Canada Dividend Investor: CWB - <span class="simulate_din_font">CWB reports record quarterly revenues based on very strong loan growth</span> (CAD 0.16)

Company: Cdn Western Bank
Stock Name: CWB
Amount: CAD 0.16
Announcement Date: 07/06/2012
Record Date: 19/06/2012

Dividend Detail:

Quarterly dividend increased to $0.16 per CWB common share, up 7% over
the prior quarter

Quarterly dividend declared on CWB preferred shares

Second Quarter 2012 Highlights⁽¹⁾ (compared to the same period in the prior year)��

Record total revenues, on a taxable equivalent basis (teb)⁽²⁾, of $127.9 million, up 7% ($8.1 million).

Total loans surpassed the $13 billion milestone based on very strong
growth of 4% in the quarter, 8% year-to-date and 17% over the past
twelve months.

Net income available to common shareholders of $39.7 million, up 7%
($2.7 million).

Diluted earnings per common share of $0.52, up 8%.

Adjusted cash earnings per common share⁽²⁾ of $0.55, unchanged.

Solid Basel II regulatory capital position supported by a tangible
common equity to risk-weighted assets ratio⁽²⁾ of 8.0%, Tier 1 capital ratio of 9.9% and total capital ratio of 13.2%.

On May 29, settled the contingent consideration associated with the 2010
acquisition of National Leasing Group Inc. for $63.5 million paid with
2,256,868 CWB common shares.

On June 6, declared a quarterly dividend of $0.16 per CWB common share,
an increase of 7% over the prior quarter and 14% over the quarterly
dividend declared a year earlier.

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

⁽²⁾ Non-GAAP measure - refer to definitions following the table of Selected Financial Highlights on page 4.

EDMONTON, June 7, 2012 /CNW/ - Canadian Western Bank (TSX: CWB)(CWB or
the Bank) today announced strong financial performance marking the
Bank's 96^th consecutive profitable quarter, a period spanning 24 years. Net income
available to common shareholders of $39.7 million increased 7% compared
to the same quarter last year while adjusted cash earnings per common
share was unchanged at $0.55. Record total revenues (teb) of $127.9
million represented a 7% increase over the same quarter last year as
the positive impact of very strong loan growth was partially offset by
a 21 basis point reduction in net interest margin (teb).

Compared to last quarter, net income available to common shareholders
decreased 4% ($1.8 million) as positive contributions from very strong
loan growth, a four basis point improvement in net interest margin
(teb) and increased other income were more than offset by the impact of
higher non-interest expenses and two fewer revenue earning days.
Adjusted cash earnings per common share also decreased 4% compared to
the prior quarter.

Year-to-date net income available to common shareholders of $81.1
million increased 8% compared to the same period last year as the
positive impact of very strong loan growth was partially offset by a 25
basis point reduction in net interest margin (teb). Adjusted cash
earnings per common share of $1.12 compares to $1.10 earned through the
same year-to-date period in 2011.

"Our tremendous loan growth over the past year demonstrates the ongoing
potential of our core business banking focus in Western Canada," said
Larry Pollock, President and CEO of CWB. "We also benefit from
increased diversification and strong earnings contributions from our
complementary financial services businesses. Our strategic theme to
'make the whole worth more than the sum of the parts' is paying off, as
evidenced by our success in generating more client referrals across all
business units. We also believe there are many opportunities for us to
'do what we do, only better', which includes initiatives to
continuously improve our existing businesses, expand our market
presence and build on our competitive advantages to increase market
share. Our confidence in executing these initiatives underpins our
optimism about continued profitable growth opportunities."

"Economic activity remains relatively strong throughout our core
geographic markets. That being said, we recognize Canada is not immune
to macroeconomic events that are outside of our control. We will
continue to closely monitor potential impacts from global economic
headwinds, including the ongoing turmoil in the euro zone."

"Net interest margin stabilized this quarter, as expected, but very low
interest rates coupled with ongoing competitive pressures will likely
continue to constrain profitability and earnings growth until we have a
more normal interest rate environment."

"Subsequent to quarter end, we were very pleased to acquire the
preferred shares of National Leasing," continued Mr. Pollock. "This
business continues to demonstrate excellent potential and completing
the ownership transition will allow CWB shareholders to recognize the
full benefit of National Leasing's growing contributions. It will also
assist in capitalizing on additional synergies through cross-partnering
initiatives. The payment in CWB common shares further solidifies the
Bank's regulatory capital position as we look toward the transition to
the Basel III capital framework in 2013."

On June 6, 2012, CWB's Board of Directors declared a cash dividend of
$0.16 per common share, payable on July 5, 2012 to shareholders of
record on June 21, 2012. This quarterly dividend represents a 7%
increase over the previous quarter and is 14% higher than the quarterly
dividend declared one year ago. The Board of Directors also declared a
cash dividend of $0.453125 per Series 3 Preferred Share payable on July
31, 2012 to shareholders of record on July 20, 2012.

Fiscal 2012 Minimum Performance Targets and Outlook

The minimum performance targets established for the 2012 fiscal year,
calculated under IFRS, together with CWB's actual year-to-date
performance are presented in the table below:

��	��	��	��	��	��
��	��	��	2012 Minimum Targets	��	2012 Year-to-date Performance
Net income available to common shareholders growth⁽¹⁾	��	��	10%	��	8%
Total revenue (teb) growth⁽¹⁾	��	��	7%	��	5%
Loan growth⁽²⁾	��	��	10%	��	17%
Provision for credit losses as a percentage of average loans⁽³⁾	��	��	0.20% - 0.25%	��	0.20%
Efficiency ratio (teb)⁽⁴⁾	��	��	46%	��	44.9%
Return on common shareholders' equity⁽⁵⁾	��	��	15%	��	15.0%
Return on assets⁽⁶⁾	��	��	1.05%	��	1.05%

⁽¹⁾	��	Year-to-date performance for earnings and revenue growth is the current year results over the same period in the prior year.
⁽²⁾	��	Loan growth is the increase over the past twelve months.
⁽³⁾	��	Year-to-date provision for credit losses, annualized, divided by average total loans.
⁽⁴⁾	��	Efficiency ratio (teb) calculated as non-interest expenses divided by total revenues (teb), excluding the non-tax deductible change in fair value of contingent consideration.
⁽⁵⁾	��	Return on common shareholders' equity calculated as annualized net income available to common shareholders divided by average common shareholders' equity.
⁽⁶⁾	��	Return on assets calculated as annualized net income available to common shareholders divided by average total assets.

Strong results through the first six months have CWB well positioned in
relation to all fiscal 2012 performance targets. Higher than expected
loan growth reflects ongoing strong activity across all key lending
areas and each geographic market. The Bank's focus on and expertise in
servicing small to mid-sized commercial clients has further contributed
to new lending opportunities. This circumstance, coupled with our
expectation for continued strong performance, will benefit revenue and
earnings for the remainder of the year. Near-term improvement in net
interest margin will likely be constrained by very low interest rates,
a relatively flat yield curve and ongoing competitive pressures;
however, ongoing loan growth and eventual increases in Canadian
interest rates will have a positive impact on future growth in net
interest income. Expectations for continued strong growth in higher
yielding lending portfolios such as equipment financing and leasing
should also help to mitigate margin pressure. The 2012 target for the
efficiency ratio is expected to be achieved. Overall credit quality
remains satisfactory and continues to show improvement, as evidenced by
the eighth consecutive quarterly reduction in the dollar level of gross
impaired loans. Based on our current view of credit quality, we believe
the annual provision for credit losses will remain at the low end of
the 2012 target range.

We remain optimistic about Canada's economic outlook, largely led by
expectations for a relatively strong level of activity across the four
western provinces. Ongoing indications of a slowdown in Canadian
residential real estate markets reduce the likelihood of a rapid and
sustained deterioration in real estate prices, but could moderate
growth opportunities within certain lending sectors. Economic recovery
in the United States continues to show some resiliency and ongoing
positive trends should further benefit Canada's overall position.
Although CWB has no direct exposure to turmoil in the euro zone, Canada
is not immune to global economic spillover effects. Potential
macroeconomic impacts from further adverse developments in the euro
region and other major economies will continue to be closely monitored.
Despite an increased level of caution related to elevated global
uncertainties, our overall outlook for 2012 and beyond remains
positive.

Fiscal 2012 Second Quarter Results Conference Call

CWB's second quarter results conference call is scheduled for Thursday,
June 7, 2012 at 2:00 p.m. ET (12:00 p.m. MT). The Bank's executives will comment on financial results and respond
to questions from analysts and institutional investors.

The conference call may be accessed on a listen-only basis by dialing
647-427-7450 or toll-free 1-888-231-8191. The call will also be webcast
live on the Bank's website, www.cwbankgroup.com.

A replay of the conference call will be available until June 21, 2012 by
dialing 416-849-0833 (Toronto) or 1-855-859-2056 (toll-free) and
entering passcode 81206238.

About Canadian Western Bank Group

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

��

For the three months ended

��

Change from

��

For the six months ended

��

Change from

��

(unaudited)

($ thousands, except per share amounts)

��

April 30

2012

��

January 31

2012

��

April 30

2011

��

April 30

2011

��

April 30

2012

��

April 30

2011

��

April 30

2011

��

Results of Operations

��

Net interest income (teb - see below)

107,600

��

107,509

��

99,165

��

215,109

��

200,382

��

Less teb adjustment

��

2,458

��

2,620

��

2,385

��

5,078

��

5,129

��

(1)

��

Net interest income per financial statements

��

105,142

��

104,889

��

96,780

��

210,031

��

195,253

��

Other income

��

20,254

��

18,791

��

20,601

��

(2)

��

39,045

��

40,747

��

(4)

��

Total revenues (teb)

��

127,854

��

126,300

��

119,766

��

254,154

��

241,129

��

Total revenues

��

125,396

��

123,680

��

117,381

��

249,076

��

236,000

��

Net income available to common shareholders

��

39,669

��

41,478

��

36,941

��

81,147

��

74,793

��

Earnings per common share

��

Basic⁽¹⁾

��

0.52

��

0.55

��

0.52

��

1.07

��

1.08

��

(1)

��

Diluted⁽²⁾

��

0.52

��

0.54

��

0.48

��

1.06

��

0.99

��

Adjusted cash⁽³⁾

��

0.55

��

0.57

��

0.55

��

1.12

��

1.10

��

Return on common shareholders' equity⁽⁴⁾

��

14.6

��

15.5

��

15.2

��

(60)

��

15.0

��

15.6

(60)

bp⁽⁵⁾

��

Return on assets⁽⁶⁾

��

1.03

��

1.07

��

1.12

��

(9)

��

1.05

��

1.14

��

(9)

��

Efficiency ratio (teb)⁽⁷⁾

��

46.2

��

43.7

��

44.9

��

130

��

44.9

��

44.7

��

Efficiency ratio

��

47.1

��

44.6

��

45.7

��

140

��

45.8

��

45.6

��

Net interest margin (teb)⁽⁸⁾

��

2.81

��

2.77

��

3.02

��

(21)

��

2.79

��

3.04

��

(25)

��

Net interest margin

��

2.74

��

2.70

��

2.95

��

(21)

��

2.72

��

2.97

��

(25)

��

Provision for credit losses as a percentage of average loans

��

0.19

��

0.20

��

0.19

��

0.20

��

0.21

��

(1)

��

Per Common Share

��

Cash dividends

0.15

��

0.15

��

0.13

��

0.30

��

0.26

��

Book value

��

14.73

��

14.36

��

14.24

��

14.73

��

14.24

��

Closing market value

��

28.69

��

26.47

��

30.31

��

(5)

��

28.69

��

30.31

��

(5)

��

Common shares outstanding (thousands)

��

75,909

��

75,694

��

74,191

��

75,909

��

74,191

��

Balance Sheet and Off-Balance

��

Sheet Summary

��

Assets

15,713,443

��

15,484,048

��

13,725,585

��

Loans

��

13,281,729

��

12,744,891

��

11,360,286

��

Deposits

��

13,219,077

��

12,960,929

��

11,256,466

��

Debt

��

602,675

��

685,049

��

688,265

��

(12)

��

Shareholders' equity

��

1,327,783

��

1,296,634

��

1,265,948

��

Assets under administration

��

6,843,070

��

6,912,244

��

9,596,537

��

(29)

��

Assets under management

��

826,299

��

843,648

��

827,486

��

Capital Adequacy⁽⁹⁾

��

Tangible common equity to risk-weighted assets⁽¹⁰⁾

��

8.0

��

8.2

��

9.2

��

(120)

��

Tier 1 ratio

��

9.9

��

10.2

��

11.8

��

(190)

��

Total ratio

��

13.2

��

14.6

��

16.6

��

(340)

��

^(1)��	Basic earnings per common share (EPS) is calculated as net income available to common shareholders divided by the average number of common shares outstanding.
^(2)��	Diluted EPS is calculated as net income available to common shareholders divided by the average number of common shares outstanding adjusted for the dilutive effects of stock options and warrants.
^(3)��	Adjusted cash EPS is diluted EPS excluding the after-tax amortization of acquisition-related intangible assets and the non-tax deductible change in fair value of contingent consideration. These exclusions represent non-cash charges mainly related to the acquisition of National Leasing Group Inc. and are not considered indicative of ongoing business performance. The Bank believes the adjusted results provide the reader with a better understanding about how management views CWB's performance.��
^(4)��	Return on common shareholders' equity is calculated as annualized net income available to common shareholders divided by average common shareholders' equity.
⁽⁵⁾	��bp - basis point change.
^(6)��	Return on assets is calculated as annualized net income available to common shareholders divided by average total assets.
^(7)��	Efficiency ratio is calculated as non-interest expenses divided by total revenues excluding the non-tax deductible change in fair value of contingent consideration.
⁽⁸⁾��	Net interest margin is calculated as annualized net interest income divided by average total assets.
⁽⁹⁾��	Capital adequacy is calculated in accordance with Basel II guidelines issued by the Office of the Superintendent of Financial Institutions Canada (OSFI). The 2011 ratio reflects the returns filed and has not been restated to International Financial Reporting Standards (IFRS).
⁽¹⁰⁾��	Tangible common equity to risk-weighted assets is calculated as shareholders' equity less subsidiary goodwill divided by risk-weighted assets, calculated in accordance with guidelines issued by OSFI. The 2011 ratio has not been restated to IFRS.

Taxable Equivalent Basis (teb)

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

Non-GAAP Measures

Taxable equivalent basis, adjusted cash EPS , return on common
shareholders' equity, return on assets, efficiency ratio, net interest
margin, provision for credit losses as a percentage of average loans
and tangible common equity to risk-weighted assets 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 6, 2012,
should be read in conjunction with Canadian Western Bank's (CWB or the
Bank) unaudited interim consolidated financial statements for the
period ended April 30, 2012, and the audited consolidated financial
statements and MD&A for the year ended October 31, 2011, available on
SEDAR at www.sedar.com and the Bank's website at www.cwbankgroup.com. Commencing in 2012, CWB's financial results and quarterly financial
statements, including comparative information, are prepared under
International Financial Reporting Standards (IFRS). Except where
indicated below, the factors discussed and referred to in the MD&A for
fiscal 2011 remain substantially unchanged. Commencing in the first
quarter of 2012, operating results are presented as one segment - Banking and Financial Services.

Overview

CWB is pleased to report strong financial performance for its 96^th consecutive profitable quarter, a period spanning 24 years. Total loans
surpassed the $13 billion milestone on very strong growth of 4% in the
quarter, 8% year-to-date and 17% over the past twelve months. The
achievement of record total revenues was also a highlight.

Subsequent to quarter end, the Bank settled the contingent consideration
associated with the acquisition of National Leasing Group Inc.
(National Leasing) for $63.5 million paid with 2,256,868 CWB common
shares. Completing this transition earlier than originally anticipated
supports management's strategy to realize additional business synergies
across all business units. It will also simplify financial reporting
with the elimination of future accounting volatility related to changes
in fair value of the contingent consideration. The full payment in CWB
common shares will support future growth by augmenting the Bank's
already solid regulatory capital position.

Net income available to common shareholders of $39.7 million increased
7% ($2.7 million) compared to the same quarter last year while diluted
earnings per common share was up 8% to $0.52. Adjusted cash earnings
per common share of $0.55 (which excludes the after-tax amortization of
acquisition-related intangible assets and the non-tax deductible change
in fair value of contingent consideration) was unchanged as the benefit
of higher core earnings was offset by the dilutive impact of CWB common
shares issued in 2011 upon the exercise of warrants.

Compared to the previous quarter, net income available to common
shareholders and adjusted cash earnings per share were both down 4%
($1.8 million and $0.02, respectively) as the positive revenue impact
of very strong loan growth and a slightly improved net interest margin
was more than offset by higher non-interest expenses and two fewer
revenue earning days.

On a year-to-date basis, net income available to common shareholders of
$81.1 million was up 8% compared to the same period last year while
adjusted cash earnings per common share increased 2% to $1.12. The
difference in the rate of growth of adjusted cash earnings per share
compared with net income reflects the exclusion of the change in fair
value of contingent consideration in the calculation of adjusted cash
earnings per share and the dilutive impact of CWB common shares issued
in 2011 upon the exercise of warrants.

The quarterly return on common shareholders' equity of 14.6% decreased
60 basis points from the same quarter in 2011 as the increase in common
shareholders' equity more than offset the impact of higher net income.
The retention of profits to support ongoing growth and the issuance of
CWB common shares in 2011 upon the exercise of warrants were the main
factors contributing to the increase in common shareholders' equity,
partially offset by the impact of warrants purchased for cancellation
in August of last year. Compared to the previous quarter, return on
common shareholders' equity was down 90 basis points reflecting the
combined impact of an increase in common shareholders' equity mainly
attributed to the retention of earnings and slightly lower net income.
Year-to-date return on common shareholders' equity of 15.0% compares to
15.6% in the same period last year reflecting the factors already
noted. Second quarter return on assets of 1.03% was down nine basis
points from a year earlier and four basis points compared to the
previous quarter. Year-to-date return on assets was down nine basis
points to 1.05%.

Total Revenues (teb)

Total revenues, comprising both net interest income and other income,
reached a record $127.9 million for the quarter, up 7% ($8.1 million)
compared to a year earlier. Growth in net interest income from very
strong loan growth and one additional revenue earning day in 2012 was
constrained by a 21 basis point reduction in net interest margin, while
other income was down 2% ($0.3 million). Compared to the previous
quarter, total revenues were up 1% ($1.6 million) as the positive
contribution of very strong quarterly loan growth, a $1.5 million
increase in other income and a slight improvement in quarterly net
interest margin more than offset the impact of two fewer revenue
earning days. On a year-to-date basis, total revenues of $254.2 million
increased 5% ($13.0 million) over the same period last year as very
strong loan growth and one additional revenue earning day more than
offset a reduction in net interest margin and slightly lower other
income.

Net Interest Income (teb)

Net interest income of $107.6 million grew 9% ($8.4 million) over the
same quarter last year reflecting the combined influence of very strong
17% loan growth and one additional revenue earning day, largely offset
by the impact of a 21 basis point reduction in net interest margin to
2.81%. The deterioration in net interest margin compared to the same
quarter in 2011 was mainly attributed to lower yields on loans and
preferred share securities, partially offset by a lower cost of funds
attributed to more favourable fixed term deposit costs and reduced
debenture expense. Lower asset yields reflect the combined impact of
the sustained very low interest rate environment, a flat interest rate
curve as well as ongoing competitive pressures.

Compared to the previous quarter, net interest income was marginally
higher as the benefit of very strong 4% loan growth and a four basis
point improvement in net interest margin was largely offset by two
fewer revenue earning days. Margin improvement compared to the prior
quarter mainly resulted from lower liquidity levels and the redemption
of $125 million of subordinated debentures in March 2012, which more
than offset the impact of lower yields on loans.

On a year-to-date basis, net interest income of $215.1 million increased
7% ($14.7 million) as the benefit of very strong loan growth was offset
by a 25 basis point reduction in net interest margin. The lower
year-to-date net interest margin reflects lower yields on loans and
securities, as well as slightly higher average liquidity, partially
offset by more favourable fixed term deposit costs.

The competitive environment and other factors suggest further
improvement in net interest margin over that achieved in the current
quarter is unlikely in the absence of increases in the prime lending
interest rate and/or a significant steepening of the interest rate
curve.

Note 13 to the unaudited interim consolidated financial statements
summarizes the Bank's exposure to interest rate risk as at April 30,
2012. 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 April 30, 2012 estimates are based on a number of
assumptions and factors, which include:

a constant structure in the interest sensitive asset and liability
portfolios;

floor levels for various deposit liabilities;

interest rate changes affecting interest sensitive assets and
liabilities by proportionally the same amount and applied at the
appropriate repricing dates; and

no early redemptions.

��

($ thousands)

��

April 30

2012

��

January 31

2012

��

April 30

2011

��

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

��

1 year

12,418

��

13,519

��

12,311

��

1 year percentage change

��

3.2

��

3.7

��

3.7

��

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

��

1 year

(17,239)

��

(16,549)

��

(16,111)

��

1 year percentage change

��

(4.4)

��

(4.5)

��

(4.8)

It is estimated that a one-percentage point increase in all interest
rates at April 30, 2012 would decrease unrealized gains related to
available-for-sale securities and the fair value of interest rates
swaps designated as hedges, and result in a reduction in other
comprehensive income of approximately $10.8 million, net of tax (April
30, 2011 - $8.1 million); it is estimated that a one-percentage point
decrease in all interest rates at April�� 30, 2012 would result in a
higher level of unrealized gains related to available-for-sale
securities and increase the fair value of interest rate swaps
designated as hedges, which would increase other comprehensive income
by approximately $10.8 million, net of tax (April 30, 2011 - $8.1
million).

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

Other Income

Second quarter other income of $20.3 million was down 2% ($0.3 million)
from a year earlier as the net benefit of a $2.5 million lower fair
value charge for contingent consideration, $0.8 million growth in net
insurance revenues and one additional revenue earning day was offset by
$2.1 million lower net gains on securities, a $1.1 million reduction in
the 'other' component of other income and $0.2 million lower credit
related fees. Higher net insurance revenues reflect the positive impact
of 6% growth in net earned premiums, partially offset by increased net
claims expense. The second quarter last year included an unusually high
level of net gains on securities primarily realized due to a
repositioning of investments in common equities and preferred shares,
while net gains in the current quarter were mainly attributed to a
reduction in the Bank's investments in preferred shares of other
financial institutions. The decision to reposition a portion of certain
preferred shares reflects forthcoming changes under the Basel III
regulatory capital framework which requires a deduction from regulatory
capital for investments in other financial institutions over a certain
threshold. The reduction in the 'other' category of other income
compared to the same period last year mainly reflects lower revenue
contributions resulting from the termination of a lease servicing
contract in the first quarter of 2012. The combined amount of quarterly
income from credit-related fees, trust and wealth management services,
retail banking services and foreign exchange activities was down $0.3
million compared to the same period a year earlier.

Compared to the previous quarter, other income was up 8% ($1.5 million)
reflecting $1.4 million higher net insurance revenues and a $1.2
million positive change in net gains on securities, largely offset by a
$0.8 million lower contribution from the 'other' category of other
income, a $0.5 million reduction in credit related fee income and the
impact of two fewer revenue earning days. Growth in net insurance
revenues was mainly driven by improved claims expense attributed to
more favourable weather. Based on the current composition of the
securities portfolio and ongoing volatility in financial markets,
management expects the level of quarterly net gains on securities for
the remainder of the current year will be below $2 million.

Year-to-date other income of $39.0 million was down $1.7 million (4%) as
a $3.8 million lower fair value charge for contingent consideration and
positive growth in CWB's core banking, trust, insurance and wealth
management operations was more than offset by a $4.4 million decline in
net gains on securities and a $1.7 million lower contribution from the
'other' category of other income. The charge for contingent
consideration will be eliminated in future quarters given the Bank's
May 2012 purchase of the preferred shares of National Leasing.

Credit Quality

Overall credit quality remained satisfactory and within expectations in
view of favourable economic activity and a relatively positive outlook
in Western Canada despite ongoing global uncertainties and very low
prices for natural gas. Gross impaired loans at April 30, 2012 were
$87.9 million, compared to $90.9 million last quarter and $128.9
million a year earlier. This represented the eighth consecutive
quarterly decrease in the dollar level of gross impaired loans.
Compared to both the previous quarter and a year earlier, the total
number of accounts classified as impaired was also down. New formations
of impaired loans totaled $29.6 million, compared to $18.9 million last
quarter and $29.6 million a year earlier.

��

For the three months ended

��

Change from

��

(unaudited)

($ thousands)

��

April 30

2012

��

January 31

2012

��

April 30

2011

��

April 30

2011��

��

Gross impaired loans, beginning of period

90,857

��

97,258

��

132,931

��

(32)

��

New formations

��

29,589

��

18,928

��

29,569

��

Reductions, impaired accounts paid down or returned to performing status

��

(26,840)

��

(20,805)

��

(31,167)

��

(14)

��

Write-offs

��

(5,733)

��

(4,524)

��

(2,423)

��

137

��

Total⁽¹⁾

87,873

��

90,857

��

128,910

��

(32)

��

Balance of the ten largest impaired accounts

50,859

��

44,252

��

62,287

��

(18)

Total number of accounts classified as impaired

��

124

��

139

��

191

��

(35)

��

Gross impaired loans as a percentage of total loans⁽³⁾

��

0.66

��

0.71

��

1.14

��

(48)

bp⁽²⁾

(1)	Gross impaired loans includes foreclosed assets held for sale with a carrying value of $877 (January 31, 2012 - $4,683 and April 30, 2011 - $867).
(2)	bp - basis point change.
(3)��	Total loans do not include an allocation for credit losses or deferred revenue and premiums.

The dollar level of gross impaired loans represented 0.66% of total
loans at quarter end, compared to 0.71% last quarter and 1.14% one year
ago. Net impaired loans after adjusting for the collective allowance
for credit losses represented 0.09% of total loans, compared to 0.13%
last quarter and 0.42% a year earlier. While the trends are positive,
management expects the dollar level of gross impaired loans will
continue to fluctuate. The dollar level of gross impaired loans goes up
and down as loans become impaired and are subsequently resolved, and
does not directly reflect the dollar value of expected write-offs given
the tangible security held against the Bank's lending positions. The
Bank establishes its current estimates of expected write-offs through
detailed analyses of both the overall quality and ultimate
marketability of the security held against impaired accounts. Actual
credit losses are expected to remain within the Bank's historical range
of acceptable levels.

The second quarter provision for credit losses of 19 basis points
measured against average loans was slightly below the low end of the
Bank's 2012 target range of 20 to 25 basis points. This result reflects
ongoing positive credit trends in the equipment leasing portfolio and
consistent expectations for credit quality in other areas. On a
year-to-date basis, the provision for credit losses represented 20
basis points of average loans. Based on the current environment and
outlook, management believes the annual provision for credit losses
will remain at the low end of the 2012 target range.

The total allowance for credit losses (collective and specific)
represented 86% of gross impaired loans at quarter end, compared to 82%
last quarter and 63% one year ago. The total allowance for credit
losses was $75.5 million at April 30, 2012, compared to $74.6 million
last quarter and $80.8 million a year earlier. The reduction in the
total allowance for credit losses compared to the same period last year
was entirely attributed to lower specific allowances. The collective
allowance at April 30, 2012 was $64.8 million, compared to $62.7
million last quarter and $58.6 million a year earlier. The collective
allowance as a percentage of risk-weighted loans was 56 basis points,
down from 57 basis points last quarter and 60 basis points one year
ago. The decline in the collective allowance as a percentage of
risk-weighted loans resulted from very strong loan growth. An enhanced
IFRS methodology was developed to estimate the collective allowance for
credit losses. While no material change resulted from this transition,
the revised methodology has the potential to increase volatility in the
quarterly provision for credit losses.

Non-interest Expenses

One of management's key priorities is to maintain effective control of
costs while ensuring the Bank is positioned to deliver strong growth
over the long term. Effective execution of CWB's strategic plan will
continue to require increased investment in certain areas. Significant
anticipated expenditures relate to additional staff complement as well
as expanded infrastructure and further technology upgrades. The
investment in these areas is aligned with the Bank's commitment to
maximize shareholder value and is expected to provide material benefits
in future periods. The major program to implement a new core banking
system to replace existing infrastructure is progressing as planned
with the major supporting contracts at or near execution. Preliminary
timelines anticipate implementation of the new core banking system in
the first half of the 2015 calendar year. Canadian Western Trust
successfully completed a major system conversion in the second quarter
which is expected to enhance client service, increase capacity and
improve efficiencies within that business. Ongoing compliance with an
ever-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. A new
full-service branch is expected to open in Winnipeg, Manitoba in the
fourth quarter of 2012. Other potential new branch locations are
currently under consideration. Upgrades and expansion of existing
branch infrastructure will continue.

Compared to the same quarter last year, non-interest expenses of $59.6
million were up $4.2 million (8%) reflecting a $2.9 million (8%)
increase in salary and benefit costs, $0.6 million (6%) higher general
expenses and growth in premises and equipment expenses of $0.7 million
(7%). The change in salary and benefit costs was driven by a
combination of increased staff complement to support ongoing growth and
annual salary increments. The majority of the increase within general
expenses reflects professional fees and services provided by third
parties as well as higher banking charges and regulatory costs,
partially offset by a reduction in the amortization of intangibles. The
increase in premises and equipment expenses relates to ongoing
expansion and upgrades to existing technology and infrastructure,
including the addition of a new full-service branch opened in Richmond,
British Columbia (BC) in the latter part of 2011.

Compared to the previous quarter, non-interest expenses were up $3.9
million (7%) mainly reflecting a $1.9 million (5%) increase in salary
and benefit costs, and $1.7 million (17%) higher general expenses.
Higher salary and benefit costs mainly reflect the impact of increased
staff complement, but the recommencement of Employment Insurance and
Canada Pension Plan premiums for many employees also contributed to the
change. The change within general expenses was largely attributed to a
lower level of expense recognized in the previous period due to the
timing of marketing and business development initiatives to enhance
awareness of the Bank's brand and product offerings.

Year-to-date non-interest expenses were $4.7 million (4%) higher than
the first six months of 2011 mainly reflecting increases in salary and
benefit costs, and premises expenses of $3.6 million (5%) and $1.3
million (7%), respectively. General expenses remained relatively
unchanged as increases in community investment and other expenses were
offset by a significant reduction in provincial capital taxes.

The second quarter efficiency ratio (teb), which measures non-interest
expenses as a percentage of total revenues (teb) excluding the non-tax
deductible change in fair value of contingent consideration, was 46.2%,
compared to 44.9% last year and 43.7% in the previous quarter. The
year-to-date efficiency ratio (teb) was 44.9%, compared to 44.7% in the
same period last year. In consideration of expected revenue growth and
planned expenditures, management believes the 2012 target for the
efficiency ratio of 46% or better will be achieved.

Income Taxes

The effective income tax rate (teb) was 27.1%, compared to 28.2% in the
second quarter last year. The effective income tax rate (teb) for the
first six months of 2012 was 26.9%, down 100 basis points from the same
period one year ago, while the tax rate before the teb adjustment was
23.8%, or 80 basis points lower. The reduced tax rate compared to the
same period last year mainly reflects the 150 basis point decrease in
the basic federal income tax rate effective on each of January 1, 2011
and 2012, as well as the 50 basis point reduction in the provincial
income tax rate in British Columbia (BC), effective January 31, 2011.

Comprehensive Income

Comprehensive income is comprised of net income and other comprehensive
income (OCI), all net of income taxes, and totaled $43.5 million for
the second quarter, compared to $42.4 million in the same period last
year. The increase in quarterly comprehensive income was driven by 7%
($2.8 million) higher net income, largely offset by a change in OCI
related to unfavourable market value fluctuations in available-for-sale
securities.

Comprehensive income on a year-to-date basis was $96.4 million, compared
to $80.9 million in the same period of 2011. The increase in
year-to-date comprehensive income reflects 7% ($6.4 million) higher net
income, a $5.8 million positive change in fair value of
available-for-sale securities and a lower level of amounts reclassified
to net income on the disposition of securities.

While the combined dollar investment in preferred shares and common
equities is relatively small in relation to total liquid assets, it
increases the potential for comparatively larger fluctuations in OCI.

Balance Sheet

Total assets increased 1% ($229 million) in the quarter, 6% ($864
million) year-to-date and 14% ($1,988 million) in the past year to
reach $15,713 million at April 30, 2012.��

Cash and Securities

Cash, securities and securities purchased under resale agreements
totaled $2,110 million at April 30, 2012, compared to $2,429 million
last quarter and $2,066 million one year ago (refer to the Treasury Management section of this MD&A for additional details). Net unrealized gains
recorded on the balance sheet at April 30, 2012 were $16.0 million,
compared to $18.8 million last quarter and $27.2 million a year
earlier. The change in unrealized gains compared to the same period
last year was mainly attributed to net gains realized through the
statements of income on disposition and a lower market value of the
common equity portfolio. Compared to the prior quarter, the change in
net unrealized gains mainly reflects net gains realized on disposition
and reduced market values within the preferred equities portfolio,
partially offset by a higher value of common equities. The securities
portfolio is primarily comprised of high quality debt instruments,
preferred shares and common shares that are not held for trading
purposes and, where applicable, are typically held until maturity.
Fluctuations in value are generally attributed to changes in interest
rates, movements in market credit spreads and shifts in the interest
rate curve. Volatility in equity markets also leads to fluctuations in
value, particularly for common shares.

Net realized gains on securities in the second quarter of $3.2 million
compares to $5.3 million in the same period last year and $1.9 million
in the previous quarter. The majority of gains in the current quarter
resulted from the sale of certain preferred shares. Based on the
current composition of the securities portfolio as well as
uncertainties and elevated volatility in financial markets, CWB expects
the level of quarterly net gains on securities for the remainder of
this year will be below $2 million. The Bank has no direct investment
in any non-Canadian sovereign debt or other securities outside of
Canada or the United States.

Treasury Management

Average liquidity trended lower compared to the relatively high levels
maintained over the previous two quarters reflecting the strategic
deployment of cash and securities to support ongoing loan growth, the
funding of maturities of certain higher cost fixed term deposits and
the redemption of subordinated debentures in March 2012. The reduced
balance of cash and low yielding government securities has a positive
influence on net interest margin, which was reflected in the current
quarterly results compared to recent prior quarters. Management will
continue to closely monitor macroeconomic events, including ongoing
developments in the euro zone, and adjust its liquidity strategy
accordingly.

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

The Basel Committee on Banking Supervision has issued a framework
document outlining two new liquidity standards. The document prescribes
the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR)
as minimum regulatory standards effective January 1, 2015 and January
1, 2018, respectively. The LCR establishes a common measure of
liquidity risk and requires institutions to maintain sufficient liquid
assets to cover a minimum of 30 days of cash flow requirements in a
stress situation. The NSFR establishes a second common measure of
liquidity based on longer term assets to longer term liabilities.
Although the rules are not yet finalized, CWB believes it is well
positioned to comply with the new requirements.

Loans

Total loans of $13,282 million grew 4% ($537 million) in the quarter, 8%
($988 million) year-to-date and 17% ($1,921 million) in the past twelve
months. The level of sequential quarterly growth by lending sector
measured in dollar terms was led by activity in equipment financing and
leasing ($143 million), commercial mortgages ($117 million), real
estate project loans ($82 million) and general commercial loans ($74
million). On a year-to-date basis, very strong loan growth is apparent
across all lending sectors with the exception of oil and gas production
lending. Year-to-date growth was led by general commercial loans ($262
million) and equipment financing and leasing ($198 million). Measured
by geographic concentration, lending activity in Alberta showed the
highest growth in both the quarter and year-to-date, while performance
in BC and Saskatchewan was also very strong. Over the past twelve
months, strong double-digit growth is apparent across all lending
sectors and each geographic market, with the only exception being
general lending activity in Manitoba.

��

(unaudited)

($ millions)

��

April 30

2012

��

January 31

2012

��

October 31

2011

��

April 30

2011

��

General commercial loans

��

2,860

��

2,786

��

2,598

��

2,500

��

Commercial mortgages

��

2,819

��

2,702

��

2,691

��

2,507

��

Equipment financing and leasing

��

2,295

��

2,152

��

2,097

��

1,868

��

Personal loans and mortgages

��

2,155

��

2,095

��

2,020

��

1,933

��

Real estate project loans

��

2,044

��

1,962

��

1,888

��

1,715

��

Corporate loans

��

824

��

761

��

709

��

609

��

Oil and gas production loans

��

360

��

361

��

362

��

309

��

Total loans outstanding⁽¹⁾

��

13,357

��

12,819

��

12,365

��

11,441

��

⁽¹⁾Loans by lending sector exclude the allowance for credit losses

While there is increased competition in certain areas, management
believes market share will be gained from the combined positive
influences of an expanded market presence, increased brand awareness in
core geographic markets due in part to targeted marketing initiatives,
and the effective execution of CWB's strategic plan focused on further
enhancing existing competitive advantages in business banking.

Canada's domestic economy is expected to grow modestly in 2012 despite
impacts from ongoing uncertainties. The Bank's key markets in Western
Canada are generally expected to perform well relative to the rest of
Canada. While strong competition from domestic banks and other
financial services firms is expected to persist, the current overall
outlook for generating new business loans continues to be encouraging.

Affordability in most Canadian residential real estate markets remains
within historical ranges largely reflecting very low interest rates;
however, the combination of elevated prices in specific geographical
areas, relatively high levels of Canadian consumer debt and the
potential for increasing interest rates in the near future could slow
construction and other related lending activity. Very low natural gas
prices have adversely impacted the financial flexibility and available
cash flows of many exploration and production companies, but the Bank's
direct exposure to this sector remains low. While fallout from
sustained downward pressure on natural gas prices is not expected to
materially impact overall portfolio quality, related growth
opportunities will be constrained. Potential risks that could have a
material adverse impact on management's current expectations include a
global economic recession spurred by unfavourable developments in the
euro zone, a recession in the United States, a meaningful slowdown in
China's economic growth, or a significant and sustained deterioration
in Canadian residential real estate prices. Based on the current view
and stronger than expected year-to-date performance, CWB is well
positioned to exceed its fiscal 2012 loan growth target of 10%.

Loans in the broker-sourced residential mortgage business, Optimum
Mortgage (Optimum), increased 3% ($33 million) in the quarter, 10% ($93
million) year-to-date and 17% ($146 million) over the past twelve
months to reach $1,028 million. Quarterly growth was mainly driven by
alternative mortgages secured via conventional residential first
mortgages carrying a weighted average loan-to-value ratio at initiation
of approximately 70%. The book value of alternative mortgages
represented approximately 64% of Optimum's total portfolio at quarter
end. Uncertainty about the future impact of proposed regulatory
changes, including more stringent residential mortgage underwriting
criteria and other factors, has resulted in a more favourable
competitive environment for Optimum in the short term, but the
long-term impacts of these changes remain unknown. Notwithstanding less
competition for alternative mortgages, the overall level of demand
could moderate as a result of new regulations. At the current time,
Optimum continues to produce solid returns while maintaining an
acceptable risk profile. Management continues to evaluate the possible
benefits of using whole loan sales as an additional form of
cost-effective funding for this business.

Securitized leases are reported on-balance sheet as part of total loans.
The gross amount of securitized leases at April 30, 2012 totaled $196
million, compared to $150 million last quarter and $142 million one
year ago. The total amount of leases securitized in the second quarter
and year-to-date was $59 million and $145 million, respectively.

Deposits

Total deposits at quarter end were $13,219 million, up 2% ($258 million)
from the previous quarter, 7% ($824 million) year-to-date and 17%
($1,963 million) over the past year. Total branch deposits represented
58% of total deposits at April 30, 2012, compared to 57% in the
previous quarter and 61% one year earlier. Demand and notice deposits
were 33% of total deposits, up from 32% in the previous quarter, but
down from 36% a year earlier. Other deposits are mainly comprised of
retail term deposits raised through the deposit broker network and $650
million of fixed term deposits raised through debt capital markets.

Total branch deposits, including trust services deposits, of $7,647
million increased 4% ($268 million) in the quarter, 6% ($436 million)
year-to-date and 10% ($705 million) over the past twelve months. The
demand and notice component within branch deposits, which includes
lower cost deposits, was up 4% ($148 million) from last quarter, 9%
($360 million) year-to-date and 9% ($354 million) compared to the same
time last year to reach $4,351 million. Reflecting CWB's business
banking focus, a material portion of total branch deposits are
attributed to larger commercial balances that are subject to greater
fluctuation compared to smaller personal deposits. A strategic focus on
increasing branch-raised deposits will continue in 2012 with specific
emphasis on the demand and notice component. Certain types of demand
and notice deposits are lower cost, provide associated transactional
fee income, and also receive more favourable treatment under the
proposed Basel III LCR and NSFR liquidity requirements. CWB's expanding
market presence, which includes the opening of three new full-service
branches since September 2010, also supports objectives to generate
branch-raised deposits.

Management remains committed to further enhance and diversify all
funding sources to support ongoing growth while maintaining acceptable
net interest margins. The deposit broker network remains a valued
source for raising insured fixed term retail deposits and has proven to
be an extremely effective and efficient way to access funding and
liquidity over a wide geographic base. Selectively utilizing the debt
capital markets is also part of management's strategy to further
diversify the funding base over time. Provided costs remain
satisfactory, management plans to continue utilizing securitization
channels for a portion of its equipment leasing funding requirements in
2012. Management is also evaluating the potential benefits of
securitizing other types of loans.

Other Assets and Other Liabilities

Other assets at April 30, 2012 totaled $322 million, compared to $310
million last quarter and $300 million one year ago. Other liabilities
at quarter end were $459 million, compared to $436 million the previous
quarter and $410 million a year earlier.

Off-Balance Sheet

Off-balance sheet items include assets under administration and assets
under management. Total assets under administration, which are
comprised of trust assets under administration and third-party leases
under service agreements totaled $6,843 million at April 30, 2012,
compared to $6,912 million last quarter and $9,597 million one year
ago. The significant reduction in assets under administration compared
to the same time last year reflects a reduced level of leases under
servicing agreements resulting from the termination of a lease
servicing contract. Assets under management were $826 million at
quarter end, compared to $844 million last quarter and $827 million one
year ago.

Other off-balance sheet items are comprised of standard industry credit
instruments (guarantees, standby letters of credit and commitments to
extend credit). CWB does not utilize, nor does it have exposure to,
collateralized debt obligations or credit default swaps. For additional
information regarding other off-balance sheet items refer to Notes 12
and 21 of the audited consolidated financial statements on pages 97 and
106, respectively, in the Bank's 2011 Annual Report.

Capital Management

Minimums for the total and Tier 1 capital adequacy ratios of Canadian
banks as set by the Office of the Superintendent of Financial
Institutions Canada (OSFI) under Basel II capital requirements are 10%
and 7%, respectively, effective until December 31, 2012. At April 30,
2012, CWB's Basel II total capital adequacy ratio, which measures
regulatory capital as a percentage of risk-weighted assets, was 13.2%,
compared to 14.6% last quarter and 16.6% one year ago. The Tier 1 ratio
at April 30, 2012 was 9.9%, down from 10.2% last quarter and 11.8% a
year earlier.

Compared to one year ago, the Bank's Tier 1 regulatory capital increased
with the retention of earnings, net of common and preferred share
dividends, and the issuance of CWB common shares at $14 per share upon
the exercise of warrants (refer to the audited consolidated financial
statements and MD&A for the year ended October 31, 2011 for further
details), largely offset by the purchase of warrants for cancellation
and the full transition impact of IFRS. The full IFRS transition was
reflected in the first quarter of 2012 and reduced Tier 1 capital by
$50 million compared to the fourth quarter of 2011 (an impact of
approximately 40 basis points on the Tier 1 and total ratios). The
expiration of a Basel II transition provision that permitted the
capital deduction related to CWB's insurance subsidiary ($84 million at
April 30, 2012) to be deducted from Tier 2 capital also negatively
affected the level of Tier 1 regulatory capital compared to the
previous year. Beginning in the first quarter of 2012, the deduction
for the insurance subsidiary is recorded 50% against Tier 1 capital and
50% against Tier 2 capital. A second quarter adjustment requiring the
reclassification of certain types of investments to higher risk
weighting category decreased regulatory capital ratios by approximately
20 basis points compared to prior periods. The 2011 capital structure
and regulatory ratios reflect the returns filed and have not been
restated to IFRS.

In addition to the combined impact of factors discussed above, lower
regulatory capital ratios compared to prior periods reflect an increase
in risk-weighted assets largely owing to very strong loan growth. The
lower total capital adequacy ratio compared to both the previous
quarter and a year earlier also includes the March 2012 redemption of
$125 million of subordinated debentures. Further details regarding
changes in CWB's regulatory capital and capital adequacy ratios
compared to prior periods are included in the following table:

(unaudited)

($ millions)

��

As at

April 30

2012

��

As at

January 31

2012

��

As at

April 30

2011

��

Change from

April 30

2011

��

Regulatory Capital

��

Tier 1 Capital before deductions

��

1,421

��

1,388

��

1,385

��

Less:

Goodwill

��

(46)

��

(46)

��

(38)

��

(8)

��

Investment in insurance subsidiary

��

(42)

��

(41)

��

(42)

��

Securitization

��

(14)

��

(11)

��

(7)

��

(7)

��

Tier 1 Capital

��

1,319

��

1,290

��

1,340

��

(21)

��

Tier 2 Capital before deductions

��

498

��

618

��

615

��

(117)

��

Less:��

Investment in insurance subsidiary

��

(42)

��

(42)

��

(75)

��

Securitization

��

(14)

��

(11)

��

(7)

��

(7)

��

Total Tier 2 Capital

��

442

��

565

��

533

��

(91)

��

Total Regulatory Capital

��

1,761

��

1,855

��

1,873

��

(112)

��

Risk-Weighted Assets

��

13,318

��

12,667

��

11,313

��

2,005

��

Tier 1 capital adequacy ratio

��

9.9

��

10.2

��

11.8

��

(190)

bp⁽¹⁾

Total capital adequacy ratio

��

13.2

��

14.6

��

16.6

��

(340)

��

⁽¹⁾bp - basis point change.

��

Capital ratios exceed the Basel II target ranges established through
CWB's Internal Capital Adequacy Assessment Process (ICAAP) and have the
Bank well positioned for the remainder of the year. The ongoing
retention of earnings should support capital requirements associated
with the anticipated achievement of the 2012 minimum performance
targets, including stronger than expected loan growth.

The pro forma impact of $63.5 million of CWB common shares issued in the
third quarter as consideration for the preferred shares of National
Leasing increases the regulatory capital adequacy ratios by
approximately 45 basis points.

Further information relating to the Bank's capital position is provided
in Note 14 of the unaudited interim consolidated financial statements
as well as the audited consolidated financial statements and MD&A for
the year ended October 31, 2011.

Book value per common share at April 30, 2012 was $14.73, compared to
$14.36 last quarter and $14.24 one year ago.

Common shareholders received a quarterly cash dividend of $0.15 per
common share on April 5, 2012. On June 6, 2012, CWB's Board of
Directors declared a cash dividend of $0.16 per common share, payable
on July 5, 2012 to shareholders of record on June 21, 2012. This
quarterly dividend represents a 7% increase over the previous quarter
and is 14% higher than the quarterly dividend declared one year ago.
The Board of Directors also declared a cash dividend of $0.453125 per
Series 3 Preferred Share payable on July 31, 2012 to shareholders of
record on July 20, 2012.

Basel III Capital Framework

The Basel Committee on Banking Supervision of the BIS (the Committee)
has published the Basel III rules text supporting more stringent global
standards on capital adequacy and liquidity, and OSFI has confirmed its
intent to implement the Basel III rules for Canadian banks. OSFI also
issued guidance and advisories on its capital implementation plan for
all Canadian financial institutions, including proposed transition
allowances and details about the treatment of non-viability contingent
capital (NVCC).

Significant capital changes most relevant to CWB include:

increased focus on tangible common equity;

all forms of non-common equity, such as conventional subordinated
debentures and preferred shares, must be NVCC. Compliant NVCC
instruments include a clause requiring conversion to common equity in
the event that OSFI deems the institution to be insolvent or a
government has decided�� to inject "bail out" funding;

innovative Tier 1 instruments, such as CWB's WesTS, will no longer
qualify;

investment in an insurance subsidiary is no longer deducted from capital
except for any amount that exceeds 15% of tangible common equity; and

changes in the capital treatment for investments in the regulatory
capital of other financial institutions.

OSFI has publicly stated that all Canadian banks must comply with the
Basel III capital standards effective January 1, 2013. Required minimum
regulatory capital ratios, including a 250 basis point capital
conservation buffer, will be 7.0% tangible common equity Tier 1 (CET1),
8.5% Tier 1 and 10.5% total capital. The Basel III rules provide for
transitional adjustments whereby certain aspects of the new rules will
be phased in between 2013 and 2019. The only available transition
adjustment in the Basel III capital standards permitted by OSFI for
Canadian banks relates to the multi-year phase out of non-qualifying
capital instruments. Pro forma application of the proposed 2019 Basel
III standards to the Bank's financial position at April 30, 2012,
including the $63.5 million of CWB common shares issued for the
preferred shares of National Leasing in May 2012, results in an
estimated 8.0% CET1 ratio, 9.0% Tier 1 ratio and 11.8% total capital
ratio. The foregoing estimates are based on the Bank's current capital
structure and composition of risk-weighted assets, and will change
depending on strategic initiatives, the composition of regulatory
capital, the Bank's financial performance in the future and
modifications, if any, to the standards and available transitional
adjustments implemented by the regulatory authorities.

In conjunction with a commitment to prudent capital planning, which
includes a comprehensive ICAAP, CWB expects to maintain Basel III
capital ratios above the minimum regulatory requirements through the
transition date. At the same time, management will also continue to
evaluate alternatives to deploy capital for the long-term benefit of
CWB shareholders. Required resources, costs and potential timelines
related to the Bank's possible transition to an Advanced Internal
Rating Based (AIRB) methodology for managing credit risk and
calculating risk-weighted assets are still being evaluated. Preliminary
analysis confirms a multi-year timeframe would be required. CWB's new
core banking system, expected to be implemented in 2015, is a critical
component for a number of requirements necessary for future AIRB
compliance, including the collection and management of certain types of
data.

Changes in Accounting Policies

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

Future Accounting Changes

A number of standards and amendments have been issued by the
International Accounting Standards Board (IASB), and the following
changes may have an impact on the Bank's future financial statements.
CWB is currently reviewing these standards to determine the impact on
the financial statements.

IFRS 9 - Financial Instruments

The IASB deferred the mandatory effective date of IFRS 9 to annual
periods beginning on or after January 1, 2015. The new standard
specifies that financial assets be classified into one of two
categories on initial recognition: financial assets measured at
amortized cost or financial assets measured at fair value. Gains or
losses on remeasurement of financial assets measured at fair value will
generally be recognized in profit or loss.

IFRS 10 - Consolidated Financial Statements and IFRS 12 - Disclosure of Interests in Other Entities

The IASB has issued IFRS 10 and 12, 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. IFRS 10 and
12 are effective for annual periods beginning on or after January 1,
2013.

IFRS 13 - Fair Value Measurement

The IASB has issued new guidance on fair value measurement and
disclosure requirements for IFRS. The amendments are effective for
annual periods beginning on or after January 1, 2013.

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

Controls and Procedures

There were no changes in the Bank's internal controls over financial
reporting that occurred during the quarter ended April 30, 2012 that
have materially affected, or are reasonably likely to materially
affect, the Bank's internal controls over financial reporting.

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

Updated Share Information

As at June 1, 2012, there were 78,167,710 common shares outstanding.
Also outstanding were employee stock options, which are or will be
exercisable for up to 3,638,988 common shares for maximum proceeds of
$82.9 million.

Normal Course Issuer Bid

CWB received approval from the Toronto Stock Exchange for a Normal
Course Issuer Bid (NCIB) to purchase, for cancellation, up to 2,261,434
of its common shares. The NCIB commenced November 2, 2011 and will end
no later than November 1, 2012. To date, no common shares have been
purchased and cancelled under the NCIB. Security holders may contact
the Bank to obtain, without charge, a copy of the notice filed with the
TSX. Additionally, a copy of the NCIB news release is available on the
Bank's website and on SEDAR at www.sedar.com.

Dividend Reinvestment Plan

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

Summary of Quarterly Financial Information

��

IFRS

��

Canadian GAAP

��

2012

��

2011

��

2010

��

Total revenues (teb)

127,854

126,300

��

119,673

122,753

119,766

121,363

��

111,570

111,045

Total revenues

��

125,396

��

123,680

��

116,540

��

119,956

��

117,381

��

118,619

��

108,391

��

108,263

Net income

��

45,212

��

47,051

��

41,474

��

44,393

��

42,440

��

43,414

��

39,107

��

46,595

Net income available to common shareholders

��

39,669

��

41,478

��

35,921

��

38,824

��

36,941

��

37,852

��

35,305

��

42,793

Earnings per common share

��

Basic

��

0.52

��

0.55

��

0.48

��

0.52

��

0.52

��

0.56

��

0.53

��

0.64

��

Diluted

��

0.52

��

0.54

��

0.47

��

0.50

��

0.48

��

0.50

��

0.48

��

0.59

��

Adjusted cash

��

0.55

��

0.57

��

0.53

��

0.54

��

0.55

��

0.55

��

0.49

��

0.60

Total assets ($ millions)

��

15,713

��

15,484

��

14,849

��

14,097

��

13,726

��

13,099

��

12,702

��

12,110

The financial results for each of the last eight quarters are summarized
above. Note that 2010 results are presented under Canadian GAAP and
have not been restated to IFRS. In general, CWB's performance reflects
a relatively consistent trend although the second quarter contains
three fewer revenue earning days, or two fewer days in a leap year such
as 2012.

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

Quarterly results can also fluctuate from the recognition of periodic
income tax items, as was the case in the third quarter of 2010 when an
income tax recovery from certain prior period transactions increased
net income available to common shareholders by approximately $7.5
million.

For additional details on variations between the prior quarters, refer
to the summary of quarterly results section of the Bank's MD&A for the
year ended October 31, 2011 and the individual quarterly reports to
shareholders which are available on SEDAR at www.sedar.com and on CWB's website at www.cwbankgroup.com.

Taxable Equivalent Basis (teb)

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

Non-GAAP Measures

Taxable equivalent basis, adjusted cash earnings per common share,
return on common shareholders' equity, return on assets, efficiency
ratio, net interest margin, tangible common equity to risk-weighted
assets, Tier 1 and total capital adequacy ratios, average balances,
claims loss ratio, expense ratio and combined ratio do not have
standardized meanings prescribed by IFRS and therefore may not be
comparable to similar measures presented by other financial
institutions. The non-GAAP measures used in this MD&A are calculated as
follows:

taxable equivalent basis - described above;

adjusted cash earnings per common share - diluted earnings per common
share excluding the after-tax amortization of acquisition-related
intangible assets and the non-tax deductible change in fair value of
contingent consideration. These exclusions represent non-cash charges
mainly related to the acquisition of National Leasing Group Inc. and
are not considered to be indicative of ongoing business performance;

return on common shareholders' equity - annualized net income
attributable to shareholders of the Bank after preferred share
dividends divided by average common shareholders' equity;

return on assets - annualized net income attributable to shareholders of
the Bank after preferred share dividends divided by average total
assets;

efficiency ratio - non-interest expenses divided by total revenues
excluding the non-tax deductible change in fair value of contingent
consideration;

net interest margin - net interest income divided by average total
assets;

tangible common equity to risk-weighted assets - shareholders' equity
less subsidiary goodwill divided by risk-weighted assets, calculated in
accordance with guidelines issued by the Office of the Superintendent
of Financial Institutions Canada (OSFI);

Basel II Tier 1 and total capital adequacy ratios - in accordance with
guidelines issued by OSFI;

Basel III common equity Tier 1, Tier 1 and total capital ratios - in
accordance with CWB's interpretation of the Basel III capital
requirements and OSFI proposed guidance; and

average balances - average daily balances.

Forward-looking Statements

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

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

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

Assumptions about the performance of the Canadian economy in 2012 and
how it will affect CWB's businesses are material factors the Bank
considers when setting its objectives. In setting minimum performance
targets for fiscal 2012, management's assumptions included: modest
economic growth in Canada aided by positive relative performance in the
four western provinces; relatively stable energy and other commodity
prices; sound credit quality with actual losses remaining within the
Bank's historical range of acceptable levels; and, a lower net interest
margin attributed to expectations for a prolonged period of very low
interest rates due to uncertainties about the strength of global
economic recovery and potential adverse effects from ongoing
developments in the euro zone. Management's assumptions at the end of
the second quarter remained relatively unchanged compared to those at
the 2011 fiscal year end. Potential risks that would have a material
adverse impact on the Bank's economic expectations and forecasts
include a global economic recession spurred by unfavourable
developments in the euro zone, a recession in the United States, a
meaningful slowdown in China's economic growth, or a significant and
sustained deterioration in Canadian residential real estate prices.

Consolidated Balance Sheets

��

(unaudited)

($ thousands)

��

As at

April 30

2012

��

As at

January 31

2012

��

As at

October 31

2011

��

As at

April 30

2011

��

Change from

April 30

2011

��

Assets

��

Cash Resources

��

Cash and non-interest bearing deposits with financial institutions

55,037

��

44,745

��

73,318

��

5,729

��

Interest bearing deposits with regulated financial institutions ��

(Note 4)

��

158,518

��

182,427

��

233,964

��

252,081

��

(37)

��

Cheques and other items in transit

��

4,054

��

1,792

��

5,053

��

11,018

��

(63)

��

217,609

��

228,964

��

312,335

��

268,828

��

(19)

��

Securities��

(Note 4)

��

Issued or guaranteed by Canada

��

546,803

��

680,933

��

644,356

��

506,575

��

Issued or guaranteed by a province or municipality

��

360,465

��

415,166

��

380,031

��

289,638

��

Other securities

��

915,150

��

983,692

��

901,317

��

781,128

��

1,822,418

��

2,079,791

��

1,925,704

��

1,577,341

��

Securities Purchased Under Resale Agreements

��

69,808

��

119,999

��

219,385

��

(68)

��

Loans��

(Notes 5 and 7)

��

Residential mortgages

��

3,232,976

��

3,082,924

��

3,008,545

��

2,833,163

��

Other loans

��

10,124,242

��

9,736,523

��

9,356,717

��

8,607,968

��

13,357,218

��

12,819,447

��

12,365,262

��

11,441,131

��

Allowance for credit losses��

(Note 6)

��

(75,489)

��

(74,556)

��

(71,980)

��

(80,845)

��

(7)

��

13,281,729

��

12,744,891

��

12,293,282

��

11,360,286

��

Other

��

Property and equipment

��

73,955

��

71,439

��

72,674

��

67,282

��

Goodwill

��

45,536

��

45,691

��

45,691

��

45,691

��

Other intangible assets

��

34,535

��

36,131

��

37,420

��

40,553

��

(15)

��

Insurance related

��

55,171

��

56,058

��

56,734

��

56,846

��

(3)

��

Derivative related��

(Note 8)

��

740

��

459

��

Other assets

��

111,942

��

101,084

��

105,301

��

88,914

��

321,879

��

310,403

��

317,820

��

299,745

��

Total Assets

15,713,443

��

15,484,048

��

14,849,141

��

13,725,585

��

Liabilities and Shareholders' Equity

��

Deposits

��

Payable on demand

629,637

��

592,566

��

583,267

��

618,728

��

Payable after notice

��

3,721,542

��

3,610,670

��

3,407,590

��

3,377,816

��

Payable on a fixed date

��

8,867,898

��

8,757,693

��

8,403,832

��

7,259,922

��

13,219,077

��

12,960,929

��

12,394,689

��

11,256,466

��

Other

��

Cheques and other items in transit

��

41,891

��

32,874

��

45,986

��

38,352

��

Insurance related

��

144,935

��

144,468

��

149,130

��

140,739

��

Derivative related��

(Note 8)

��

539

��

436

��

971

��

(96)

��

Other liabilities

��

271,800

��

258,330

��

262,185

��

229,626

��

458,665

��

436,211

��

457,737

��

409,688

��

Debt

��

Debt securities

��

177,675

��

140,049

��

89,877

��

143,265

��

Subordinated debentures

��

425,000

��

545,000

��

545,000

��

545,000

��

(22)

��

602,675

��

685,049

��

634,877

��

688,265

��

(12)

��

Equity

��

Preferred shares��

(Note 9)

��

209,750

��

209,750

��

209,750

��

209,750

��

Common shares��

(Note 9)

��

416,421

��

412,120

��

408,282

��

388,008

��

Retained earnings

��

667,305

��

639,004

��

608,848

��

627,622

��

Share-based payment reserve

��

22,322

��

22,079

��

21,884

��

20,795

��

Other reserves

��

11,985

��

13,681

��

7,849

��

19,773

��

(39)

��

Total Shareholders' Equity

��

1,327,783

��

1,296,634

��

1,256,613

��

1,265,948

��

Non-controlling interests

��

105,243

��

105,225

��

105,225

��

105,218

��

Total Equity

��

1,433,026

��

1,401,859

��

1,361,838

��

1,371,166

��

Total Liabilities and Shareholders' Equity

15,713,443

��

15,484,048

��

14,849,141

��

13,725,585

��

nm - not meaningful

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

Consolidated Statements of Income

��

For the three months ended

��

Change from

��

For the six months ended

��

Change from

��

(unaudited)

($ thousands, except per share amounts)

��

April 30

2012

��

January 31

2012

��

April 30

2011

��

April 30

2011

��

April 30

2012

��

April 30

2011

��

April 30

2011

��

Interest Income

��

Loans

166,066

��

166,300

��

149,949

��

�� 11

��

332,366

��

302,631

��

Securities

��

11,014

��

11,821

��

11,498

��

�� (4)

��

22,835

��

21,460

��

Deposits with regulated financial institutions

��

297

��

1,025

��

1,063

��

�� (72)

��

1,322

��

2,442

��

(46)

��

177,377

��

179,146

��

162,510

��

�� 9

��

356,523

��

326,533

��

Interest Expense

��

Deposits

��

65,108

��

66,255

��

56,940

��

�� 14

��

131,363

��

114,083

��

Debt

��

7,127

��

8,002

��

8,790

��

�� (19)

��

15,129

��

17,197

��

(12)

��

72,235

��

74,257

��

65,730

��

�� 10

��

146,492

��

131,280

��

Net Interest Income

��

105,142

��

104,889

��

96,780

��

�� 9

��

210,031

��

195,253

��

Provision for Credit Losses��

(Note 6)

��

6,263

��

6,429

��

5,278

��

�� 19

��

12,692

��

11,528

��

Net Interest Income after

��Provision for Credit Losses

��

98,879

��

98,460

��

91,502

��

�� 8

��

197,339

��

183,725

��

Other Income

��

Insurance, net��

(Note 3)

��

5,754

��

4,402

��

4,991

��

�� 15

��

10,156

��

9,581

��

Credit related

��

4,428

��

4,967

��

4,635

��

�� (4)

��

9,395

��

9,161

��

Trust and wealth management services

��

4,984

��

4,769

��

4,930

��

�� 1

��

9,753

��

9,463

��

Retail services

��

2,312

��

2,356

��

2,392

��

�� (3)

��

4,668

��

4,854

��

(4)

��

Gains on securities, net

��

3,182

��

1,938

��

5,297

��

�� (40)

��

5,120

��

9,534

��

(46)

��

Foreign exchange gains

��

809

��

669

��

919

��

�� (12)

��

1,478

��

1,755

��

(16)

��

Contingent consideration fair value change

��

(1,289)

��

(1,200)

��

(3,742)

��

�� 66

��

(2,489)

��

(6,258)

��

Other

��

890

��

1,179

��

�� (94)

��

964

��

2,657

��

(64)

��

20,254

��

18,791

��

20,601

��

�� (2)

��

39,045

��

40,747

��

(4)

��

Net Interest and Other Income

��

119,133

��

117,251

��

112,103

��

�� 6

��

�� 236,384

��

224,472

��

Non-Interest Expenses

��

Salaries and employee benefits

��

38,261

��

36,407

��

35,394

��

�� 8

��

74,668

��

71,035

��

Premises and equipment

��

9,826

��

9,433

��

9,153

��

�� 7

��

19,259

��

18,000

��

Other expenses

��

11,448

��

9,702

��

10,701

��

�� 7

��

21,150

��

20,310

��

Provincial capital taxes

��

125

��

160

��

�� (56)

��

195

��

1,191

��

(84)

��

59,605

��

55,667

��

55,408

��

�� 8

��

115,272

��

110,536

��

Net Income before Income Taxes

��

59,528

��

61,584

��

56,695

��

�� 5

��

121,112

��

113,936

��

Income Taxes

��

14,316

��

14,533

��

14,255

��

�� -

��

28,849

��

28,082

��

Net Income

45,212

��

47,051

��

42,440

��

�� 7

��

92,263

��

85,854

��

Net Income Attributable to

��Non-Controlling Interests

��

1,741

��

1,771

��

1,697

��

�� 3

��

3,512

��

3,457

��

Net Income Attributable to

��Shareholders of the Bank

43,471

��

45,280

��

40,743

��

�� 7

��

88,751

��

82,397

��

Preferred share dividends��

(Note 9)

��

3,802

��

3,802

��

3,802

��

�� -

��

7,604

��

7,604

��

Net Income Available to

��

��Common Shareholders

39,669

��

41,478

��

36,941

��

�� 7

��

81,147

��

74,793

��

Average number of common

��shares (in thousands)

��

75,779

��

75,528

��

70,527

��

�� 7

��

75,652

��

69,320

��

Average number of diluted common

��shares (in thousands)

��

76,511

��

76,288

��

76,514

��

�� -

��

76,398

��

75,717

��

Earnings Per Common Share

��

Basic

0.52

��

0.55

��

0.52

��

�� -

��

1.07

��

1.08

��

(1)

��

Diluted

��

0.52

��

0.54

��

0.48

��

�� 8

��

1.06

��

0.99

��

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) ($ thousands)			��	April 30 2012	��	April 30 2011	��	��	April 30 2012	��	April 30 2011
Net Income			$	45,212	$	42,440	��	$	92,263	$	85,854
Other Comprehensive Income (Loss), net of tax			��	��	��	��	��	��	��	��	��
��	Available-for-sale securities:		��	��	��	��	��	��	��	��	��
��	��	Gains from change in fair value⁽¹⁾	��	342	��	3,796	��	��	7,697	��	1,944
��	��	Reclassification to net income⁽²⁾	��	(2,346)	��	(3,813)	��	��	(3,770)	��	(6,863)
��			��	(2,004)	��	(17)	��	��	3,927	��	(4,919)
��	Derivatives designated as cash flow hedges:		��	��	��	��	��	��	��	��	��
��	��	Gains from change in fair value⁽³⁾	��	903	��	-	��	��	508	��	-
��	��	Reclassification to net income⁽⁴⁾	��	(595)	��	-	��	��	(299)	��	-
��			��	308	��	-	��	��	209	��	-
��			��	(1,696)	��	(17)	��	��	4,136	��	(4,919)
Comprehensive Income for the Period			$	43,516	$	42,423	��	$	96,399	$	80,935
��			��	��	��	��	��	��	��	��	��
Comprehensive income for the period attributable to:			��	��	��	��	��	��	��	��	��
��	Shareholders of the Bank		$	41,775	$	40,726	��	$	92,887	$	77,478
��	Non-controlling interests		��	1,741	��	1,697	��	��	3,512	��	3,457
Comprehensive Income for the Period			$	43,516	$	42,423	��	$	96,399	$	80,935

^(1)��

Net of income tax of $122 and $2,703 for the three and six months ended
April 30, 2012, respectively (2011 - $1,477 and $756).

⁽²^)��

Net of income tax of $840 and $1,350 for the three and six months ended
April 30, 2012, respectively (2011 - $1,484 and $2,671).

⁽³^{)�� }

Net of income tax of $315 and $177 for the three and six months ended
April 30, 2012, respectively (2011 - nil and nil).

⁽^4)��

Net of income tax of $208 and $103 for the three and six months ended
April 30, 2012, respectively (2011 - nil and nil)

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

��

Consolidated Statements of Changes in Shareholders' Equity

��				�� For the six months ended
(unaudited) ($ thousands)			��	��	April 30 2012	��	��	��	April 30 2011
��			��	��	��	��	��	��	��
Retained Earnings			��	��	��	��	��	��	��
Balance at beginning of period			��	$	608,848	��	��	$	586,933
��	Net income attributable to shareholders of the Bank		��	��	88,751	��	��	��	82,397
��	Dividends	- Preferred shares	��	��	(7,604)	��	��	��	(7,604)
��	��	- Common shares	��	��	(22,690)	��	��	��	(18,119)
��	Warrants purchased and cancelled��		��	��	-	��	��	��	(15,985)
Balance at end of period			��	��	667,305	��	��	��	627,622
Other Reserves			��	��	��	��	��	��	��
Balance at beginning of period			��	��	7,849	��	��	��	24,692
��	Changes in available-for-sale securities		��	��	3,927	��	��	��	(4,919)
��	Changes in derivatives designated as cash flow hedges		��	��	209	��	��	��	-
Balance at end of period			��	��	11,985	��	��	��	19,773
Preferred Shares��			(Note 9)	��	��	��	��	��	��
Balance at beginning and end of period��			��	��	209,750	��	��	��	209,750
Common Shares��			(Note 9)	��	��	��	��	��	��
Balance at beginning of period��			��	��	408,282	��	��	��	279,620
��	Issued under dividend reinvestment plan��		��	��	5,336	��	��	��	2,000
��	Transferred from share-based payment reserve on the exercise or exchange of options		��	��	1,924	��	��	��	2,851
��	Issued on exercise of options��		��	��	879	��	��	��	2,550
��	Issued on exercise of warrants		��	��	-	��	��	��	100,987
Balance at end of period��			��	��	416,421	��	��	��	388,008
Share-based Payment Reserve			��	��	��	��	��	��	��
Balance at beginning of period			��	��	21,884	��	��	��	21,291
��	Amortization of fair value of options		��	��	2,362	��	��	��	2,355
��	Transferred to common shares on the exercise or exchange of options		��	��	(1,924)	��	��	��	(2,851)
Balance at end of period			��	��	22,322	��	��	��	20,795
Total Shareholders' Equity			��	��	1,327,783	��	��	��	1,265,948
Non-Controlling Interests			��	��	��	��	��	��	��
Balance at beginning of period			��	��	105,225	��	��	��	105,179
��	Net income attributable to non-controlling interests		��	��	3,512	��	��	��	3,457
��	Distributions to non-controlling interests		��	��	(3,494)	��	��	��	(3,418)
Balance at end of period			��	��	105,243	��	��	��	105,218
Total Equity			��	$	1,433,026	��	��	$	1,371,166

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

��

Consolidated Statements of Cash Flow

��

For the six months ended

(unaudited)

($ thousands)

��

April 30

2012

��

April 30

2011

Cash Flows from Operating Activities

��

��Net income

��

92,263

��

85,854

��Adjustments to determine net cash flows:

��

Provision for credit losses

��

12,692

��

11,528

��

Depreciation and amortization

��

10,320

��

8,854

��

Current income taxes receivable and payable

��

764

��

(144)

��

Amortization of fair value of employee stock options

��

2,362

��

2,355

��

Accrued interest receivable and payable, net

��

2,226

��

(9,457)

��

Deferred income taxes, net

��

(1,280)

��

(8,162)

��

Gain on securities, net

��

(5,120)

��

(9,534)

��

Other items, net

��

(7,739)

��

41,592

��

106,488

��

122,886

Cash Flows from Financing Activities

��

Deposits, net

��

824,388

��

548,699

��

Common shares issued��(Note 9)

��

6,215

��

105,537

��

Debt securities issued

��

145,403

��

Debt securities redeemed

��

(57,606)

��

(58,741)

��

Dividends

��

(30,294)

��

(25,723)

��

Distributions to non-controlling interests

��

(3,494)

��

(3,418)

��

Debentures redeemed��

��

(120,000)

��

(70,000)

��

Debentures issued��

��

300,000

��

Warrants purchased and cancelled

��

(15,985)

��

764,612

��

780,369

Cash Flows from Investing Activities

��

Interest bearing deposits with regulated financial institutions, net

��

75,405

��

(84,106)

��

Securities, purchased

��

(1,864,186)

��

(2,630,598)

��

Securities, sale proceeds

��

924,038

��

1,369,928

��

Securities, matured

��

1,057,113

��

1,186,439

��

Securities purchased under resale agreements, net

��

(69,808)

��

(41,431)

��

Loans, net

��

(1,001,139)

��

(697,117)

Property and equipment

��

(7,708)

��

(7,292)

��

(886,285)

��

(904,177)

Change in Cash and Cash Equivalents

��

(15,185)

��

(922)

Cash and Cash Equivalents at Beginning of Period

��

32,385

��

(20,683)

Cash and Cash Equivalents at End of Period *

��

17,200

��

(21,605)

��

* Represented by:

��

Cash and non-interest bearing deposits with financial institutions

��

55,037

��

5,729

��

Cheques and other items in transit (included in Cash Resources)

��

4,054

��

11,018

��

Cheques and other items in transit (included in Other Liabilities)

��

(41,891)

��

(38,252)

Cash and Cash Equivalents at End of Period

��

17,200

��

(21,605)

��

Supplemental Disclosure of Cash Flow Information

��

Interest and dividends received

��

364,187

��

334,881

��

Interest paid

��

143,331

��

139,861

��

Income taxes paid

��

27,427

��

36,500

��

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

Notes to Interim Consolidated Financial Statements

(unaudited)

($ thousands, except per share amounts)

1. Basis of Presentation and Significant Accounting Policies

These unaudited condensed interim consolidated financial statements of
Canadian Western Bank (CWB or the Bank) have been prepared in
accordance with International Accounting Standard (IAS) 34 - Interim
Financial Reporting as issued by the International Accounting Standards
Board (IASB). These interim consolidated financial statements of CWB,
domiciled in Canada, have been prepared in accordance with subsection
308 (4) of the Bank Act and the accounting requirements of the Office
of the Superintendent of Financial Institutions Canada (OSFI).

The interim consolidated financial statements were authorized for issue
by the Board of Directors on June 6, 2012.

The Bank's significant International Financial Reporting Standards
(IFRS) accounting policies and IFRS transition details were disclosed
in Notes 1 and 15, respectively, of the Bank's unaudited interim
consolidated financial statements for the three months ended January
31, 2012, and unless otherwise noted, the notes to the October 31, 2011
audited consolidated financial statements included in the 2011 annual
report reported under Canadian generally accepted accounting principles
(Canadian GAAP) are materially consistent. These documents are all
available on SEDAR and the Bank's website.

2. Future Accounting Changes

CWB continues to monitor the IASB's proposed changes to accounting
standards. Although not expected to materially impact the Bank's 2012
consolidated financial statements, these proposed changes may have a
significant impact on future financial statements. Additional
discussion on certain accounting standards that may impact the Bank was
included in the Management's Discussion and Analysis for the period
ended April 30, 2012.

3. Insurance Revenues, Net

Insurance revenues, net, as reported in other income on the consolidated
statement of income are presented net of net ��claims and adjustment
expenses, and policy acquisition costs.

��

For the three months ended

��

For the six months ended

��

April 30

2012

��

January 31

2012

��

April 30

2011

��

April 30

2012

��

April 30

2011

Net earned premiums

��

30,035

��

30,454

��

28,286

��

60,489

��

57,282

Commissions and processing fees

��

478

��

455

��

479

��

933

��

944

Net claims and adjustment expenses

��

(18,662)

��

(20,327)

��

(17,542)

��

(38,989)

��

(36,699)

Policy acquisition costs

��

(6,097)

��

(6,180)

��

(6,232)

��

(12,277)

��

(11,946)

Total, net

��

5,754

��

4,402

��

4,991

��

10,156

��

9,581

4. Securities

Net unrealized gains (losses) reflected on the balance sheet follow:

��

As at

April 30

2012

��

As at

January 31

2012

��

As at

October 31

2011

Interest bearing deposits with regulated financial institutions

��

311

��

477

��

815

Securities issued or guaranteed by ��

��

Canada ��

��

(175)

��

(210)

��

(645)

��

A province or municipality ��

��

(253)

��

(82)

��

(479)

Other debt securities ��

��

997

��

1,588

��

1,827

Equity securities ��

��

Preferred shares ��

��

9,443

��

16,091

��

9,312

��

Common shares ��

��

5,665

��

892

��

Unrealized gains, net ��

��

15,988

��

18,756

��

10,858

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, 2012, the Bank has assessed the securities with
unrealized losses and, based on available objective evidence, nil (2011
- nil) impairment charges were included in gains on securities, net.

5. Loans

The composition of the Bank's loan portfolio by geographic region and
industry sector follows:

($ millions)

��

Other

��

Total

��

April 30

2012

Composition

Percentage

��

January 31

2012

Composition

Percentage

��

October 31

2011

Composition

Percentage

��

Loans to Individuals

��

Residential mortgages⁽¹⁾

1,417

��

1,210

��

217

��

312

��

3,233

��

Other loans

��

109

��

192

��

1,485

��

1,319

��

228

��

313

��

3,425

��

Loans to Businesses

��

Commercial

��

994

��

1,759

��

162

��

450

��

3,461

��

Construction and��real estate⁽²⁾

��

1,518

��

1,826

��

237

��

125

��

3,777

��

Equipment financing⁽³⁾

��

424

��

907

��

177

��

740

��

2,334

��

Energy

��

360

��

360

��

2,936

��

4,852

��

576

��

253

��

1,315

��

9,932

��

Total Loans⁽⁴⁾

4,421

��

6,171

��

804

��

333

��

1,628

��

13,357

��

100

Composition ��Percentage

��

April 30, 2012

��

100

��

January 31, 2012

��

100

��

October 31, 2011

��

100

��

⁽¹⁾	Includes single- and multi-unit residential mortgages and project (interim) mortgages on residential property.
⁽²⁾	Includes commercial term mortgages and project (interim) mortgages on non-residential property.
⁽³⁾	Includes securitized leases reported on-balance sheet of $196 (January 31, 2012 - $150; October 31, 2011 - $91).
⁽⁴⁾	This table does not include an allocation of the allowance for credit losses.

6. Allowance for Credit Losses

The following table shows the changes in the allowance for credit
losses:

��

For the three months ended

April 30, 2012

��

For the three months ended

January 31, 2012

��

Specific

Allowance

��

Collective

Allowance

for Credit

Losses

��

Total

��

Specific

Allowance

��

Collective

Allowance

for Credit

Losses

��

Total

Balance at beginning of period

��

11,885

��

62,671

��

74,556

��

10,650

��

61,330

��

71,980

Provision for credit losses

��

4,163

��

2,100

��

6,263

��

5,088

��

1,341

��

6,429

Write-offs

��

(5,733)

��

(5,733)

��

(4,524)

��

(4,524)

Recoveries

��

403

��

403

��

671

��

671

Balance at end of period

��

10,718

��

64,771

��

75,489

��

11,885

��

62,671

��

74,556

��

For the three months ended

April 30, 2011

��

Specific

Allowance

��

Collective

Allowance

for Credit

Losses

��

Total

Balance at beginning of period

��

15,373

��

62,220

��

77,593

Provision for credit losses

��

8,935

��

(3,657)

��

5,278

Write-offs

��

(2,423)

��

(2,423)

Recoveries

��

397

��

397

Balance at end of period

��

22,282

��

58,563

��

80,845

��

For the six months ended

April 30, 2012

��

For the six months ended

April 30, 2011

��

Specific

Allowance

��

Collective

Allowance

for Credit

Losses

��

Total

��

Specific

Allowance

��

Collective

Allowance

for Credit

Losses

��

Total

Balance at beginning of period

��

10,650

��

61,330

��

71,980

��

19,531

��

61,992

��

81,523

Provision for credit losses

��

9,251

��

3,441

��

12,692

��

14,957

��

(3,429)

��

11,528

Write-offs

��

(10,257)

��

(10,257)

��

(12,840)

��

(12,840)

Recoveries

��

1,074

��

1,074

��

634

��

634

Balance at end of period

��

10,718

��

64,771

��

75,489

��

22,282

��

58,563

��

80,845

7. Impaired and Past Due Loans

Outstanding gross loans and impaired loans, net of allowance for credit
losses, by loan type, are as follows:

��

As at April 30, 2012

��

As at January 31, 2012

��

Gross

Amount

��

Gross

Impaired

Amount

��

Specific

Allowance

��

Net

Impaired

Loans

��

Gross

Amount

��

Gross

Impaired

Amount

��

Specific

Allowance

��

Net

Impaired

Loans

Consumer and personal

��

2,155,032

��

17,161

��

968

��

16,193

��

2,095,429

��

19,924

��

1,206

��

18,718

Real estate⁽¹⁾

��

5,011,713

��

43,209

��

1,485

��

41,724

��

4,809,796

��

44,221

��

3,130

��

41,091

Equipment financing

��

2,693,333

��

9,412

��

4,292

��

5,120

��

2,549,898

��

10,851

��

4,551

��

6,300

Commercial

��

3,497,140

��

18,091

��

3,973

��

14,118

��

3,364,324

��

15,861

��

2,998

��

12,863

Total ⁽²⁾

��

13,357,218

��

87,873

��

10,718

��

77,155

��

12,819,447

��

90,857

��

11,885

��

78,972

Collective allowance⁽³⁾

��

(64,771)

��

(62,671)

Net impaired loans after collective allowance

��

12,384

��

16,301

��

As at October 31, 2011

��

Gross

Amount

��

Gross

Impaired

Amount

��

Specific

Allowance

��

Net

Impaired

Loans

Consumer and personal

��

2,018,627

��

24,983

��

1,173

��

23,810

Real estate⁽¹⁾

��

4,722,018

��

46,638

��

2,516

��

44,122

Equipment financing

��

2,502,620

��

15,596

��

5,592

��

10,004

Commercial

��

3,121,997

��

10,041

��

1,369

��

8,672

Total ⁽²⁾

��

12,365,262

��

97,258

��

10,650

��

86,608

Collective allowance⁽³⁾

��

(61,330)

Net impaired loans after collective allowance

��

25,278

��

^{(1)��}

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

^{(2)��}

Gross impaired loans include foreclosed assets with a carrying value of
$877 (January 31, 2012 - $4,683 and

October 31, 2011 - $3,241) which are held for sale. The Bank pursues
timely realization on foreclosed assets

and does not use the assets for its own operations.

^(3)��

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

Outstanding impaired loans, net of allowance for credit losses, by
provincial location of security are as follows:

��

As at April 30, 2012

��

As at January 31, 2012

��

Gross

Impaired

Amount

��

Specific

Allowance

��

Net

Impaired

Loans

��

Gross

Impaired

Amount

��

Specific

Allowance

��

Net

Impaired

Loans

Alberta

��

44,466

��

5,905

��

38,561

��

45,362

��

6,150

��

39,212

British Columbia

��

38,164

��

2,230

��

35,934

��

38,434

��

2,199

��

36,235

Saskatchewan

��

1,109

��

461

��

648

��

2,545

��

760

��

1,785

Manitoba

��

694

��

264

��

430

��

845

��

265

��

580

Other

��

3,440

��

1,858

��

1,582

��

3,671

��

2,511

��

1,160

Total

��

87,873

��

10,718

��

77,155

��

90,857

��

11,885

��

78,972

Collective allowance⁽¹⁾

��

(64,771)

��

(62,671)

Net impaired loans after collective allowance

��

12,384

��

16,301

��

As at October 31, 2011

��

Gross

Impaired

Amount

��

Specific

Allowance

��

Net

Impaired

Loans

Alberta

��

53,725

��

5,208

��

48,517

British Columbia

��

35,762

��

1,441

��

34,321

Saskatchewan

��

2,809

��

823

��

1,986

Manitoba

��

953

��

328

��

625

Other

��

4,009

��

2,850

��

1,159

Total

��

97,258

��

10,650

��

86,608

Collective allowance⁽¹⁾

��

(61,330)

Net impaired loans after collective allowance

��

25,278

��

^{(1)��}

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

��

Gross impaired loans exclude certain past due loans where payment of
interest or principal is contractually in arrears, which are not
classified as impaired. Details of such past due loans that have not
been included in the gross impaired amount are as follows:

��

As at April 30, 2012

��

1 - 30 days

��

31 - 60 days

��

61 - 90 days

��

More than

90 days

��

Total

Residential mortgages

��

18,242

��

1,606

��

346

��

502

��

20,696

Other loans

��

44,114

��

3,742

��

1,900

��

49,756

��

62,356

��

5,348

��

2,246

��

502

��

70,452

��

Total as at January 31, 2012

��

30,069

��

34,320

��

4,301

��

620

��

69,310

Total as at October 31, 2011

��

23,971

��

16,688

��

1,873

��

352

��

42,884

��

8. Derivative Financial Instruments

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

For the three and six months ended April 30, 2012, $903 and $508 net
unrealized after tax gains (2011 - nil) 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 (2011 - nil) were recorded in other income for
changes in fair value of the ineffective portion of derivatives
classified as cash flow hedges. Amounts accumulated in other
comprehensive income are reclassified to net income in the same period
that the hedged items affects income. For the three and six months
ended April 30, 2012, $595 and $299 net gains after tax amounts (2011 -
nil) were reclassified to net income.

The following table shows the notional value outstanding for derivative
financial instruments and the related fair value:

��

As at April 30, 2012

��

As at January 31, 2012

��

Notional

Amount

��

Positive

Fair Value

��

Negative

Fair Value

��

Notional

Amount

��

Positive

Fair Value

��

Negative

Fair Value

Interest rate swaps designated as

�� hedges⁽¹⁾

75,000

��

Equity swaps designated as

�� hedges⁽²⁾

��

14,214

��

685

��

14,214

��

533

Foreign exchange contracts⁽³⁾

��

7,157

��

3,517

��

Other forecasted transactions

��

Derivative related amounts

��

740

��

539

��

As at October 31, 2011

��

Notional

Amount

��

Positive

Fair Value

��

Negative

Fair Value

Interest rate swaps not designated as

�� hedges

��

19,400

��

420

Foreign exchange contracts

��

6,834

��

Other forecasted transactions

��

Derivative related amounts

��

436

��

⁽¹⁾��

��

Interest rate swaps designated as hedges outstanding at April 30, 2012
mature between January and April 2013.

⁽²⁾��

��

Equity swaps designated as hedges outstanding at April 30, 2012 mature
between June 2012 and June 2014. Equity

swaps are used to reduce the earnings volatility from restricted share
units linked the Bank's common share price.

⁽^3)��

��

Foreign exchange contracts outstanding at April 30, 2012 mature between
May 2012 and January 2013.

��

There were no forecasted transactions that failed to occur during the
three months and six months ended April 30, 2012.

9. Capital Stock

Share Capital

��

For the six months ended

��

April 30, 2012

��

April 30, 2011

��

Number of

Shares

��

Amount

��

Number of

Shares

��

Amount

Preferred Shares - Series 3

��

��Outstanding at beginning and end of period⁽¹⁾

��

8,390,000

��

209,750

��

8,390,000

��

209,750

Common Shares

��

�� Outstanding at beginning of period

��

75,461,981

��

408,282

��

66,641,362

��

279,620

�� Issued on exercise or exchange of options

��

249,324

��

879

��

268,423

��

2,550

�� Issued under dividend reinvestment plan⁽²⁾

��

197,771

��

5,336

��

67,494

��

2,000

�� Transferred from contributed surplus on exercise or exchange of
options

��

1,924

��

2,851

�� Issued on exercise of warrants

��

7,213,383

��

100,987

�� Outstanding at end of period

��

75,909,076

��

416,421

��

74,190,662

��

388,008

Share Capital

��

626,171

��

597,758

��

⁽¹⁾

��

Holders of the Preferred Shares - Series 3 are entitled to receive
non-cumulative quarterly fixed dividends for the initial five-year

period ending April 30, 2014 of 7.25% per annum, payable quarterly, as
and when declared.�� For further information on dividend

rates after April 30, 2014, refer to Note 19 of the audited consolidated
financial statements for the year ended October 31, 2011

(see page 103 of the 2011 Annual Report).

⁽²⁾

��

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

Warrants to Purchase Common Shares

Each warrant was exercisable at a price of $14.00 to purchase one common
share in the capital of the Bank.

��

�� For the six months ended

Number of Warrants

��

April 30

2012

��

April 30

2011

�� Outstanding at beginning of period

��

13,471,611

�� Purchased and cancelled under Normal Course Issuer Bid

��

(1,000,000)

�� Exercised

��

(7,213,383)

�� Outstanding at end of period

��

5,258,228

��

Common Share Normal Course Issuer Bid

On October 31, 2011, the Bank received approval from the Toronto Stock
Exchange to institute a Normal Course Issuer Bid (NCIB) to purchase and
cancel up to 2,261,434 of its common shares.�� The NCIB commenced
November 2, 2011 and will expire November 1, 2012.�� No common shares
have been purchased under this NCIB as at April 30, 2012.

10. Stock-Based Compensation��

Stock Options��

��

For the three months ended

��

April 30, 2012

��

April 30, 2011

��

Number of

Options

��

Weighted

Average

Exercise

Price

��

Number of

Options

��

Weighted

Average

Exercise

Price

Options

��

�� Balance at beginning of period

��

3,919,448

��

22.50

��

3,817,005

��

20.68

�� Exercised or exchanged

��

(252,861)

��

18.11

��

(318,599)

��

22.07

�� Forfeited

��

(16,211)

��

25.37

��

(25,419)

��

22.24

Balance at end of period

��

3,650,376

��

22.79

��

3,472,987

��

20.54

��

For the six months ended

��

April 30, 2012

��

April 30, 2011

��

Number of

Options

��

Weighted

Average

Exercise

Price

��

Number of

Options

��

Weighted

Average

Exercise

Price

Options

��

�� Balance at beginning of period

��

3,542,072

��

21.36

��

3,834,433

��

19.93

�� Granted

��

729,830

��

25.46

��

358,865

��

29.42

�� Exercised or exchanged

��

(579,741)

��

17.31

��

(680,249)

��

21.67

�� Forfeited

��

(41,785)

��

24.22

��

(40,062)

��

22.51

Balance at end of period

��

3,650,376

��

22.79

��

3,472,987

��

20.54

��

The terms of the share incentive plan allow the holders of vested
options a cashless settlement alternative whereby the option holder can
either (i) elect to receive shares by delivering cash to the Bank in
the amount of the option exercise price or (ii) elect to receive the
number of shares equivalent to the excess of the market value of the
shares under option, determined at the exercise date, over the exercise
price. Of the 579,741 (2011 - 680,249) options exercised or exchanged
in the six months ended April 30, 2012, option holders exchanged the
rights to 516,391 (2011 - 566,299) options and received 185,974 (2011 -
154,473) shares in return under the cashless settlement alternative.

For the six months ended April 30, 2012, salary expense of $2,362 (2011
- $2,355) 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 1.1% (2011 - 2.2%), (ii)
expected option life of 4.0 (2011 - 4.0) years, (iii) expected annual
volatility of 31% (2011 - 41%), and (iv) expected annual dividends of
2.4% (2011 - 1.8%). The weighted average fair value of options granted
was estimated at $4.70 (2011 - $8.69) per share.

Further details relating to stock options outstanding and exercisable at
April 30, 2012 follow:

��

Options Outstanding

��

Options Exercisable

��

Number of

Options

��

Weighted

Average

Remaining

Contractual

Life (years)

��

Weighted

Average

Exercise

Price

��

Number of

Options

��

Weighted

Average

Exercise

Price

$�� 8.58 to $11.76

��

594,870

��

1.6

��

11.73

��

594,870

��

11.73

$16.89 to $21.46

��

619,240

��

1.8

��

18.42

��

206,790

��

21.46

$22.09 to $26.38

��

1,541,918

��

3.5

��

24.45

��

207,600

��

26.11

$28.11 to $31.18

��

894,348

��

2.8

��

30.32

��

178,025

��

31.16

Total

��

3,650,376

��

2.8

��

22.79

��

1,187,285

��

18.85

��

Restricted Share Units

For the six months ended April 30, 2012, salary expense of $3,160 (2011
- $4,718) was recognized related to the Restricted Share Units (RSUs).
As at April 30, 2012, the liability for the RSUs held under this plan
was $12,099 (2011 - $10,926). At the end of each period, the liability
and salary expense are adjusted to reflect changes in the fair value of
the RSUs. As at April 30, 2012, 530,282 RSUs were outstanding (2011 -
474,387).

Deferred Share Units

For the six months ended April 30, 2012, non-interest expenses "other
expenses" included $394 (2011 - $152) related to the Deferred Share
Units (DSUs).�� As at April 30, 2012, the liability for DSUs held under
this plan was $2,235 (2011 - $1,514). At the end of each period, the
liability and expense are adjusted to reflect changes in the fair value
of the DSUs. As at April 30, 2012, 77,912 DSUs were outstanding (2011 -
49,972).

11. Contingent Liabilities and Commitments

Significant contingent liabilities and commitments, including guarantees
provided to third parties, are discussed in Note 21 of the Bank's
audited consolidated financial statements for the year ended October
31, 2011 (see page 106 of the 2011 Annual Report) and include:

��

As at

April 30

2012

��

As at

January 31

2012

��

As at

October 31

2011

Guarantees and standby letters of credit

��

�� Balance outstanding

��

280,276

��

297,572

��

276,323

Business credit cards ⁽¹⁾

��

�� Total approved limit

��

12,996

�� Balance outstanding

��

713

��

2,933

��

⁽¹⁾	��	The amounts reported reflect business credit card approved limits and balances issued through a third party issuer.�� Beginning January 1, 2012, CWB has entered into a business credit card agreement with another third party issuer and outstanding balances are now reported on balance sheet in "other loans".
��	��	��

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

12. Fair Value of Financial Instruments

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

Further information on how the fair value of financial instruments is
determined is included in Note 30 of the October 31, 2011 consolidated
audited financial statements (see page 114 of the 2011 Annual Report).

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

��

Valuation Technique

As at April 30, 2012

��

Fair Value

��

Level 1

��

Level 2

��

Level 3

Financial assets

��

�� Cash resources

��

217,609

��

183,828

��

33,781

��

�� Securities

��

1,822,418

��

1,822,418

��

�� Securities purchased under resale agreements

��

69,808

��

69,808

��

�� Derivative related

��

740

��

740

��

2,110,575

��

2,006,246

��

104,329

��

Financial liabilities

��

�� Other liability

��

63,500

��

63,500

�� Derivative related

��

63,539

��

63,500

��

Valuation Technique

As at January 31, 2012

��

Fair Value

��

Level 1

��

Level 2

��

Level 3

Financial assets

��

�� Cash resources

��

228,964

��

206,883

��

22,081

��

�� Securities

��

2,079,791

��

2,079,791

��

�� Securities purchased under resale agreements

��

119,999

��

119,999

��

2,428,754

��

2,286,674

��

142,080

��

Financial liabilities

��

�� Other liability

��

62,211

��

62,211

�� Derivative related

��

539

��

539

��

62,750

��

539

��

62,211

��

Valuation Technique

As at October 31, 2011

��

Fair Value

��

Level 1

��

Level 2

��

Level 3

Financial assets

��

�� Cash resources

��

312,335

��

272,704

��

39,631

��

�� Securities

��

1,925,704

��

1,925,704

��

2,238,039

��

2,198,408

��

39,631

��

Financial liabilities

��

�� Other liability

��

61,011

��

61,011

�� Derivative related

��

436

��

�� -

��

436

��

61,447

��

436

��

61,011

��

Level 3 Financial Instruments

Level 3 financial instruments are comprised of the contingent
consideration related to a subsidiary acquisition. The following table
shows a reconciliation of the fair value measurements related to the
Level 3 valued instrument:

��

For the three months ended

��

For the six months ended

��

April 30

��

April 30

��

2012

��

2011

��

2012

��

2011

Balance at beginning of period

��

62,211

��

51,221

��

61,011

��

48,705

Change in fair value charged to other income

��

1,289

��

3,742

��

2,489

��

6,258

Settlements

��

Balance at end of period

��

63,500

��

54,963

��

63,500

��

54,963

��

The contingent consideration liability is valued at April 30, 2012 in
accordance with the May 2012 settlement described in Note 15.

13. Interest Rate Sensitivity

The Bank's exposure to interest rate risk as a result of a difference or
gap between the maturity or repricing behavior of interest sensitive
assets and liabilities, including derivative financial instruments, is
discussed in Note 29 of the audited consolidated financial statements
for the year ended October 31, 2011 (see page 113 of the 2011 Annual
Report). The following table shows the gap position for selected time
intervals.

Asset Liability Gap Positions

($ millions)

��

Floating

Rate and

Within 1

Month

��

1 to 3

Months

��

3 Months

to 1 Year

��

Total

Within 1

Year

��

1 Year to

5 Years

��

More�� than

5 Years

��

Non-

interest

Sensitive

��

Total

��

April 30, 2012

��

Assets

��

Cash resources and securities

��

265

��

333

��

576

��

1,174

��

678

��

157

��

101

��

2,110

��

Loans

��

6,322

��

566

��

1,578

��

8,466

��

4,792

��

(60)

��

13,282

��

Other assets

��

321

��

321

��

Derivative financial instruments⁽¹⁾

��

Total

��

6,587

��

906

��

2,229

��

9,722

��

5,477

��

241

��

369

��

15,809

��

Liabilities and Equity

��

Deposits

��

4,883

��

1,093

��

3,418

��

9,394

��

3,838

��

(13)

��

13,219

��

Other liabilities

��

380

��

458

��

Debt

��

528

��

603

��

Equity

��

105

��

1,328

��

1,433

��

Derivative financial instruments⁽¹⁾

��

Total

��

4,982

��

1,113

��

3,498

��

9,593

��

4,506

��

1,702

��

15,809

��

Interest Rate Sensitive Gap

��

1,605

��

(207)

��

(1,269)

��

129

��

971

��

233

��

(1,333)

��

Cumulative Gap

��

1,605

��

1,398

��

129

��

129

��

1,100

��

1,333

��

Cumulative Gap as a

�� Percentage of Total Assets

��

10.2

��

8.8

��

0.8

��

0.8

��

7.0

��

8.4

��

January 31, 2012

��

Cumulative Gap

��

1,381

��

1,717

��

490

��

490

��

1,174

��

1,300

��

Cumulative Gap as a

�� Percentage of Total Assets

��

8.9

��

11.1

��

3.2

��

3.2

��

7.6

��

8.4

��

October 31, 2011

��

Cumulative Gap

��

1,415

��

1,251

��

(59)

��

(59)

��

1,224

��

1,254

��

Cumulative Gap as a

�� Percentage of Total Assets

��

9.5

��

8.4

��

(0.4)

��

(0.4)

��

8.2

��

8.4

��

⁽¹⁾	��	Derivative financial instruments are included in this table at the notional amount.
⁽²⁾	��	Accrued interest is excluded in calculating interest sensitive assets and liabilities.
⁽³⁾	��	Potential prepayments of fixed rate loans and early redemption of redeemable fixed term deposits have not been estimated. Redemptions of fixed term deposits where depositors have this option are not expected to be material. The majority of fixed rate loans, mortgages and leases are either closed or carry prepayment penalties.
��	��	��

��The effective, weighted average interest rates for each class of
financial assets and liabilities are shown below:

April 30, 2012

��

Floating

Rate and

Within 1

Month

��

1 to 3

Months

��

3 Months

to 1 Year

��

Total

Within 1

Year

��

1 Year to

5 Years

��

More than

5 Years

��

Total

��

Total assets

��

3.8

��

3.2

��

4.2

��

3.8

��

5.2

��

5.1

��

4.3

Total liabilities

��

1.2

��

2.2

��

2.4

��

1.7

��

2.7

��

2.0

��

Interest rate sensitive gap

��

2.6

��

1.0

��

1.8

��

2.1

��

2.5

��

5.1

��

2.3

��

January 31, 2012

��

Total assets

��

3.9

��

2.4

��

4.5

��

3.8

��

5.3

��

5.3

��

4.3

Total liabilities

��

1.2

��

2.4

��

2.4

��

1.7

��

2.7

��

5.0

��

2.1

��

Interest rate sensitive gap

��

2.7

��

2.1

��

2.1

��

2.6

��

0.3

��

2.2

��

October 31, 2011

��

Total assets

��

4.0

��

2.4

��

4.6

��

3.9

��

5.2

��

5.1

��

4.4

Total liabilities

��

1.2

��

1.9

��

2.5

��

1.7

��

2.8

��

5.8

��

2.1

��

Interest rate sensitive gap

��

2.8

��

0.5

��

2.1

��

2.2

��

2.4

��

(0.7)

��

2.3

��

Based on the current interest rate gap position, it is estimated that a
one-percentage point increase in all interest rates would increase net
interest income by approximately 3.2% or $12,418 (January 31, 2012 -
3.7% or $13,519) and decrease other comprehensive income $10,762
(January 31, 2012 - $10,098) net of tax, respectively over the
following twelve months. A one-percentage point decrease in all
interest rates would decrease net interest income by approximately 4.4%
or $17,239 (January 31, 2012 - 4.5% or $16,549) and increase other
comprehensive income $10,762 (January 31, 2012 - $10,098) net of tax.

14. Capital Management

Capital for Canadian financial institutions is managed and reported
until December 2012 in accordance with a capital management framework
specified by OSFI commonly called Basel II. A revised capital framework
(called Basel III) is effective for Canadian financial institutions
beginning on January 1, 2013. Further details are available in the
Capital Management section in the Q2 2012 Management's Discussion and
Analysis.

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

Additional information about the Bank's capital management practices is
provided in Note 32 to the fiscal 2011 audited financial statements
beginning on page 116 of the 2011 Annual Report. The 2011 capital
structure and regulatory ratios reflect the returns filed and have not
been restated to IFRS.

Basel II Capital Structure and Regulatory Ratios

��

As at

April 30

2012

��

As at

January 31

2012

��

As at

October 31

2011

��

Capital

��

�� Tier 1

��

1,318,999

��

1,289,705

��

1,350,466

��

�� Total

��

1,760,892

��

1,854,871

��

1,869,880

��

Capital ratios

��

�� Tier 1

��

9.9

��

10.2

��

11.1

�� Total

��

13.2

��

14.6

��

15.4

��

Assets to capital multiple

��

9.0

��

8.3

��

7.9

��

During the three and six months ended April 30, 2012, the Bank complied
with all internal and external capital requirements.

The decrease in Tier 1 capital from October 31, 2011 to January 31, 2012
reflects the expiration of a Basel II transition provision that
permitted the capital deduction related to CWB's insurance subsidiary
($84,503 at April 30, 2012; $83,500 at January 31, 2012; $80,942 at
October 31, 2011) to be deducted from Tier 2 capital.�� Beginning in the
first quarter of 2012, the deduction is recorded 50% against Tier 1
capital and 50% against Tier 2 capital.

In March 2012, the Bank redeemed $125,000 subordinated debentures with a
fixed interest rate of 5.07%. Of the $125,000 debentures, $5,000 were
held by Canadian Direct Insurance Incorporated, a wholly owned
subsidiary, and were eliminated on consolidation.

15. Subsequent Event

On May 29, 2012, CWB settled the contingent consideration associated
with the February 1, 2010 acquisition of National Leasing Group Inc.
with the issuance of 2,256,868 CWB common shares valued at $63,500. The
number of CWB common shares issued was based on the volume weighted
average share price as reported by Bloomberg LP for the 20 trading days
from April 18 to May 15, 2012, inclusive.

16. Transition to IFRS

CWB adopted IFRS effective November 1, 2010 as a replacement of previous
Canadian GAAP. The Bank's opening consolidated balance sheet was
prepared as at November 1, 2010 in accordance with IFRS 1 - First time Adoption of IFRS as issued by the IASB. This note explains the adjustments made by the
Bank in preparing the required adjustments between IFRS and Canadian
generally accepted accounting principles (Canadian GAAP) for the
comparative period ended April 30, 2011. No material adjustments to the
consolidated statement of cash flows were required.

(a)��Business combinations - The Bank elected to apply IFRS retrospectively to business combinations
that occurred on or after February 1, 2010. This election resulted in
the adjustment of the February 1, 2010 acquisition of National Leasing.
The following transition adjustments were required:

Under Canadian GAAP, contingent consideration was recorded only when it
was determinable beyond a reasonable doubt. Under IFRS, certain
contingent consideration arrangements are reported at fair value as at
the acquisition date, and each period thereafter, the contingent
consideration fair value is re-measured and any adjustments are
recorded in the other income (non-tax deductible);

Under Canadian GAAP, acquisition-related costs were included in the cost
of the acquisition, while under IFRS, acquisition-related costs are
expensed; and

Under Canadian GAAP, the valuation of the Bank's shares issued as part
of the consideration for the acquisition was based on a reasonable time
frame before and after the acquisition date. Under IFRS, the valuation
is completed on the acquisition date.

The impact arising from the change is detailed in the following
consolidated balance sheets, income statements and statements of
comprehensive income under the heading "(a) Business Combinations". The
increase noted in other assets relates to goodwill, and the increase
noted in other liabilities relates to the acquisition contingent
consideration obligation.

(b)��Derecognition of securitized financial assets - The Bank participates in securitization activities. Securitization
consists of the transfer of equipment leases to an independent trust or
other third party, which purchases the cash flows associated with the
leases and may issue securities to investors. Under Canadian GAAP,
securitized assets were accounted for as sales and removed from the
consolidated balance sheet as the Bank surrenders control of the
transferred assets and receives consideration other than beneficial
interests in the transferred assets. Under IFRS, because the Bank
retains a significant portion of the credit risk relating to the
leases, the derecognition criteria within IAS 39 - Financial Instruments: Recognition and Measurement are not met and the leases are accounted for as a secured borrowing
with the underlying leases of the securitization remaining on the
consolidated balance sheet and a debt security recognized for the
funding received.

The impact arising from the change is detailed in the following
consolidated balance sheets, consolidated income statements and
consolidated statements of comprehensive income under the heading "(b)
Derecognition".

(c)��Consolidation - Under IFRS, a special purpose entity (SPE) is consolidated if it is
deemed to be controlled by the reporting entity, as determined under
specific criteria. Canadian Western Bank Capital Trust is consolidated
under IFRS, which resulted in a $105 million decrease in deposits and
the presentation of the CWB Capital Trust Capital Securities Series 1
(WesTS) as equity attributed to non-controlling interests.
Distributions on the WesTS that were effectively reported as deposit
interest expense under Canadian GAAP are now presented as an equity
dividend within IFRS "net income attributable to non-controlling
interests." For more information about this special purpose entity,
refer to Note 15 to the consolidated financial statements beginning on
page 100 of the 2011 Annual Report.

(d)��Impairment of available-for-sale securities - Under both Canadian GAAP and IFRS, available-for-sale securities are
reported on the balance sheet at fair value with changes in fair value
generally reported in other comprehensive income. An unrealized loss is
recognized in net income when a security is considered impaired; a
subsequent recovery in the value of an equity security is not reversed
through net income until the security is either sold or redeemed. Under
Canadian GAAP, a significant or prolonged decline in the fair value of
an investment below its cost was assessed in the context of whether it
was considered an "other than temporary impairment" (OTTI). Under IFRS,
the concept of OTTI does not exist and either a significant or
prolonged decline in fair value is considered objective evidence of
impairment. The differences between Canadian GAAP and IFRS will
generally result in earlier recognition of impairment losses through
net income under IFRS.

(e)��Other reclassifications - Certain other financial statement reclassifications have been made on
the transition to IFRS. An example includes the presentation of the
non-controlling interest in Adroit Investment Management Ltd. which has
been reclassified from other liabilities under Canadian GAAP to
non-controlling interests (presented in equity) under IFRS. In addition
to the IFRS transition adjustments previously described, the
recognition of certain credit related fees was also amended. Certain
credit related fees, previously recognized in other income, are now
reflected as part of the loan yield and amortized to net interest
income over the expected life of the loan. Because total loans are
reported net of deferred loan fees, this change resulted in a decrease
in total loans of $17,982 and a reduction in retained earnings of
$13,450. While the change had no impact on 2011 net income,
approximately $14,514 was reclassified from other income to net
interest income.

The impact arising from the changes above are detailed in the following
consolidated balance sheets, consolidated income statements and
consolidated statements of comprehensive income under the heading "(e)
Other Adjustments".

Reconciliation of Condensed Consolidated Balance Sheet

As at April 30, 2011 (unaudited)

��

IFRS Adjustments

��

(a)

��

(b)

��

(c)

��

(d)

��

(e)

��

Assets

��

Canadian

GAAP

��

Business

Combinations

��

Derecognition

��

Consolidation

��

��AFS

Impairment

��

Other

Adjustments

��

��IFRS

Cash resources, securities

��and securities under resale

�� agreements

��

2,065,554

��

2,065,554

Loans

��

11,238,552

��

139,716

��

(17,982)

��

11,360,286

Other assets

��

296,074

��

7,839

��

(8,700)

��

4,532

��

299,745

Total Assets

��

13,600,180

��

7,839

��

131,016

��

(13,450)

��

13,725,585

��

Liabilities

��

Deposits

��

11,361,466

��

(105,000)

��

11,256,466

Other liabilities

��

396,014

��

24,093

��

(10,201)

��

(218)

��

409,688

Debt

��

545,000

��

143,265

��

688,265

Total Liabilities

��

12,302,480

��

24,093

��

133,064

��

(105,000)

��

(218)

��

12,354,419

Equity

��

�� Preferred shares

��

209,750

��

209,750

�� Common shares

��

387,740

��

268

��

388,008

�� Retained earnings

��

661,394

��

(16,522)

��

(2,048)

��

(1,752)

��

(13,450)

��

627,622

��Share-based payment reserve

��

20,795

��

20,795

�� Other reserves

��

18,021

��

1,752

��

19,773

Total Shareholders' Equity

��

1,297,700

��

(16,254)

��

(2,048)

��

(13,450)

��

1,265,948

�� Non-controlling interest

��

105,000

��

218

��

105,218

Total Equity

��

1,297,700

��

(16,254)

��

(2,048)

��

105,000

��

(13,232)

��

1,371,166

Total Liabilities and Equity

��

13,600,180

��

7,839

��

131,016

��

(13,450)

��

13,725,585

��

Reconciliation of Condensed Consolidated Income Statements

For the three months ended April 30, 2011 (unaudited)

��

IFRS Adjustments

��

(a)

��

(b)

��

(c)

��

(d)

��

(e)

��

Canadian

GAAP

��

Business

Combinations

��

Derecognition

��

Consolidation

��

AFS

Impairment

��

Other

Adjustments

��

IFRS

Net interest income

��

90,897

��

1,337

��

1,647

��

2,899

��

96,780

Provision for credit losses

��

5,267

��

5,278

Other income

��

28,506

��

(3,742)

��

(1,264)

��

(2,899)

��

20,601

Non-interest expenses

��

55,408

��

55,408

Income taxes

��

14,238

��

14,255

Non-controlling interest in

�� subsidiary

��

(50)

��

Net income

��

44,440

��

(3,742)

��

1,647

��

42,440

Net income attributable to

�� non-controlling interests

��

1,647

��

1,697

Net income attributable to

�� shareholders of the Bank

��

44,440

��

(3,742)

��

40,743

Preferred share dividends

��

3,802

��

3,802

Net income available to

�� common shareholders

��

40,638

��

(3,742)

��

36,941

��

For the six months ended April 30, 2011 (unaudited)

��

IFRS Adjustments

��

(a)

��

(b)

��

(c)

��

(d)

��

(e)

��

Canadian

GAAP

��

Business

Combinations

��

Derecognition

��

Consolidation

��

AFS

Impairment

��

Other

Adjustments

��

IFRS

Net interest income

��

181,579

��

3,141

��

3,347

��

7,186

��

195,253

Provision for credit losses

��

11,483

��

11,528

Other income

��

56,927

��

(6,258)

��

(2,736)

��

(7,186)

��

40,747

Non-interest expenses

��

110,536

��

110,536

Income taxes

��

27,985

��

28,082

Non-controlling interest in

�� Subsidiary

��

110

��

(110)

��

Net income

��

88,392

��

(6,258)

��

263

��

3,347

��

110

��

85,854

Net income attributable to

�� non-controlling interests

��

3,347

��

110

��

3,457

Net income attributable to

�� shareholders of the Bank

��

88,392

��

(6,258)

��

��263

��

82,397

Preferred share dividends

��

7,604

��

7,604

Net income available to

�� common shareholders

��

80,788

��

(6,258)

��

263

��

74,793

��

No transition adjustments to other comprehensive income were required
for the three and six months ended April 30, 2011.

��

Shareholder Information		��	��	��	��
��	Head Office	��	��	��	Transfer Agent and Registrar
��	Canadian Western Bank & Trust	��	��	��	Valiant Trust Company
��	Suite 3000, Canadian Western Bank Place	��	��	��	Suite 310, 606 - 4^th Street S.W.
��	10303 Jasper Avenue	��	��	��	Calgary, AB�� T2P 1T1
��	Edmonton, AB�� T5J 3X6	��	��	��	Telephone: (403) 233-2801
��	Telephone: (780) 423-8888	��	��	��	Fax: (403) 233-2857
��	Fax: (780) 423-8897	��	��	��	Website: www.valianttrust.com
��	www.cwbankgroup.com	��	��	��	E-mail: inquiries@valianttrust.com
��	��	��	��	��	��
��	��	��	��	��	��
��	Subsidiary Offices	��	��	��	Eligible Dividends Designation
��	National Leasing Group Inc.	��	��	��	CWB designates all dividends for both common and preferred
��	1525 Buffalo Place	��	��	��	shares paid to Canadian residents as "eligible dividends",
��	Winnipeg, MB�� R3T 1L9	��	��	��	as defined in the Income Tax Act (Canada), unless otherwise
��	Toll-free: 1-800-665-1326	��	��	��	noted.
��	Toll-free fax: 1-866-408-0729	��	��	��	��
��	www.nationalleasing.com	��	��	��	��
��	��	��	��	��	Dividend Reinvestment Plan
��	Canadian Western Trust Company	��	��	��	CWB's dividend reinvestment plan allows common and
��	Suite 600, 750 Cambie Street	��	��	��	preferred shareholders to purchase additional common shares
��	Vancouver, BC�� V6B 0A2	��	��	��	by reinvesting their cash dividend without incurring
��	Toll-free: 1-800-663-1124	��	��	��	brokerage and commission fees. For information about
��	Fax: (604) 669-6069	��	��	��	participation in the plan, please contact the Transfer Agent
��	www.cwt.ca	��	��	��	and Registrar or visit www.cwbankgroup.com.��
��	��	��	��	��	��
��	Valiant Trust Company	��	��	��	��
��	Suite 310, 606 - 4^th Street S.W.	��	��	��	Investor Relations
��	Calgary, AB�� T2P 1T1	��	��	��	For further financial information contact:
��	Toll-free: 1-866-313-1872	��	��	��	Investor & Public Relations
��	Fax: (403) 233-2857	��	��	��	Canadian Western Bank
��	www.valianttrust.com	��	��	��	Telephone: (780) 441-3770
��	��	��	��	��	Toll-free: 1-800-836-1886
��	Canadian Direct Insurance Incorporated	��	��	��	Fax: (780) 969-8326
��	Suite 600, 750 Cambie Street	��	��	��	Email: InvestorRelations@cwbank.com
��	Vancouver, BC�� V6B 0A2	��	��	��	��
��	Telephone: (604) 699-3678	��	��	��	��
��	Fax: (604) 699-3851	��	��	��	Online Investor Information
��	www.canadiandirect.com	��	��	��	Additional investor information including supplemental
��	��	��	��	��	financial information and�� corporate presentations are
��	Adroit Investment Management Ltd.	��	��	��	available on CWB's website at www.cwbankgroup.com.
��	Suite 1250, Canadian Western Bank Place	��	��	��	��
��	10303 Jasper Avenue	��	��	��	��
��	Edmonton, AB�� T5J 3N6	��	��	��	Quarterly Conference Call and Webcast
��	Telephone: (780) 429-3500	��	��	��	CWB's quarterly conference call and live audio webcast will
��	Fax: (780) 429-9680	��	��	��	take place on June 7, 2012 at 2:00 p.m. ET.��
��	www.adroitinvestments.ca	��	��	��	The webcast will be archived on the Bank's website at
��	��	��	��	��	www.cwbankgroup.com for sixty days. A replay of the
��	Stock Exchange Listings	��	��	��	conference call will be available until June 21, 2012
��	The Toronto Stock Exchange	��	��	��	by dialing (416) 849-0833 or toll-free (855) 859-2056
��	�� Common Shares: CWB	��	��	��	and entering passcode 81206238.
��	��Series 3 Preferred Shares: CWB.PR.A	��	��	��	��
��	��	��	��	��

��

For further information:

Larry M. Pollock
President and Chief Executive Officer
Canadian Western Bank
Phone: (780) 423-8888

Kirby Hill, CFA
Director, Investor and Public Relations
Canadian Western Bank
Phone: (780) 441-3770
Email:��kirby.hill@cwbank.com

Canada Dividend Investor

Thursday, June 7, 2012

CWB - <span class="simulate_din_font">CWB reports record quarterly revenues based on very strong loan growth</span> (CAD 0.16)

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