Telephone: (780) 429-3500                                                the Bank's website at
Fax: (780) 429-9680                                                      www.cwbankgroup.com for sixty
www.adroitinvestments.ca   days. A replay of the conference call will be available


                                                                     until June 20, 2013 by dialing (416) 849-0833 
or toll-free 
                                                                     1-(855) 859-2056 and entering passcode 
65242639. 
                                                                       
Stock Exchange Listings                                                 
The Toronto Stock Exchange
Common Shares: CWB
Series 3 Preferred Shares: CWB.PR.A 
Chris Fowler President and Chief Executive Officer Canadian Western Bank 
Phone: (780) 423-8888 
Kirby Hill, CFA Vice President, 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/June2013/06/c5211.html 
CO: Canadian Western Bank
ST: Alberta
NI: FIN ERN CONF DIV  
-0- Jun/06/2013 12:30 GMT
 
 
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