CWB Reports Solid Financial Performance and Strong Earnings Growth

CWB Reports Solid Financial Performance and Strong Earnings Growth 
Common Share Dividend of $0.20 Per Share Declared, Up 11% Over the
Dividend Declared a Year Earlier; Quarterly Dividend Declared on
Series 5 Preferred Shares 
EDMONTON, ALBERTA -- (Marketwired) -- 06/05/14 --  Canadian Western
Bank (TSX: CWB) (CWB) -  
Second Quarter 2014 Highlights(1) (compared to the same period in the
prior year) 


 
 
--  Net income available to common shareholders of $51.2 million, up 19%. 
    
--  Diluted earnings per common share of $0.63, up 17%, and adjusted cash
    earnings per common share of $0.65, up 18%. 
    
--  Total revenues, on a taxable equivalent basis (teb)(1), of $153.5
    million, up 13%. 
    
--  Strong loan growth of 3% in the quarter, 7% year-to-date and 12% over
    the past twelve months. 
    
--  Net interest margin (teb) of 2.59%, compared to 2.64% in the previous
    quarter and 2.61% last year. 
    
--  Issued $125 million of 4.40% preferred shares and redeemed $209 million
    of 7.25% preferred shares. 
    
--  Solid Basel III regulatory capital ratios using the Standardized
    approach for calculating risk-weighted assets of 8.1% common equity Tier
    1 (CET1), 9.4% Tier 1 and 13.1% total ratio. 
    
--  Relocated Edmonton flagship branch into new and expanded premises. 
    
 
                                                                            
(1) Highlights include certain non-IFRS measures - refer to definitions     
following the table of Selected Financial Highlights.                       

Canadian Western Bank today announced solid second quarter financial
performance led by strong earnings growth. Compared to the same
quarter last year, net income available to common shareholders of
$51.2 million was up 19%, while diluted earnings per common share
increased 17% to $0.63. Adjusted cash earnings per common share,
which excludes the after-tax amortization of acquisition-related
intangible assets and non-tax deductible changes in fair value of
contingent consideration, increased 18% to $0.65. Total revenues
(teb) of $153.5 million increased 13%, reflecting the positive impact
of strong 12% loan growth and a 27% increase in other income,
partially offset by a two basis point decline in net interest margin
(teb) to 2.59%.  
Compared to last quarter, net income available to common shareholders
decreased 3% as the benefits of 3% loan growth, 4% higher other
income and a lower provision for credit losses were offset by three
fewer revenue earning days, a decline of five basis points in net
interest margin (teb), higher non-interest expenses and a one-time
increase in preferred share dividends. Adjusted cash earnings per
share was also down 3%.  
Year-to-date net income available to common shareholders of $103.8
million increased 17% as the benefit of strong growth in loans and
other income was partially offset by higher non-interest expenses and
preferred share dividends, while net interest margin (teb) was
unchanged. Diluted and adjusted cash earnings per share each
increased 16%, to reach $1.29 and $1.31, respectively.  
"Our targeted, client-focused strategy continues to deliver solid
performance for CWB Group shareholders," said Chris Fowler, President
and CEO. "Growth in second quarter net income available to common
shareholders of 19% is a very positive result, and our strong
year-to-date loan growth and promising pipeline for new loans are
very encouraging. Overall, we continue to maintain an optimistic
outlook for the remainder of the year, even though pressure on net
interest margin remains."  
"Our capital structure was enhanced with this quarter's issuance of
$125 million of Basel III-compliant preferred shares to replace our
$209 million of higher cost preferred shares issued in 2009,"
continued Mr. Fowler. "This more efficient capital structure and a
lower overall cost of capital will have a significant positive impact
on future earnings per share and reinforce our solid foundation for
future growth."  
On June 4, 2014, CWB's Board of Directors declared a cash dividend of
$0.20 per common share, payable on June 26, 2014 to shareholders of
record on June 16, 2014. This quarterly dividend was 11% ($0.02)
higher than the quarterly dividend declared one year ago and 5%
($0.01) higher than the prior quarter. The Board of Directors also
declared a cash dividend of $0.275 per Series 5 Preferred Share,
payable on July 31, 2014 to shareholders of record on July 24, 2014.  
Fiscal 2014 Performance Target Ranges and Outlook 
CWB's actual year-to-date performance together with the 2014
performance target ranges are presented in the table below: 


 
 
                                                   2014                     
                                                Year-to-date      2014      
                                                Performance   Target Ranges 
----------------------------------------------------------------------------
Adjusted cash earnings per common share                                     
 growth(1)(2)                                       16%          12 - 16%   
Total revenue (teb) growth(1)                       13%          10 - 12%   
Loan growth(3)                                      12%          10 - 12%   
Provision for credit losses as a percentage of                              
 average loans(4)                                  0.18%       0.18 - 0.23% 
Efficiency ratio (teb)(5)                          45.5%       46% or less  
Return on common shareholders' equity(6)           14.5%       14.0 - 15.0% 
Return on assets(7)                                1.09%       1.05 - 1.15% 
----------------------------------------------------------------------------
 
1.  Year-to-date performance for adjusted cash earnings per common share and
    total revenue growth (teb) is the current year results over the same
    period last year. 
2.  Adjusted cash earnings per common share is calculated as 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 (which represent non-cash
    charges that are not considered indicative of ongoing business
    performance). 
3.  Loan growth is the increase over the past twelve months. 
4.  Year-to-date provision for credit losses, annualized, divided by average
    total loans. 
5.  Efficiency ratio (teb) is calculated as non-interest expenses divided by
    total revenues (teb) excluding the non-tax deductible change in fair
    value of contingent consideration. 
6.  Return on common shareholders' equity is calculated as annualized net
    income available to common shareholders divided by average common
    shareholders' equity. 
7.  Return on assets is calculated as annualized net income available to
    common shareholders divided by average total assets. 

Performance through the first half of the year has CWB positioned to
achieve full-year financial results within all of our target ranges.
Performance for loan growth, adjusted cash earnings per share and
total revenues was driven by ongoing activity across our key lending
sectors in each geographic region. Year-to-date net interest margin
(teb) was unchanged compared to last year, as the impact of lower
loan yields was offset by more favourable fixed term deposit and
debenture costs and lower average liquidity. Meaningful improvement
in this key metric is not expected in the absence of increases in the
prime lending interest rate and/or a sustained steepening of the
yield curve. The 2014 target for the efficiency ratio remains
challenging but attainable as revenue growth through the remainder of
the year is expected to offset the impact of higher non-interest
expenses from an increased staff complement and ongoing initiatives
to support business growth. Overall credit quality remains stable and
supports our view that the annual provision for credit losses will
remain near the low end of the target range.  
During the quarter, we issued $125 million of 4.40% non-cumulative
five-year rate reset Series 5 preferred shares and, on April 30th,
redeemed the outstanding $209 million of 7.25% non-cumulative
five-year rate reset Series 3 preferred shares. These transactions
will have a positive impact on future growth in net income available
to common shareholders and adjusted cash earnings per share, although
the timing of the new preferred share issuance led to the second
quarter payment of dividends on both series. As a result,
year-to-date preferred share dividend payments were $1.2 million,
approximately $0.01 per share, higher than last year.  
The outlook for the Canadian economy is positive and economic
fundamentals within CWB's key western Canadian markets remain
particularly strong. Steady job creation in the western provinces
continues to support very strong in-migration and overall employment
conditions have remained stable. Supply and demand in the Canadian
housing sector appear to be roughly in balance, however, we continue
to carefully monitor market dynamics within specific geographic
regions. Economic growth in the United States (U.S.) is expected to
accelerate on the basis of escalating demand for goods and services,
although moderation in the housing recovery is apparent in certain
regions. On the basis of expectations for ongoing stability in the
U.S. and global markets, consensus forecasts call for improved
expansion within the domestic economy in 2014 and 2015, supporting
our optimistic outlook for continued profitable growth.  
About CWB 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. CWB,
along with its operating affiliates, National Leasing, Canadian
Western Trust, Valiant Trust, Canadian Direct Insurance, Canadian
Western Financial, Adroit Investment Management, and McLean &
Partners Wealth Management, collectively offer a diversified range of
financial services across Canada and are together known as the CWB
Group. The common shares of Canadian Western Bank are listed on the
Toronto Stock Exchange under the trading symbol "CWB". CWB's Series 5
preferred shares trade on the Toronto Stock Exchange under the
trading symbol "CWB.PR.B". Refer to www.cwb.com for additional
information. 
Fiscal 2014 Second Quarter Results Conference Call  
CWB's second quarter results conference call is scheduled for
Thursday, June 5, 2014 at 3:00 p.m. ET (1:00 p.m. MT). CWB'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
416-695-7848 or toll-free 1-800-396-7098. The call will also be
webcast live on CWB's website:
www.cwb.com/investor_relations/webcast_events.htm.  
A replay of the conference call will be available until June 19, 2014
by dialing 905-694-9451 (Toronto) or 1-800-408-3053 (toll-free) and
entering passcode 1696268.  


 
 
                                                                            
Selected Financial Highlights                                               
                                                                            
(unaudited)                                                      Change     
($ thousands,               For the three months ended             from     
except                   April 30    January 31      April 30  April 30     
per share amounts)           2014          2014       2013(1)      2013     
----------------------------------------------------------------------------
Results of Operations                                                       
Net interest income                                                         
 (teb - see below)   $    123,727  $    125,239  $    111,929        11     
Less teb adjustment         1,989         2,090         2,000        (1)    
----------------------------------------------------------------------------
Net interest income                                                         
 per financial                                                              
 statements               121,738       123,149       109,929        11     
Other income               29,794        28,531        23,390        27     
Total revenues (teb)      153,521       153,770       135,319        13     
Total revenues            151,532       151,680       133,319        14     
Net income available                                                        
 to common                                                                  
 shareholders              51,191        52,628        42,988        19     
Earnings per common                                                         
 share                                                                      
  Basic(2)                   0.64          0.66          0.54        19     
  Diluted(3)                 0.63          0.65          0.54        17     
  Adjusted cash(4)           0.65          0.67          0.55        18     
Return on common                                                            
 shareholders'                                                              
 equity(5)                   14.3%         14.7%         13.4%       90   bp
Return on assets(7)          1.07          1.11          1.00         7     
Efficiency ratio                                                            
 (teb)(8)                    46.0          45.1          47.9      (190)    
Efficiency ratio             46.6          45.7          48.6      (200)    
Net interest margin                                                         
 (teb)(9)                    2.59          2.64          2.61        (2)    
Net interest margin          2.55          2.60          2.56        (1)    
Provision for credit                                                        
 losses as a                                                                
 percentage of                                                              
 average loans               0.16          0.19          0.19        (3)    
----------------------------------------------------------------------------
Per Common Share                                                            
Cash dividends       $       0.19  $       0.19  $       0.17        12     
Book value                  18.65         18.03         16.82        11     
Closing market value        37.14         36.43         28.46        30     
Common shares                                                               
 outstanding                                                                
 (thousands)               80,045        79,897        79,171         1     
----------------------------------------------------------------------------
Balance Sheet and Off-Balance Sheet Summary                                 
Assets               $ 19,626,666  $ 19,135,490  $ 17,779,280        10     
Loans                  16,707,888    16,156,366    14,884,553        12     
Deposits               16,668,534    16,243,496    14,885,315        12     
Debt                      997,962       812,780       897,183        11     
Shareholders' equity    1,492,553     1,648,971     1,540,971        (3)    
Assets under                                                                
 administration        11,538,750     8,463,935     7,821,089        48     
Assets under                                                                
 management             1,763,256     1,683,813       904,730        95     
----------------------------------------------------------------------------
Capital Adequacy(10)                                                        
Common equity Tier 1                                                        
 ratio                        8.1%          8.0%          8.0%       10   bp
Tier 1 ratio                  9.4           9.5           9.7       (30)    
Total ratio                  13.1          13.2          14.1      (100)    
----------------------------------------------------------------------------
 
                                                                 
Selected Financial Highlights                                    
                                                                 
(unaudited)                                         Change       
($ thousands,          For the six months ended       from       
except                    April 30      April 30  April 30       
per share amounts)            2014       2013(1)      2013       
-----------------------------------------------------------------
Results of Operations                                            
Net interest income                                              
 (teb - see below)  % $    248,966  $    224,981        11      %
Less teb adjustment          4,079         3,915         4       
-----------------------------------------------------------------
Net interest income                                              
 per financial                                                   
 statements                244,887       221,066        11       
Other income                58,325        45,769        27       
Total revenues (teb)       307,291       270,750        13       
Total revenues             303,212       266,835        14       
Net income available                                             
 to common                                                       
 shareholders              103,819        88,470        17       
Earnings per common                                              
 share                                                           
  Basic(2)                    1.30          1.12        16       
  Diluted(3)                  1.29          1.11        16       
  Adjusted cash(4)            1.31          1.13        16       
Return on common                                                 
 shareholders'                                                   
 equity(5)                    14.5%         13.8%       70  bp(6)
Return on assets(7)           1.09          1.03         6       
Efficiency ratio                                                 
 (teb)(8)                     45.5          46.9      (140)      
Efficiency ratio              46.1          47.6      (150)      
Net interest margin                                              
 (teb)(9)                     2.61          2.61         -       
Net interest margin           2.57          2.57         -       
Provision for credit                                             
 losses as a                                                     
 percentage of                                                   
 average loans                0.18          0.18         -       
-----------------------------------------------------------------
Per Common Share                                                 
Cash dividends      % $       0.38  $       0.34        12      %
Book value                   18.65         16.82        11       
Closing market value         37.14         28.46        30       
Common shares                                                    
 outstanding                                                     
 (thousands)                80,045        79,171         1       
-----------------------------------------------------------------
Balance Sheet and Off-Balance Sheet Summary                      
Assets              %                                            
Loans                                                            
Deposits                                                         
Debt                                                             
Shareholders' equity                                             
Assets under                                                     
 administration                                                  
Assets under                                                     
 management                                                      
-----------------------------------------------------------------
Capital Adequacy(10)                                             
Common equity Tier 1                                             
 ratio                                                           
Tier 1 ratio                                                     
Total ratio                                                      
-----------------------------------------------------------------
 
1.  Effective November 1, 2013, CWB retrospectively adopted IFRS 10
    Consolidated Financial Statements as described in Note 1 of the
    consolidated financial statements. 
2.  Basic earnings per common share (EPS) is calculated as net income
    available to common shareholders divided by the average number of common
    shares outstanding. 
3.  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. 
4.  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 and are not considered indicative of ongoing business
    performance. 
5.  Return on common shareholders' equity is calculated as annualized net
    income available to common shareholders divided by average common
    shareholders' equity. 
6.  bp - basis point change. 
7.  Return on assets is calculated as annualized net income available to
    common shareholders divided by average total assets. 
8.  Efficiency ratio is calculated as non-interest expenses divided by total
    revenues excluding the non-tax deductible change in fair value of
    contingent consideration. 
9.  Net interest margin is calculated as annualized net interest income
    divided by average total assets. 
10. Capital adequacy is calculated in accordance with Basel III guidelines
    issued by the Office of the Superintendent of Financial Institutions
    Canada (OSFI). 

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 financial institutions. Total revenues, net
interest income and income taxes are discussed on a taxable
equivalent basis throughout this quarterly report to shareholders. 
Non-IFRS Measures 
CWB uses a number of financial measures to assess its performance.
These measures provide readers with an enhanced understanding of how
management views the results. Non-IFRS measures may also provide
readers the ability to analyze trends and provide comparisons with
our competitors. 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. 
Management's Discussion and Analysis 
This management's discussion and analysis (MD&A), dated June 4, 2014,
should be read in conjunction with Canadian Western Bank's (CWB)
unaudited condensed interim consolidated financial statements for the
period ended April 30, 2014, and the audited consolidated financial
statements and MD&A for the year ended October 31, 2013, available on
SEDAR at www.sedar.com and CWB's website at www.cwb.com.  
Forward-looking Statements 
From time to time, CWB 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 CWB's
objectives and strategies, targeted and expected financial results
and the outlook for CWB's businesses or for the Canadian or U.S.
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 CWB'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 CWB's markets, the occurrence of weather-related and
other natural catastrophes, changes in accounting standards and
policies, the accuracy of and completeness of information CWB
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
CWB'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 CWB's actual
results to differ materially from the expectations expressed in such
forward looking statements. Unless required by securities law, CWB
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 2014 and
how it will affect CWB's businesses are material factors considered
when setting organizational objectives and targets. Performance
target ranges for fiscal 2014 consider the following management
assumptions: a modest acceleration of economic growth in Canada and
relatively stronger performance in the four western provinces; prices
for energy and other commodities remaining at levels comparable with
those observed at October 31, 2013; sound credit quality with actual
losses remaining within CWB's historical range of acceptable levels;
and, a relatively stable net interest margin (teb) compared to the
prior year, attributed to favourable deposit costs and shifts in
asset mix that help to offset impacts from the very low interest rate
environment and competitive factors. Management's assumptions at the
end of the second quarter remained relatively unchanged compared to
those at the 2013 fiscal year end.  
Potential risks that would have a material adverse impact on current
economic expectations and forecasts include a slowing rate of
economic growth in the U.S., a significant and sustained
deterioration in Canadian residential real estate prices, or a
significant disruption in other global economies. Unexpected pricing
competition and/or disruptions in domestic or global financial
markets that meaningfully impact the costs of overall deposit funding
may also contribute to adverse financial results compared to
expectations. 
Overview 
CWB reported solid financial performance including strong loan growth
of 12% over the past twelve months, 3% in the quarter and 7%
year-to-date.  
Q2 2014 vs. Q2 2013 
Net income available to common shareholders of $51.2 million was up
19% as the benefit of strong loan growth, higher other income and a
lower provision for credit losses more than offset a two basis point
decrease in net interest margin (teb) and higher non-interest
expenses. Other income increased 27% primarily reflecting a
significant increase in trust and wealth management revenues, as well
as higher net gains on securities and credit related fee income.
Diluted earnings per common share was up 17% to $0.63. Despite the
payment of dividends on both Series 3 and Series 5 preferred shares
this quarter, adjusted cash earnings per common share, which excludes
the after-tax amortization of acquisition-related intangible assets
and non-tax deductible changes in fair value of contingent
consideration, increased 18% to $0.65.  
Q2 2014 vs. Q1 2014 
Net income available to common shareholders was 3% lower as the
positive revenue impact of strong loan growth and higher other
income, as well as a lower provision for credit losses, was offset by
three fewer revenue-earning days, lower net interest margin (teb),
higher non-interest expenses and a one-time increase in preferred
share dividends.  
YTD 2014 vs. YTD 2013 
Net income available to common shareholders of $103.8 million was up
17% as growth in total revenues (teb) of 13% more than offset the
one-time increase in preferred share dividends and higher
non-interest expenses. Higher total revenues were driven by an 11%
increase in net interest income (teb) and 27% higher other income.
The year-to-date net interest margin (teb) of 2.61% was unchanged.
Adjusted cash earnings per share increased 16% to $1.31. 
ROE and ROA 
Second quarter return on common shareholders' equity (ROE) was 14.3%
compared to 14.7% last quarter and 13.4% last year. Year-to-date ROE
of 14.5% was 70 basis points higher than last year. Return on assets
(ROA) of 1.07% was down four basis points from last quarter and up
seven basis points compared to a year earlier. Year-to-date ROA of
1.09% compares to 1.03% last year.  
Issuance of First Preferred Shares Series 5 and Redemption of First
Preferred Shares Series 3 
As previously reported, CWB closed its domestic public offering of
five million Basel III-compliant non-cumulative five-year rate reset
Series 5 preferred shares for gross proceeds of $125 million during
the second quarter. Holders of these shares are entitled to receive a
non-cumulative fixed dividend in the amount of $1.10 annually,
payable quarterly, for the initial period ending April 30, 2019. The
quarterly dividend represented an annual yield of 4.40% at issuance,
based on the $25.00 issue price per share. CWB also redeemed, on
April 30, 2014, $209 million of outstanding 7.25% Series 3 preferred
shares.  
These transactions will benefit shareholders through a more efficient
capital structure while ensuring CWB remains well capitalized within
the Basel III regulatory capital framework.  
Total Revenues (teb) 
Total revenues, comprised of both net interest income (teb) and other
income, of $153.5 million were 13% higher than the same quarter in
2013 and relatively unchanged from the previous quarter. Year-to-date
total revenues of $307.3 million were up 13% compared to last year.  
Net Interest Income (teb) 
Q2 2014 vs. Q2 2013 
Net interest income of $123.7 million was up 11% as the revenue
contribution from strong 12% loan growth more than offset a two basis
point decline in net interest margin (teb) to 2.59%. The change in
net interest margin mainly resulted from lower loan yields, partially
offset by more favourable fixed term deposit and debenture costs.  
Q2 2014 vs. Q1 2014 
Net interest income was down 1% as the benefit of strong 3% loan
growth was offset by three fewer days and a five basis point decrease
in net interest margin (teb). The decline in net interest margin
primarily resulted from lower loan yields and higher average
liquidity. 
YTD 2014 vs. YTD 2013 
Net interest income of $249.0 million was up 11%, mainly the result
of strong loan growth. Net interest margin (teb) of 2.61% was
unchanged as lower loan yields were offset by more favourable fixed
term deposit and debenture costs and lower average liquidity. 
Interest rate sensitivity 
Note 14 to the unaudited interim consolidated financial statements
summarizes CWB's exposure to interest rate risk as at April 30, 2014.
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; 
--  interest rate changes affecting interest sensitive assets and
    liabilities by proportionally the same amount, except floor levels for
    various deposit liabilities, and applied at the appropriate repricing
    dates; and, 
--  no early redemptions. 
 
                                                                            
                                        April 30    January 31    April 30  
($ thousands)                               2014          2014        2013  
----------------------------------------------------------------------------
                                                                            
Estimated impact on net interest                                            
 income of a 1% increase in interest                                        
 rates                                                                      
  1 year                              $   16,270   $    13,980   $  20,425  
----------------------------------------------------------------------------
  1 year percentage change                   3.8%          3.1%        4.9% 
----------------------------------------------------------------------------
                                                                            
Estimated impact on net interest                                            
 income of a 1% decrease in interest                                        
 rates                                                                      
  1 year                              $  (29,418)  $   (23,587)  $ (28,260) 
----------------------------------------------------------------------------
  1 year percentage change                  (6.9)%        (5.2)%      (6.8)%
----------------------------------------------------------------------------

Higher sensitivity to a decrease in rates is due to asymmetry in the
impact of falling rates on loans and deposits. A decrease of
one-percentage point in rates is assumed to reduce loan yields by an
equivalent amount. The assumed change in total deposit costs is lower
because deposits yielding less than one percent cannot be reduced to
a rate lower than zero.  
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, 2014 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 $14.6 million, net of
tax (April 30, 2013 - $9.5 million). It is estimated that a
one-percentage point decrease in all interest rates at April 30, 2014
would have the opposite effect, increasing other comprehensive income
by approximately $14.6 million, net of tax (April 30, 2013 - $9.5
million).  
Management maintains the asset liability structure and interest rate
sensitivity within CWB's established policies through pricing and
product initiatives, as well as the use of interest rate swaps and
other appropriate strategies. 
Outlook for net interest margin 
Second quarter net interest margin (teb) was two basis points lower
than the same quarter last year, down five basis points from the
previous quarter, and unchanged on a year-to-date basis. Meaningful
improvement in net interest margin (teb) from the current level is
not expected in the absence of increases in the prime lending
interest rate and/or a sustained steepening of the interest rate
curve. CWB will maintain its long-term strategic focus on mitigating
the earnings impact of ongoing margin pressure through efforts to
achieve stronger relative growth in higher yielding loan portfolios
with an acceptable risk profile, improving the funding mix to lower
the overall cost of funds, prudently managing liquidity levels and
increasing contributions from other income sources.  
Other Income 
Q2 2014 vs. Q2 2013 
Other income of $29.8 million was up 27% ($6.4 million) mainly due to
increases in trust and wealth management revenues, net gains on
securities, credit related fee income and the "other" category of
other income, partially offset by lower net insurance income. Higher
wealth management revenue primarily reflects the third quarter 2013
acquisition of McLean & Partners. Higher net gains on securities
reflect strategic management of the portfolio in view of favourable
equity and bond market conditions. Based on the level of gains
realized and the current composition of the securities portfolio,
quarterly net gains on securities are expected to be lower through
the remainder of the year although equity and bond market conditions
are inherently unpredictable in the short-term. The 'other' category
of other income was up $0.8 million, mainly due to a gain on the sale
of $25 million of conventional residential mortgages.  
Q2 2014 vs. Q1 2014 
Other income was up 4% ($1.3 million) primarily reflecting a $0.9
million increase in the 'other' category of other income and higher
trust revenues, offset by slightly lower net insurance revenues and
net gains on securities. The increase in 'other' other income
reflects the sale of residential mortgages discussed above.  
YTD 2014 vs. YTD 2013 
Other income was up 27% ($12.6 million), reflecting increases across
all categories with the exception of 'other' other income. A
significant $6.7 million increase in trust and wealth management
revenues accounted for over half of the overall increase, with higher
net gains on securities and credit related fee income also
contributing. Increases in these categories mainly reflect the
factors discussed above under the heading Q2 2014 vs. Q2 2013.  
Credit Quality 
Overall credit quality reflects continued strong underwriting
practices and relatively stable levels of economic activity in
Western Canada. The dollar level of gross impaired loans at April 30,
2014 represented 0.30% of total loans at quarter end, compared to
0.33% last quarter and 0.41% one year ago. 


 
 
                                                                            
                                                               Change       
                           For the three months ended            from       
(unaudited)                 April 30   January 31   April 30 April 30       
($ thousands)                   2014         2014       2013     2013       
----------------------------------------------------------------------------
                                                                            
Gross impaired loans,                                                       
 beginning of period       $  53,937  $    64,211  $  55,734       (3)     %
  New formations              23,129        5,634     19,923       16       
  Reductions, impaired                                                      
   accounts paid down or                                                    
   returned to performing                                                   
   status                    (17,189)     (13,455)   (10,158)      69       
  Write-offs                  (9,256)      (2,453)    (3,876)     139       
----------------------------------------------------------------------------
Total(1)                   $  50,621  $    53,937  $  61,623      (18)     %
----------------------------------------------------------------------------
                                                                            
Balance of the ten largest                                                  
 impaired accounts         $  22,009  $    27,929  $  33,189      (34)     %
Total number of accounts                                                    
 classified as impaired(3)       133          132        131        2       
Gross impaired loans as a                                                   
 percentage of total                                                        
 loans(4)                       0.30%        0.33%      0.41%     (11) bp(2)
 
1.  Gross impaired loans include foreclosed assets held for sale with a
    carrying value of $4,157 (January 31, 2014 - $5,014 and April 30, 2013 -
    $7,256). 
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 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 lending exposures. The reduction in gross impaired loans
compared to both the prior quarter and last year mainly resulted from
write-offs in the current period, coupled with pay downs and loans
returned to performing status. Management expects gross impaired
loans to increase from the current very low level reflecting normal
fluctuations of the credit cycle. 
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 CWB's historical range of
acceptable levels. As at April 30, 2014, the collective allowance for
credit losses exceeded the balance of impaired loans, net of specific
allowances. The total allowance for credit losses (collective and
specific) represented 176% of gross impaired loans at quarter end,
compared to 169% last quarter and 129% one year ago. The total
allowance for credit losses was $89.0 million at April 30, 2014,
compared to $91.4 million last quarter and $79.5 million a year
earlier. 
The quarterly provision for credit losses measured against average
loans was 16 basis points, three basis points lower than both the
same quarter last year and the prior quarter. On a year-to-date
basis, the provision for credit losses measured against average loans
was unchanged from last year at 18 basis points. Based on the current
environment and expectations for credit quality looking forward,
management expects the annual provision for credit losses will remain
at the low end of the 2014 target range of 18 to 23 basis points. 
Non-interest Expenses 
One of management's key priorities is to deliver strong long-term
growth through strategic investment in people, technology,
infrastructure and other areas while maintaining effective control of
costs. This strategy is aligned with a commitment to maximize
long-term shareholder value and expected to provide material benefits
in future periods. Work toward implementation of a new core banking
system has proceeded on time and on budget through the end of the
second quarter. Current plans estimate completion of this very
significant technology project in 2015 based on a capital budget of
$50 million. Upgrades and expansion of branch infrastructure are also
ongoing, as evidenced by this quarter's relocation of CWB's flagship
Edmonton Main Branch to significantly expanded premises. 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. 
Q2 2014 vs. Q2 2013 
Quarterly non-interest expenses of $70.6 million were up 9% ($5.8
million) primarily due to higher salaries and benefits, and premises
and equipment expense. Of the total increase in non-interest
expenses, 33% reflects the addition of McLean & Partners. The change
in salaries and benefits, excluding McLean & Partners, mainly
resulted from higher full-time salary expense associated with annual
salary increments and a larger staff complement to support ongoing
growth across all businesses. Premises and equipment expense was 10%
higher primarily reflecting increased rent expense and direct
computer costs.  
Q2 2014 vs. Q1 2014 
Non-interest expenses were up 2%. Increases in benefit costs, direct
computer costs and premises expense were partially offset by lower
maintenance and salary expense. The sequential decrease in salaries
reflects lower stock based compensation charges.  
YTD 2014 vs. YTD 2013 
Non-interest expenses of $140.1 million were 10% ($13.2 million)
higher than the prior year, primarily as a result of increases in
salaries and benefits, premises and equipment, and general expenses.
Of the total increase in non-interest expenses, 27% reflects the
addition of McLean & Partners. Higher salaries and benefits, and
premises and equipment expense reflect the factors discussed above
under the heading Q2 2014 vs. Q2 2013. The change in general expenses
was driven by higher regulatory costs, the impact of a higher CWB
common share price on Deferred Share Units (DSUs) for directors, and
expenses related to this quarter's issuance of preferred shares.  
Efficiency ratio 
The second quarter efficiency ratio (teb), which measures
non-interest expenses as a percentage of total revenues (teb), was
46.0%, compared to 47.9% last year and 45.1% in the previous quarter.
Improved efficiency compared to last year reflects the revenue
benefit of strong growth in loans and other income, partially offset
by slightly lower net interest margin (teb). The change compared to
the prior quarter mainly reflects three fewer revenue earning days
combined with the impact on total revenues of lower net interest
margin (teb). Improvement in the year-to-date efficiency ratio, from
46.9% last year to 45.5% this year, reflects the combined benefits of
strong total revenue growth and effective cost control. Based on
year-to-date performance and in consideration of expected revenues
and planned expenditures through the rest of the year, management
believes the 2014 efficiency ratio target of 46% or better is
challenging but attainable.  
Income Taxes 
The second quarter effective income tax rate (teb) was 26.2%,
compared to 26.5% last year. The effective income tax rate (teb) for
the first six months of 2014 was 26.1%, compared to 26.4% last year.  
Comprehensive Income 
Comprehensive income is comprised of net income and other
comprehensive income (OCI), all net of income taxes, and totaled
$67.0 million for the second quarter, compared to $46.7 million last
year.  
The increase in second quarter comprehensive income was driven by a
significant increase in OCI and higher net income. The increase in
OCI mainly resulted from higher unrealized gains, net of tax, from
changes in fair value of available-for-sale securities, which was
driven by the net effect of increased market values of securities and
the realization of gains and losses within CWB's portfolios of common
and preferred equities. While the combined dollar investment in these
portfolios 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 $122.4 million compares to $99.6
million last year. The increase in year-to-date comprehensive income
was mainly the result of higher net income and OCI, with the latter
driven by the factors described above.  
Balance Sheet 
Total assets increased 3% in the quarter, 10% in the past year and 6%
year-to-date to reach $19,627 million at April 30, 2014. 
Cash and Securities 
Cash and securities totaled $2,535 million at April 30, 2014,
compared to $2,545 million a year earlier and $2,596 million at the
end of last quarter. Net unrealized gains recorded on the balance
sheet of $6.4 million compare to unrealized gains of $16.5 million a
year earlier and unrealized losses of $8.8 million last quarter. 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. Volatility in equity markets can lead to fluctuations in
value, particularly for common shares. Fluctuations in the value of
interest rate sensitive securities, such as preferred shares and debt
instruments, are generally attributed to changes in interest rates,
movements in market credit spreads and shifts in the interest rate
curve. Changes in unrealized gains or losses result from the combined
impact of strategic repositioning of the securities portfolio and
changes in market values.  
Net realized gains on securities in the second quarter of $4.6
million compare to $3.1 million in the same period last year and $4.7
million in the previous quarter. Year-to-date net gains of $9.2
million were up from $5.7 million last year. Net gains reflect both
favourable equity and bond market conditions and strategic management
of the securities portfolio. Based on the level of gains realized and
current composition of the portfolio, quarterly net gains on
securities are expected to be lower through the remainder of the year
although equity and bond market conditions are inherently
unpredictable in the short-term.  
Treasury Management 
Average liquidity was up from the prior quarter and down from the
same quarter last year. Assuming an ongoing supportive economic
environment, management expects average liquidity ratios to remain
relatively consistent with the current level through the remainder of
the year.  
DBRS Limited (DBRS) maintains published credit ratings on CWB's
senior debt (deposits), short-term debt, subordinated debentures and
Basel III-compliant First Preferred Shares Series 5 of "A (low)", "R1
(low)", "BBB (high)" and "Pfd-3", respectively, all with a stable
outlook. Credit ratings do not consider market price or address the
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.  
Loans  
Total loans grew 3% ($552 million) in the quarter, 12% ($1,823
million) in the past twelve months and 7% ($1,131 million)
year-to-date to reach $16,708 million.  
Lending activity in British Columbia showed the highest growth in
dollar terms for all comparison periods, led by particularly strong
growth in real estate project loans. Year-to-date growth was also
relatively strong in Ontario, primarily reflecting increased
corporate lending and ongoing development of CWB's broker-sourced
residential mortgage business, Optimum Mortgage (Optimum). 
Loan growth by portfolio compared to the prior quarter, the same
quarter last year and on a year-to-date basis is provided in the
table below.  


 
 
                                                                            
                                                                          % 
                                                                     Change 
                                                                       from 
(unaudited)                April 30 January 31 October 31 April 30 April 30 
(millions)                     2014       2014       2013     2013     2013 
----------------------------------------------------------------------------
                                                                            
General commercial loans   $  3,525 $    3,505 $    3,428 $  3,312        6%
Commercial mortgages          3,512      3,475      3,311    3,124       12 
Equipment financing and                                                     
 leasing                      3,131      3,016      2,942    2,766       13 
Personal loans and                                                          
 mortgages                    2,665      2,602      2,502    2,378       12 
Real estate project loans     2,632      2,418      2,304    2,091       26 
Corporate lending(1)          1,044        951        902    1,011        3 
Oil and gas production                                                      
 loans                          288        281        274      282        2 
----------------------------------------------------------------------------
Total loans outstanding(2) $ 16,797 $   16,248 $   15,663 $ 14,964       12%
----------------------------------------------------------------------------
 
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. 

Growth was led by real estate project loans for all comparison periods
as CWB continued to identify opportunities to finance
well-capitalized developers on the basis of sound loan structures and
acceptable pre-sale/lease levels. Although recent growth in this area
has been very strong, CWB's total exposure to real estate remains
within management's established risk appetite. Lower than anticipated
growth in general commercial loans was partly the result of approved
credit facilities remaining undrawn. The potential growth represented
by undrawn credit facilities and CWB's promising pipeline of new
commercial loans supports management's expectations for strong
relative growth in this portfolio over time.  
Optimum Mortgage 
Total loans of $1,342 million within Optimum represented an increase
of 3% ($36 million) compared to the prior quarter, 17% ($196 million)
year-over-year, and 10% ($120 million) on a year-to-date basis.
Adjusted for loan sales in the current period and third quarter of
2013 of $25 million and $66 million, respectively, loan growth was 5%
($61 million) for the quarter, 25% ($287 million) over the past
twelve months and 12% ($145 million) year-to-date. Net 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 71%. The book
value of alternative mortgages represented 85% of Optimum's total
portfolio at quarter end, compared to 80% in the prior quarter and
74% last year, with the increase partly resulting from loan sales.
Overall, Optimum continues to deliver very strong performance and
expand its geographic footprint beyond Western Canada. In addition to
its growing presence in Ontario, Optimum added sales staff in
Atlantic Canada this quarter.  
Securitization 
Securitized leases are reported on-balance sheet with total loans.
The gross amount of securitized leases at April 30, 2014 was $282
million, compared to $223 million last quarter and $255 million one
year ago. Leases securitized in the second quarter and year-to-date
totaled $85 million and $102 million, respectively.  
Outlook for loans 
While strong competition from domestic banks and other financial
services firms is expected to continue, management believes CWB will
continue to gain market share through a combination of several
positive influences. These include an expanded market presence,
increased brand awareness in core geographic markets due in part to
ongoing marketing initiatives, and the effective execution of CWB's
strategic plan focused on targeted client solutions and superior
customer service. CWB's strategy continues to focus on enhancing
existing competitive advantages in business banking, while offering
complementary products and personalized services in small-ticket
equipment leasing, personal banking, trust, wealth management and
insurance.  
Consensus forecasts for Canada's domestic economy continue to
anticipate more rapid expansion of economic growth in 2014 and 2015
compared to prior years, largely predicated on improving economic
conditions in the U.S. Key markets in Western Canada are expected to
perform well relative to the rest of Canada reflecting ongoing
capital investment and increased personal spending as well as
in-migration primarily related to a favourable long-term outlook for
commodities. Canadian residential real estate markets have been
resilient and affordability in most geographic areas remains within
historical ranges, largely reflecting very low interest rates.  
However, the combination of historically high prices, elevated levels
of Canadian consumer debt and the potential for increasing interest
rates could slow construction and other related lending activity,
particularly in Vancouver and Toronto.  
Relatively weak natural gas markets and ongoing uncertainty
surrounding long-term transportation solutions for both natural gas
and heavy oil could lead to moderated growth in capital investment
related to natural gas production and oil sands development in the
near term. However, the composition of economic growth in Western
Canada has broadened in recent years, with accelerations in
non-resource exports, personal consumption and housing-related
activity. Opportunities related to the maintenance of existing
facilities within the resource sector also remain abundant. The
current overall economic outlook remains supportive of management's
expectations for double-digit loan growth in fiscal 2014. 
Deposits 
Total deposits at April 30, 2014 were $16,669 million, up 3% over the
previous quarter and 12% over the past year. Personal deposits
represented 60% of total deposits at April 30, 2014, up from 59% the
prior quarter and down from 62% one year ago. Total branch-raised
deposits, including trust services deposits, represented 54% of total
deposits at April 30, 2014, unchanged from the previous quarter and
down from 56% one year ago. Demand and notice deposits were 31% of
total deposits, down from 32% in the previous quarter and 33% in the
same period last year.  
Total branch deposits of $8,875 million were up 1% sequentially, 7%
over the past twelve months and 3% year-to-date. The demand and
notice component within branch-raised deposits, which includes lower
cost balances, was up 2% compared to the prior quarter, 7% from the
same time last year and 4% year-to-date to reach $5,216 million. One
of management's long-term 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 CWB. 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
for business clients, including the availability of desktop wires and
foreign exchange services, now expected in the third quarter,
continue to support this focus on growing branch-raised deposits over
time, as do focused training programs that have reached a significant
number of branch employees.  
CWB's growing market presence, including ongoing expansion and
upgrades to existing branches, also supports the generation of
branch-raised deposits. On April 28, 2014, CWB opened its relocated
flagship branch in central Edmonton, Alberta. The significantly
expanded footprint will enhance the branch's overall capacity for
future growth and accommodate CWB's primary team of real estate
lending specialists for the capital region. 
Management remains committed to further enhance and diversify all
funding sources to support growth, manage the impact of competitive
factors and mitigate pressure on net interest margin. The deposit
broker network remains a valued source for raising insured fixed term
retail deposits and has proven to be an 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, a total of $1,719 million of
term deposits raised through debt capital markets was outstanding,
representing 10% of total deposits, consistent with the previous
quarter and up from 7% from last year. The increase from last year
mainly reflects a $300 million senior deposit note issuance in
January 2014 and expansion of CWB's Bearer Deposit Note (BDN) program
to $314 million. Management will continue to evaluate the funding
potential available through securitization of portfolios that may
include equipment loans and leases, residential mortgages and
commercial mortgages.  
Other Assets and Other Liabilities 
Other assets at April 30, 2014 totaled $383 million, unchanged from
the prior quarter and up from $350 million one year ago. Other
liabilities at quarter end were $466 million, compared to $429
million the previous quarter and $456 million a year earlier.  
Off-Balance Sheet 
Off-balance sheet items include assets under administration and
assets under management. Total assets under administration, which are
comprised of trust assets and third-party leases under
administration, as well as mortgages under service agreements,
totaled $11,539 million at April 30, 2014, compared to $8,464 million
last quarter and $7,821 million one year ago.  
The significant increase in assets under administration during the
quarter was mainly driven by funds temporarily on hand at Valiant
Trust related to a large corporate action and the addition of a new
trust services client.  
Assets under management were $1,763 million at quarter end, compared
to $1,684 million last quarter and $905 million a year earlier.
Higher assets under management compared to last year reflect the
addition of McLean & Partners. 
Other off-balance sheet items are comprised of standard industry
credit instruments (guarantees, standby letters of credit and
commitments to extend credit). CWB does not utilize, nor does it have
exposure to, collateralized debt obligations or credit default swaps.
For additional information regarding other off-balance sheet items
refer to Note 12 of the unaudited interim consolidated financial
statements for the period ended April 30, 2014, as well as Notes 11
and 20 of the audited consolidated financial statements in CWB's 2013
Annual Report. 
Capital Management 
The Office of the Superintendent of Financial Institutions Canada
(OSFI) requires Canadian financial institutions to manage and report
regulatory capital in accordance with the Basel III capital
management framework. The required minimum regulatory capital ratios,
including a 250 basis point capital conservation buffer, are 7.0%
common equity Tier 1 (CET1), 8.5% Tier 1 and 10.5% total capital.  
During the quarter CWB closed its domestic public offering of five
million Basel III-compliant Series 5 preferred shares for gross
proceeds of $125 million. CWB also redeemed the outstanding
non-cumulative five-year rate reset Series 3 preferred shares on
April 30, 2014.  
At April 30, 2014, CWB's capital ratios were 8.1% CET1, 9.4% Tier 1
and 13.1% total capital. The CET1 ratio increased 10 basis points
from the previous quarter, while the Tier 1 and total capital ratios
were each down 10 basis points. Lower Tier 1 and total capital ratios
reflect the net impact of the preferred share transactions.  
Further details regarding CWB's regulatory capital and capital
adequacy ratios are included in the following table: 


 
 
                                                                            
                                            As at        As at        As at 
(unaudited)                              April 30   January 31     April 30 
($ millions)                                 2014         2014         2013 
----------------------------------------------------------------------------
Regulatory capital                                                          
  CET1 capital before deductions      $     1,492  $     1,438  $     1,331 
  Net CET1 deductions                        (115)        (112)        (101)
----------------------------------------------------------------------------
  CET1 capital                              1,377        1,326        1,230 
----------------------------------------------------------------------------
  Tier 1 capital before deductions(1)         230          252          283 
  Net deductions                                -           (2)         (10)
----------------------------------------------------------------------------
  Tier 1 capital                            1,607        1,576        1,503 
----------------------------------------------------------------------------
  Tier 2 capital before deductions(1)         625          619          678 
  Net deductions                                -            -           (1)
----------------------------------------------------------------------------
  Total capital                       $     2,232  $     2,195  $     2,180 
----------------------------------------------------------------------------
Risk-weighted assets                  $    17,089  $    16,671  $    15,446 
----------------------------------------------------------------------------
Capital adequacy ratios                                                     
    CET1                                      8.1%         8.0%         8.0%
    Tier 1                                    9.4          9.5          9.7 
    Total                                    13.1         13.2         14.1 
 
1.  The 2014 inclusion of non-common equity instruments that do not include
    non-viability contingent capital clauses is capped at 80% of the January
    1, 2013 outstanding balances (April 30, 2013 - 90%). At April 30, 2014,
    there was no exclusion from regulatory capital related to the Innovative
    Tier 1 capital (disclosed in deposits). At January 31, 2014 and April
    30, 2013 a combined $62 million and $31 million, respectively, of
    outstanding Innovative Tier 1 capital and preferred shares were excluded
    from regulatory capital. At April 30, 2014, $85 million of outstanding
    subordinated debentures (January 31, 2014 - $85 million and April 30,
    2013 - $68 million) were excluded from regulatory capital.  

Retention of earnings associated with anticipated performance within
the 2014 target ranges is expected to support capital requirements,
including targets established through CWB's Internal Capital Adequacy
Assessment Process (ICAAP).  
CWB currently reports its regulatory capital ratios using the
Standardized approach for calculating risk-weighted assets. This
approach requires CWB 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 CWB's possible multi-year transition to an AIRB
methodology for managing credit risk and calculating risk-weighted
assets continue to be evaluated. 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 CWB's capital position is provided in
Note 15 of the unaudited interim consolidated financial statements as
well as the audited consolidated financial statements and MD&A for
the year ended October 31, 2013.  
Book value per common share at April 30, 2014 was $18.65, compared to
$18.03 last quarter and $16.82 one year ago. 
Common shareholders received a quarterly cash dividend of $0.19 per
common share on March 27, 2014. On April 30, 2014, holders of Series
3 preferred shares received the final quarterly cash dividend of
$0.453125 per share and holders of Series 5 preferred shares received
an initial pro-rated cash dividend of $0.2381 per share. On June 4,
2014, CWB's Board of Directors declared a cash dividend of $0.20 per
common share, payable on June 26, 2014 to shareholders of record on
June 16, 2014. This quarterly dividend was 11% higher than the
quarterly dividend declared one year ago and 5% higher than the prior
quarter. The Board of Directors also declared a quarterly cash
dividend of $0.275 per Series 5 preferred share payable on July 31,
2014 to shareholders of record on July 24, 2014.  
Significant Changes in Accounting Policies 
Consolidated Financial Statements  
Effective November 1, 2013, CWB adopted IFRS 10 Consolidated
Financial Statements and IFRS 12 Disclosures of Interests in Other
Entities, which establish principles for the presentation and
preparation of consolidated financial statements when an entity
controls one or more other entities, and new disclosure requirements
for all forms of interests in other entities. As a result of the
application of IFRS 10, CWB has changed its accounting policy for
determining whether it has control over its investees and
consequently, has de-consolidated Canadian Western Bank Capital Trust
(the Trust) through which certain regulatory capital instruments are
issued. In accordance with the transitional provisions, CWB has
applied IFRS 10 retrospectively and comparative figures have been
restated to reflect the de-consolidation of the Trust. The
de-consolidation of the Trust resulted in a $105 million decrease in
CWB Capital Trust Capital Securities Series 1 (WesTS) previously
classified as non-controlling interest and an increase of $105
million in deposit liabilities, and reclassification of the
associated distribution, which totaled $1.7 million and $3.3 million
for the three and six months ended April 30, 2013, respectively, from
non-controlling interest to interest expense.  
Fair value measurement 
Effective November 1, 2013, CWB adopted IFRS 13 Fair Value
Measurement, which applies to other IFRS standards that require or
permit fair value measurements or disclosures about fair value
measurements and sets out a framework on how to measure fair value
using the assumptions that market participants would use when pricing
the asset or liability under current market conditions, including
assumptions about risk. In accordance with the transitional
provisions of IFRS 13, CWB has applied the new fair value measurement
guidance prospectively. This new standard had no impact on the
measurement of CWB's assets and liabilities. Additional disclosures
required by IFRS 13 are included in Note 13 of the unaudited interim
consolidated financial statements. 
Future Accounting Changes 
A number of standards and amendments have been issued by the
International Accounting Standards Board (IASB) and are noted on page
45 of the 2013 Annual Report. These standards and amendments may
impact the presentation of financial statements in the future and
management is currently reviewing these changes to determine the
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 CWB's consolidated
financial statements in the future. 
Controls and Procedures 
There were no changes in CWB's internal controls over financial
reporting that occurred during the quarter ended April 30, 2014 that
have materially affected, or are reasonably likely to materially
affect, CWB's internal controls over financial reporting.  
The Bank's certifying officers had previously limited the scope of
the design of disclosure controls and procedures and internal control
over financial reporting to exclude the controls, policies and
procedures of McLean & Partners, acquired in the third quarter of
2013. This limitation has now been removed. 
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 30, 2014, there were 80,047,829 CWB common shares
outstanding. Also outstanding were employee stock options, which are
or will be exercisable for up to 4,413,632 common shares for maximum
proceeds of $127 million.  
Dividend Reinvestment Plan 
CWB common shares (TSX: CWB), as well as Series 3 and Series 5
preferred shares (TSX: CWB.PR.A and CWB.PR.B, respectively) have been
deemed eligible to participate in CWB'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 CWB's
website at www.cwb.com/investor_relations/drip. At the current time,
for the purposes of the Plan, CWB 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 
Prior to its expiration on February 28, 2014, CWB had a Normal Course
Issuer Bid (NCIB) outstanding to purchase, for cancellation, up to
826,120 Non-Cumulative five-Year Rate Reset Preferred Shares Series 3
("preferred shares"). During fiscal 2014, CWB did not purchase any
preferred shares under the NCIB.  


 
 
                                     
                           
Summary of Quarterly Financial Information                      
                                                                
                                                2014            
                                    ----------------------------
($ thousands)                                   Q2            Q1
----------------------------------------------------------------
Total revenues (teb)                 $     153,521 $     153,770
Total revenues                             151,532       151,680
Net income                                  56,384        56,749
Net income available to common                                  
 shareholders                               51,191        52,628
Earnings per common share                                       
  Basic                                       0.64          0.66
  Diluted                                     0.63          0.65
  Adjusted cash                               0.65          0.67
Total assets ($ millions)                   19,627        19,135
----------------------------------------------------------------
 
                                                                            
Summary of Quarterly Financial Information                                  
                                                                            
                                                     2013(1)                
                                    ----------------------------------------
($ thousands)                               Q4        Q3        Q2        Q1
----------------------------------------------------------------------------
Total revenues (teb)                 $ 150,956 $ 144,034 $ 135,319 $ 135,431
Total revenues                         148,894   141,873   133,319   133,516
Net income                              55,332    51,623    46,887    49,365
Net income available to common                                              
 shareholders                           51,210    47,484    42,988    45,482
Earnings per common share                                                   
  Basic                                   0.64      0.60      0.54      0.58
  Diluted                                 0.64      0.60      0.54      0.57
  Adjusted cash                           0.65      0.61      0.55      0.58
Total assets ($ millions)               18,520    17,927    17,779    17,161
----------------------------------------------------------------------------
 
                                                                
Summary of Quarterly Financial Information                      
                                                                
                                               2012(1)          
                                    ----------------------------
($ thousands)                                   Q4            Q3
----------------------------------------------------------------
Total revenues (teb)                 $     131,482 $     136,454
Total revenues                             129,503       134,368
Net income                                  46,920        51,882
Net income available to common                                  
 shareholders                               43,046        48,004
Earnings per common share                                       
  Basic                                       0.55          0.62
  Diluted                                     0.55          0.61
  Adjusted cash                               0.56          0.63
Total assets ($ millions)                   16,873        16,033
----------------------------------------------------------------
 
1.  Effective November 1, 2013, CWB retrospectively adopted IFRS 10
    Consolidated Financial Statements as described in Note 1 of the
    consolidated financial statements and within the Changes in Accounting
    Policies section of this MD&A. 2012 financial results have been restated
    for the purposes of this chart. 

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.  
CWB'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.  
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 CWB's MD&A for
the year ended October 31, 2013 and the individual quarterly reports
to shareholders which are available on SEDAR at www.sedar.com and on
CWB's website at www.cwb.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 financial institutions. Total
revenues, net interest income and income taxes are discussed on a
taxable equivalent basis throughout this quarterly report to
shareholders. 
Non-IFRS Measures 
CWB uses a number of financial measures to assess its performance.
These measures provide readers with an enhanced understanding of how
management views the results. Non-IFRS measures may also provide
readers the ability to analyze trends and provide comparisons with
our competitors. 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 (see calculation below). These exclusions
    represent non-cash charges 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 III common equity Tier 1, Tier 1 and total capital ratios - in
    accordance with guidelines issued by OSFI; and 
--  average balances - average daily balances. 
 
Adjusted net income available to common shareholders                        
                                                        For the six months  
                         For the three months ended          
  ended        
                     -------------------------------------------------------
(unaudited)             April 30 January 31   April 30   April 30   April 30
($ thousands)               2014       2014       2013       2014       2013
----------------------------------------------------------------------------
Net income available                                                        
 to common                                                                  
 shareholders         $   51,191 $   52,628 $   42,988 $  103,819 $   88,470
Adjustments:                                                                
  Amortization of                                                           
   acquisition-                                                             
   related intangible                                                       
   assets (after tax)        903        891        731      1,794      1,461
  Contingent                                                                
   consideration fair                                                       
   value change              150        150          -        300          -
----------------------------------------------------------------------------
Adjusted net income                                                         
 available to common                                                        
 shareholders         $   52,244 $   53,669 $   43,719 $  105,913 $   89,931
----------------------------------------------------------------------------
                                                                            
                                                                            
                                                                            
Consolidated Balance Sheets                                            
                                                                       
                                                  As at          As at 
(unaudited)                                    April 30     January 31 
($ thousands)                                      2014           2014 
-----------------------------------------------------------------------
Assets                                                                 
Cash Resources                                                         
  Cash and non-interest                                                
   bearing deposits with                                               
   financial institutions                 $      54,040  $         273 
  Interest bearing deposits                                            
   with regulated financial                                            
   institutions                  (Note 4)       342,179        375,717 
  Cheques and other items in                                           
   transit                                          280          7,288 
-----------------------------------------------------------------------
                                                396,499        383,278 
-----------------------------------------------------------------------
Securities                       (Note 4)                              
  Issued or guaranteed by                                              
   Canada                                       712,167        734,924 
  Issued or guaranteed by a                                            
   province or municipality                     630,849        619,242 
  Other securities                              795,779        858,776 
-----------------------------------------------------------------------
                                              2,138,795      2,212,942 
-----------------------------------------------------------------------
                                                                       
Loans                           (Notes 5                               
                                   and 7)                              
  Personal                                    2,665,550      2,602,391 
  Business                                   14,131,314     13,645,329 
-----------------------------------------------------------------------
                                             16,796,864     16,247,720 
  Allowance for credit losses    (Note 6)       (88,976)       (91,354)
-----------------------------------------------------------------------
                                             16,707,888     16,156,366 
-----------------------------------------------------------------------
Other                                                                  
  Property and equipment                         67,505         65,626 
  Goodwill                                       50,408         50,408 
  Intangible assets                              76,375         72,767 
  Insurance related                              63,541         63,637 
  Derivative related             (Note 8)         7,050          6,975 
  Other assets                                  118,605        123,491 
-----------------------------------------------------------------------
                                                383,484        382,904 
-----------------------------------------------------------------------
Total Assets                              $  19,626,666  $  19,135,490 
-----------------------------------------------------------------------
                                                                       
Liabilities and Equity                                                 
Deposits                                                               
  Personal                                $  10,040,387  $   9,632,095 
  Business and government                     6,628,147      6,611,401 
-----------------------------------------------------------------------
                                             16,668,534     16,243,496 
-----------------------------------------------------------------------
Other                                                                  
  Cheques and other items in                                           
   transit                                       64,055         36,853 
  Insurance related                             155,961        159,372 
  Derivative related             (Note 8)            44             82 
  Other liabilities                             246,184        232,733 
-----------------------------------------------------------------------
                                                466,244        429,040 
-----------------------------------------------------------------------
Debt                                                                   
  Subordinated debentures                       625,000        625,000 
  Debt securities                               247,962        187,780 
  Preferred share liabilities    (Note 9)       125,000              - 
-----------------------------------------------------------------------
                                                997,962        812,780 
-----------------------------------------------------------------------
Equity                                                                 
  Preferred shares              (Note 10)             -        208,815 
  Common shares                 (Note 10)       522,790        518,010 
  Retained earnings                             938,568        902,568 
  Share-based payment reserve                    25,278         24,248 
  Other reserves                                  5,917         (4,670)
-----------------------------------------------------------------------
Total Shareholders' Equity                    1,492,553      1,648,971 
  Non-controlling interests                       1,373          1,203 
-----------------------------------------------------------------------
Total Equity                                  1,493,926      1,650,174 
-----------------------------------------------------------------------
Total Liabilities and Equity              $  19,626,666  $  19,135,490 
-----------------------------------------------------------------------
 
Consolidated Balance Sheets                                                 
                                                                     Change 
                                                As at        As at     from 
(unaudited)                                October 31     April 30 April 30 
($ thousands)                                 2013(1)      2013(1)     2013 
----------------------------------------------------------------------------
Assets                                                                      
Cash Resources                                                              
  Cash and non-interest                                                     
   bearing deposits with                                                    
   financial institutions                 $    83,856  $    48,506       11%
  Interest bearing deposits                                                 
   with regulated financial                                                 
   institutions                  (Note 4)     258,466      107,683      218 
  Cheques and other items in                                                
   transit                                      5,673        5,251      (95)
----------------------------------------------------------------------------
                                              347,995      161,440      146 
----------------------------------------------------------------------------
Securities                       (Note 4)                                   
  Issued or guaranteed by                                                   
   Canada                                     927,077      736,092       (3)
  Issued or guaranteed by a                                                 
   province or municipality                   410,984      600,257        5 
  Other securities                            894,271    1,046,854      (24)
----------------------------------------------------------------------------
                                            2,232,332    2,383,203      (10)
----------------------------------------------------------------------------
                                                                            
Loans                           (Notes 5                                    
                                   and 7)                                   
  Personal                                  2,502,295    2,378,451       12 
  Business                                 13,160,384   12,585,573       12 
----------------------------------------------------------------------------
                                           15,662,679   14,964,024       12 
  Allowance for credit losses    (Note 6)     (85,786)     (79,471)      12 
----------------------------------------------------------------------------
                                           15,576,893   14,884,553       12 
----------------------------------------------------------------------------
Other                                                                       
  Property and equipment                       66,647       64,860        4 
  Goodwill                                     49,424       45,536       11 
  Intangible assets                            70,197       53,141       44 
  Insurance related                            64,365       56,853       12 
  Derivative related             (Note 8)       4,509        1,468      380 
  Other assets                                107,898      128,226       (8)
----------------------------------------------------------------------------
                                              363,040      350,084       10 
----------------------------------------------------------------------------
Total Assets                              $18,520,260  $17,779,280       10%
----------------------------------------------------------------------------
                                                                            
Liabilities and Equity                                                      
Deposits                                                                    
  Personal                                $ 9,420,754  $ 9,293,391        8%
  Business and government                   6,210,286    5,591,924       19 
----------------------------------------------------------------------------
                                           15,631,040   14,885,315       12 
----------------------------------------------------------------------------
Other                                                                       
  Cheques and other items in                                                
   transit                                     55,290       68,708       (7)
  Insurance related                           167,816      153,837        1 
  Derivative related             (Note 8)          36           18      144 
  Other liabilities                           238,939      233,006        6 
----------------------------------------------------------------------------
                                              462,081      455,569        2 
----------------------------------------------------------------------------
Debt                                                                        
  Subordinated debentures                     625,000      675,000       (7)
  Debt securities                             195,650      222,183       12 
  Preferred share liabilities    (Note 9)           -            -      100 
----------------------------------------------------------------------------
                                              820,650      897,183       11 
----------------------------------------------------------------------------
Equity                                                                      
  Preferred shares              (Note 10)     208,815      209,649     (100)
  Common shares                 (Note 10)     510,282      499,730        5 
  Retained earnings                           865,087      794,944       18 
  Share-based payment reserve                  24,632       24,026        5 
  Other reserves                               (3,389)      12,622      (53)
----------------------------------------------------------------------------
Total Shareholders' Equity                  1,605,427    1,540,971       (3)
  Non-controlling interests                     1,062          242      467 
----------------------------------------------------------------------------
Total Equity                                1,606,489    1,541,213       (3)
----------------------------------------------------------------------------
Total Liabilities and Equity              $18,520,260  $17,779,280       10%
----------------------------------------------------------------------------
 
1.  Effective November 1, 2013, CWB retrospectively adopted IFRS 10
    Consolidated Financial Statements as described in Note 1. 
 
The accompanying notes are an integral part of the interim consolidated     
 financial statements.                                                      
                                                                            
                                                                            
                                                                            
Consolidated Statements of Income                                           
                                                                            
                                                                     Change 
(unaudited)                         For the three months ended         from 
($ thousands, except               April 30  January 31   April 30 April 30 
per share amounts)                     2014        2014    2013(1)     2013 
----------------------------------------------------------------------------
Interest Income                                                             
  Loans                          $  192,685 $   193,825 $  177,159        9%
  Securities                         10,625      10,509     11,272       (6)
  Deposits with                                                             
   regulated financial                                                      
   institutions                       1,165         917        419      178 
----------------------------------------------------------------------------
                                    204,475     205,251    188,850        8 
----------------------------------------------------------------------------
Interest Expense                                                            
  Deposits                           75,061      74,279     70,500        6 
  Debt                                7,676       7,823      8,421       (9)
----------------------------------------------------------------------------
                                     82,737      82,102     78,921        5 
----------------------------------------------------------------------------
Net Interest Income                 121,738     123,149    109,929       11 
Provision for Credit                                                        
 Losses                 (Note 6)      6,463       7,619      6,684       (3)
----------------------------------------------------------------------------
Net Interest Income                                                         
 after                                                                      
Provision for Credit                                                        
 Losses                             115,275     115,530    103,245       12 
----------------------------------------------------------------------------
Other Income                                                                
  Trust and wealth                                                          
   management services                8,780       8,335      5,371       63 
  Credit related                      5,966       5,987      5,053       18 
  Insurance, net        (Note 3)      5,868       6,011      6,201       (5)
  Gains on securities,                                                      
   net                                4,572       4,653      3,074       49 
  Retail services                     2,934       2,770      2,774        6 
  Other                               1,674         775        917       83 
----------------------------------------------------------------------------
                                     29,794      28,531     23,390       27 
----------------------------------------------------------------------------
Net Interest and Other                                                      
 Income                             145,069     144,061    126,635       15 
----------------------------------------------------------------------------
Non-Interest Expenses                                                       
  Salaries and employee                                                     
   benefits                          46,636      45,891     42,287       10 
  Premises and                                                              
   equipment                         11,820      11,381     10,730       10 
  Other expenses                     12,162      12,163     11,810        3 
----------------------------------------------------------------------------
                                     70,618      69,435     64,827        9 
----------------------------------------------------------------------------
Net Income before                                                           
 Income Taxes                        74,451      74,626     61,808       20 
Income Taxes                         18,067      17,877     14,921       21 
----------------------------------------------------------------------------
Net Income                           56,384      56,749     46,887       20 
----------------------------------------------------------------------------
Net Income Attributable                                                     
 to                                                                         
Non-Controlling                                                             
 Interests                              218         336         92      137 
----------------------------------------------------------------------------
Net Income Attributable                                                     
 to                                                                         
Shareholders of CWB                  56,166      56,413     46,795       20 
----------------------------------------------------------------------------
  Preferred share                                                           
   dividends                          4,975       3,785      3,800       31 
  Premium paid on                                                           
   purchase of                                                              
   preferred shares for                                                     
   cancellation                           -           -          7     (100)
----------------------------------------------------------------------------
Net Income Available to                                                     
 Common Shareholders             $   51,191 $    52,628 $   42,988       19%
----------------------------------------------------------------------------
  Average number of                                                         
   common shares (in                                                        
   thousands)                        79,955      79,724     79,075        1 
  Average number of                                                         
   diluted common                                                           
   shares (in                                                               
   thousands)                        80,826      80,514     79,471        2 
----------------------------------------------------------------------------
Earnings Per Common                                                         
 Share                                                                      
  Basic                          $     0.64 $      0.66 $     0.54       19%
  Diluted                              0.63        0.65       0.54       17 
----------------------------------------------------------------------------
 
The accompanying notes are an integral part of the interim      
 consolidated financial statements.                             
                                                                
                                                                
                                                                
Consolidated Statements of Income                               
                                                                
                                  For the six months     Change 
(unaudited)                              ended             from 
($ thousands, except               April 30   April 30 April 30 
per share amounts)                     2014    2013(1)     2013 
----------------------------------------------------------------
Interest Income                                                 
  Loans                          $  386,510 $  356,200        9%
  Securities                         21,134     22,496       (6)
  Deposits with                                                 
   regulated financial                                          
   institutions                       2,082        856      143 
----------------------------------------------------------------
                                    409,726    379,552        8 
----------------------------------------------------------------
Interest Expense                                                
  Deposits                          149,340    142,412        5 
  Debt                               15,499     16,074       (4)
----------------------------------------------------------------
                                    164,839    158,486        4 
----------------------------------------------------------------
Net Interest Income                 244,887    221,066       11 
Provision for Credit                                            
 Losses                 (Note 6)     14,082     13,011        8 
----------------------------------------------------------------
Net Interest Income                                             
 after                                                          
Provision for Credit                                            
 Losses                             230,805    208,055       11 
----------------------------------------------------------------
Other Income                                                    
  Trust and wealth                                              
   management services               17,115     10,414       64 
  Credit related                     11,953     10,487       14 
  Insurance, net        (Note 3)     11,879     11,403        4 
  Gains on securities,                                          
   net                                9,225      5,736       61 
  Retail services                     5,704      5,242        9 
  Other                               2,449      2,487       (2)
----------------------------------------------------------------
                                     58,325     45,769       27 
----------------------------------------------------------------
Net Interest and Other                                          
 Income                             289,130    253,824       14 
----------------------------------------------------------------
Non-Interest Expenses                                           
  Salaries and employee                                         
   benefits                          92,527     83,642       11 
  Premises and                                                  
   equipment                         23,201     20,984       11 
  Other expenses                     24,325     22,268        9 
----------------------------------------------------------------
                                    140,053    126,894       10 
----------------------------------------------------------------
Net Income before                                               
 Income Taxes                       149,077    126,930       17 
Income Taxes                         35,944     30,678       17 
----------------------------------------------------------------
Net Income                          113,133     96,252       18 
----------------------------------------------------------------
Net Income Attributable                                         
 to                                                             
Non-Controlling                                                 
 Interests                              554        173      220 
----------------------------------------------------------------
Net Income Attributable                                         
 to                                                             
Shareholders of CWB                 112,579     96,079       17 
----------------------------------------------------------------
  Preferred share                                               
   dividends                          8,760      7,602       15 
  Premium paid on                                               
   purchase of                                                  
   preferred shares for                                         
   cancellation                           -          7     (100)
----------------------------------------------------------------
Net Income Available to                                         
 Common Shareholders             $  103,819 $   88,470       17%
----------------------------------------------------------------
  Average number of                                             
   common shares (in                                            
   thousands)                        79,838     78,936        1 
  Average number of                                             
   diluted common                                               
   shares (in                                                   
   thousands)                        80,702     79,362        2 
----------------------------------------------------------------
Earnings Per Common                                             
 Share                                                          
  Basic                          $     1.30 $     1.12       16%
  Diluted                              1.29       1.11       16 
----------------------------------------------------------------
 
1.  Effective November 1, 2013, CWB retrospectively adopted IFRS 10
    Consolidated Financial Statements as described in Note 1. 
 
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)                 2014       2013(1)          2014      2013(1) 
----------------------------------------------------------------------------
Net Income            $     56,384  $     46,887   $   113,133  $    96,252 
----------------------------------------------------------------------------
Other Comprehensive                                                         
 Income (Loss), net                                                         
 of tax                                                                     
  Available-for-sale                                                        
   securities:                                                              
  Gains from change                                                         
   in fair value(2)         14,620         2,572        16,679        7,896 
  Reclassification to                                                       
   net income(3)            (3,237)       (2,241)       (6,762)      (4,183)
----------------------------------------------------------------------------
                            11,383           331         9,917        3,713 
----------------------------------------------------------------------------
  Derivatives                                                               
   designated as cash                                                       
   flow hedges:                                                             
  Gains (loss) from                                                         
   change in fair                                                           
   value(4)                     91          (983)        1,895         (365)
  Reclassification to                                                       
   net income(5)              (887)          508        (2,506)          27 
----------------------------------------------------------------------------
                              (796)         (475)         (611)        (338)
----------------------------------------------------------------------------
                            10,587          (144)        9,306        3,375 
----------------------------------------------------------------------------
Comprehensive Income                                                        
 for the Period       $     66,971  $     46,743   $   122,439  $    99,627 
----------------------------------------------------------------------------
                                                                            
  Comprehensive                                                             
   income for the                                                           
   period                                                                   
   attributable to:                                                         
  Shareholders of CWB $     66,753  $     46,651   $   121,885  $    99,454 
  Non-controlling                                                           
   interests                   218            92           554          173 
----------------------------------------------------------------------------
Comprehensive Income                                                        
 for the Period       $     66,971  $     46,743   $   122,439  $    99,627 
----------------------------------------------------------------------------
 
1.  Effective November 1, 2013, CWB retrospectively adopted IFRS 10
    Consolidated Financial Statements as described in Note 1. Net of income
    tax of $5,366 and $6,075 for the three and six months ended April 30,
    2014, respectively (2013 - $960 and $2,949). 
2.  Net of income tax of $1,335 and $2,463 for the three and six months
    ended April 30, 2014, respectively (2013 - $833 and $1,553). 
3.  Net of income tax of $31 and $640 for the three and six months ended
    April 30, 2014, respectively (2013 - $330 and $123). 
4.  Net of income tax of $300 and $847 for the three and six months ended
    April 30, 2014, respectively (2013 - $170 and $9). 
 
Items presented in other comprehensive income will be subsequently          
 reclassified to the Consolidated Statement of Income when specific         
 conditions are met.                                                        
                                                                            
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)                                            April 30    April 30 
($ thousands)                                              2014     2013(1) 
----------------------------------------------------------------------------
Retained Earnings                                                           
Balance at beginning of period                      $   865,087 $   733,298 
Net income attributable to shareholders of                                  
 CWB                                                    112,579      96,079 
Dividends - Preferred shares/preferred                                      
 share liabilities                                       (8,760)     (7,602)
          - Common shares                               (30,338)    (26,824)
Premium paid on preferred shares purchased                                  
 for cancellation                                             -          (7)
----------------------------------------------------------------------------
Balance at end of period                                938,568     794,944 
----------------------------------------------------------------------------
Other Reserves                                                              
Balance at beginning of period                           (3,389)      9,247 
Changes in available-for-sale securities                  9,917       3,713 
Changes in derivatives designated as cash                                   
 flow hedges                                               (611)       (338)
----------------------------------------------------------------------------
Balance at end of period                                  5,917      12,622 
----------------------------------------------------------------------------
Preferred Shares                           (Note 10)                        
Balance at beginning of period                          208,815     209,750 
Redeemed                                               (208,815)          - 
Purchased for cancellation                                    -        (101)
----------------------------------------------------------------------------
Balance at end of period                                      -     209,649 
----------------------------------------------------------------------------
Common Shares                              (Note 10)                        
Balance at beginning of period                          510,282     490,218 
Issued under dividend reinvestment plan                   9,172       7,172 
Transferred from share-based payment                                        
 reserve on the exercise or exchange of                                     
 options                                                  2,270       1,389 
Issued on exercise of options                             1,066         951 
----------------------------------------------------------------------------
Balance at end of period                                522,790     499,730 
----------------------------------------------------------------------------
Share-based Payment Reserve                                                 
Balance at beginning of period                           24,632      22,468 
Amortization of fair value of options      (Note 11)      2,916       2,947 
Transferred to common shares on the                                         
 exercise or exchange of options                         (2,270)     (1,389)
----------------------------------------------------------------------------
Balance at end of period                                 25,278      24,026 
----------------------------------------------------------------------------
Total Shareholders' Equity                            1,492,553   1,540,971 
----------------------------------------------------------------------------
Non-Controlling Interests                                                   
Balance at beginning of period                            1,062         244 
Net income attributable to non-controlling                                  
 interests                                                  554         173 
Dividends to non-controlling interests                     (146)       (175)
Partial ownership increase                                  (97)          - 
----------------------------------------------------------------------------
Balance at end of period                                  1,373         242 
----------------------------------------------------------------------------
Total Equity                                        $ 1,493,926 $ 1,541,213 
----------------------------------------------------------------------------
 
1.  Effective November 1, 2013, CWB retrospectively adopted IFRS 10
    Consolidated Financial Statements as described in Note 1. 
 
The accompanying notes are an integral part of the interim consolidated     
 financial statements.                                                      
                                                                            
                                                                            
                                                                            
Consolidated Statements of Cash Flow                                        
                                                 For the six months ended   
(unaudited)                                         April 30       April 30 
($ thousands)                                           2014        2013(1) 
----------------------------------------------------------------------------
Cash Flows from Operating Activities                                        
  Net income                                   $     113,133  $      96,252 
  Adjustments to determine net cash                                         
   flows:                                                                   
    Provision for credit losses                       14,082         13,011 
    Depreciation and amortization                     11,714         10,338 
    Current income taxes receivable                                         
     and payable                                      (3,987)       (12,420)
    Amortization of fair value of                                           
     employee stock options          (Note 11)         2,916          2,947 
    Accrued interest receivable and                                         
     payable, net                                      3,949          8,517 
    Deferred income taxes, net                        (4,762)         2,196 
    Gain on securities, net                           (9,225)        (5,736)
  Change in operating assets and                                            
   liabilities:                                                             
    Deposits, net                                  1,037,494        635,478 
    Loans, net                                    (1,145,078)      (943,878)
    Securities sold under repurchase                                        
     agreements, net                                       -        (70,089)
    Other items, net                                 (21,849)       (16,062)
----------------------------------------------------------------------------
                                                      (1,613)      (279,446)
----------------------------------------------------------------------------
Cash Flows from Financing Activities                                        
  Common shares issued               (Note 10)        10,238          8,123 
  Debt securities issued                             101,789         59,321 
  Debt securities repaid                             (49,477)       (46,410)
  Dividends                                          (39,098)       (34,426)
  Preferred shares redeemed          (Note 10)      (208,815)             - 
  Preferred shares purchased and                                            
   cancelled                                               -           (108)
  Preferred share liabilities issued  (Note 9)       125,000              - 
  Distributions to non-controlling                                          
   interests                                            (146)          (175)
  Debentures issued                                        -        250,000 
----------------------------------------------------------------------------
                                                     (60,509)       236,325 
----------------------------------------------------------------------------
Cash Flows from Investing Activities                                        
  Interest bearing deposits with                                            
   regulated financial institutions,                                        
   net                                               (83,499)        69,547 
  Securities, purchased                           (3,603,834)    (3,208,919)
  Securities, sale proceeds                        2,223,556      2,003,746 
  Securities, matured                              1,500,403      1,167,732 
  Property, equipment and intangible                                        
   assets                                            (18,478)        (9,862)
----------------------------------------------------------------------------
                                                      18,148         22,244 
----------------------------------------------------------------------------
Change in Cash and Cash Equivalents                  (43,974)       (20,877)
Cash and Cash Equivalents at                                                
 Beginning of Period                                  34,239          5,926 
----------------------------------------------------------------------------
Cash and Cash Equivalents at End of                                         
 Period (i)                                    $      (9,735) $     (14,951)
----------------------------------------------------------------------------
(i) Represented by:                                                         
  Cash and non-interest bearing                                             
   deposits with financial                                                  
   institutions                                $      54,040  $      48,506 
  Cheques and other items in transit                                        
   (included in Cash Resources)                          280          5,251 
  Cheques and other items in transit                                        
   (included in Other Liabilities)                   (64,055)       (68,708)
----------------------------------------------------------------------------
Cash and Cash Equivalents at End of                                         
 Period                                        $      (9,735) $     (14,951)
----------------------------------------------------------------------------
                                                                            
                                                                            
Supplemental Disclosure of Cash Flow                                        
 Information                                                                
  Interest and dividends received              $     415,537  $     395,296 
  Interest paid                                      160,072        154,353 
  Income taxes paid                                   44,693         40,671 
 
1.  Effective November 1, 2013, CWB retrospectively adopted IFRS 10
    Consolidated Financial Statements as described in Note 1. 
 
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) 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, 2013, except as
noted below. 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 International Financial Reporting Standards (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, 2013
as set out on pages 62 to 102 of CWB's 2013 Annual Report. 
The interim consolidated financial statements were authorized for
issue by the Board of Directors on June 4, 2014. 
Significant Changes in Accounting Policies 
Consolidated Financial Statements  
Effective November 1, 2013, CWB adopted IFRS 10 Consolidated
Financial Statements and IFRS 12 Disclosures of Interests in Other
Entities, which establish principles for the presentation and
preparation of consolidated financial statements when an entity
controls one or more other entities, and new disclosure requirements
for all forms of interests in other entities. As a result of the
application of IFRS 10, CWB has changed its accounting policy for
determining whether it has control over its investees and
consequently, has de-consolidated Canadian Western Bank Capital Trust
(the Trust) through which certain regulatory capital instruments are
issued. In accordance with the transitional provisions, CWB has
applied IFRS 10 retrospectively and comparative figures have been
restated to reflect the de-consolidation of the Trust. The
de-consolidation of the Trust resulted in a $105,000 decrease in CWB
Capital Trust Capital Securities Series 1 (WesTS) previously
classified as non-controlling interest and an increase of $105,000 in
deposit liabilities, and reclassification of the associated
distribution, which totaled $1,647 and $3,344 for the three and six
months ended April 30, 2013, from non-controlling interest to
interest expense. Additional information on the Trust is discussed in
Note 19 of CWB's audited consolidated financial statements for the
year ended October 31, 2013. 
Fair value measurement 
Effective November 1, 2013, CWB adopted IFRS 13 Fair Value
Measurement, which applies to other IFRS standards that require or
permit fair value measurements or disclosures about fair value
measurements and sets out a framework on how to measure fair value
using the assumptions that market participants would use when pricing
the asset or liability under current market conditions, including
assumptions about risk. In accordance with the transitional
provisions of IFRS 13, CWB has applied the new fair value measurement
guidance prospectively. This new standard had no impact on the
measurement of CWB's assets and liabilities. Additional disclosures
required by IFRS 13 are included in Note 13. 
2. Future Accounting Changes  
CWB continues to monitor the IASB's proposed changes to accounting
standards. Although not expected to materially impact CWB's 2014
consolidated financial statements, these proposed changes may have a
significant impact on future financial statements. Additional
discussion on certain accounting standards that may impact CWB is
included in the audited consolidated financial statements within
CWB's 2013 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 six months 
                         For the three months ended            ended        
----------------------------------------------------------------------------
                       April 30    January   April 30   April 30   April 30 
                           2014    31 2014       2013       2014       2013 
----------------------------------------------------------------------------
Net earned premiums   $  31,646  $  32,619  $  30,701  $  64,265  $  62,196 
Commissions and                                                             
 processing fees            317        425        404        742        841 
Net claims and                                                              
 adjustment expenses    (19,741)   (21,252)   (18,312)   (40,993)   (38,997)
Policy acquisition                                                          
 costs                   (6,354)    (5,781)    (6,592)   (12,135)   (12,637)
----------------------------------------------------------------------------
Total, net            $   5,868  $   6,011  $   6,201  $  11,879  $  11,403 
----------------------------------------------------------------------------

4. Securities  
Net unrealized gains (losses) reflected on the consolidated balance
sheet follow: 


 
 
                                                                            
                                            As at       As at         As at 
                                         April 30   January 31   October 31 
                                             2014         2014         2013 
----------------------------------------------------------------------------
Interest bearing deposits with                                              
 regulated financial institutions     $       435  $       822  $       569 
Securities issued or guaranteed by                                          
  Canada                                      150          424          632 
  A province or municipality                  181          (70)         161 
Other debt securities                       1,166        1,455        1,180 
Equity securities                                                           
  Preferred shares                           (258)     (15,923)     (16,301)
  Common shares                             4,730        4,459        6,657 
----------------------------------------------------------------------------
Unrealized gains (losses), net        $     6,404  $    (8,833) $    (7,102)
----------------------------------------------------------------------------

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, 2014, CWB assessed the securities with
unrealized losses and, based on available objective evidence, no
impairment charges (2013 - nil) were included in gains on securities,
net. 
5. Loans  
The composition of CWB's loan portfolio by geographic region and
industry sector follows: 


 
 
                                                                          
                                                                          
($ millions)                        BC          AB          ON         SK 
--------------------------------------------------------------------------
                                                                          
Personal                     $     864   $   1,076   $     482  $     171 
--------------------------------------------------------------------------
                                                                          
Business                                                                  
  Real estate                    2,878       2,523         430        438 
  Commercial                     1,541       1,737         427        207 
  Equipment financing and                                                 
   energy(1)                       589       1,468         608        285 
--------------------------------------------------------------------------
Total Business                   5,008       5,728       1,465        930 
--------------------------------------------------------------------------
Total Loans(2)               $   5,872   $   6,804   $   1,947  $   1,101 
--------------------------------------------------------------------------
Composition Percentage                                                    
  April 30, 2014                    35%         41%         11  %       7%
  January 31, 2014                  35%         42%         11  %       7%
  October 31, 2013                  35%         42%         11  %       7%
 
                                                                     
                                                                     
($ millions)                          MB         Other         Total 
---------------------------------------------------------------------
                                                                     
Personal                     $        72   $         1   $     2,666 
---------------------------------------------------------------------
                                                                     
Business                                                             
  Real estate                        119            13         6,401 
  Commercial                         287            79         4,278 
  Equipment financing and                                            
   energy(1)                         116           386         3,452 
---------------------------------------------------------------------
Total Business                       522           478        14,131 
---------------------------------------------------------------------
Total Loans(2)               $       594   $       479   $    16,797 
---------------------------------------------------------------------
Composition Percentage                                               
  April 30, 2014                       3%            3%          100%
  January 31, 2014                     2%            3%          100%
  October 31, 2013                     2%            3%          100%
 
                                                                            
                                         Composition Percentage             
($ millions)               April 30 2014   January 31 2014  October 31 2013 
----------------------------------------------------------------------------
                                                                            
Personal                              16%               16%              16%
----------------------------------------------------------------------------
                                                                            
Business                                                                    
  Real estate                         38                38               37 
  Commercial                          25                26               26 
  Equipment financing and                                                   
   energy(1)                          21                20               21 
----------------------------------------------------------------------------
Total Business                        84                84               84 
----------------------------------------------------------------------------
Total Loans(2)                       100%              100%             100%
----------------------------------------------------------------------------
Composition Percentage                                                      
  April 30, 2014                                                            
  January 31, 2014                                                          
  October 31, 2013                                                          
 
1.  Includes securitized leases reported on-balance sheet of $282 (January
    31, 2014 - $223; October 31, 2013 - $230). 
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          
                                               April 30, 2014               
                                --------------------------------------------
                                                   Collective               
                                                    Allowance               
                                      Specific     for Credit               
                                     Allowance         Losses         Total 
----------------------------------------------------------------------------
Balance at beginning of period   $      12,757  $      78,597 $      91,354 
Provision for credit losses                338          6,125         6,463 
Write-offs                              (9,256)             -        (9,256)
Recoveries                                 415              -           415 
----------------------------------------------------------------------------
Balance at end of period         $       4,254  $      84,722 $      88,976 
----------------------------------------------------------------------------
 
                                                                            
                                        For the three months ended          
                                              January 31, 2014              
                                --------------------------------------------
                                                   Collective               
                                                    Allowance               
                                      Specific     for Credit               
                                     Allowance         Losses         Total 
----------------------------------------------------------------------------
Balance at beginning of period   $       9,569  $      76,217 $      85,786 
Provision for credit losses              5,239          2,380         7,619 
Write-offs                              (2,453)             -        (2,453)
Recoveries                                 402              -           402 
----------------------------------------------------------------------------
Balance at end of period         $      12,757  $      78,597 $      91,354 
----------------------------------------------------------------------------
                                                                            
                                         For the three months ended         
                                                April 30, 2013              
                                  ----------------------------------------- 
                                                   Collective               
                                                    Allowance               
                                      Specific     for Credit               
                                     Allowance         Losses         Total 
----------------------------------------------------------------------------
Balance at beginning of period   $       6,667  $      69,701 $      76,368 
Provision for credit losses              5,885            799         6,684 
Write-offs                              (3,876)             -        (3,876)
Recoveries                                 295              -           295 
----------------------------------------------------------------------------
Balance at end of period         $       8,971  $      70,500 $      79,471 
----------------------------------------------------------------------------
                                                                            
                                           For the six months ended         
                                                April 30, 2014              
                                --------------------------------------------
                                                   Collective               
                                                    Allowance               
                                      Specific     for Credit               
                                     Allowance         Losses         Total 
----------------------------------------------------------------------------
Balance at beginning of period   $       9,569  $      76,217 $      85,786 
Provision for credit losses              5,577          8,505        14,082 
Write-offs                             (11,709)             -       (11,709)
Recoveries                                 817              -           817 
----------------------------------------------------------------------------
Balance at end of period         $       4,254  $      84,722 $      88,976 
----------------------------------------------------------------------------
 
                                                                            
                                          For the six months ended          
                                                April 30, 2013              
                                --------------------------------------------
                                                   Collective               
                                                    Allowance               
                                      Specific     for Credit               
                                     Allowance         Losses         Total 
----------------------------------------------------------------------------
Balance at beginning of period   $      14,379  $      67,344 $      81,723 
Provision for credit losses              9,855          3,156        13,011 
Write-offs                             (17,048)             -       (17,048)
Recoveries                               1,785              -         1,785 
----------------------------------------------------------------------------
Balance at end of period         $       8,971  $      70,500 $      79,471 
----------------------------------------------------------------------------

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, 2014               
                           -------------------------------------------------
                                              Gross                     Net 
                                  Gross    Impaired    Specific    Impaired 
                                 Amount      Amount   Allowance       Loans 
----------------------------------------------------------------------------
Personal                    $ 2,665,550 $    14,883 $       665 $    14,218 
Business                                                                    
  Real estate(1)              6,401,392      20,101         300      19,801 
  Commercial                  4,277,615       4,526         196       4,330 
  Equipment financing and                                                   
   energy                     3,452,307      11,111       3,093       8,018 
----------------------------------------------------------------------------
Total(2)                    $16,796,864 $    50,621 $     4,254      46,367 
---------------------------------------------------------------             
Collective allowance(3)                                             (84,722)
----------------------------------------------------------------------------
Net impaired loans after                                                    
 collective allowance                                           $   (38,355)
----------------------------------------------------------------------------
                                                                            
 
                                                                            
                                        As at January 31, 2014              
                           -------------------------------------------------
                                              Gross                     Net 
                                  Gross    Impaired    Specific    Impaired 
                                 Amount      Amount   Allowance       Loans 
----------------------------------------------------------------------------
Personal                    $ 2,602,391 $    15,561 $       507 $    15,054 
Business                                                                    
  Real estate(1)              6,132,790      23,226       7,476      15,750 
  Commercial                  4,198,341       3,801         221       3,580 
  Equipment financing and                                                   
   energy                     3,314,198      11,349       4,553       6,796 
----------------------------------------------------------------------------
Total(2)                    $16,247,720 $    53,937 $    12,757      41,180 
---------------------------------------------------------------             
Collective allowance(3)                                             (78,597)
----------------------------------------------------------------------------
Net impaired loans after                                                    
 collective allowance                                           $   (37,417)
----------------------------------------------------------------------------
                                                                            
                                         As at October 31, 2013             
                             -----------------------------------------------
                                              Gross                     Net 
                                  Gross    Impaired    Specific    Impaired 
                                 Amount      Amount   Allowance       Loans 
----------------------------------------------------------------------------
Personal                    $ 2,502,295 $    17,052 $       748 $    16,304 
Business                                                                    
  Real estate(1)              5,829,225      31,937       6,349      25,588 
  Commercial                  4,091,371       4,612         293       4,319 
  Equipment financing and                                                   
   energy                     3,239,788      10,610       2,179       8,431 
----------------------------------------------------------------------------
Total(2)                    $15,662,679 $    64,211 $     9,569      54,642 
---------------------------------------------------------------             
Collective allowance(3)                                             (76,217)
----------------------------------------------------------------------------
Net impaired loans after                                                    
 collective allowance                                           $   (21,575)
----------------------------------------------------------------------------
 
1.  Multi-family residential mortgages are included in real estate loans. 
2.  Gross impaired loans include foreclosed assets with a carrying value of
    $4,157 (January 31, 2014 - $5,014 and October 31, 2013 - $12,407) which
    are held for sale. CWB 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, 2014            
                                 -------------------------------------------
                                                                        Net 
                                 Gross Impaired      Specific      Impaired 
                                         Amount     Allowance         Loans 
----------------------------------------------------------------------------
Alberta                           $      11,343 $       1,465 $       9,878 
British Columbia                         28,890           716        28,174 
Ontario                                   6,524           904         5,620 
Saskatchewan                              1,973           475         1,498 
Manitoba                                    542           162           380 
Other                                     1,349           532           817 
----------------------------------------------------------------------------
Total                             $      50,621 $       4,254        46,367 
-------------------------------------------------------------               
Collective allowance(1)                                             (84,722)
----------------------------------------------------------------------------
Net impaired loans after                                                    
 collective allowance                                         $     (38,355)
----------------------------------------------------------------------------
                                                                            
 
                                                                            
                                           As at January 31, 2014           
                                 -------------------------------------------
                                          Gross                             
                                       Impaired      Specific  Net Impaired 
                                         Amount     Allowance         Loans 
----------------------------------------------------------------------------
Alberta                           $      29,764 $      10,168 $      19,596 
British Columbia                         14,920           406        14,514 
Ontario                                   5,084           954         4,130 
Saskatchewan                              2,329           505         1,824 
Manitoba                                    715           196           519 
Other                                     1,125           528           597 
----------------------------------------------------------------------------
Total                             $      53,937 $      12,757        41,180 
-------------------------------------------------------------               
Collective allowance(1)                                             (78,597)
----------------------------------------------------------------------------
Net impaired loans after                                                    
 collective allowance                                         $     (37,417)
----------------------------------------------------------------------------
                                                                            
                                            As at October 31, 2013          
                                   -----------------------------------------
                                          Gross                             
                                       Impaired      Specific  Net Impaired 
                                         Amount     Allowance         Loans 
----------------------------------------------------------------------------
Alberta                           $      38,886 $       7,475 $      31,411 
British Columbia                         17,904           476        17,428 
Ontario                                   2,886           728         2,158 
Saskatchewan                              1,861           381         1,480 
Manitoba                                  1,214           146         1,068 
Other                                     1,460           363         1,097 
----------------------------------------------------------------------------
Total                             $      64,211 $       9,569        54,642 
-------------------------------------------------------------               
Collective allowance(1)                                             (76,217)
----------------------------------------------------------------------------
Net impaired loans after                                                    
 collective allowance                                         $     (21,575)
----------------------------------------------------------------------------
 
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, 2014             
                              ----------------------------------------------
                                 1 - 30  31 - 60  61 - 90 More than         
                                   days     days     days   90 days    Total
----------------------------------------------------------------------------
Personal                       $ 24,166 $  2,546 $  1,465 $   1,506 $ 29,683
Business                         45,734   17,336    4,871         -   67,941
----------------------------------------------------------------------------
                               $ 69,900 $ 19,882 $  6,336 $   1,506 $ 97,624
----------------------------------------------------------------------------
                                                                            
Total as at January 31, 2014   $ 37,076 $ 28,980 $ 17,491 $   1,897 $ 85,444
----------------------------------------------------------------------------
Total as at October 31, 2013   $ 24,710 $ 48,102 $  2,075 $   2,400 $ 77,287
----------------------------------------------------------------------------

8. Derivative Financial Instruments  
CWB 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, 2014, $91 and $1,895 of
net unrealized after tax gains (2013 - $983 and $365 unrealized after
tax losses) were recorded in other comprehensive income for changes
in fair value of the effective portion of equity and interest rate
swap derivatives designated as cash flow hedges, and no amounts (2013
- $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 item
affects income. For the three and six months ended April 30, 2014,
$887 and $2,506 of net gains after tax (2013 - $508 and $27 of net
losses after tax) were reclassified to net income. 
The following table shows the notional value outstanding for
derivative financial instruments and the related fair value: 


 
 
                                                                            
                                             As at April 30, 2014           
                                  ------------------------------------------
                                        Notional     Positive       Negative
                                          Amount    Fair Value    Fair Value
----------------------------------------------------------------------------
Interest rate swaps designated as                                           
 hedges(1)                         $     775,000 $         329 $          40
Equity swaps designated as                                                  
 hedges(2)                                17,470         6,712             -
Foreign exchange contracts(3)                858             9             4
----------------------------------------------------------------------------
Derivative related amounts         $     793,328 $       7,050 $          44
----------------------------------------------------------------------------
 
                                                                            
                                            As at January 31, 2014          
                                  ------------------------------------------
                                        Notional      Positive     Negative 
                                          Amount    Fair Value    Fair Value
----------------------------------------------------------------------------
Interest rate swaps designated as                                           
 hedges(1)                         $     700,000 $         763 $          26
Equity swaps designated as                                                  
 hedges(2)                                17,470         6,142             -
Foreign exchange contracts(3)              4,134            70            56
----------------------------------------------------------------------------
Derivative related amounts         $     721,604 $       6,975 $          82
----------------------------------------------------------------------------
                                                                            
                                            As at October 31, 2013          
                                  ------------------------------------------
                                        Notional     Positive      Negative 
                                          Amount    Fair Value    Fair Value
----------------------------------------------------------------------------
Interest rate swaps designated as                                           
 hedges                            $     800,000 $         367 $          32
Equity swaps designated as hedges         17,470         4,131             -
Foreign exchange contracts                 1,235            11             4
----------------------------------------------------------------------------
Derivative related amounts         $     818,705 $       4,509 $          36
----------------------------------------------------------------------------
 
1.  Interest rate swaps designated as hedges outstanding at April 30, 2014
    mature between May 2014 and April 2016. 
2.  Equity swaps designated as hedges outstanding at April 30, 2014 mature
    between June 2014 and June 2016. 
3.  Foreign exchange contracts outstanding at April 30, 2014 mature between
    May 2014 and March 2015. 

There were no forecasted transactions that failed to occur during the
three and six months ended April 30, 2014. 
9. Preferred Share Liabilities  
On February 10, 2014, CWB issued five million Basel III-compliant,
non-cumulative, five year rate reset First Preferred Shares Series 5
(Series 5 Preferred Shares) at $25 per share, for gross proceeds of
$125 million. The shares are recorded as liabilities on the
consolidated balance sheets due to the inclusion of non-viability
contingent capital provisions necessary for the shares to qualify as
regulatory capital. The distributions are recorded in equity
reflecting CWB's discretion over dividend payments. 
Holders of Series 5 Preferred Shares are entitled to receive a
non-cumulative fixed dividend in the amount of $1.10 annually,
payable quarterly, as and when declared by the Board of Directors of
CWB, for the initial period ending April 30, 2019. The quarterly
dividend represents an annual yield of 4.40% based on the stated
issue price per share. Thereafter, the dividend rate will reset every
five years at a level of 276 basis points over the then five year
Government of Canada bond yield. 
CWB maintains the right to redeem, subject to the approval of OSFI,
up to all of the then outstanding Series 5 Preferred Shares on April
30, 2019, and on April 30 every five years thereafter at a price of
$25.00 per share. Should CWB choose not to exercise its right to
redeem the Series 5 Preferred Shares, holders of these shares will
have the right to convert their shares into an equal number of
non-cumulative, floating rate First Preferred Shares Series 6 (Series
6 Preferred Shares), subject to certain conditions, on April 30,
2019, and on April 30 every five years thereafter. Holders of the
Series 6 Preferred Shares will be entitled to receive quarterly
floating dividends, as and when declared by the Board of Directors of
CWB, equal to the 90-day Government of Canada Treasury Bill rate plus
276 basis points. 
Upon the occurrence of a trigger event (as defined by OSFI), each
Series 5 or 6 Preferred Share will be automatically converted,
without the consent of the holders, into CWB common shares.
Conversion to common shares will be determined by dividing the
preferred share conversion value ($25.00 per preferred share plus any
declared but unpaid dividends) by the common share value (the greater
of (i) the floor price of $5.00 and (ii) the current market price
calculated as the volume-weighted average trading price for the ten
consecutive trading days ending on the day immediately prior to the
date of the conversion).  
10. Capital Stock  
Share Capital 


 
 
                                        For the six months ended            
                            ------------------------------------------------
                                 April 30, 2014          April 30, 2013     
                            ------------------------------------------------
                             Number of               Number of              
                                Shares       Amount     Shares       Amount 
----------------------------------------------------------------------------
Preferred Shares - Series 3                                                 
  Outstanding at beginning                                                  
   of period                 8,352,496  $   208,815  8,390,000  $   209,750 
  Redeemed                  (8,352,496)    (208,815)         -            - 
  Purchased for cancellation         -            -     (4,038)        (101)
----------------------------------------------------------------------------
  Outstanding at end of                                                     
   period                            -            -  8,385,962      209,649 
----------------------------------------------------------------------------
Common Shares                                                               
  Outstanding at beginning                                                  
   of period                79,619,595      510,282 78,742,812      490,218 
  Issued under dividend                                                     
   reinvestment plan(1)        248,620        9,172    257,795        7,172 
  Issued on exercise or                                                     
   exchange of options         177,052        1,066    169,910          951 
  Transferred from share-                                                   
   based payment reserve on                                                 
   exercise or exchange of                                                  
   options                           -        2,270          -        1,389 
----------------------------------------------------------------------------
  Outstanding at end of                                                     
   period                   80,045,267      522,790 79,170,517      499,730 
----------------------------------------------------------------------------
Share Capital                           $   522,790             $   709,379 
----------------------------------------------------------------------------
 
1.  Shares are issued at a 2% discount from the average closing price of the
    five trading days preceding the dividend payment date. 

On April 30, 2014, CWB redeemed all outstanding Series 3 Preferred
Shares at $25.00 per share. 
11. Share-based Payments  
Stock Options 


 
 
                                                                            
                                       For the three months ended           
                                 April 30, 2014          April 30, 2013     
                            ------------------------------------------------
                                           Weighted                 Weighted
                                            Average                  Average
                             Number of     Exercise   Number of     Exercise
                               Options        Price     Options        Price
----------------------------------------------------------------------------
Options                                                                     
  Balance at beginning of                                                   
   period                    4,524,603  $     28.73   3,857,314  $     25.37
  Exercised or exchanged       (61,203)       21.36    (107,196)       17.44
  Forfeited                    (40,520)       29.55     (14,300)       27.05
----------------------------------------------------------------------------
Balance at end of period     4,422,880  $     28.83   3,735,818  $     25.60
----------------------------------------------------------------------------
                                                                            
                                        For the six months ended            
                                 April 30, 2014          April 30, 2013     
                            ------------------------------------------------
                                           Weighted                 Weighted
                                            Average                  Average
                             Number of     Exercise   Number of     Exercise
                               Options        Price     Options        Price
----------------------------------------------------------------------------
Options                                                                     
  Balance at beginning of                                                   
   period                    4,217,908  $     26.96   3,441,100  $     24.51
  Granted                      623,320        37.50     824,667        28.09
  Exercised or exchanged      (359,609)       21.89    (343,722)       17.96
  Forfeited                    (58,739)       29.39     (24,152)       27.39
  Expired                            -            -    (162,075)       31.18
----------------------------------------------------------------------------
Balance at end of period     4,422,880  $     28.83   3,735,818  $     25.60
----------------------------------------------------------------------------

Until March 1, 2014, the terms of the share incentive plan allowed the
holders of vested options a cashless settlement alternative whereby
the option holder could either (i) elect to receive shares by
delivering cash to CWB 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 (cashless settlement).
Effective March 1, 2014, all options exercised are settled via
cashless settlement. Of the 359,609 (2013 - 343,722) options
exercised or exchanged in the six months ended April 30, 2014, option
holders exchanged the rights to 313,117 (2013 - 291,140) options and
received 130,560 (2013 - 117,328) shares in return under the cashless
settlement alternative. 
For the six months ended April 30, 2014, salary expense of $2,916
(2013 - $2,947) 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 1.5% (2013 - 1.4%),
(ii) expected option life of 4.0 (2013 - 4.0) years, (iii) expected
annual volatility of 19% (2013 - 25%), and (iv) expected annual
dividends of 2.0% (2013 - 2.5%). The weighted average fair value of
options granted was estimated at $5.19 (2013 - $4.61) per share. 
Further details relating to stock options outstanding and exercisable
at April 30, 2014 follow: 


 
 
                                                                            
                            Options Outstanding         Options Exercisable 
                     -------------------------------------------------------
                                  Weighted                                  
                                   Average                                  
                                 Remaining    Weighted              Weighted
                               Contractual     Average               Average
Range of Exercise     Number of       Life    Exercise Number of   Exercise 
 Prices                 Options    (years)       Price   Options       Price
----------------------------------------------------------------------------
$16.89 to $23.43        247,817        0.8 $     21.99   247,817 $     21.99
$25.46 to $29.42      3,219,579        3.3       27.49   271,775       29.42
$30.75 to $37.50        955,484        3.4       35.09         -           -
----------------------------------------------------------------------------
Total                 4,422,880        3.2 $     28.83   519,592 $     25.88
----------------------------------------------------------------------------

12. Contingent Liabilities and Commitments  
In the normal course of business, CWB enters into various commitments
and has contingent liabilities, which are not reflected in the
consolidated balance sheets. At April 30, 2014, these items include
guarantees and standby letters of credit of $360,448 (October 31,
2013 - $354,083). Significant contingent liabilities and commitments,
including guarantees provided to third parties, are discussed in Note
20 of CWB's audited consolidated financial statements for the year
ended October 31, 2013 (see page 89 of the 2013 Annual Report). 
In the ordinary course of business, CWB and its subsidiaries are
party to legal proceedings. Based on current knowledge, CWB does not
expect the outcome of any of these proceedings to have a material
effect on the consolidated financial position or results of
operations. 
13. Fair Value of Financial Instruments  
Financial Assets and Liabilities by Measurement Basis  
The table below provides the carrying amount of financial instruments
by category as defined in IAS 39 - Financial Instruments: Recognition
and Measurement and by balance sheet heading. The table does not
include assets and liabilities that are not considered financial
instruments.  


 
 
                                                                            
                                                     Loans and              
                                                   Receivables              
                                                      and Non-              
                                                       trading    Available-
As at April 30, 2014                 Derivatives   Liabilities      for-sale
----------------------------------------------------------------------------
Financial Assets                                                            
  Cash resources                   $           - $           - $     396,499
  Securities                                   -             -     2,138,795
  Loans (1)                                    -    16,766,355             -
  Other assets (2)                             -       127,242             -
  Derivative related                       7,050             -             -
----------------------------------------------------------------------------
Total Financial Assets             $       7,050 $  16,893,597 $   2,535,294
----------------------------------------------------------------------------
                                                                            
Financial Liabilities                                                       
  Deposits (1)                     $           - $  16,684,195 $           -
  Other liabilities(3)                         -       376,082             -
  Debt                                         -       997,962             -
  Derivative related                          44             -             -
----------------------------------------------------------------------------
Total Financial Liabilities        $          44 $  18,058,239 $           -
----------------------------------------------------------------------------
                                                                            
As at January 31, 2014                                                      
----------------------------------------------------------------------------
Total Financial Assets             $       6,975 $  16,362,530 $   2,596,220
----------------------------------------------------------------------------
Total Financial Liabilities        $          82 $  17,419,162 $           -
----------------------------------------------------------------------------
As at October 31, 2013                                                      
----------------------------------------------------------------------------
Total Financial Assets             $       4,509 $  15,750,288 $   2,580,327
----------------------------------------------------------------------------
Total Financial Liabilities        $          36 $  16,834,175 $           -
----------------------------------------------------------------------------
 
                                                                            
                                                                            
                                                                  Fair Value
                                           Total                Over (Under)
                                        Carrying                    Carrying
As at April 30, 2014                      Amount    Fair Value        Amount
----------------------------------------------------------------------------
Financial Assets                                                            
  Cash resources                   $     396,499 $     396,499 $           -
  Securities                           2,138,795     2,138,795             -
  Loans (1)                           16,766,355    16,771,004         4,649
  Other assets (2)                       127,242       127,242             -
  Derivative related                       7,050         7,050             -
----------------------------------------------------------------------------
Total Financial Assets             $  19,435,941 $  19,440,590 $       4,649
----------------------------------------------------------------------------
                                                                            
Financial Liabilities                                                       
  Deposits (1)                     $  16,684,195 $  16,716,091 $      31,896
  Other liabilities(3)                   376,082       376,082             -
  Debt                                   997,962     1,022,630        24,668
  Derivative related                          44            44             -
----------------------------------------------------------------------------
Total Financial Liabilities        $  18,058,283 $  18,114,847 $      56,564
----------------------------------------------------------------------------
                                                                            
As at January 31, 2014                                                      
----------------------------------------------------------------------------
Total Financial Assets             $  18,965,725 $  18,985,528 $      19,803
----------------------------------------------------------------------------
Total Financial Liabilities        $  17,419,244 $  17,481,512 $      62,268
----------------------------------------------------------------------------
As at October 31, 2013                                                      
----------------------------------------------------------------------------
Total Financial Assets             $  18,335,124 $  18,320,618 $    (14,506)
----------------------------------------------------------------------------
Total Financial Liabilities        $  16,834,211 $  16,867,410 $      33,199
----------------------------------------------------------------------------
 
1.  Loans and deposits exclude deferred premiums and deferred revenue, which
    are not financial instruments. 
2.  Other assets exclude property and equipment, goodwill and other
    intangible assets, reinsurers' share of unpaid claims and adjustment
    expenses, deferred tax asset, prepaid and deferred expenses, financing
    costs and other items that are not financial instruments. 
3.  Other liabilities exclude deferred tax liability, deferred revenue,
    unearned insurance premiums and other items that are not financial
    instruments. 

Fair values are based on management's best estimates based on market
conditions and pricing policies at a certain point in time. The
estimates are subjective and involve particular assumptions and
matters of judgment and, as such, may not be reflective of future
fair values. Further information on how the fair value of financial
instruments is determined is included in Note 29 of the October 31,
2013 consolidated audited financial statements (see page 97 of the
2013 Annual Report). 
Fair Value Hierarchy 
CWB 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. There were no transfers between Level 1 and Level 2 during the
three and six months ended April 30, 2014. 
Further information on how the fair value of financial instruments is
determined is included in Note 29 of the October 31, 2013
consolidated audited financial statements (see page 97 of the 2013
Annual Report). 
The following table presents CWB'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, 2014    Fair Value       Level 1       Level 2    Level 3
----------------------------------------------------------------------------
Financial assets                                                            
  Cash resources        $     396,499 $     382,439 $      14,060 $        -
   Securities               2,138,795     2,138,795             -          -
  Derivative related            7,050             -         7,050          -
----------------------------------------------------------------------------
                        $   2,542,344 $   2,521,234 $      21,110 $        -
----------------------------------------------------------------------------
                                                                            
Financial liabilities                                                       
  Other liability       $       1,979 $           - $           - $    1,979
  Derivative related               44             -            44          -
----------------------------------------------------------------------------
                        $       2,023 $           - $          44 $    1,979
----------------------------------------------------------------------------
As at January 31, 2014                                                      
----------------------------------------------------------------------------
Financial assets        $   2,603,195 $   2,559,982 $      43,213 $        -
----------------------------------------------------------------------------
Financial liabilities   $       1,911 $           - $          82 $    1,829
----------------------------------------------------------------------------
As at October 31, 2013                                                      
----------------------------------------------------------------------------
Financial assets        $   2,584,836 $   2,533,327 $      51,509 $        -
----------------------------------------------------------------------------
Financial liabilities   $       1,715 $           - $          36 $    1,679
----------------------------------------------------------------------------

Financial instruments that are not carried on the balance sheet at fair
value include loans, deposits and debt. Based on the inputs used to
calculate fair values disclosed above, these financial instruments
are classified as Level 2 in the fair value hierarchy. 
Level 3 Financial Instruments 
The Level 3 financial instrument are comprised of the contingent
consideration related to a subsidiary acquisition. The following
table shows a reconciliation of the fair value measurements related
to the Level 3 valued instrument: 


 
 
                                                                            
                                                   For the six months ended 
                                                           April 30         
                                                           2014         2013
----------------------------------------------------------------------------
Balance at beginning of period                      $     1,679  $         -
  Change in fair value charged to other income              300            -
----------------------------------------------------------------------------
Balance at end of period                            $     1,979  $         -
----------------------------------------------------------------------------

14. Interest Rate Sensitivity  
CWB'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, 2013 (see page 96 of the
2013 Annual Report). The following table shows the gap position for
selected time intervals. 
Asset Liability Gap Positions 


 
 
                                                                            
                               Floating                                     
                               Rate and                               Total 
                               Within 1      1 to 3    3 Months    Within 1 
($ millions)                      Month      Months   to 1 Year        Year 
----------------------------------------------------------------------------
April 30, 2014                                                              
Assets                                                                      
Cash resources and                                                          
 securities                  $      217  $      920  $      426  $    1,563 
Loans                             7,906         737       2,278      10,921 
Other assets                          -           -           -           - 
Derivative financial                                                        
 instruments(1)                     150         208         275         633 
----------------------------------------------------------------------------
Total                             8,273       1,865       2,979      13,117 
----------------------------------------------------------------------------
Liabilities and Equity                                                      
Deposits                          5,908       1,332       3,845      11,085 
Other liabilities                     4           8          34          46 
Debt                                  9          16          69          94 
Equity                                -           -           -           - 
Derivative financial                                                        
 instruments(1)                     792           -           -         792 
----------------------------------------------------------------------------
Total                             6,713       1,356       3,948      12,017 
----------------------------------------------------------------------------
Interest Rate Sensitive Gap  $    1,560  $      509  $     (969) $    1,100 
----------------------------------------------------------------------------
Cumulative Gap               $    1,560  $    2,069  $    1,100  $    1,100 
----------------------------------------------------------------------------
Cumulative Gap as a                                                         
 Percentage of Total Assets         7.6%       10.1%        5.4%        5.4%
----------------------------------------------------------------------------
                                                                            
January 31, 2014                                                            
Cumulative Gap               $    1,292  $    1,456  $      596  $      596 
----------------------------------------------------------------------------
Cumulative Gap as a                                                         
 Percentage of Total Assets         6.5%        7.3%        3.0%        3.0%
----------------------------------------------------------------------------
                                                                            
October 31, 2013                                                            
Cumulative Gap               $    1,289  $    1,785  $      240  $      240 
----------------------------------------------------------------------------
Cumulative Gap as a                                                         
 Percentage of Total Assets         6.7%        9.2%        1.2%        1.2%
----------------------------------------------------------------------------
 
                                                                            
                                                                            
                                                           Non-             
                            1 Year to 5  More than     interest             
($ millions)                      Years     5 Years   Sensitive       Total 
----------------------------------------------------------------------------
April 30, 2014                                                              
Assets                                                                      
Cash resources and                                                          
 securities                  $      703  $      168  $      101  $    2,535 
Loans                             5,739         107         (58)     16,709 
Other assets                          -           -         383         383 
Derivative financial                                                        
 instruments(1)                     159           -           1         793 
----------------------------------------------------------------------------
Total                             6,601         275         427      20,420 
----------------------------------------------------------------------------
Liabilities and Equity                                                      
Deposits                          5,600           -         (16)     16,669 
Other liabilities                    31           9         380         466 
Debt                                529         250         125         998 
Equity                                -           -       1,494       1,494 
Derivative financial                                                        
 instruments(1)                       -           -           1         793 
----------------------------------------------------------------------------
Total                             6,160         259       1,984      20,420 
----------------------------------------------------------------------------
Interest Rate Sensitive Gap  $      441  $       16  $   (1,557) $        - 
----------------------------------------------------------------------------
Cumulative Gap               $    1,541  $    1,557  $        -  $        - 
----------------------------------------------------------------------------
Cumulative Gap as a                                                         
 Percentage of Total Assets         7.5%        7.6%          -%          -%
----------------------------------------------------------------------------
                                                                            
January 31, 2014                                                            
Cumulative Gap               $    1,570  $    1,625  $        -  $        - 
----------------------------------------------------------------------------
Cumulative Gap as a                                                         
 Percentage of Total Assets         7.9%        8.2%          -%          -%
----------------------------------------------------------------------------
                                                                            
October 31, 2013                                                            
Cumulative Gap               $    1,499  $    1,541  $        -  $        - 
----------------------------------------------------------------------------
Cumulative Gap as a                                                         
 Percentage of Total Assets         7.8%        8.0%          -%          -%
----------------------------------------------------------------------------
 
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               3                                
                    Rate and          Months   Total  1 Year    More        
                    Within 1  1 to 3    to 1  Within     to   than 5        
April 30, 2014         Month  Months    Year  1 Year 5 Years   Years  Total 
----------------------------------------------------------------------------
Total assets             3.3%    2.4%    4.2%    3.4%    4.5%    4.7%   3.8%
Total liabilities        1.3     1.8     2.0     1.6     2.4     3.3    1.9 
----------------------------------------------------------------------------
Interest rate                                                               
 sensitive gap           2.0%    0.6%    2.2%    1.8%    2.1%    1.4%   1.9%
----------------------------------------------------------------------------
                                                                            
January 31, 2014                                                            
----------------------------------------------------------------------------
Total assets             3.7%    2.5%    4.0%    3.6%    4.5%    4.7%   4.0%
Total liabilities        1.3     1.8     2.0     1.6     2.5     3.3    1.9 
----------------------------------------------------------------------------
Interest rate                                                               
 sensitive gap           2.4%    0.7%    2.0%    2.0%    2.0%    1.4%   2.1%
----------------------------------------------------------------------------
                                                                            
October 31, 2013                                                            
----------------------------------------------------------------------------
Total assets             3.8%    2.3%    4.0%    3.6%    4.6%    4.8%   4.0%
Total liabilities        1.3     1.9     2.0     1.6     2.4     3.3    1.9 
----------------------------------------------------------------------------
Interest rate                                                               
 sensitive gap           2.5%    0.4%    2.0%    2.0%    2.2%    1.5%   2.1%
----------------------------------------------------------------------------

15. Capital Management  
Capital for Canadian financial institutions is managed and reported
in accordance with a capital management framework specified by OSFI
commonly called Basel III. Additional information about CWB's capital
management practices is provided in Note 31 to the fiscal 2013
audited consolidated financial statements within 2013 Annual Report
(see page 100 of the 2013 Annual Report) and in the Capital
Management section in the Q2 2014 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. 
On February 10, 2014, CWB issued five million Basel III-compliant,
non-cumulative, five year rate reset Series 5 Preferred Shares at $25
per share, for gross proceeds of $125 million (see Note 9). On April
30, 2014, CWB redeemed all outstanding Series 3 Preferred Shares (see
Note 10). 
Capital Structure and Regulatory Ratios 


 
 
                                       As at          As at          As at  
                                    April 30      January 31       April 30 
                                         2014           2014           2013 
----------------------------------------------------------------------------
Regulatory capital, net of                                                  
 deductions                                                                 
  Common equity Tier 1          $   1,376,624  $   1,326,448  $   1,229,936 
  Tier 1                            1,606,780      1,576,411      1,503,325 
  Total                             2,231,539      2,194,824      2,180,295 
----------------------------------------------------------------------------
Capital ratios                                                              
  Common equity Tier 1                    8.1%           8.0%           8.0%
  Tier 1                                  9.4            9.5            9.7 
  Total                                  13.1           13.2           14.1 
Asset to capital multiple                 8.7x           8.6x           8.0x
----------------------------------------------------------------------------

During the six months ended April 30, 2014, CWB complied with all
internal and external capital requirements. 
16. Comparative Figures  
Certain comparative figures have been reclassified to conform to the
current period's presentation. 


 
 
Shareholder Information                                                     
                                                                            
Head Office                                                                 
                                                                            
Canadian Western Bank Group                                                 
Suite 3000, Canadian Western Bank Place                                     
10303 Jasper Avenue                                                         
Edmonton, AB T5J 3X6                                                        
Telephone: (780) 423-8888                                                   
Fax: (780) 423-8897                                                         
cwb.com                                                                     
                                                                            
Subsidiary Offices                                                          
                                                                            
National Leasing Group Inc.                                                 
1525 Buffalo Place                                                          
Winnipeg, MB R3T 1L9                                                        
Toll-free: 1-800-665-1326                                                   
Toll-free fax: 1-866-408-0729                                               
nationalleasing.com                                                         
                                                                            
Canadian Western Trust Company                                              
Suite 600, 750 Cambie Street                                                
Vancouver, BC V6B 0A2                                                       
Toll-free: 1-800-663-1124                                                   
Fax: (604) 669-6069                                                         
cwt.ca                                                                      
                                                                            
Valiant Trust Company                                                       
Suite 310, 606 4th Street S.W.                                              
Calgary, AB T2P 1T1                                                         
Toll-free: 1-866-313-1872                                                   
Fax: (403) 233-2857                                                         
valianttrust.com                                                            
                                                                            
Canadian Direct Insurance Incorporated                                      
Suite 600, 750 Cambie Street                                                
Vancouver, BC V6B 0A2                                                       
Telephone: (604) 699-3678                                                   
Fax: (604) 699-3851                                                         
canadiandirect.com                                                          
                                                                            
Adroit Investment Management Ltd.                                           
Suite 1250, Canadian Western Bank Place                                     
10303 Jasper Avenue                                                         
Edmonton, AB T5J 3N6                                                        
Telephone: (780) 429-3500                                                   
Fax: (780) 429-9680                                                         
adroitinvestments.ca                                                        
                                                                            
McLean & Partners Wealth Management Ltd.                                    
801 10th Avenue SW                                                          
Calgary, AB T2R 0B4                                                         
Telephone: (403) 234-0005                                                   
Fax: (403) 234-0606                                                         
mcleanpartners.com                                                          
                                                                            
Stock Exchange Listings                                                     
                                                                            
The Toronto Stock Exchange                                                  
Common Shares: CWB                                                          
Series 5 Preferred Shares: CWB.PR.B                                         
                                                                            
                                                                            
Transfer Agent and Registrar                                                
                                                                            
Valiant Trust Company                                                       
Suite 310, 606 4th Street S.W.                                              
Calgary, AB T2P 1T1                                                         
Telephone: (403) 233-2801                                                   
Fax: (403) 233-2857                                                         
Website: http://www.valianttrust.com/                                       
Email: inquiries@valianttrust.com                                           

Eligible Dividends Designation 
CWB designates all dividends for both common and preferred shares
paid to Canadian residents as "eligible dividends", as defined in the
Income Tax Act (Canada), unless otherwise noted. 
Dividend Reinvestment Plan 
CWB's dividend reinvestment plan allows common and preferred
shareholders to purchase additional common shares by reinvesting
their cash dividend without incurring brokerage and commission fees.
For information about participation in the plan, please contact the
Transfer Agent and Registrar or visit cwb.com.  


 
 
Investor Relations                                                          
                                                                            
Investor & Public Relations                                                 
Canadian Western Bank                                                       
Telephone: (780) 969-8337                                                   
Toll-free: 1-800-836-1886                                                   
Fax: (780) 969-8326                                                         
Email: InvestorRelations@cwbank.com                                         

Online Investor Information 
Additional investor information including supplemental financial
information and corporate presentations are available on CWB's
website at cwb.com.  
Quarterly Conference Call and Webcast 
CWB's quarterly conference call and live audio webcast will take
place on June 5, 2014 at 3:00 p.m. ET (1:00 p.m. MT). The webcast
will be archived on CWB's website at cwb.com for sixty days. A replay
of the conference call will be available until June 19, 2014 by
dialing 905-694-9451 (Toronto) or 1-800-408-3053 (toll-free) and
entering passcode 1696268. 
Contacts:
Canadian Western Bank
Matt Evans, CFA
Senior Manager, Investor Relations
(780) 969-8337
matt.evans@cwbank.com
www.cwb.com
 
 
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