CWB Reports Solid Financial Performance and Strong Earnings Growth

CWB Reports Solid Financial Performance and Strong Earnings Growth 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Canadian Western Bank 
TSX SYMBOL:  CWB 
JUNE 5, 2014 
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 - June 5, 2014) - Canadian Western Bank
(TSX:CWB) (CWB) -  
Second Quarter 2014 Highlights(1) (compared to the same period in the prior
year) 
/T/ 
--  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.                        
/T/ 
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: 
/T/ 
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.  
/T/ 
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.  
/T/ 
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).  
/T/ 
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 $249.0 million was up 11%, mainly the result of strong
loan growth. Net interest margin (teb) of 2.61% was unchanged as lower loan
yields were offset by more favourable fixed term deposit and debenture costs
and lower average liquidity. 
Interest rate sensitivity 
Note 14 to the unaudited interim consolidated financial statements summarizes
CWB's exposure to interest rate risk as at April 30, 2014. The estimated
sensitivity of net interest income to a change in interest rates is presented
in the table below. The amounts represent the estimated change in net interest
income that would result over the following twelve months from a one-percentage
point change in interest rates. The estimates are based on a number of
assumptions and factors, which include: 
/T/ 
--  a constant structure in the interest sensitive asset and liability 
portfolios; 
--  interest rate changes affecting interest sensitive assets and 
liabilities by proportionally the same amount, except floor levels for 
various deposit liabilities, and applied at the appropriate repricing 
dates; and, 
--  no early redemptions.  
April 30    January 31    April 30  
($ 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)%
---------------------------------------------------------------------------- 
/T/ 
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
$6.7 million increase in trust and wealth management revenues accounted for
over half of the overall increase, with higher net gains on securities and
credit related fee income also contributing. Increases in these categories
mainly reflect the factors discussed above under the heading Q2 2014 vs. Q2
2013.  
Credit Quality 
Overall credit quality reflects continued strong underwriting practices and
relatively stable levels of economic activity in Western Canada. The dollar
level of gross impaired loans at April 30, 2014 represented 0.30% of total
loans at quarter end, compared to 0.33% last quarter and 0.41% one year ago. 
/T/ 
Change        
For the three months ended            from       
(unaudited)                 April 30   January 31   April 30 April 30       
($ 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.  
/T/ 
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.  
/T/ 
%  
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.  
/T/ 
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 $125
million. CWB also redeemed the outstanding non-cumulative five-year rate reset
Series 3 preferred shares on April 30, 2014.  
At April 30, 2014, CWB's capital ratios were 8.1% CET1, 9.4% Tier 1 and
13.1% total capital. The CET1 ratio increased 10 basis points from the previous
quarter, while the Tier 1 and total capital ratios were each down 10 basis
points. Lower Tier 1 and total capital ratios reflect the net impact of the
preferred share transactions.  
Further details regarding CWB's regulatory capital and capital adequacy
ratios are included in the following table: 
/T/ 
As at        As at        As at 
(unaudited)                              April 30   January 31     April 30 
($ 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.   
/T/ 
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 $127 million.  
Dividend Reinvestment Plan 
CWB common shares (TSX:CWB), as well as Series 3 and Series 5 preferred shares
(TSX: CWB.PR.A and CWB.PR.B, respectively) have been deemed eligible to
participate in CWB's dividend reinvestment plan (the Plan). The Plan
provides holders of eligible shares the opportunity to direct cash dividends
toward the purchase of CWB common shares. Further details for the Plan are
available on CWB's website at www.cwb.com/investor_relations/drip. At the
current time, for the purposes of the Plan, CWB has elected to issue common
shares from treasury at a 2% discount from the average market price (as defined
in the Plan).  
Preferred Share Normal Course Issuer Bid 
Prior to its expiration on February 28, 2014, CWB had a Normal Course Issuer
Bid (NCIB) outstanding to purchase, for cancellation, up to 826,120
Non-Cumulative five-Year Rate Reset Preferred Shares Series 3 ("preferred
shares"). During fiscal 2014, CWB did not purchase any preferred shares
under the NCIB.  
/T/ 
Summary of Quarterly Financial Information                       
2014             
----------------------------
($ 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.  
/T/ 
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: 
/T/ 
--  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)                                       
/T/ 
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. 
/T/ 
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 
---------------------------------------------------------------------------- 
/T/ 
4. Securities  
Net unrealized gains (losses) reflected on the consolidated balance sheet
follow: 
/T/ 
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)
---------------------------------------------------------------------------- 
/T/ 
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: 
/T/ 
($ 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.  
/T/ 
6. Allowance for Credit Losses  
The following table shows the changes in the allowance for credit losses: 
/T/ 
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 
---------------------------------------------------------------------------- 
/T/ 
7. Impaired and Past Due Loans  
Outstanding gross loans and impaired loans, net of allowance for credit losses,
by loan type, are as follows: 
/T/ 
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.  
/T/ 
Outstanding impaired loans, net of allowance for credit losses, by provincial
location of security, are as follows: 
/T/ 
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.  
/T/ 
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: 
/T/ 
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
---------------------------------------------------------------------------- 
/T/ 
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: 
/T/ 
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.  
/T/ 
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 
/T/ 
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.  
/T/ 
On April 30, 2014, CWB redeemed all outstanding Series 3 Preferred Shares at
$25.00 per share. 
11. Share-based Payments  
Stock Options 
/T/ 
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
---------------------------------------------------------------------------- 
/T/ 
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: 
/T/ 
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
---------------------------------------------------------------------------- 
/T/ 
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.  
/T/ 
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.  
/T/ 
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: 
/T/ 
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
---------------------------------------------------------------------------- 
/T/ 
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: 
/T/ 
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  $         -
---------------------------------------------------------------------------- 
/T/ 
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 
/T/ 
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.  
/T/ 
The effective, weighted average interest rates of financial assets and
liabilities are shown below: 
/T/ 
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%
---------------------------------------------------------------------------- 
/T/ 
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 
/T/ 
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
---------------------------------------------------------------------------- 
/T/ 
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. 
/T/ 
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                                            
/T/ 
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.  
/T/ 
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                                          
/T/ 
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. 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Canadian Western Bank
Matt Evans, CFA
Senior Manager, Investor Relations
(780) 969-8337
matt.evans@cwbank.com 
INDUSTRY:  Financial Services - Commercial and Investment Banking, Financial
Services - Retail Banking 
SUBJECT:  ERN 
-0-
-0- Jun/05/2014 12:30 GMT
 
 
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