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CWB Reports Record Quarterly Earnings

Common Share Dividend of $0.20 per Share Declared, Up 11% Over the Dividend Declared a Year Earlier

EDMONTON, ALBERTA -- (Marketwired) -- 08/27/14 -- Canadian Western Bank (TSX: CWB) (CWB) -

Third Quarter 2014 Highlights(1) (compared to the same period in the prior year)


--  Record net income available to common shareholders of $56.6 million, up
    19%.
--  Record diluted earnings per common share of $0.70, up 17%, and adjusted
    cash earnings per common share of $0.71, up 16%.
--  Record total revenues, on a taxable equivalent basis (teb)(1), of $159.8
    million, up 11%.
--  Strong loan growth of 3% in the quarter, 10% year-to-date and 12% over
    the past twelve months.
--  Net interest margin (teb) of 2.58%, compared to 2.59% in the previous
    quarter and 2.70% last year.
--  Solid Basel III regulatory capital ratios using the Standardized
    approach for calculating risk-weighted assets of 8.0% common equity Tier
    1 (CET1), 9.3% Tier 1 and 12.9% total ratio.
--  Surpassed $20 billion of total balance sheet assets.

(1) Highlights include certain non-IFRS measures - refer to definitions following the table of Selected Financial Highlights on page 4.

Canadian Western Bank today announced strong third quarter financial performance including the achievement of record quarterly earnings. Compared to the same quarter last year, net income available to common shareholders of $56.6 million was up 19%, while diluted earnings per common share increased 17% to $0.70. Adjusted cash earnings per common share, which excludes the after-tax amortization of acquisition-related intangible assets and non-tax deductible changes in fair value of contingent consideration, increased 16% to $0.71. Total revenues (teb) of $159.8 million increased 11%, reflecting the positive impact of strong 12% loan growth and a 22% increase in non-interest income, which more than offset a 12 basis point decline in net interest margin (teb) to 2.58%.

Compared to last quarter, net income available to common shareholders increased 11% as the benefits of three additional revenue earning days, 3% loan growth, and lower preferred share dividends offset higher non-interest expenses and lower non-interest income. Adjusted cash earnings per share was up 9%.

Year-to-date net income available to common shareholders of $160.4 million increased 18% as the combined impact of strong growth in loans and non-interest income as well as lower preferred share dividends more than offset a four basis point decline in net interest margin and higher non-interest expenses. Diluted earnings per share increased 16% to reach $1.98 and adjusted cash earnings per share increased 17% to $2.03.

"Record earnings this quarter were driven by solid results across our banking, trust, insurance and wealth management businesses, as well as the impact of last quarter's preferred share transactions," said Chris Fowler, CWB Group President and CEO. "We've achieved our annual double-digit loan growth target within the first nine months and credit quality has been better than expected. While relatively stable net interest margin supported our results this quarter, a challenging interest rate environment and competitive factors continue to pressure this key metric."

"Activity within our key western Canadian markets continues to be strong relative to other regions and our pipeline for new business remains very encouraging," continued Mr. Fowler. "In order to capitalize on these opportunities we continue to invest strategically in developing our people, as well in the technology and infrastructure required to further enhance our product and service offerings. We expect these investments to provide material future benefits to all of our stakeholders, including clients, employees and shareholders."

On August 27, 2014, CWB's Board of Directors declared a cash dividend of $0.20 per common share, payable on September 25, 2014 to shareholders of record on September 15, 2014. This quarterly dividend was 11% ($0.02) higher than the quarterly dividend declared one year ago and consistent with the prior quarter. The Board of Directors also declared a cash dividend of $0.275 per Series 5 Preferred Share, payable on October 31, 2014 to shareholders of record on October 24, 2014.

Fiscal 2014 Performance Target Ranges and Outlook

CWB's actual year-to-date performance together with the 2014 performance target ranges are presented in the table below:


                                                    2014
                                                Year-to-date       2014
                                                Performance   Target Ranges
----------------------------------------------------------------------------
Adjusted cash earnings per common share
 growth(1) (2)                                      17%          12 - 16%
Total revenue (teb) growth(1)                       13%          10 - 12%
Loan growth(3)                                      12%          10 - 12%
Provision for credit losses as a percentage of
 average loans(4)                                  0.17%       0.18 - 0.23%
Efficiency ratio (teb)(5)                          45.7%       46% or less
Return on common shareholders' equity(6)           14.7%       14.0 - 15.0%
Return on assets(7)                                1.10%       1.05 - 1.15%
----------------------------------------------------------------------------
 (1) Year-to-date performance for adjusted cash earnings per common share
     and total revenue growth (teb) is the current year results over the
     same period last year.
 (2) Adjusted cash earnings per common share is calculated as diluted
     earnings per common share excluding the after-tax amortization of
     acquisition-related intangible assets and the non-tax deductible change
     in fair value of contingent consideration (which represent non-cash
     charges that are not considered indicative of ongoing business
     performance).
 (3) Loan growth is the increase over the past twelve months.
 (4) Year-to-date provision for credit losses, annualized, divided by
     average total loans.
 (5) Efficiency ratio (teb) is calculated as non-interest expenses divided
     by total revenues (teb) excluding the non-tax deductible change in fair
     value of contingent consideration.
 (6) Return on common shareholders' equity is calculated as annualized net
     income available to common shareholders divided by average common
     shareholders' equity.
 (7) Return on assets is calculated as annualized net income available to
     common shareholders divided by average total assets.

Financial performance through the first nine months of 2014 has CWB positioned to achieve favourable full-year results compared to all of our 2014 performance target ranges. Growth in loans, total revenues and adjusted cash earnings per share was driven by ongoing activity across our key markets. Year-to-date net interest margin (teb) was down four basis points compared to last year, as the benefit of more favourable fixed term deposit costs and debt expense, coupled with a lower average balance of cash and securities as a percentage of total assets, was more than offset by lower loan yields. Continued pressure on this key metric is expected in the absence of increases in the prime lending interest rate and/or a sustained steepening of the yield curve. Achievement of our revenue growth target for the year will be challenging in view of our strong results in the final quarter last year and the expected decline in fourth quarter net insurance revenues this year resulting from claims expense related to severe Alberta hailstorms in August. Based on year-to-date performance and in consideration of expected revenues and planned expenditures through the final quarter, we believe the 2014 efficiency ratio target is also challenging but attainable. Overall credit quality continues to be strong and we expect the annual provision for credit losses as a percentage of average loans to remain below the target range.

Economic fundamentals within CWB's key markets in Western Canada remain strong relative to the rest of the country. Consensus forecasts call for ongoing economic stability in the United States (U.S.) and globally and further expansion within the domestic economy through the remainder of 2014 and into 2015. Along with expectations for continued outperformance in Canada's western provinces, these views support our optimistic outlook for continued profitable growth.

We look forward to providing our fourth quarter and fiscal year end results, along with performance target ranges for 2015, on December 4, 2014.

About CWB Group

Canadian Western Bank offers a full range of business and personal banking services across the four western provinces and is the largest publicly traded Canadian bank headquartered in Western Canada. CWB, along with its operating affiliates, National Leasing, Canadian Western Trust, Valiant Trust, Canadian Direct Insurance, Canadian Western Financial, Adroit Investment Management, and McLean & Partners Wealth Management, collectively offer a diversified range of financial services across Canada and are together known as the CWB Group. The common shares of Canadian Western Bank are listed on the Toronto Stock Exchange under the trading symbol "CWB". CWB's Series 5 preferred shares trade on the Toronto Stock Exchange under the trading symbol "CWB.PR.B". Refer to www.cwb.com for additional information.

Fiscal 2014 Third Quarter Results Conference Call

CWB's third quarter results conference call is scheduled for Thursday, August 28, 2014 at 1:00 p.m. ET (11:00 a.m. MT). CWB's executives will comment on financial results and respond to questions from analysts and institutional investors.

The conference call may be accessed on a listen-only basis by dialing 647-788-4922 or toll-free

877-223-4471. The call will also be webcast live on CWB's website:

www.cwb.com/investor-relations/presentations-and-events

A replay of the conference call will be available until September 11, 2014 by dialing 416-621-4642 (Toronto) or 1-800-585-8367 (toll-free) and entering passcode 78022131.

Selected Financial Highlights


                                                                      Change
                                                                        from
                                              For the three          July 31
                                               months ended             2013
                                       ---------------------------
(unaudited)                              July 31 April 30  July 31
($ thousands, except per share amounts)     2014     2014  2013(1)
----------------------------------------------------------------------------
Results of Operations
Net interest income (teb - see below)  $131,751 $123,727 $121,002        9%
Less teb adjustment                       1,888    1,989    2,161     (13)
----------------------------------------------------------------------------
Net interest income per financial
 statements                             129,863  121,738  118,841        9
Non-interest income                      28,027   29,794   23,032       22
Total revenues (teb)                    159,778  153,521  144,034       11
Total revenues                          157,890  151,532  141,873       11
Net income available to common
 shareholders                            56,580   51,191   47,484       19
Earnings per common share
Basic(2)                                   0.71     0.64     0.60       18
Diluted(3)                                 0.70     0.63     0.60       17
Adjusted cash(4)                           0.71     0.65     0.61       16
Return on common shareholders'
 equity(5)                                 14.9%    14.4%    14.1%      80bp
Return on assets(7)                        1.11     1.07     1.06        5
Efficiency ratio (teb)(8)                  45.9     46.0     46.5     (60)
Efficiency ratio                           46.4     46.6     47.2     (80)
Net interest margin (teb)(9)               2.58     2.59     2.70     (12)
Net interest margin                        2.54     2.55     2.65     (11)
Provision for credit losses as a
percentage of average loans                0.16     0.16     0.20      (4)
----------------------------------------------------------------------------
Per Common Share
Cash dividends                         $   0.20 $   0.19 $   0.18       11%
Book value                                19.03    18.52    16.97       12
Closing market value                      41.62    37.14    28.92       44
Common shares outstanding (thousands)    80,270   80,045   79,372        1
----------------------------------------------------------------------------
Balance Sheet and Off-Balance Sheet
 Summary
                                        20,522,  19,616,  17,919,
Assets                                 $    735 $    599 $    636       15%
                                        17,141,  16,698,  15,273,
Loans(10)                                   881      435      422       12
                                        17,457,  16,668,  15,067,
Deposits                                    554      534      142       16
Debt(11)                                939,204  872,962  852,789       10
                                        1,652,7  1,607,4  1,556,8
Shareholders' equity(10)(11)                 08       86       13        6
                                        10,278,  11,538,  8,209,9
Assets under administration                 307      750       49       25
                                        1,788,5  1,763,2  1,811,0
Assets under management                      00       56       68      (1)
----------------------------------------------------------------------------
Capital Adequacy(12)
Common equity Tier 1 ratio                  8.0%     8.1%     7.9%      10bp
Tier 1 ratio                                9.3      9.4      9.6     (30)
Total ratio                                12.9     13.1     13.9    (100)
----------------------------------------------------------------------------

                                                               Change
                                                                 from
                                          For the nine        July 31
                                          months ended           2013
                                       ------------------
(unaudited)                              July 31  July 31
($ thousands, except per share amounts)     2014  2013(1)
---------------------------------------------------------------------
Results of Operations
Net interest income (teb - see below)  $380,717 $345,983      10%
Less teb adjustment                       5,967    6,076     (2)
---------------------------------------------------------------------
Net interest income per financial
 statements                             374,750  339,907      10
Non-interest income                      86,352   68,801      26
Total revenues (teb)                    467,069  414,784      13
Total revenues                          461,102  408,708      13
Net income available to common
 shareholders                           160,399  135,954      18
Earnings per common share
Basic(2)                                   2.01     1.72      17
Diluted(3)                                 1.98     1.71      16
Adjusted cash(4)                           2.03     1.74      17
Return on common shareholders'
 equity(5)                                 14.7%    13.9%     80bp(6)
Return on assets(7)                        1.10     1.04       6
Efficiency ratio (teb)(8)                  45.7     46.7   (100)
Efficiency ratio                           46.2     47.4   (120)
Net interest margin (teb)(9)               2.60     2.64     (4)
Net interest margin                        2.56     2.60     (4)
Provision for credit losses as a
percentage of average loans                0.17     0.19     (2)
---------------------------------------------------------------------
Per Common Share
Cash dividends                         $   0.58 $   0.52      12%
Book value                                19.03    16.97      12
Closing market value                      41.62    28.92      44
Common shares outstanding (thousands)    80,270   79,372       1
---------------------------------------------------------------------
Balance Sheet and Off-Balance Sheet
 Summary
Assets
Loans(10)
Deposits
Debt(11)
Shareholders' equity(10)(11)
Assets under administration
Assets under management
---------------------------------------------------------------------
Capital Adequacy(12)
Common equity Tier 1 ratio
Tier 1 ratio
Total ratio
---------------------------------------------------------------------
 (1) Effective November 1, 2013, CWB retrospectively adopted IFRS 10
     Consolidated Financial Statements as described in Note 1 of the
     consolidated financial statements.
 (2) Basic earnings per common share (EPS) is calculated as net income
     available to common shareholders divided by the average number of
     common shares outstanding.
 (3) Diluted EPS is calculated as net income available to common
     shareholders divided by the average number of common shares outstanding
     adjusted for the dilutive effects of stock options.
 (4) Adjusted cash EPS is diluted EPS excluding the after-tax amortization
     of acquisition-related intangible assets and the non-tax deductible
     change in fair value of contingent consideration. These exclusions
     represent non-cash charges and are not considered indicative of ongoing
     business performance.
 (5) Return on common shareholders' equity is calculated as annualized net
     income available to common shareholders divided by average common
     shareholders' equity.
 (6) bp - basis point change.
 (7) Return on assets is calculated as annualized net income available to
     common shareholders divided by average total assets.
 (8) Efficiency ratio is calculated as non-interest expenses divided by
     total revenues excluding the non-tax deductible change in fair value of
     contingent consideration.
 (9) Net interest margin is calculated as annualized net interest income
     divided by average total assets.
 (10 Effective May 1, 2014, CWB retrospectively applied a change in
  )  accounting policy for internal direct leasing costs as described in
     Note 1 of the consolidated financial statements.
 (11 During the quarter, CWB retrospectively changed the financial statement
  )  classification of the First Preferred Shares Series 5 issued in the
     second quarter of 2014 from debt to equity as described in Note 1 of
     the consolidated financial statements.
 (12 Capital adequacy is calculated in accordance with Basel III guidelines
  )  issued by the Office of the Superintendent of Financial Institutions
     Canada (OSFI).

Taxable Equivalent Basis (teb)

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

Non-IFRS Measures

CWB uses a number of financial measures to assess its performance. These measures provide readers with an enhanced understanding of how management views the results. Non-IFRS measures may also provide readers the ability to analyze trends and provide comparisons with our competitors. Taxable equivalent basis, adjusted cash earnings per common share, return on common shareholders' equity, return on assets, efficiency ratio, net interest margin, common equity Tier 1, Tier 1 and total capital adequacy ratios, and average balances do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other financial institutions.

Management's Discussion and Analysis

This management's discussion and analysis (MD&A), dated August 27, 2014, should be read in conjunction with Canadian Western Bank's (CWB) unaudited condensed interim consolidated financial statements for the period ended July 31, 2014, and the audited consolidated financial statements and MD&A for the year ended October 31, 2013, available on SEDAR at www.sedar.com and CWB's website at www.cwb.com.

Forward-looking Statements

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

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

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

Assumptions about the performance of the Canadian economy in 2014 and how it will affect CWB's businesses are material factors considered when setting organizational objectives and targets. Performance target ranges for fiscal 2014 consider the following management assumptions: a modest acceleration of economic growth in Canada and relatively stronger performance in the four western provinces; prices for energy and other commodities remaining at levels comparable with those observed at October 31, 2013; sound credit quality with actual losses remaining within CWB's historical range of acceptable levels; and, a relatively stable net interest margin (teb) compared to the prior year, attributed to favourable deposit costs and shifts in asset mix that help to offset impacts from the very low interest rate environment and competitive factors. Management's assumptions at the end of the third quarter remained relatively unchanged compared to those at the 2013 fiscal year end, although compression of net interest margin has been greater than anticipated.

Potential risks that would have a material adverse impact on current economic expectations and forecasts include a slowing rate of economic growth in the U.S., a significant and sustained deterioration in Canadian residential real estate prices, or a significant disruption in other global economies. Unexpected pricing competition, including competition for core deposits, and/or disruptions in domestic or global financial markets that meaningfully impact the costs of overall deposit funding may also contribute to adverse financial results compared to expectations.

Overview

CWB reported record quarterly financial performance led by solid operating results across all business lines and supported by capital structure efficiencies achieved through last quarter's preferred share transactions. Strong loan growth continued at 3% in the quarter, 10% year-to-date and 12% over the past twelve months.

Q3 2014 vs. Q3 2013

Net income available to common shareholders was up 19% to a record $56.6 million as the benefit of strong loan growth, higher non-interest income and lower preferred share dividends more than offset a 12 basis point decrease in net interest margin (teb) and higher non-interest expenses. Non-interest income was 22% higher primarily reflecting a significant increase in net insurance revenues and higher trust and wealth management revenues. Net insurance revenues in the third quarter last year were materially reduced by net claims expense related to catastrophic flooding in southern Alberta. Diluted earnings per common share was up 17% to $0.70 while adjusted cash earnings per common share, which excludes the after-tax amortization of acquisition-related intangible assets and non-tax deductible changes in fair value of contingent consideration, increased 16% to $0.71.

Q3 2014 vs. Q2 2014

Net income available to common shareholders was 11% higher. The positive revenue impacts of three additional revenue earning days and strong loan growth, combined with lower preferred share dividends, offset higher non-interest expenses and lower non-interest income.

YTD 2014 vs. YTD 2013

Net income available to common shareholders of $160.4 million was up 18% as growth in total revenues (teb) of 13% more than offset higher non-interest expenses. Higher total revenues were driven by a 10% increase in net interest income (teb) and 26% higher non-interest income. The year-to-date net interest margin (teb) of 2.60% was down four basis points. Adjusted cash earnings per share increased 17% to $2.03.

ROE and ROA

Third quarter return on common shareholders' equity (ROE) was 14.9%, compared to 14.4% last quarter and 14.1% last year. Year-to-date ROE of 14.7% was 80 basis points higher than 2013. Return on assets (ROA) of 1.11% was up four basis points from last quarter and five basis points compared to a year earlier. Year-to-date ROA of 1.10% compares to 1.04% last year.

Total Revenues (teb)

Total revenues, comprised of both net interest income (teb) and non-interest income, of $159.8 million were 11% higher than the same quarter in 2013 and up 4% from the previous quarter. Year-to-date total revenues of $467.1 million were up 13% compared to last year.

Net Interest Income (teb)

Q3 2014 vs. Q3 2013

Net interest income of $131.8 million was up 9% as the revenue contribution from strong 12% loan growth more than offset a 12 basis point decline in net interest margin (teb) to 2.58%. The change in net interest margin mainly resulted from lower asset yields.

Q3 2014 vs. Q2 2014

Net interest income was up 6%, mainly due to the combined benefits of three additional revenue earning days, strong 3% loan growth and relatively stable net interest margin.

YTD 2014 vs. YTD 2013

Net interest income of $380.7 million was up 10% as strong loan growth more than offset a decline of four basis points in net interest margin (teb) to 2.60%. The decline in net interest margin (teb) primarily reflects lower loan yields, partially offset by more favourable fixed term deposit costs and debt expense, as well as a lower average balance of cash and securities.

Interest rate sensitivity

Note 13 to the unaudited interim consolidated financial statements summarizes CWB's exposure to interest rate risk as at July 31, 2014. The estimated sensitivity of net interest income to a change in interest rates is presented in the table below. The amounts represent the estimated change in net interest income that would result over the following twelve months from a one-percentage point change in interest rates. The estimates are based on a number of assumptions and factors, which include:


--  a constant structure in the interest sensitive asset and liability
    portfolios;
--  interest rate changes affecting interest sensitive assets and
    liabilities by proportionally the same amount, except floor levels for
    various deposit liabilities, and applied at the appropriate repricing
    dates; and,
--  no early redemptions.

                                          July 31     April 30      July 31
($ thousands)                                2014         2014         2013
----------------------------------------------------------------------------

Estimated impact on net interest
 income of a 1% increase in interest
 rates
1 year                                $     7,584  $    16,270  $    15,324
----------------------------------------------------------------------------
1 year percentage change                      1.6%         3.8%         3.6%
----------------------------------------------------------------------------

Estimated impact on net interest
 income of a 1% decrease in interest
 rates
1 year                                $  (24,579)  $  (29,418)  $  (25,267)
----------------------------------------------------------------------------
1 year percentage change                    (5.3)%       (6.9)%       (5.9)%
----------------------------------------------------------------------------

Management maintains the asset liability structure and interest rate sensitivity within CWB's established policies through pricing and product initiatives, as well as the use of interest rate swaps and other appropriate strategies. Higher sensitivity to a decrease in rates is due to asymmetry in the impact of falling rates on loans and deposits. A decrease of one-percentage point in rates is assumed to reduce loan yields by a nearly equivalent amount. The assumed change in total deposit costs is lower because deposits yielding less than one percent cannot be reduced to a rate lower than zero.

In addition to the projected changes in net interest income noted above, it is estimated that a one-percentage point increase in all interest rates at July 31, 2014 would decrease unrealized gains related to available-for-sale securities and the fair value of interest rate swaps designated as hedges, and result in a reduction in other comprehensive income of approximately $30.8 million, net of tax (July 31, 2013 - $12.7 million). It is estimated that a one-percentage point decrease in all interest rates at July 31, 2014 would have the opposite effect, increasing other comprehensive income by approximately $31.6 million, net of tax (July 31, 2013 - $12.7 million).

Outlook for net interest margin

Net interest margin (teb) was down one basis point from the previous quarter and continued pressure on this key metric is expected in the absence of increases in the prime lending interest rate and/or a sustained steepening of the interest rate curve. CWB will maintain its long-term strategic focus on mitigating the earnings impact of ongoing margin pressure through efforts to identify quality lending opportunities that offer suitable return for risk, improving the funding mix to lower the overall cost of funds, prudently managing the balance of cash and securities and ongoing contributions from non-interest income sources.

Non-interest Income

Q3 2014 vs. Q3 2013

Non-interest income of $28.0 million was up 22% ($5.0 million) mainly due to increases in net insurance revenues and trust and wealth management revenues, partially offset by lower other non-interest income and net gains on securities. The increase in net insurance revenues primarily reflects the significant impact on third quarter 2013 insurance results of net claims expense related to catastrophic flooding in southern Alberta. Other non-interest income was higher in the third quarter last year mainly because of gains realized on the sale of insured residential mortgages. No such gains were realized in the current period. Net gains on securities were also unusually high in the third quarter last year reflecting strategic management of the portfolio in view of favourable conditions within equity and bond markets.

Q3 2014 vs. Q2 2014

Non-interest income was 6% ($1.8 million) lower as an increase of $0.4 million in credit related fee income was more than offset by a $1.2 million decrease in other non-interest income and smaller decreases in the remaining categories. While gains on the sale of residential mortgages contributed to other non-interest income in the prior quarter, no such gains were realized this quarter.

YTD 2014 vs. YTD 2013

Non-interest income was up 26% ($17.6 million) reflecting increases across all categories with the exception of other non-interest income. Trust and wealth management revenues were up $8.5 million, mainly due to the third quarter 2013 investment in McLean & Partners, while the $8.2 million increase in net insurance revenues reflects the flood-related factors discussed above. The decrease in other non-interest income primarily reflects lower gains on the sale of residential mortgages, as well as $0.7 million in charges for changes in the fair value of contingent consideration.

Outlook for non-interest income

Net claims expense related to severe Alberta hailstorms in August 2014 will decrease net insurance revenues in the fourth quarter. Based on the level of net gains on securities realized this quarter and the current composition of the securities portfolio, contributions from this source are expected to be lower through the final quarter of the year, although equity and bond market conditions are inherently unpredictable in the short-term. Management will continue to realize gains on the sale of non-core residential mortgage portfolios as opportunities become available. Such gains are expected to be a recurring, although periodic, source of non-interest income.

Credit Quality

Overall credit quality reflects disciplined underwriting practices and strong economic activity in Western Canada. The dollar level of gross impaired loans at July 31, 2014 represented 0.34% of total loans at quarter end, compared to 0.30% last quarter and 0.48% one year ago.


                                                                      Change
                                                                        from
(unaudited)                                                          July 31
($ thousands)                    For the three months ended             2013
                            ------------------------------------
                                 July 31    April 30     July 31
                                    2014        2014        2013
----------------------------------------------------------------------------

Gross impaired loans,
 beginning of period        $    50,621 $    53,937 $    61,623    (18)%
New formations                   21,398      23,129      23,285     (8)
Reductions, impaired
 accounts paid down or
 returned to performing
 status                        (10,942)    (17,189)     (9,086)      20
Write-offs                      (2,989)     (9,256)     (3,083)     (3)
----------------------------------------------------------------------------
Total Gross Impaired
 Loans(1)                   $    58,088 $    50,621 $    72,739    (20)%
----------------------------------------------------------------------------

Balance of the ten largest
 impaired accounts          $    30,562 $    22,009 $    42,831    (29)%
Total number of accounts
 classified as impaired(3)          117         133         142    (18)
Gross impaired loans as a
 percentage of total
 loans(4)                          0.34%       0.30%       0.48%   (14)bp(2)
 (1) Gross impaired loans include foreclosed assets held for sale with a
     carrying value of $1,154 (April 30, 2014 - $4,157 and July 31, 2013 -
     $6,857).
 (2) bp - basis point change.
 (3) Total number of accounts excludes National Leasing.
 (4) Total loans do not include an allocation for credit losses or deferred
     revenue and premiums.

The level of gross impaired loans fluctuates as loans become impaired and are subsequently resolved, and does not directly reflect the dollar value of expected write-offs given tangible security held in support of lending exposures. The sequential increase in gross impaired loans is consistent with management's previously disclosed expectations that impaired loans would increase from the second quarter's very low levels reflecting normal fluctuations of the credit cycle. The reduction compared to last year mainly resulted from unusually low new formations compared to pay downs, loans returned to performing status and write-offs earlier this year.

Specific allowances for expected write-offs are established through detailed analyses of both the overall quality and ultimate marketability of the security held against impaired accounts. Actual credit losses are expected to remain within CWB's historical range of acceptable levels. As at July 31, 2014, the collective allowance for credit losses exceeded the balance of impaired loans, net of specific allowances, and has also increased as a percentage of total loans.

The total allowance for credit losses (collective and specific) represented 161% of gross impaired loans at quarter end, compared to 176% last quarter and 116% one year ago. The total allowance for credit losses was $93.5 million at July 31, 2014, compared to $89.0 million last quarter and $84.5 million a year earlier.

The quarterly provision for credit losses measured against average loans was 16 basis points, down four basis points from the same quarter last year and consistent with the prior quarter. On a year-to-date basis, the provision for credit losses measured against average loans of 17 basis points was down two basis points from last year. The full year provision for credit losses as a percentage of average loans is likely to fall slightly below the target range of 18 - 23 basis points based on strong credit quality and assumptions for stable credit performance through the final quarter.

Non-interest Expenses

Q3 2014 vs. Q3 2013

Quarterly non-interest expenses of $73.5 million were up 10% ($6.5 million) primarily due to higher full-time salaries and benefits, and premises expense. The change in salaries and benefits mainly resulted from annual salary increments and a larger staff complement to support ongoing growth across all businesses. Premises expense was 19% higher partly reflecting increased rent and depreciation costs related to the relocation of CWB's flagship Edmonton Main Branch to significantly expanded premises.

Q3 2014 vs. Q2 2014

Non-interest expenses were up 4% ($2.9 million). Higher expenses mainly reflect the factors discussed above, as well as increases in general expenses and fees to retain external consultants in support of several strategic initiatives.

YTD 2014 vs. YTD 2013

Non-interest expenses of $213.6 million were 10% ($19.7 million) higher as a result of increases in all categories. Of the total increase in non-interest expenses, one fifth reflects the third quarter 2013 addition of McLean & Partners. Higher salaries and benefits, and premises and equipment expense reflect the factors discussed above. The change in general expenses was driven by regulatory costs, the impact of a higher CWB common share price on Deferred Share Units (DSUs) for directors, and the above-mentioned external consultants fees.

Outlook for non-interest expenses

One of management's key priorities is to deliver strong long-term growth through strategic investment in people, technology, and infrastructure while maintaining effective control of costs. This strategy is aligned with a commitment to maximize long-term shareholder value and is expected to provide material benefits in future periods.

A formal review has been initiated to ensure total compensation is competitive within key markets and enables CWB to continue to attract and retain the most qualified employees. This review is expected to result in changes which may impact salary expense in the coming year.

Work toward implementation of a new core banking system with an initial capital budget of $50 million proceeded through the end of the third quarter. Management expects to finalize a 2015 system implementation date and final budget for this significant project following completion of the analysis and design phases in the fourth quarter.

Opportunities to upgrade and expand branch infrastructure continue to be reviewed. Compliance with an increasing level of regulatory rules and oversight for all Canadian banks also requires the investment of both time and resources. These factors may contribute to higher non-interest expenses in the future.

Efficiency ratio

The third quarter efficiency ratio (teb), which measures non-interest expenses as a percentage of total revenues (teb), was 45.9%, compared to 46.5% last year and 46.0% in the previous quarter.

Improved efficiency compared to last year reflects the revenue benefit of strong growth in loans and non-interest income, partially offset by a 12 basis point decline in net interest margin (teb) and higher non-interest expenses. Improvement in the year-to-date efficiency ratio from 46.7% to 45.7% this year highlights the benefit of positive operating leverage.

Based on year-to-date performance and in consideration of expected revenues and planned expenditures through the final quarter, management believes the 2014 efficiency ratio target of 46% or better is challenging but attainable.

Income Taxes

The third quarter effective income tax rate (teb) was 26.5%, compared to 25.2% last year. The effective income tax rate (teb) for the first nine months of 2014 was 26.3%, compared to 25.6% last year.

Comprehensive Income

Comprehensive income is comprised of net income and other comprehensive income or loss, all net of income taxes, and totaled $57.7 million for the third quarter, compared to $36.0 million last year. The increase in third quarter comprehensive income was driven by a significant decrease in other comprehensive loss and higher net income. The decrease in other comprehensive loss mainly resulted from higher unrealized gains, net of tax, from changes in fair value of available-for-sale securities, primarily driven by changes in the market value of securities. Year-to-date comprehensive income of $180.1 million compares to $135.6 million last year. Higher year-to-date comprehensive income was the result of increases in both net income and other comprehensive income, with the latter driven by the factors described above. While the combined dollar investment in CWB's securities portfolios is relatively small in relation to total liquid assets, it increases the potential for comparatively larger fluctuations in OCI.

Balance Sheet

Total assets increased 5% in the quarter, 15% in the past year and 11% year-to-date to reach $20,523 million at July 31, 2014.

Cash and Securities

Cash and securities totaled $2,992 million at July 31, 2014, compared to $2,285 million a year earlier and $2,535 million at the end of last quarter. Average balances of cash and securities as a percentage of total assets were higher than both the prior quarter and the same quarter last year. Assuming an ongoing supportive economic environment, management expects average balances of cash and securities as a percentage of total assets to remain relatively consistent with the current level through the fourth quarter.

Net unrealized gains recorded on the balance sheet of $4.8 million compare to unrealized gains of $6.4 million last quarter and unrealized losses of $7.1 million a year earlier. The securities portfolio is primarily comprised of high quality debt instruments, preferred shares and common equities that are not held for trading purposes and, where applicable, are typically held until maturity. Volatility in equity markets can lead to fluctuations in value, particularly for common shares. Fluctuations in the value of interest rate sensitive securities, such as preferred shares and debt instruments, are generally attributed to changes in interest rates, movements in market credit spreads and shifts in the interest rate curve. Changes in unrealized gains or losses result from the combined impact of strategic repositioning of the securities portfolio and changes in market values.

Net realized gains on securities in the third quarter of $4.2 million compare to $7.0 million in the same period last year and $4.6 million in the previous quarter. Year-to-date net gains of $13.4 million were up from $12.8 million last year. Net gains reflect strategic management of the securities portfolio in view of favourable conditions in both equity and bond markets. Based on the level of gains realized and the current composition of the portfolio, net gains on securities are expected to be lower through the final quarter of the year although equity and bond market conditions are inherently unpredictable in the short-term.

Loans

Total loans grew 3% ($443 million) in the quarter, 12% ($1,868 million) in the past twelve months and 10% ($1,574 million) year-to-date to reach $17,142 million.

Lending activity in British Columbia showed the highest growth in dollar terms for all comparative periods, led by strong growth in real estate project loans and general commercial loans. Growth in Alberta was also strong for all comparative periods, with particularly robust activity in real estate project loans and equipment financing and leasing.

Loan balances by portfolio are provided in the table below.


                                                                    % Change
                                                                        from
                            July 31  April 30 October 31   July 31   July 31
(unaudited)                    2014     2014       2013      2013      2013
(millions)
----------------------------------------------------------------------------

Commercial mortgages      $   3,548 $   3,512 $    3,311 $   3,257        9%
General commercial loans      3,538     3,525      3,428     3,403        4
Equipment financing and
 leasing                      3,281     3,121      2,932     2,861       15
Personal loans and
 mortgages                    2,768     2,665      2,502     2,410       15
Real estate project loans     2,768     2,632      2,304     2,196       26
Corporate lending(1)          1,069     1,044        902       941       14
Oil and gas production
 loans                          263       288        274       290      (9)
----------------------------------------------------------------------------
Total loans
 outstanding(2)           $  17,235 $  16,787 $   15,653 $  15,358       12%
----------------------------------------------------------------------------
 (1) Corporate lending represents a diversified portfolio that is centrally
     sourced and administered through a designated lending group located in
     Edmonton. These loans include participation in select syndications that
     are structured and led primarily by the major Canadian banks, but
     exclude participation in various other syndicated facilities sourced
     through relationships developed at CWB branches.
 (2) Loans by lending sector exclude the allowance for credit losses.

Growth compared to the prior quarter was led by equipment financing and leasing, while real estate project loans led on a year-over-year and year-to-date basis. With respect to real estate project loans, CWB has continued to identify opportunities to finance well-capitalized developers on the basis of sound loan structures and acceptable pre-sale/lease levels. Although recent growth in this area has been very strong, CWB's total exposure to real estate remains within CWB's established risk appetite. Lower than anticipated growth in general commercial loans mainly resulted from a combination of unexpected payouts and approved credit facilities remaining undrawn. The potential growth represented by undrawn credit facilities and CWB's promising pipeline of new commercial loans supports management's expectations for strong relative overall growth in this portfolio over time.

Optimum Mortgage

Total loans of $1,417 million within Optimum represented an increase of 6% compared to the prior quarter, 25% year-over-year, and 16% on a year-to-date basis. Adjusted for a loan sale in the prior quarter, loan growth was 4% for the quarter, 18% over the past twelve months and 16% year-to-date. Net growth was driven almost exclusively by alternative mortgages secured via conventional residential first mortgages carrying a weighted average loan-to-value ratio at initiation of approximately 73% in the third quarter and 71% year-to-date. The book value of alternative mortgages represented 85% of Optimum's total portfolio at quarter end, unchanged from the prior quarter and up from 79% last year, with the year-over-year increase partly resulting from the prior quarter's loan sale. Overall, Optimum continues to deliver very strong financial performance and expand its geographic footprint beyond Western Canada. In addition to its growing presence in Ontario, Optimum added sales staff in Atlantic Canada this year.

Securitization

Securitized leases are reported on-balance sheet with total loans. The gross amount of securitized leases at July 31, 2014 was $360 million, compared to $282 million last quarter and $262 million one year ago. Leases securitized in the third quarter and year-to-date totaled $108 million and $210 million, respectively.

Outlook for loans

While strong competition from domestic banks and other financial services firms is expected to continue, management believes CWB will continue to gain market share through a combination of several positive influences. These include an expanded market presence, increased brand awareness in core geographic markets due in part to ongoing marketing initiatives, and the effective execution of CWB's strategic plan focused on targeted client solutions and superior customer service.

CWB's strategy continues to focus on enhancing existing competitive advantages in business banking, while offering complementary products and personalized services in personal banking, trust, wealth management and insurance.

Consensus forecasts for CWB's key western markets continue to anticipate strong performance relative to the rest of Canada. Although housing activity remains historically elevated in specific geographic regions, affordability in most areas remains within historical ranges, partly reflecting very low interest rates.

The combination of historically high home prices, elevated levels of Canadian consumer debt and the potential for increasing interest rates could slow construction and other related lending activity over time, particularly in Vancouver and Toronto.

Price volatility and ongoing uncertainty surrounding long-term transportation solutions for both natural gas and heavy oil could lead to moderated growth in capital investment related to natural gas production and oil sands development in the near term. However, opportunities related to the maintenance of existing facilities within the resource sector remain abundant and the current overall economic outlook remains supportive of management's expectations for continued strong loan growth.

Deposits

Total deposits at July 31, 2014 were $17,458 million, up 5% over the previous quarter, 16% over the past year and 12% on a year-to-date basis. Personal deposits represented 59% of total deposits at July 31, 2014, compared to 60% at the prior quarter end and 62% at July 31, 2013. Total branch-raised deposits, including trust services deposits, represented 53% of total deposits at July 31, 2014, consistent with 53% at April 30, 2014 and down from 55% at the end of the third quarter last year. Demand and notice deposits were 32% of total deposits, up from 31% at the prior quarter end and consistent with July 31, 2013.

Total branch deposits of $9,161 million were up 3% over the prior quarter, 10% over the past twelve months and 7% year-to-date. The demand and notice component within branch-raised deposits, which includes lower cost balances, was up 6% compared to the prior quarter, 14% from the same time last year and 11% year-to-date to reach $5,538 million.

At the end of the third quarter, a total of $2,039 million of term deposits raised through debt capital markets were outstanding, representing 12% of total deposits, up from 10% in the previous quarter and 8% last year. The increase from the prior quarter mainly reflects a $300 million senior deposit note issued in June 2014. The increase from last year reflects the combined impact of the June deposit note issuance, a $300 million senior deposit note issuance in January 2014 and expansion of CWB's Bearer Deposit Note (BDN) program to $334 million.

Outlook for deposits

CWB remains committed to further enhance and diversify all funding sources to support growth, manage the impact of competitive factors and support net interest margin. One of management's long-term strategic objectives is to increase the level of personal and business deposits raised within the branch network, trust companies and Canadian Direct Financial, the Internet-based division of CWB. Specific emphasis is placed on growing deposits that are lower cost, provide associated transactional non-interest income and strengthen relationships by providing clients with relevant tools for managing their business and personal finances. Enhancements to CWB's cash management offerings for business clients this quarter included pilot group testing of desktop wire capability and improved foreign exchange services, with full delivery of these capabilities scheduled for the fourth quarter. Product and service enhancements continue to support a focus on growing branch-raised deposits over time, as do targeted training programs that have reached a significant number of branch employees. CWB's growing market presence, including ongoing expansion and upgrades to existing branches, also supports the generation of branch-raised deposits.

The deposit broker network remains a valued source for raising insured fixed term retail deposits and has proven to be an effective and efficient way to access funding and liquidity over a wide geographic base. Selectively utilizing debt capital markets is also part of management's strategy to further diversify the funding base over time. Management will continue to evaluate the funding potential available through securitization of portfolios that may include equipment loans and leases, residential mortgages and commercial mortgages.

Other Assets and Other Liabilities

Other assets at July 31, 2014 totaled $388 million, up from $383 million in the prior quarter and $361 million one year ago. Other liabilities at quarter end were $473 million, compared to $466 million the previous quarter and $443 million a year earlier.

Off-Balance Sheet

Off-balance sheet items include assets under administration and assets under management. Total assets under administration, which are comprised of trust assets and third-party leases under administration, as well as mortgages under service agreements, totaled $10,278 million at July 31, 2014, compared to $11,539 million last quarter and $8,210 million one year ago. Lower assets under administration this quarter primarily resulted from changes in the level of client funds related to corporate actions temporarily held at Valiant Trust.

Assets under management were $1,789 million at quarter end, compared to $1,763 million last quarter and $1,811 million a year earlier.

Other off-balance sheet items are comprised of standard industry credit instruments (guarantees, standby letters of credit and commitments to extend credit). CWB does not utilize, nor does it have exposure to, collateralized debt obligations or credit default swaps. For additional information regarding other off-balance sheet items refer to Note 11 of the unaudited interim consolidated financial statements for the period ended July 31, 2014, as well as Notes 11 and 20 of the audited consolidated financial statements in CWB's 2013 Annual Report.

Capital Management

The Office of the Superintendent of Financial Institutions Canada (OSFI) requires Canadian financial institutions to manage and report regulatory capital in accordance with the Basel III capital management framework. CWB's required minimum regulatory capital ratios, including a 250 basis point capital conservation buffer, are 7.0% common equity Tier 1 (CET1), 8.5% Tier 1 and 10.5% total capital.

At July 31, 2014, CWB's capital ratios were 8.0% CET1, 9.3% Tier 1 and 12.9% total capital. Lower capital ratios compared to April 30, 2014 primarily reflect changes in accounting policies described on pages 14 and 15.

Further details regarding CWB's regulatory capital and capital adequacy ratios are included in the following table:


                                               As at       As at       As at
(unaudited)                                  July 31    April 30     July 31
($ millions)                                    2014        2014        2013
----------------------------------------------------------------------------
Regulatory capital
CET1 capital before deductions           $    1,526  $    1,492  $    1,354
Net CET1 deductions                           (119)       (115)       (110)
----------------------------------------------------------------------------
CET1 capital                                  1,407       1,377       1,244
----------------------------------------------------------------------------
Tier 1 capital before deductions(1)             230         230         283
Net deductions                                    -           -        (11)
----------------------------------------------------------------------------
Tier 1 capital                                1,637       1,607       1,516
----------------------------------------------------------------------------
Tier 2 capital before deductions(1)             630         625         679
Net deductions                                    -           -         (1)
----------------------------------------------------------------------------
Total capital                            $    2,267  $    2,232  $    2,194
----------------------------------------------------------------------------
Risk-weighted assets                     $   17,556  $   17,089  $   15,846
----------------------------------------------------------------------------
Capital adequacy ratios
  CET1                                          8.0%        8.1%        7.9%
  Tier 1                                        9.3         9.4         9.6
  Total                                        12.9        13.1        13.9
 (1) The 2014 inclusion of non-common equity instruments that do not include
     non-viability contingent capital clauses is capped at 80% of the
     January 1, 2013 outstanding balances (July 31, 2013 - 90%). At July 31,
     2014 and April 30, 2014, there was no exclusion from regulatory capital
     related to the Innovative Tier 1 capital (disclosed in deposits). At
     July 31, 2013 a combined $31 million of outstanding Innovative Tier 1
     capital and preferred shares were excluded from regulatory capital.At
     July 31, 2014, $85 million of outstanding subordinated debentures
     (April 30, 2014 - $85 million and July 31, 2013 - $18 million) were
     excluded from regulatory capital.

Retention of earnings associated with anticipated performance within the 2014 target ranges is expected to support capital requirements, including targets established through CWB's Internal Capital Adequacy Assessment Process (ICAAP).

CWB currently reports its regulatory capital ratios using the Standardized approach for calculating risk-weighted assets. This approach requires CWB to carry significantly more capital for certain credit exposures compared to requirements under the Advanced Internal Ratings Based (AIRB) methodology used by larger Canadian financial institutions. For this reason, regulatory capital ratios of banks that utilize the Standardized approach versus the AIRB methodology are not directly comparable.

Required resources, costs and potential timelines related to CWB's possible multi-year transition to an AIRB methodology for managing credit risk and calculating risk-weighted assets continue to be evaluated. CWB's new core banking system, implementation of which is expected in late 2015, is a critical component for a number of requirements necessary for AIRB compliance, including the collection and analysis of certain types of data.

Further information relating to CWB's capital position is provided in Note 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, 2013.

In July 2014, OSFI published its Draft Leverage Requirements Guideline outlining expectations for Canadian banks related to the Basel III leverage ratio framework effective January 2015. The stated requirement for banks to maintain a minimum leverage ratio of 3% at all times is not expected to be a constraint for CWB. In August 2014, the Department of Finance published a consultation paper on the Canadian bail-in debt regime. Under the terms of this proposal, the bail-in debt regime will not impact CWB.

Book value per share and dividends

Book value per common share at July 31, 2014 was $19.03, compared to $18.52 last quarter and $16.97 one year ago.

Common shareholders received a quarterly cash dividend of $0.20 per common share on June 26, 2014. On July 31, 2014, holders of Series 5 preferred shares received a cash dividend of $0.275 per share. On August 27, 2014, CWB's Board of Directors declared a cash dividend of $0.20 per common share, payable on September 25, 2014 to shareholders of record on September 15, 2014. This quarterly dividend was 11% ($0.02) higher than the quarterly dividend declared one year ago. The Board of Directors also declared a cash dividend of $0.275 per Series 5 Preferred Share, payable on October 31, 2014 to shareholders of record on October 24, 2014.

Significant Changes in Accounting Policies

Significant accounting policies are described in the notes to the audited consolidated financial statements for the year ended October 31, 2013, together with a discussion of certain accounting estimates that are considered particularly important as they require management to make significant judgments, some of which relate to matters that are inherently uncertain. Readers are encouraged to review that discussion on page 69 and 70 of the 2013 Annual Report.

Consolidated financial statements

Effective November 1, 2013, CWB adopted IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosures of Interests in Other Entities, which establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities, and new disclosure requirements for all forms of interests in other entities. As a result of the application of IFRS 10, CWB has changed its accounting policy for determining whether it has control over its investees and consequently, has de-consolidated Canadian Western Bank Capital Trust (the Trust) through which certain regulatory capital instruments are issued. In accordance with the transitional provisions, CWB has applied IFRS 10 retrospectively and comparative figures have been restated to reflect the de-consolidation of the Trust. The de-consolidation of the Trust resulted in a $105 million decrease in CWB Capital Trust Capital Securities Series 1 (WesTS) previously classified as non-controlling interest and an increase of $105 million in deposit liabilities, and reclassification of the associated distribution, which totaled $1.7 million and $5.0 million for the three and nine months ended July 31, 2013, from non-controlling interest to interest expense. Additional information on the Trust is discussed in Note 19 of CWB's audited consolidated financial statements for the year ended October 31, 2013.

Accounting for internal direct leasing costs

IAS 17 Leases requires that the lessor capitalize initial direct leasing costs in the initial measurement of the lease, and defines initial direct costs as incremental costs directly attributable to negotiating and arranging a lease. Prior to May 1, 2014, CWB capitalized costs of certain employees and other internal costs directly attributable to arranging new leases within initial direct leasing costs on initial measurement of a lease. The IFRS Interpretations Committee has issued clarification that certain internal leasing costs do not qualify as incremental costs. As a result, effective May 1, 2014, CWB has changed its accounting policy to expense, rather than capitalize, non-incremental internal costs for negotiating and arranging new leases as incurred. CWB has applied this accounting policy retrospectively and comparative figures have been restated, resulting in a decrease of $9.5 million in loans, an increase in other assets of $2.5 million for deferred income taxes, and a decrease of $6.9 million in retained earnings for all presented comparative periods. This change did not result in a change to the consolidated statements of income.

Fair value measurement

Effective November 1, 2013, CWB adopted IFRS 13 Fair Value Measurement, which applies to other IFRS standards that require or permit fair value measurements or disclosures about fair value measurements and sets out a framework on how to measure fair value using the assumptions that market participants would use when pricing the asset or liability under current market conditions, including assumptions about risk.

In accordance with the transitional provisions of IFRS 13, CWB has applied the new fair value measurement guidance prospectively. This new standard had no impact on the measurement of CWB's assets and liabilities. Additional disclosures required by IFRS 13 are included in Note 12.

Change in Classification of First Preferred Shares Series 5

During the third quarter, CWB changed the financial statement classification of the First Preferred Shares Series 5 from debt to equity. The First Preferred Shares Series 5 are now included in preferred shares within equity on the consolidated balance sheets, with prior periods reclassified to conform with this presentation. The related preferred share issue costs of $3.1 million, net of income tax, were also reclassified from other assets to retained earnings. The dividends continue to be charged to retained earnings.

Future Accounting Changes

A number of standards and amendments have been issued by the International Accounting Standards Board (IASB) and are noted on page 45 of the 2013 Annual Report. These standards and amendments may impact the presentation of financial statements in the future and management is currently reviewing these changes to determine the impact, if any.

CWB continues to monitor activities of the IASB as well as proposed changes to IFRS. Several accounting standards in the process of being amended by the IASB (e.g. leases and insurance) may have an impact on the presentation of CWB's consolidated financial statements in the future. Although not expected to materially impact CWB's 2014 consolidated financial statements, these proposed changes may have a significant impact on future financial statements.

In July 2014, the IASB issued the final revised IFRS 9 Financial Instruments standard. IFRS 9 will be effective for CWB's fiscal year beginning on November 1, 2018, and early adoption is permitted. IFRS 9 specifies that financial assets be classified into one of three categories: financial assets measured at amortized cost, financial assets measured at fair value through profit or loss or financial assets measured at fair value through other comprehensive income. The standard also includes an expected credit loss model and a general hedging model. CWB is currently assessing the impact of the standard on its future financial results.

Controls and Procedures

There were no changes in CWB's internal controls over financial reporting that occurred during the quarter ended July 31, 2014 that have materially affected, or are reasonably likely to materially affect, CWB's internal controls over financial reporting.

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

Third-party Credit Ratings

DBRS Limited (DBRS) maintains published credit ratings on CWB's senior debt (deposits), short-term debt, subordinated debentures and Basel III-compliant First Preferred Shares Series 5 of "A (low)", "R1 (low)", "BBB (high)" and "Pfd-3", respectively, all with a stable outlook. Credit ratings do not consider market price or address the suitability of any financial instrument for a particular investor and are not recommendations to purchase, sell or hold securities.

Ratings are subject to revision or withdrawal at any time by the rating organization. Management believes the ratings widen the base of clients and investors who can participate in CWB's offerings, while also lowering overall funding costs and the cost of capital.

Updated Share Information

As at August 20, 2014, there were 80,274,617 CWB common shares outstanding. Also outstanding were employee stock options, which are or will be exercisable for up to 4,815,641 common shares for maximum proceeds of $148 million.

Dividend Reinvestment Plan

CWB common shares (TSX: CWB) and Series 5 preferred shares (TSX: CWB.PR.B) have been deemed eligible to participate in CWB's dividend reinvestment plan (the Plan). The Plan provides holders of eligible shares the opportunity to direct cash dividends toward the purchase of CWB common shares. Further details for the Plan are available on CWB's website at www.cwb.com/investor_relations/drip.

At the current time, for the purposes of the Plan, CWB has elected to issue common shares from treasury at a 2% discount from the average market price (as defined in the Plan).

Summary of Quarterly Financial Information


                                        2014
-------------------------------------------------------
($ thousands)                      Q3        Q2      Q1
-------------------------------------------------------
Total revenues (teb)         $159,778  $153,521$153,770
Total revenues                157,890   151,532 151,680
Net income                     58,288    56,384  56,749
Net income available to
 common shareholders           56,580    51,191  52,628
Earnings per common share
 Basic                           0.71      0.64    0.66
 Diluted                         0.70      0.63    0.65
 Adjusted cash                   0.71      0.65    0.67
Total assets ($ millions)(2)   20,523    19,617  19,129
----------------------------------------------- -------


                                             2013(1)                2012(1)
----------------------------- ------------------------------------ ---------
($ thousands)                        Q4       Q3       Q2       Q1        Q4
----------------------------- ------------------------------------ ---------
Total revenues (teb)           $150,956 $144,034 $135,319 $135,431  $131,482
Total revenues                  148,894  141,873  133,319  133,516   129,503
Net income                       55,332   51,623   46,887   49,365    46,920
Net income available to
 common shareholders             51,210   47,484   42,988   45,482    43,046
Earnings per common share
 Basic                             0.64     0.60     0.54     0.58      0.55
 Diluted                           0.64     0.60     0.54     0.57      0.55
 Adjusted cash                     0.65     0.61     0.55     0.58      0.56
Total assets ($ millions)(2)     18,513   17,920   17,772   17,155    16,866
----------------------------- ------------------------------------ ---------

 (1) Effective November 1, 2013, CWB retrospectively adopted IFRS 10
     Consolidated Financial Statements as described in Note 1 of the
     consolidated financial statements. 2012 financial results have been
     restated for the purposes of this chart.
 (2) Effective May 1, 2014, CWB retrospectively applied a change in
     accounting policy for internal direct leasing costs as described in
     Note 1 of the consolidated financial statements. Total assets for prior
     periods have been restated to reflect this change.

The financial results for each of the last eight quarters are summarized above. In general, CWB's performance reflects a relatively consistent trend, although the second quarter contains three fewer revenue-earning days.

CWB's quarterly financial results are subject to some fluctuation due to its exposure to property and casualty insurance. Insurance operations, which are primarily reflected in non-interest income, are subject to seasonal weather conditions, cyclical patterns of the industry and natural catastrophes.

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

For additional details on variations between the prior quarters, refer to the summary of quarterly results section of CWB's MD&A for the year ended October 31, 2013 and the individual quarterly reports to shareholders which are available on SEDAR at www.sedar.com and on CWB's website at www.cwb.com/investor-relations/quarterly-reports.

Taxable Equivalent Basis (teb)

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

Non-IFRS Measures

CWB uses a number of financial measures to assess its performance. These measures provide readers with an enhanced understanding of how management views the results. Non-IFRS measures may also provide readers the ability to analyze trends and provide comparisons with our competitors. Taxable equivalent basis, adjusted cash earnings per common share, return on common shareholders' equity, return on assets, efficiency ratio, net interest margin, common equity Tier 1, Tier 1 and total capital adequacy ratios, and average balances do not have standardized meanings prescribed by IFRS and therefore may not be comparable to similar measures presented by other financial institutions. The non-IFRS measures used in this MD&A are calculated as follows:


--  taxable equivalent basis - described above;
--  adjusted cash earnings per common share - diluted earnings per common
    share excluding the after-tax amortization of acquisition-related
    intangible assets and the non-tax deductible change in fair value of
    contingent consideration (see calculation below). These exclusions
    represent non-cash charges and are not considered to be indicative of
    ongoing business performance;
--  return on common shareholders' equity - annualized net income available
    to common shareholders divided by average common shareholders' equity;
--  return on assets - annualized net income available to common
    shareholders divided by average total assets;
--  efficiency ratio - non-interest expenses divided by total revenues
    excluding the non-tax deductible change in fair value of contingent
    consideration;
--  net interest margin - net interest income divided by average total
    assets;
--  Basel III common equity Tier 1, Tier 1 and total capital ratios - in
    accordance with guidelines issued by OSFI; and
--  average balances - average daily balances.

Adjusted net income available to common shareholders
                                       For the three          For the nine
                                        months ended          months ended
                               ---------------------------------------------
(unaudited)                      July 31 April 30  July 31  July 31  July 31
($ thousands)                       2014     2014     2013     2014     2013
----------------------------------------------------------------------------
Net income available to common
 shareholders                   $ 56,580 $ 51,191 $ 47,484 $160,399 $135,954
Adjustments:
 Amortization of acquisition-
  related intangible assets
  (after tax)                        866      903      930    2,660    2,391
 Contingent consideration fair
  value change                       400      150        -      700        -
----------------------------------------------------------------------------
Adjusted net income available
 to common shareholders         $ 57,846 $ 52,244 $ 48,414 $163,759 $138,345
----------------------------------------------------------------------------



Consolidated Balance Sheets

                                                                      Change
                          As at       As at       As at       As at     from
(unaudited)             July 31    April 30  October 31     July 31  July 31
($ thousands)              2014  2014(2)(3)  2013(1)(2)  2013(1)(2)     2013
----------------------------------------------------------------------------
Assets
Cash Resources
Cash and non-
 interest bearing
 deposits with
 financial
 institutions      $    45,626 $    54,040 $    83,856 $     3,009       nm%
Interest bearing
 deposits with
 regulated
 financial
 institutions (Note
 4)                    418,220     342,179     258,466      93,478      347
Cheques and other
 items in transit        2,697         280       5,673       1,252      115
----------------------------------------------------------------------------
                       466,543     396,499     347,995      97,739      377
----------------------------------------------------------------------------
Securities (Note 4)
Issued or
 guaranteed by
 Canada              1,074,895     712,167     927,077     785,135       37
Issued or
 guaranteed by a
 province or
 municipality          676,319     630,849     410,984     388,240       74
Other securities       774,703     795,779     894,271   1,014,203     (24)
----------------------------------------------------------------------------
                     2,525,917   2,138,795   2,232,332   2,187,578       15
----------------------------------------------------------------------------

Loans (Notes 5 and
 7)
Personal             2,768,458   2,665,550   2,502,295   2,410,165       15
Business            14,466,926  14,121,861  13,150,931  12,947,746       12
----------------------------------------------------------------------------
                    17,235,384  16,787,411  15,653,226  15,357,911       12
Allowance for
 credit losses
 (Note 6)             (93,503)    (88,976)    (85,786)    (84,489)       11
----------------------------------------------------------------------------
                    17,141,881  16,698,435  15,567,440  15,273,422       12
----------------------------------------------------------------------------
Other
Property and
 equipment              67,111      67,505      66,647      65,170        3
Goodwill                50,408      50,408      49,424      49,424        2
Intangible assets       80,698      76,375      70,197      66,894       21
Insurance related       63,557      63,541      64,365      61,666        3
Derivative related
 (Note 8)                6,616       7,050       4,509       1,249      430
Other assets           120,004     117,991     110,431     116,494        3
----------------------------------------------------------------------------
                       388,394     382,870     365,573     360,897        8
----------------------------------------------------------------------------
Total Assets       $20,522,735 $19,616,599 $18,513,340 $17,919,636       15%
----------------------------------------------------------------------------

Liabilities and
 Equity
Deposits
Personal           $10,293,130 $10,040,387 $ 9,420,754 $ 9,393,847       10%
Business and
 government          7,164,424   6,628,147   6,210,286   5,673,295       26
----------------------------------------------------------------------------
                    17,457,554  16,668,534  15,631,040  15,067,142       16
----------------------------------------------------------------------------
Other
Cheques and other
 items in transit       52,922      64,055      55,290      39,719       33
Insurance related      159,291     155,961     167,816     165,277      (4)
Derivative related
 (Note 8)                  178          44          36         168        6
Other liabilities      260,119     246,184     238,939     237,557        9
----------------------------------------------------------------------------
                       472,510     466,244     462,081     442,721        7
----------------------------------------------------------------------------
Debt
Subordinated
 debentures            625,000     625,000     625,000     625,000        -
Debt securities        314,204     247,962     195,650     227,789       38
----------------------------------------------------------------------------
                       939,204     872,962     820,650     852,789       10
----------------------------------------------------------------------------
Equity
Preferred shares(3)
 (Note 9)              125,000     125,000     208,815     208,965     (40)
Common shares (Note
 9)                    529,283     522,790     510,282     504,380        5
Retained earnings      969,066     928,501     858,167     821,255       18
Share-based payment
 reserve                24,048      25,278      24,632      24,611      (2)
Other reserves           5,311       5,917     (3,389)     (3,028)       nm
----------------------------------------------------------------------------
Total Shareholders'
 Equity              1,652,708   1,607,486   1,598,507   1,556,183        6
Non-controlling
 interests                 759       1,373       1,062         801      (5)
----------------------------------------------------------------------------
Total Equity         1,653,467   1,608,859   1,599,569   1,556,984        6
----------------------------------------------------------------------------
Total Liabilities
 and Equity        $20,522,735 $19,616,599 $18,513,340 $17,919,636       15%
----------------------------------------------------------------------------
 (1) Effective November 1, 2013, CWB retrospectively adopted IFRS 10
     Consolidated Financial Statements as described in Note 1.
 (2) Effective May 1, 2014, CWB retrospectively applied a change in
     accounting policy for internal direct leasing costs as described in
     Note 1.
 (3) During the quarter, CWB retrospectively changed the financial statement
     classification of the First Preferred Shares Series 5 issued in the
     second quarter of 2014 from debt to equity as described in Note 1.

nm - not meaningful

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

Consolidated Statements of Income

                                                                      Change
                                                                        from
(unaudited)                                    For the three         July 31
($ thousands, except per share amounts)         months ended            2013
                                        ---------------------------
                                          July 31 April 30  July 31
                                             2014     2014  2013(1)
----------------------------------------------------------------------------
Interest Income
 Loans                                  $206,251 $192,685 $187,420       10%
 Securities                               11,454   10,625   11,522      (1)
 Deposits with regulated financial
  institutions                             1,516    1,165      261      481
----------------------------------------------------------------------------
                                         219,221  204,475  199,203       10
----------------------------------------------------------------------------
Interest Expense
 Deposits                                 81,086   75,061   72,002       13
 Debt                                      8,272    7,676    8,360      (1)
----------------------------------------------------------------------------
                                          89,358   82,737   80,362       11
----------------------------------------------------------------------------
Net Interest Income                      129,863  121,738  118,841        9
Provision for Credit Losses (Note 6)       6,958    6,463    7,491      (7)
----------------------------------------------------------------------------
Net Interest Income after Provision for
 Credit Losses                           122,905  115,275  111,350       10
----------------------------------------------------------------------------
Non-Interest Income
 Trust and wealth management services      8,611    8,780    6,825       26
 Credit related                            6,359    5,966    5,475       16
 Insurance, net (Note 3)                   5,505    5,868  (2,225)       nm
 Gains on securities, net                  4,211    4,572    7,020     (40)
 Retail services                           2,830    2,934    2,373       19
 Other                                       511    1,674    3,564     (86)
----------------------------------------------------------------------------
                                          28,027   29,794   23,032       22
----------------------------------------------------------------------------
Net Interest and Non-Interest Income     150,932  145,069  134,382       12
----------------------------------------------------------------------------
Non-Interest Expenses
 Salaries and employee benefits           47,477   46,636   44,038        8
 Premises and equipment                   12,955   11,820   10,900       19
 Other expenses                           13,065   12,162   12,021        9
----------------------------------------------------------------------------
                                          73,497   70,618   66,959       10
----------------------------------------------------------------------------
Net Income before Income Taxes            77,435   74,451   67,423       15
Income Taxes                              19,147   18,067   15,800       21
----------------------------------------------------------------------------
Net Income                                58,288   56,384   51,623       13
----------------------------------------------------------------------------
Net Income Attributable to Non-
 Controlling Interests                       333      218      320        4
----------------------------------------------------------------------------
Net Income Attributable to Shareholders
 of CWB                                   57,955   56,166   51,303       13
----------------------------------------------------------------------------
Preferred share dividends                  1,375    4,975    3,796     (64)
Premium paid on purchase of preferred
 shares for cancellation                       -        -       23    (100)
----------------------------------------------------------------------------
Net Income Available to Common
 Shareholders                           $ 56,580 $ 51,191 $ 47,484       19%
----------------------------------------------------------------------------
Average number of common shares (in
 thousands)                               80,141   79,955   79,248        1
Average number of diluted common shares
 (in thousands)                           81,121   80,826   79,590        2
----------------------------------------------------------------------------
Earnings Per Common Share
 Basic                                  $   0.71 $   0.64 $   0.60       18%
 Diluted                                    0.70     0.63     0.60       17
----------------------------------------------------------------------------


Consolidated Statements of Income

                                                             Change
                                                               from
(unaudited)                                 For the nine    July 31
($ thousands, except per share amounts)     months ended       2013
                                        -------------------
                                           July 31 July 31
                                              2014 2013(1)
-------------------------------------------------------------------
Interest Income
 Loans                                   $592,761 $543,620       9%
 Securities                                32,588   34,018     (4)
 Deposits with regulated financial
  institutions                              3,598    1,117     222
-------------------------------------------------------------------
                                          628,947  578,755       9
-------------------------------------------------------------------
Interest Expense
 Deposits                                 230,426  214,414       7
 Debt                                      23,771   24,434     (3)
-------------------------------------------------------------------
                                          254,197  238,848       6
-------------------------------------------------------------------
Net Interest Income                       374,750  339,907      10
Provision for Credit Losses (Note 6)       21,040   20,502       3
-------------------------------------------------------------------
Net Interest Income after Provision for
 Credit Losses                            353,710  319,405      11
-------------------------------------------------------------------
Non-Interest Income
 Trust and wealth management services      25,726   17,239      49
 Credit related                            18,312   15,962      15
 Insurance, net (Note 3)                   17,384    9,178      89
 Gains on securities, net                  13,436   12,756       5
 Retail services                            8,534    7,615      12
 Other                                      2,960    6,051    (51)
-------------------------------------------------------------------
                                           86,352   68,801      26
-------------------------------------------------------------------
Net Interest and Non-Interest Income      440,062  388,206      13
-------------------------------------------------------------------
Non-Interest Expenses
 Salaries and employee benefits           140,004  127,680      10
 Premises and equipment                    36,156   31,884      13
 Other expenses                            37,390   34,289       9
-------------------------------------------------------------------
                                          213,550  193,853      10
-------------------------------------------------------------------
Net Income before Income Taxes            226,512  194,353      17
Income Taxes                               55,091   46,478      19
-------------------------------------------------------------------
Net Income                                171,421  147,875      16
-------------------------------------------------------------------
Net Income Attributable to Non-
 Controlling Interests                        887      493      80
-------------------------------------------------------------------
Net Income Attributable to Shareholders
 of CWB                                   170,534  147,382      16
-------------------------------------------------------------------
Preferred share dividends                  10,135   11,398    (11)
Premium paid on purchase of preferred
 shares for cancellation                        -       30   (100)
-------------------------------------------------------------------
Net Income Available to Common
 Shareholders                            $160,399 $135,954      18%
-------------------------------------------------------------------
Average number of common shares (in
 thousands)                                79,940   79,041       1
Average number of diluted common shares
 (in thousands)                            80,841   79,437       2
-------------------------------------------------------------------
Earnings Per Common Share
 Basic                                   $   2.01 $   1.72      17%
 Diluted                                     1.98     1.71      16
-------------------------------------------------------------------
 (1) Effective November 1, 2013, CWB retrospectively adopted IFRS 10
     Consolidated Financial Statements as described in Note 1.

nm - not meaningful

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

Consolidated Statements of Comprehensive Income


(unaudited)
($ thousands)

                                        For the three        For the nine
                                        months ended         months ended
                                    -------------------- -------------------
                                       July 31   July 31   July 31   July 31
                                          2014   2013(1)      2014   2013(1)
----------------------------------------------------------------------------
Net Income                           $  58,288 $  51,623 $ 171,421 $ 147,875
----------------------------------------------------------------------------
Other Comprehensive Income (Loss),
 net of tax
Available-for-sale securities:
Gains (losses) from change in fair
 value(2)                                1,942  (10,426)    18,621   (2,531)
Reclassification to net income(3)      (3,176)   (5,257)   (9,938)   (9,439)
----------------------------------------------------------------------------
                                       (1,234)  (15,683)     8,683  (11,970)
----------------------------------------------------------------------------
Derivatives designated as cash flow
 hedges:
Gains (loss) from change in fair
 value(4)                                2,264       161     4,159     (204)
Reclassification to net income(5)      (1,636)     (128)   (4,142)     (101)
----------------------------------------------------------------------------
                                           628        33        17     (305)
----------------------------------------------------------------------------
                                         (606)  (15,650)     8,700  (12,275)
----------------------------------------------------------------------------
Comprehensive Income for the Period  $  57,682 $  35,973 $ 180,121 $ 135,600
----------------------------------------------------------------------------

Comprehensive income for the period
 attributable to:
Shareholders of CWB                  $  57,349 $  35,653 $ 179,234 $ 135,107
Non-controlling interests                  333       320       887       493
----------------------------------------------------------------------------
Comprehensive Income for the Period  $  57,682 $  35,973 $ 180,121 $ 135,600
----------------------------------------------------------------------------
     Effective November 1, 2013, CWB retrospectively adopted IFRS 10
 (1) Consolidated Financial Statements as described in Note
 (2) Net of income tax of $700 and $6,564 for the three and nine months
     ended July 31, 2014, respectively (2013 - $3,743 and $794).
 (3) Net of income tax of $1,035 and $3,498 for the three and nine months
     ended July 31, 2014, respectively (2013 - $1,763 and $3,317).
 (4) Net of income tax of $765 and $1,405 for the three and nine months
     ended July 31, 2014, respectively (2013 - $54 and $69).
 (5) Net of income tax of $552 and $1,399 for the three and nine months
     ended July 31, 2014, respectively (2013 - $43 and $34).

Items presented in other comprehensive income will be subsequently
reclassified to the Consolidated Statement of Income when specific
conditions are met.

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

Consolidated Statements of Changes in Equity


(unaudited)
($ thousands)                                      For the nine months ended
                                                ----------------------------
                                                       July 31       July 31
                                                       2014(2)    2013(1)(2)

----------------------------------------------------------------------------
Retained Earnings
Balance at beginning of period                   $     858,167 $     726,378
Net income attributable to shareholders of CWB         170,534       147,382
Dividends - Preferred shares                          (10,135)      (11,398)
               - Common shares                        (46,353)      (41,077)
Issuance costs on preferred shares                     (3,147)             -
Premium paid on preferred shares purchased for
 cancellation                                                -          (30)
----------------------------------------------------------------------------
Balance at end of period                               969,066       821,255
----------------------------------------------------------------------------
Other Reserves
Balance at beginning of period                         (3,389)         9,247
Changes in available-for-sale securities                 8,683      (11,970)
Changes in derivatives designated as cash flow
 hedges                                                     17         (305)
----------------------------------------------------------------------------
Balance at end of period                                 5,311       (3,028)
----------------------------------------------------------------------------
Preferred Shares (Note 9)e 9)
Balance at beginning of period                         208,815       209,750
Issued                                                 125,000             -
Redeemed                                             (208,815)             -
Purchased for cancellation                                   -         (785)
----------------------------------------------------------------------------
Balance at end of period                               125,000       208,965
----------------------------------------------------------------------------
Common Shares (Note 9)
Balance at beginning of period                         510,282       490,218
Issued under dividend reinvestment plan                 12,877        10,571
Transferred from share-based payment reserve on
 the exercise or exchange of options                     5,058         2,397
Issued on exercise of options                            1,066         1,194
----------------------------------------------------------------------------
Balance at end of period                               529,283       504,380
----------------------------------------------------------------------------
Share-based Payment Reserve
Balance at beginning of period                          24,632        22,468
Amortization of fair value of options (Note 10)          4,474         4,540
Transferred to common shares on the exercise or
 exchange of options                                   (5,058)       (2,397)
----------------------------------------------------------------------------
Balance at end of period                                24,048        24,611
----------------------------------------------------------------------------
Total Shareholders' Equity                           1,652,708     1,556,183
----------------------------------------------------------------------------
Non-Controlling Interests
Balance at beginning of period                           1,062           244
Net income attributable to non-controlling
 interests                                                 887           493
Dividends to non-controlling interests                 (1,093)         (252)
Partial ownership increase                                (97)             -
Business acquisition                                         -           316
----------------------------------------------------------------------------
Balance at end of period                                   759           801
----------------------------------------------------------------------------
Total Equity                                     $   1,653,467 $   1,556,984
----------------------------------------------------------------------------
 (1) Effective November 1, 2013, CWB retrospectively adopted IFRS 10
     Consolidated Financial Statements as described in Note 1.
 (2) Effective May 1, 2014, CWB retrospectively applied a change in
     accounting policy for internal direct leasing costs as described in
     Note 1.

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


Consolidated Statements of Cash Flow

                                               For the nine months ended
                                         -----------------------------------
                                                        July 31      July 31
(unaudited)                                                2014      2013(1)
($ thousands)
----------------------------------------------------------------------------
Cash Flows from Operating Activities
  Net income                                       $    171,421 $    147,875
  Adjustments to determine net cash
   flows:
    Provision for credit losses                          21,040       20,502
    Depreciation and amortization                        17,644       15,884
    Current income taxes receivable and
     payable                                              9,219      (4,450)
    Amortization of fair value of
     employee stock options              (Note 10)        4,474        4,540
    Accrued interest receivable and
     payable, net                                         1,764        7,061
    Deferred income taxes, net                          (6,066)        2,468
    Gain on securities, net                            (13,436)     (12,756)
  Change in operating assets and
   liabilities:
    Deposits, net                                     1,826,514      817,305
    Loans, net                                      (1,595,481)  (1,349,691)
    Securities sold under repurchase
     agreements, net                                          -     (70,089)
    Other items, net                                        357      (3,922)
----------------------------------------------------------------------------
                                                        437,450    (425,273)
----------------------------------------------------------------------------
Cash Flows from Financing Activities
  Common shares issued                   (Note 9)        13,943       11,765
  Debt securities issued                                210,021       90,596
  Debt securities repaid                               (91,467)     (72,079)
  Dividends                                            (56,488)     (52,475)
  Preferred shares issued                (Note 9)       125,000            -
  Issuance costs on preferred shares                    (3,147)            -
  Preferred shares redeemed              (Note 9)     (208,815)            -
  Preferred shares purchased and
   cancelled                                                  -        (815)
  Debentures issued                                           -      250,000
  Debentures redeemed                                         -     (50,000)
  Distributions to non-controlling
   interests                                            (1,093)        (252)
----------------------------------------------------------------------------
                                                       (12,046)      176,740
----------------------------------------------------------------------------
Cash Flows from Investing Activities
  Interest bearing deposits with
   regulated financial institutions, net              (159,756)       83,362
  Securities, purchased                             (5,745,372)  (4,578,671)
  Securities, sale proceeds                           3,268,636    3,002,929
  Securities, matured                                 2,200,209    1,728,735
  Property, equipment and intangible
   assets                                              (27,959)     (19,108)
  Business acquisition                                        -     (10,098)
----------------------------------------------------------------------------
                                                      (464,242)      207,149
----------------------------------------------------------------------------
Change in Cash and Cash Equivalents                    (38,838)     (41,384)
Cash and Cash Equivalents at Beginning of
 Period                                                  34,239        5,926
----------------------------------------------------------------------------
Cash and Cash Equivalents at End of
 Period (i)                                        $    (4,599) $   (35,458)
----------------------------------------------------------------------------
(i) Represented by:
  Cash and non-interest bearing deposits
   with financial institutions                     $     45,626 $      3,009
  Cheques and other items in transit
   (included in Cash Resources)                           2,697        1,252
  Cheques and other items in transit
   (included in Other Liabilities)                     (52,922)     (39,719)
----------------------------------------------------------------------------
Cash and Cash Equivalents at End of
 Period                                            $    (4,599) $   (35,458)
----------------------------------------------------------------------------


Supplemental Disclosure of Cash Flow
 Information
  Interest and dividends received                  $    636,692 $    600,916
  Interest paid                                         250,219      232,722
  Income taxes paid                                      51,938       49,125
 (1) Effective November 1, 2013, CWB retrospectively adopted IFRS 10
     Consolidated Financial Statements as described in Note 1.

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

Notes to Interim Consolidated Financial Statements

(unaudited)

($ thousands, except per share amounts)

1. Basis of Presentation and Significant Accounting Policies

These unaudited condensed interim consolidated financial statements of Canadian Western Bank (CWB) have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) using the same accounting policies as the audited consolidated financial statements for the year ended October 31, 2013, except as noted below. These interim consolidated financial statements of CWB, domiciled in Canada, have also been prepared in accordance with subsection 308 (4) of the Bank Act and the accounting requirements of the Office of the Superintendent of Financial Institutions Canada (OSFI). Under International Financial Reporting Standards (IFRS), additional disclosures are required in annual financial statements and accordingly, these unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended October 31, 2013 as set out on pages 62 to 102 of CWB's 2013 Annual Report.

The interim consolidated financial statements were authorized for issue by the Board of Directors on August 27, 2014.

Significant Changes in Accounting Policies

Consolidated Financial Statements

Effective November 1, 2013, CWB adopted IFRS 10 Consolidated Financial Statements and IFRS 12 Disclosures of Interests in Other Entities, which establish principles for the presentation and preparation of consolidated financial statements when an entity controls one or more other entities, and new disclosure requirements for all forms of interests in other entities. As a result of the application of IFRS 10, CWB has changed its accounting policy for determining whether it has control over its investees and consequently, has de-consolidated Canadian Western Bank Capital Trust (the Trust) through which certain regulatory capital instruments are issued. In accordance with the transitional provisions, CWB has applied IFRS 10 retrospectively and comparative figures have been restated to reflect the de-consolidation of the Trust. The de-consolidation of the Trust resulted in a $105,000 decrease in CWB Capital Trust Capital Securities Series 1 (WesTS) previously classified as non-controlling interest and an increase of $105,000 in deposit liabilities, and reclassification of the associated distribution, which totaled $1,700 and $5,044 for the three and nine months ended July 31, 2013, from non-controlling interest to interest expense. Additional information on the Trust is discussed in Note 19 of CWB's audited consolidated financial statements for the year ended October 31, 2013.

Accounting for internal direct leasing costs

IAS 17 Leases requires that the lessor capitalize initial direct leasing costs in the initial measurement of the lease, and defines initial direct costs as incremental costs directly attributable to negotiating and arranging a lease. Prior to May 1, 2014, CWB capitalized costs of certain employees and other internal costs directly attributable to arranging new leases within initial direct leasing costs on initial measurement of a lease. The IFRS Interpretations Committee has issued clarification that certain internal costs do not qualify as incremental costs. As a result, effective May 1, 2014, CWB has changed its accounting policy to expense, rather than capitalize, non-incremental internal costs for negotiating and arranging new leases as incurred. CWB has applied this accounting policy retrospectively, resulting in a decrease of $9,453 in loans, an increase in other assets of $2,533 for deferred income taxes, and a decrease of $6,920 in retained earnings for all presented comparative periods. This change did not result in a change to the consolidated statements of income.

Fair value measurement

Effective November 1, 2013, CWB adopted IFRS 13 Fair Value Measurement, which applies to other IFRS standards that require or permit fair value measurements or disclosures about fair value measurements and sets out a framework on how to measure fair value using the assumptions that market participants would use when pricing the asset or liability under current market conditions, including assumptions about risk. In accordance with the transitional provisions of IFRS 13, CWB has applied the new fair value measurement guidance prospectively. This new standard had no impact on the measurement of CWB's assets and liabilities. Additional disclosures required by IFRS 13 are included in Note 12.

Change in Classification of First Preferred Shares Series 5

During the third quarter, CWB retrospectively changed the financial statement classification of the First Preferred Shares Series 5 issued in the second quarter of 2014 from debt to equity. The First Preferred Shares Series 5 are now included in preferred shares within equity on the consolidated balance sheets, with prior periods reclassified to conform with this presentation. The related preferred share issue costs of $3,147, net of income tax, were also reclassified from other assets to retained earnings. The dividends continue to be charged to retained earnings.

2. Future Accounting Changes

CWB continues to monitor the IASB's proposed changes to accounting standards. Although not expected to materially impact CWB's 2014 consolidated financial statements, these proposed changes may have a significant impact on future financial statements. Additional discussion on certain accounting standards that may impact CWB is included in the audited consolidated financial statements within CWB's 2013 Annual Report.

In July 2014, the IASB issued the final revised IFRS 9 Financial Instruments standard. IFRS 9 will be effective for CWB's fiscal year beginning on November 1, 2018, and early adoption is permitted. IFRS 9 specifies that financial assets be classified into one of three categories: financial assets measured at amortized cost, financial assets measured at fair value through profit or loss or financial assets measured at fair value through other comprehensive income. The standard also includes an expected credit loss model and a general hedging model. CWB is currently assessing the impact of the standard on its future financial results.

3. Insurance Revenues, Net

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


                                   For the three             For the nine
                                   months ended             months ended
----------------------------------------------------------------------------
                             July 31  April 30   July 31   July 31   July 31
                                2014      2014      2013      2014      2013
----------------------------------------------------------------------------
Net earned premiums        $  33,055 $  31,646 $  32,122 $  97,320 $  94,318
Commissions and processing
 fees                            418       317       487     1,160     1,329
Net claims and adjustment
 expenses                   (21,262)  (19,741)  (28,226)  (62,255)  (67,223)
Policy acquisition costs     (6,706)   (6,354)   (6,608)  (18,841)  (19,246)
----------------------------------------------------------------------------
Total, net                 $   5,505 $   5,868 $ (2,225) $  17,384 $   9,178
----------------------------------------------------------------------------

4. Securities

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


                                                 As at      As at      As at
                                               July 31   April 30 October 31
                                                  2014       2014       2013
----------------------------------------------------------------------------
Interest bearing deposits with regulated
 financial institutions                     $       75 $      435 $      569
Securities issued or guaranteed by
 Canada                                             78        150        632
 A province or municipality                        394        181        161
Other debt securities                            1,159      1,166      1,180
Equity securities
 Preferred shares                                (512)      (258)   (16,301)
 Common shares                                   3,556      4,730      6,657
----------------------------------------------------------------------------
Unrealized gains (losses), net              $    4,750 $    6,404 $  (7,102)
----------------------------------------------------------------------------

The securities portfolio is primarily comprised of high quality debt instruments, preferred shares and common shares that are not held for trading purposes and, where applicable, are typically held until maturity. Fluctuations in value are generally attributed to changes in interest rates, market credit spreads and shifts in the interest rate curve. Volatility in equity markets also leads to fluctuations in value, particularly for common shares. For the three and nine months ended July 31, 2014, CWB assessed the securities with unrealized losses and, based on available objective evidence, no impairment charges (2013 - nil) were included in gains on securities, net.

5. Loans

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



($ millions)

                               BC     AB     ON     SK     MB  Other   Total
----------------------------------------------------------------------------

Personal                  $  868 $1,110 $  531 $  175 $   79 $    5 $ 2,768
----------------------------------------------------------------------------

Business
Real estate                2,938  2,599    468    455    123     21   6,604
Commercial                 1,576  1,865    409    199    148     92   4,289
Equipment financing and
 energy(1)                   607  1,505    627    308    123    404   3,574
----------------------------------------------------------------------------
Total Business             5,121  5,969  1,504    962    394    517  14,467
----------------------------------------------------------------------------
Total Loans(2)            $5,989 $7,079 $2,035 $1,137 $  473 $  522 $17,235
----------------------------------------------------------------------------
Composition Percentage
July 31, 2014                 35%    41%    12%     7%     2%     3%    100%
April 30, 2014                35%    41%    11%     7%     3%     3%    100%
October 31, 2013              35%    42%    11%     7%     2%     3%    100%


($ millions)                    Composition Percentage
                          ---------------------------------
                              July 31   April 30 October 31
                                 2014       2014       2013
-----------------------------------------------------------

Personal                          16%        16%        16%
-----------------------------------------------------------

Business
Real estate                       38         38         37
Commercial                        25         25         26
Equipment financing and
 energy(1)                        21         21         21
-----------------------------------------------------------
Total Business                    84         84         84
-----------------------------------------------------------
Total Loans(2)                   100%       100%       100%
-----------------------------------------------------------
Composition Percentage
July 31, 2014
April 30, 2014
October 31, 2013
 (1) Includes securitized leases reported on-balance sheet of $360 (April
     30, 2014 - $282; October 31, 2013 - $230).
 (2) This table does not include an allocation for credit losses.

6. Allowance for Credit Losses

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


                                             For the three months ended
                                                    July 31, 2014
                                        ------------------------------------
                                                      Collective
                                                       Allowance
                                                             for
                                            Specific      Credit
                                           Allowance      Losses       Total
----------------------------------------------------------------------------
Balance at beginning of period           $     4,254 $    84,722 $    88,976
Provision for credit losses                    2,051       4,907       6,958
Write-offs                                   (2,989)           -     (2,989)
Recoveries                                       558           -         558
----------------------------------------------------------------------------
Balance at end of period                 $     3,874 $    89,629 $    93,503
----------------------------------------------------------------------------

                                             For the three months ended
                                                   April 30, 2014
                                        ------------------------------------
                                                      Collective
                                                       Allowance
                                                             for
                                            Specific      Credit
                                           Allowance      Losses       Total
----------------------------------------------------------------------------
Balance at beginning of period           $    12,757 $    78,597 $    91,354
Provision for credit losses                      338       6,125       6,463
Write-offs                                   (9,256)           -     (9,256)
Recoveries                                       415           -         415
----------------------------------------------------------------------------
Balance at end of period                 $     4,254 $    84,722 $    88,976
----------------------------------------------------------------------------

                                             For the three months ended
                                                    July 31, 2013
                                        ------------------------------------
                                                      Collective
                                                       Allowance
                                                             for
                                            Specific      Credit
                                           Allowance      Losses       Total
----------------------------------------------------------------------------
Balance at beginning of period           $     8,971 $    70,500 $    79,471
Provision for credit losses                    6,067       1,424       7,491
Write-offs                                   (3,083)           -     (3,083)
Recoveries                                       610           -         610
----------------------------------------------------------------------------
Balance at end of period                 $    12,565 $    71,924 $    84,489
----------------------------------------------------------------------------

                                              For the nine months ended
                                                    July 31, 2014
                                        ------------------------------------
                                                      Collective
                                                       Allowance
                                                             for
                                            Specific      Credit
                                           Allowance      Losses       Total
----------------------------------------------------------------------------
Balance at beginning of period           $     9,569 $    76,217 $    85,786
Provision for credit losses                    7,628      13,412      21,040
Write-offs                                  (14,698)           -    (14,698)
Recoveries                                     1,375           -       1,375
----------------------------------------------------------------------------
Balance at end of period                 $     3,874 $    89,629 $    93,503
----------------------------------------------------------------------------


                                              For the nine months ended
                                                    July 31, 2013
                                        ------------------------------------
                                                      Collective
                                                       Allowance
                                                             for
                                            Specific      Credit
                                           Allowance      Losses       Total
----------------------------------------------------------------------------
Balance at beginning of period           $    14,379 $    67,344 $    81,723
Provision for credit losses                   15,922       4,580      20,502
Write-offs                                  (20,131)           -    (20,131)
Recoveries                                     2,395           -       2,395
----------------------------------------------------------------------------
Balance at end of period                 $    12,565 $    71,924 $    84,489
----------------------------------------------------------------------------

7. Impaired and Past Due Loans

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


                                           As at July 31, 2014
                            ------------------------------------------------
                                               Gross                     Net
                                   Gross    Impaired    Specific    Impaired
                                  Amount      Amount   Allowance       Loans
----------------------------------------------------------------------------
Personal                     $ 2,768,458 $    14,276 $       345 $    13,931
Business
 Real estate(1)                6,604,351      27,761         244      27,517
 Commercial                    4,288,731       3,673         441       3,232
 Equipment financing and
  energy                       3,573,844      12,378       2,844       9,534
----------------------------------------------------------------------------
Total(2)                     $17,235,384 $    58,088 $     3,874      54,214
----------------------------------------------------------------
Collective allowance(3)                                             (89,629)
----------------------------------------------------------------------------
Net impaired loans after
 collective allowance                                            $  (35,415)
----------------------------------------------------------------------------

                                          As at April 30, 2014
                            ------------------------------------------------
                                               Gross                     Net
                                   Gross    Impaired    Specific    Impaired
                                  Amount      Amount   Allowance       Loans
----------------------------------------------------------------------------
Personal                     $ 2,665,550 $    14,883 $       665 $    14,218
Business
 Real estate(1)                6,401,392      20,101         300      19,801
 Commercial                    4,277,615       4,526         196       4,330
 Equipment financing and
  energy                       3,442,854      11,111       3,093       8,018
----------------------------------------------------------------------------
Total(2)                     $16,787,411 $    50,621 $     4,254      46,367
----------------------------------------------------------------
Collective allowance(3)                                             (84,722)
----------------------------------------------------------------------------
Net impaired loans after
 collective allowance                                            $  (38,355)
----------------------------------------------------------------------------

                                          As at October 31, 2013
                            ------------------------------------------------
                                               Gross                     Net
                                   Gross    Impaired    Specific    Impaired
                                  Amount      Amount   Allowance       Loans
----------------------------------------------------------------------------
Personal                     $ 2,502,295 $    17,052 $       748 $    16,304
Business
 Real estate(1)                5,829,225      31,937       6,349      25,588
 Commercial                    4,091,371       4,612         293       4,319
 Equipment financing and
  energy                       3,230,335      10,610       2,179       8,431
----------------------------------------------------------------------------
Total(2)                     $15,653,226 $    64,211 $     9,569      54,642
----------------------------------------------------------------
Collective allowance(3)                                             (76,217)
----------------------------------------------------------------------------
Net impaired loans after
 collective allowance                                            $  (21,575)
----------------------------------------------------------------------------
 (1) Multi-family residential mortgages are included in real estate loans.
 (2) Gross impaired loans include foreclosed assets with a carrying value of
     $1,154 (April 30, 2014 - $4,157 and October 31, 2013 - $12,407) which
     are held for sale. CWB pursues timely realization on foreclosed assets
     and does not use the assets for its own operations.
 (3) The collective allowance for credit risk is not allocated by loan type.

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


                                                 As at July 31, 2014
                                        ------------------------------------
                                               Gross                     Net
                                            Impaired    Specific    Impaired
                                              Amount   Allowance       Loans
----------------------------------------------------------------------------
Alberta                                  $    12,826 $     1,055 $    11,771
British Columbia                              34,478         996      33,482
Ontario                                        6,594         827       5,767
Saskatchewan                                   2,105         387       1,718
Manitoba                                         498         120         378
Other                                          1,587         489       1,098
----------------------------------------------------------------------------
Total                                    $    58,088 $     3,874      54,214
----------------------------------------------------------------
Collective allowance(1)                                             (89,629)
----------------------------------------------------------------------------
Net impaired loans after collective
 allowance                                                       $  (35,415)
----------------------------------------------------------------------------

                                                As at April 30, 2014
                                        ------------------------------------
                                               Gross                     Net
                                            Impaired    Specific    Impaired
                                              Amount   Allowance       Loans
----------------------------------------------------------------------------
Alberta                                  $    11,343 $     1,465 $     9,878
British Columbia                              28,890         716      28,174
Ontario                                        6,524         904       5,620
Saskatchewan                                   1,973         475       1,498
Manitoba                                         542         162         380
Other                                          1,349         532         817
----------------------------------------------------------------------------
Total                                    $    50,621 $     4,254      46,367
----------------------------------------------------------------
Collective allowance(1)                                             (84,722)
----------------------------------------------------------------------------
Net impaired loans after collective
 allowance                                                       $  (38,355)
----------------------------------------------------------------------------

                                               As at October 31, 2013
                                        ------------------------------------
                                               Gross                     Net
                                            Impaired    Specific    Impaired
                                              Amount   Allowance       Loans
----------------------------------------------------------------------------
Alberta                                  $    38,886 $     7,475 $    31,411
British Columbia                              17,904         476      17,428
Ontario                                        2,886         728       2,158
Saskatchewan                                   1,861         381       1,480
Manitoba                                       1,214         146       1,068
Other                                          1,460         363       1,097
----------------------------------------------------------------------------
Total                                    $    64,211 $     9,569      54,642
----------------------------------------------------------------
Collective allowance(1)                                             (76,217)
----------------------------------------------------------------------------
Net impaired loans after collective
 allowance                                                       $  (21,575)
----------------------------------------------------------------------------


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

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


                                       As at July 31, 2014
                    --------------------------------------------------------
                          1 - 30     31 - 60     61 - 90   More than
                            days        days        days     90 days   Total
----------------------------------------------------------------------------
Personal             $    10,313 $    12,687 $     1,467 $       811 $25,278
Business                  17,157      22,954       8,434          49  48,594
----------------------------------------------------------------------------
                     $    27,470 $    35,641 $     9,901 $       860 $73,872
----------------------------------------------------------------------------

Total as at April
 30, 2014            $    69,900 $    19,882 $     6,336 $     1,506 $97,624
----------------------------------------------------------------------------
Total as at October
 31, 2013            $    24,710 $    48,102 $     2,075 $     2,400 $77,287
----------------------------------------------------------------------------

8. Derivative Financial Instruments

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

For the three and nine months ended July 31, 2014, $2,264 and $4,159 of net unrealized after tax gains (2013 - $161 of net unrealized after tax gains and $204 unrealized after tax losses) were recorded in other comprehensive income for changes in fair value of the effective portion of equity and interest rate swap derivatives designated as cash flow hedges, and no amounts (2013 - $nil) were recorded in non-interest income for changes in fair value of the ineffective portion of derivatives classified as cash flow hedges. Amounts accumulated in other comprehensive income are reclassified to net income in the same period that the hedged item affects income. For the three and nine months ended July 31, 2014, $1,636 and $4,142 of net gains after tax (2013 - $128 and $101 of net gains after tax) were reclassified to net income.

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


                                                 As at July 31, 2014
                                        ------------------------------------
                                            Notional    Positive    Negative
                                              Amount  Fair Value  Fair Value
----------------------------------------------------------------------------
Interest rate swaps designated
 ashedges(1)                             $ 1,325,000 $       657 $       175
Equity swaps designated as hedges(2)          19,205       5,693           -
Equity swaps not designated as hedges(3)       3,754         253           -
Foreign exchange contracts(4)                    842          13           3
----------------------------------------------------------------------------
Derivative related amounts               $ 1,348,801 $     6,616 $       178
----------------------------------------------------------------------------

                                                As at April 30, 2014
                                        ------------------------------------
                                            Notional    Positive    Negative
                                              Amount  Fair Value  Fair Value
----------------------------------------------------------------------------
Interest rate swaps designated
 ashedges(1)                             $   775,000 $       329 $        40
Equity swaps designated as hedges(2)          17,470       6,712           -
Equity swaps not designated as hedges(3)           -           -           -
Foreign exchange contracts(4)                    858           9           4
----------------------------------------------------------------------------
Derivative related amounts               $   793,328 $     7,050 $        44
----------------------------------------------------------------------------

                                               As at October 31, 2013
                                        ------------------------------------
                                            Notional    Positive    Negative
                                              Amount  Fair Value  Fair Value
----------------------------------------------------------------------------
Interest rate swaps designated as hedges $   800,000 $       367 $        32
Equity swaps designated as hedges             17,470       4,131           -
Foreign exchange contracts                     1,235          11           4
----------------------------------------------------------------------------
Derivative related amounts               $   818,705 $     4,509 $        36
----------------------------------------------------------------------------
 (1) Interest rate swaps designated as hedges outstanding at July 31, 2014
     mature between December 2014 and July 2017.
 (2) Equity swaps designated as hedges outstanding at July 31, 2014 mature
     between June 2015 and June 2017.
 (3) Equity swaps not designated as hedges outstanding at July 31, 2014
     mature June 2015.
 (4) Foreign exchange contracts outstanding at July 31, 2014 mature between
     August 2014 and March 2015.

There were no forecasted transactions that failed to occur during the three and nine months ended July 31, 2014.

9. Capital Stock


Share Capital
                                         For the nine months ended
                              ----------------------------------------------
                                   July 31, 2014          July 31, 2013
                              ----------------------------------------------
                                 Number of              Number of
                                    Shares     Amount      Shares     Amount
----------------------------------------------------------------------------
Preferred Shares - Series 5
 Outstanding at beginning of
  period                                 - $        -           - $        -
 Issued                          5,000,000    125,000           -          -
----------------------------------------------------------------------------
 Outstanding at end of period    5,000,000    125,000           -          -
----------------------------------------------------------------------------
Preferred Shares - Series 3
 Outstanding at beginning of
  period                         8,352,496    208,815   8,390,000    209,750
 Redeemed                      (8,352,496)  (208,815)           -          -
 Purchased for cancellation              -          -    (31,404)      (785)
----------------------------------------------------------------------------
 Outstanding at end of period            -          -   8,358,596    208,965
----------------------------------------------------------------------------
Common Shares
 Outstanding at beginning of
  period                        79,619,595    510,282  78,742,812    490,218
 Issued under dividend
  reinvestment plan(1)             345,559     12,877     384,296     10,571
 Issued on exercise or
  exchange of options              305,091      1,066     245,066      1,194
 Transferred from share-based
  payment reserve on exercise
  or exchange of options                 -      5,058           -      2,397
----------------------------------------------------------------------------
 Outstanding at end of period   80,270,245    529,283  79,372,174    504,380
----------------------------------------------------------------------------
Share Capital                              $  654,283             $  713,345
----------------------------------------------------------------------------
 (1) Shares are issued at a 2% discount from the average closing price of
     the five trading days preceding the dividend payment date.

On February 10, 2014, CWB issued five million Basel III-compliant, non-cumulative, five year rate reset First Preferred Shares Series 5 (Series 5 Preferred Shares) at $25 per share, for gross proceeds of $125,000. For the initial five year period to the earliest redemption date of April 30, 2019, the shares pay quarterly cash dividends, if declared, at a rate of 4.40%. Additional information on the Series 5 preferred shares is discussed in Note 9 of CWB's unaudited interim financial statements for the second quarter ended April 30, 2014.

10. Share-based Payments


Stock Options
                                        For the three months ended
                                   July 31, 2014           July 31, 2013
                              ----------------------------------------------
                                            Weighted                Weighted
                                             Average                 Average
                               Number of    Exercise   Number of    Exercise
                                 Options       Price     Options       Price
----------------------------------------------------------------------------
Options
  Balance at beginning of
   period                      4,422,880 $     28.83   3,735,818 $     25.60
  Granted                        799,037       39.42     986,232       28.47
  Exercised or exchanged       (387,835)       26.62   (206,858)       19.60
  Forfeited                      (4,761)       32.23     (8,355)       27.92
----------------------------------------------------------------------------
Balance at end of period       4,829,321 $     30.75   4,506,837 $     26.49
----------------------------------------------------------------------------

                                         For the nine months ended
                                   July 31, 2014           July 31, 2013
                              ----------------------------------------------
                                            Weighted                Weighted
                                             Average                 Average
                               Number of    Exercise   Number of    Exercise
                                 Options       Price     Options       Price
----------------------------------------------------------------------------
Options
  Balance at beginning of
   period                      4,217,908 $     26.96   3,441,100 $     24.51
  Granted                      1,422,357       38.58   1,810,899       28.30
  Exercised or exchanged       (747,444)       24.35   (550,580)       18.58
  Forfeited                     (63,500)       29.60    (32,507)       27.53
  Expired                              -           -   (162,075)       31.18
----------------------------------------------------------------------------
Balance at end of period       4,829,321 $     30.75   4,506,837 $     26.49
----------------------------------------------------------------------------

Until March 1, 2014, the terms of the share incentive plan allowed the holders of vested options a cashless settlement alternative whereby the option holder could either (i) elect to receive shares by delivering cash to CWB in the amount of the option exercise price or (ii) elect to receive the number of shares equivalent to the excess of the market value of the shares under option, determined at the exercise date, over the exercise price (cashless settlement). Effective March 1, 2014, all options exercised are settled via cashless settlement. Of the 747,444 (2013 - 550,580) options exercised or exchanged in the nine months ended July 31, 2014, option holders exchanged the rights to 700,952 (2013 - 487,739) options and received 258,599 (2013 - 182,225) shares in return under the cashless settlement alternative.

For the nine months ended July 31, 2014, salary expense of $4,474 (2013 - $4,540) was recognized relating to the estimated fair value of options granted. The fair value of options granted was estimated using a binomial option pricing model with the following variables and assumptions: (i) risk-free interest rate of 1.5% (2013 - 1.4%), (ii) expected option life of 4.0 (2013 - 4.0) years, (iii) expected annual volatility of 18% (2013 - 22%), and (iv) expected annual dividends of 2.1% (2013 - 2.5%). The weighted average fair value of options granted was estimated at $4.61 (2013 - $3.93) per share.

Further details relating to stock options outstanding and exercisable at July 31, 2014 follow:


                            Options Outstanding         Options Exercisable
                    --------------------------------------------------------
                                  Weighted
                                   Average
                                 Remaining    Weighted              Weighted
                               Contractual     Average               Average
Range of Exercise    Number of        Life    Exercise Number of    Exercise
 Prices                Options     (years)       Price   Options       Price
----------------------------------------------------------------------------
$22.09 to $23.43        99,875         0.7 $     23.07    99,875 $     23.07
$25.46 to $29.42     3,101,896         3.1       27.44   173,221       29.42
$30.75 to $39.42     1,627,550         4.3       37.54   216,732       30.76
----------------------------------------------------------------------------
Total                4,829,321         3.5 $     30.75   489,828 $     28.72
----------------------------------------------------------------------------

11. Contingent Liabilities and Commitments

In the normal course of business, CWB enters into various commitments and has contingent liabilities, which are not reflected in the consolidated balance sheets. At July 31, 2014, these items include guarantees and standby letters of credit of $390,808 (October 31, 2013 - $354,083). Significant contingent liabilities and commitments, including guarantees provided to third parties, are discussed in Note 20 of CWB's audited consolidated financial statements for the year ended October 31, 2013 (see page 89 of the 2013 Annual Report).

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

12. Fair Value of Financial Instruments

Financial Assets and Liabilities by Measurement Basis

The table below provides the carrying amount of financial instruments by category as defined in IAS 39 - Financial Instruments: Recognition and Measurement and by balance sheet heading. The table does not include assets and liabilities that are not considered financial instruments.


                                                     Loans and
                                                   Receivables
                                                           and
                                                   Non-trading    Available-
As at July 31, 2014                  Derivatives   Liabilities      for-sale
----------------------------------------------------------------------------
Financial Assets
 Cash resources                    $           - $           - $     466,543
 Securities                                    -             -     2,525,917
 Loans (1)                                     -    17,222,873             -
 Other assets (2)                              -       126,747             -
 Derivative related                        6,616             -             -
----------------------------------------------------------------------------
Total Financial Assets             $       6,616 $  17,349,620 $   2,992,460
----------------------------------------------------------------------------

Financial Liabilities
 Deposits (1)                      $           - $  17,474,722 $           -
 Other liabilities(3)                          -       378,272             -
 Debt                                          -       939,204             -
 Derivative related                          178             -             -
----------------------------------------------------------------------------
Total Financial Liabilities        $         178 $  18,792,198 $           -
----------------------------------------------------------------------------
As at April 30, 2014
----------------------------------------------------------------------------
Total Financial Assets             $       7,050 $  16,893,597 $   2,535,294
----------------------------------------------------------------------------
Total Financial Liabilities        $          44 $  17,933,239 $           -
----------------------------------------------------------------------------
As at October 31, 2013
----------------------------------------------------------------------------
Total Financial Assets             $       4,509 $  15,750,288 $   2,580,327
----------------------------------------------------------------------------
Total Financial Liabilities        $          36 $  16,834,175 $           -
----------------------------------------------------------------------------

                                                                  Fair Value
                                                                        Over
                                           Total                     (Under)
                                        Carrying                    Carrying
As at July 31, 2014                       Amount    Fair Value        Amount
----------------------------------------------------------------------------
Financial Assets
 Cash resources                    $     466,543 $     466,543 $           -
 Securities                            2,525,917     2,525,917             -
 Loans (1)                            17,222,873    17,215,761       (7,112)
 Other assets (2)                        126,747       126,747             -
 Derivative related                        6,616         6,616             -
----------------------------------------------------------------------------
Total Financial Assets             $  20,348,696 $  20,341,584 $     (7,112)
----------------------------------------------------------------------------

Financial Liabilities
 Deposits (1)                      $  17,474,722 $  17,499,855 $      25,133
 Other liabilities(3)                    378,272       378,272             -
 Debt                                    939,204       962,800        23,596
 Derivative related                          178           178             -
----------------------------------------------------------------------------
Total Financial Liabilities        $  18,792,376 $  18,841,105 $      48,729
----------------------------------------------------------------------------
As at April 30, 2014
----------------------------------------------------------------------------
Total Financial Assets             $  19,435,941 $  19,440,590 $       4,649
----------------------------------------------------------------------------
Total Financial Liabilities        $  17,933,283 $  17,989,847 $      56,564
----------------------------------------------------------------------------
As at October 31, 2013
----------------------------------------------------------------------------
Total Financial Assets             $  18,335,124 $  18,320,618 $    (14,506)
----------------------------------------------------------------------------
Total Financial Liabilities        $  16,834,211 $  16,867,410 $      33,199
----------------------------------------------------------------------------
 (1) Loans and deposits exclude deferred premiums and deferred revenue,
     which are not financial instruments.
 (2) Other assets exclude property and equipment, goodwill and other
     intangible assets, reinsurers' share of unpaid claims and adjustment
     expenses, deferred tax asset, prepaid and deferred expenses, financing
     costs and other items that are not financial instruments.
 (3) Other liabilities exclude deferred tax liability, deferred revenue,
     unearned insurance premiums and other items that are not financial
     instruments.

Fair values are based on management's best estimates based on market conditions and pricing policies at a certain point in time. The estimates are subjective and involve particular assumptions and matters of judgment and, as such, may not be reflective of future fair values. Further information on how the fair value of financial instruments is determined is included in Note 29 of the October 31, 2013 consolidated audited financial statements (see page 97 of the 2013 Annual Report).

Fair Value Hierarchy

CWB categorizes its fair value measurements of financial instruments recorded on the consolidated balance sheets according to a three-level hierarchy. Level 1 fair value measurements reflect published market prices quoted in active markets. Level 2 fair value measurements were estimated using a valuation technique based on observable market data. Level 3 fair value measurements were determined using a valuation technique based on unobservable market data. There were no transfers between Level 1 and Level 2 during the three and nine months ended July 31, 2014.

Further information on how the fair value of financial instruments is determined is included in Note 29 of the October 31, 2013 consolidated audited financial statements (see page 97 of the 2013 Annual Report).

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


                                                 Valuation Technique
                                        ------------------------------------
As at July 31, 2014           Fair Value     Level 1     Level 2     Level 3
----------------------------------------------------------------------------
Financial assets
  Cash resources             $   466,543 $   460,001 $     6,542 $         -
  Securities                   2,525,917   2,525,917           -           -
  Derivative related               6,616           -       6,616           -
----------------------------------------------------------------------------
                             $ 2,999,076 $ 2,985,918 $    13,158 $         -
----------------------------------------------------------------------------

Financial liabilities
  Other liability            $     2,379 $         - $         - $     2,379
  Derivative related                 178           -         178           -
----------------------------------------------------------------------------
                             $     2,557 $         - $       178 $     2,379
----------------------------------------------------------------------------
As at April 30, 2014
----------------------------------------------------------------------------
Financial assets             $ 2,542,344 $ 2,521,234 $    21,110 $         -
----------------------------------------------------------------------------
Financial liabilities        $     2,023 $         - $        44 $     1,979
----------------------------------------------------------------------------
As at October 31, 2013
----------------------------------------------------------------------------
Financial assets             $ 2,584,836 $ 2,533,327 $    51,509 $         -
----------------------------------------------------------------------------
Financial liabilities        $     1,715 $         - $        36 $     1,679
----------------------------------------------------------------------------

Financial instruments that are not carried on the balance sheet at fair value include loans, deposits and debt. Based on the inputs used to calculate fair values disclosed above, these financial instruments are classified as Level 2 in the fair value hierarchy.

Level 3 Financial Instruments

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


                                                  For the nine months ended
                                                           July 31
                                                ----------------------------
                                                          2014          2013
----------------------------------------------------------------------------
Balance at beginning of period                   $       1,679 $           -
  Business acquisition                                       -         1,679
  Change in fair value charged to other income             700             -
----------------------------------------------------------------------------
Balance at end of period                         $       2,379 $       1,679
----------------------------------------------------------------------------

13. Interest Rate Sensitivity

CWB's exposure to interest rate risk as a result of a difference or gap between the maturity or repricing behavior of interest sensitive assets and liabilities, including derivative financial instruments, is discussed in Note 28 of the audited consolidated financial statements for the year ended October 31, 2013 (see page 96 of the 2013 Annual Report). The following table shows the gap position for selected time intervals.


Asset Liability Gap Positions
                                Floating
                                    Rate
                                     and                3 Months       Total
                                  Within      1 to 3          to      Within
($ millions)                    1 Month      Months      1 Year      1 Year
----------------------------------------------------------------------------
July 31, 2014
Assets
Cash resources and
 securities                  $      368  $      983  $      509  $    1,860
Loans                             7,999         886       2,286      11,171
Other assets                          -           -           -           -
Derivative
 financialinstruments(1)              -           -         338         338
----------------------------------------------------------------------------
Total                             8,367       1,869       3,133      13,369
----------------------------------------------------------------------------
Liabilities and Equity
Deposits                          6,548       1,220       3,499      11,267
Other liabilities                     4           7          33          44
Debt                                 10          21          82         113
Equity                                -           -           -           -
Derivative
 financialinstruments(1)          1,348           -           -       1,348
----------------------------------------------------------------------------
Total                             7,910       1,248       3,614      12,772
----------------------------------------------------------------------------
Interest Rate Sensitive Gap  $      457  $      621  $    (481)  $      597
----------------------------------------------------------------------------
Cumulative Gap               $      457  $    1,078  $      597  $      597
----------------------------------------------------------------------------
Cumulative Gap as
 aPercentage of Total Assets        2.1%        4.9%        2.7%        2.7%
----------------------------------------------------------------------------

April 30, 2014
Cumulative Gap               $    1,560  $    2,069  $    1,100  $    1,100
----------------------------------------------------------------------------
Cumulative Gap as
 aPercentage of Total Assets        7.6%       10.1%        5.4%        5.4%
----------------------------------------------------------------------------

October 31, 2013
Cumulative Gap               $    1,289  $    1,785  $      240  $      240
----------------------------------------------------------------------------
Cumulative Gap as a
 Percentage of Total Assets         6.7%        9.2%        1.2%        1.2%
----------------------------------------------------------------------------

Asset Liability Gap Positions

                                  1 Year                    Non-
                                      to   More than    interest
($ millions)                    5 Years     5 Years   Sensitive       Total
----------------------------------------------------------------------------
July 31, 2014
Assets
Cash resources and
 securities                  $      903  $      185  $       45  $    2,993
Loans                             5,945         107        (81)      17,142
Other assets                          -           -         388         388
Derivative
 financialinstruments(1)          1,010           -           1       1,349
----------------------------------------------------------------------------
Total                             7,858         292         353      21,872
----------------------------------------------------------------------------
Liabilities and Equity
Deposits                          6,208           -        (17)      17,458
Other liabilities                    26          13         390         473
Debt                                576         250           -         939
Equity                                -           -       1,653       1,653
Derivative
 financialinstruments(1)              -           -           1       1,349
----------------------------------------------------------------------------
Total                             6,810         263       2,027      21,872
----------------------------------------------------------------------------
Interest Rate Sensitive Gap  $    1,048  $       29  $  (1,674)  $        -
----------------------------------------------------------------------------
Cumulative Gap               $    1,645  $    1,674  $        -  $        -
----------------------------------------------------------------------------
Cumulative Gap as
 aPercentage of Total Assets        7.5%        7.7%          -%          -%
----------------------------------------------------------------------------

April 30, 2014
Cumulative Gap               $    1,541  $    1,557  $        -  $        -
----------------------------------------------------------------------------
Cumulative Gap as
 aPercentage of Total Assets        7.5%        7.6%          -%          -%
----------------------------------------------------------------------------

October 31, 2013
Cumulative Gap               $    1,499  $    1,541  $        -  $        -
----------------------------------------------------------------------------
Cumulative Gap as a
 Percentage of Total Assets         7.8%        8.0%          -%          -%
----------------------------------------------------------------------------
 (1) Derivative financial instruments are included in this table at the
     notional amount.
 (2) Accrued interest is excluded in calculating interest sensitive assets
     and liabilities.
 (3) Potential prepayments of fixed rate loans and early redemption of
     redeemable fixed term deposits have not been estimated. Redemptions of
     fixed term deposits where depositors have this option are not expected
     to be material. The majority of fixed rate loans, mortgages and leases
     are either closed or carry prepayment penalties.

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


                                Floating
                                    Rate
                                     and                3 Months       Total
                                  Within      1 to 3          to      Within
July 31, 2014                    1 Month      Months      1 Year      1 Year
----------------------------------------------------------------------------
Total assets                       3.6%        2.4%        4.0%        3.6%
Total liabilities                  1.2         1.7         2.0         1.5
----------------------------------------------------------------------------
Interest rate sensitive gap        2.4%        0.7%        2.0%        2.1%
----------------------------------------------------------------------------

April 30, 2014
----------------------------------------------------------------------------
Total assets                       3.3%        2.4%        4.2%        3.4%
Total liabilities                  1.3         1.8         2.0         1.6
----------------------------------------------------------------------------
Interest rate sensitive gap        2.0%        0.6%        2.2%        1.8%
----------------------------------------------------------------------------

October 31, 2013
----------------------------------------------------------------------------
Total assets                       3.8%        2.3%        4.0%        3.6%
Total liabilities                  1.3         1.9         2.0         1.6
----------------------------------------------------------------------------
Interest rate sensitive gap        2.5%        0.4%        2.0%        2.0%
----------------------------------------------------------------------------





                                  1 Year        More
                                      to        than
July 31, 2014                    5 Years     5 Years       Total
----------------------------------------------------------------
Total assets                       4.0%        4.6%        3.8%
Total liabilities                  2.4         3.3         1.8
----------------------------------------------------------------
Interest rate sensitive gap        1.6%        1.3%        2.0%
----------------------------------------------------------------

April 30, 2014
----------------------------------------------------------------
Total assets                       4.5%        4.7%        3.8%
Total liabilities                  2.4         3.3         1.9
----------------------------------------------------------------
Interest rate sensitive gap        2.1%        1.4%        1.9%
----------------------------------------------------------------

October 31, 2013
----------------------------------------------------------------
Total assets                       4.6%        4.8%        4.0%
Total liabilities                  2.4         3.3         1.9
----------------------------------------------------------------
Interest rate sensitive gap        2.2%        1.5%        2.1%
----------------------------------------------------------------

14. Capital Management

Capital for Canadian financial institutions is managed and reported in accordance with a capital management framework specified by OSFI commonly called Basel III. Additional information about CWB's capital management practices is provided in Note 31 to the fiscal 2013 audited consolidated financial statements within 2013 Annual Report (see page 100 of the 2013 Annual Report) and in the Capital Management section in the Q3 2014 Management's Discussion and Analysis.

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


Capital Structure and Regulatory Ratios
                                             As at        As at        As at
                                           July 31     April 30      July 31
                                              2014         2014         2013
----------------------------------------------------------------------------
Regulatory capital, net of deductions
  Common equity Tier 1                $ 1,406,960  $ 1,376,624  $ 1,243,708
  Tier 1                                1,637,318    1,606,780    1,515,961
  Total                                 2,267,031    2,231,539    2,194,220
----------------------------------------------------------------------------
Capital ratios
  Common equity Tier 1                        8.0%         8.1%         7.9%
  Tier 1                                      9.3          9.4          9.6
  Total                                      12.9         13.1         13.9
Asset to capital multiple                     9.0x         8.7x         8.0x
----------------------------------------------------------------------------

During the nine months ended July 31, 2014, CWB complied with all internal and external capital requirements.

15. Comparative Figures

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

Shareholder Information


Head Office
Canadian Western Bank Group
Suite 3000, Canadian Western Bank Place
10303 Jasper Avenue
Edmonton, AB T5J 3X6
Telephone: (780) 423-8888
Fax: (780) 423-8897
cwb.com

Subsidiary Offices
National Leasing Group Inc.
1525 Buffalo Place
Winnipeg, MB R3T 1L9
Toll-free: 1-800-665-1326
Toll-free fax: 1-866-408-0729
nationalleasing.com

Canadian Western Trust Company
Suite 600, 750 Cambie Street
Vancouver, BC V6B 0A2
Toll-free: 1-800-663-1124
Fax: (604) 669-6069
cwt.ca

Valiant Trust Company
Suite 310, 606 4th Street S.W.
Calgary, AB T2P 1T1
Toll-free: 1-866-313-1872
Fax: (403) 233-2857
valianttrust.com

Canadian Direct Insurance Incorporated
Suite 600, 750 Cambie Street
Vancouver, BC V6B 0A2
Telephone: (604) 699-3678
Fax: (604) 699-3851
canadiandirect.com

Adroit Investment Management Ltd.
Suite 1250, Canadian Western Bank Place
10303 Jasper Avenue
Edmonton, AB T5J 3N6
Telephone: (780) 429-3500
Fax: (780) 429-9680
adroitinvestments.ca

McLean & Partners Wealth Management Ltd.
801 10th Avenue SW
Calgary, AB T2R 0B4
Telephone: (403) 234-0005
Fax: (403) 234-0606
mcleanpartners.com

Stock Exchange Listings
The Toronto Stock Exchange
Common Shares: CWB
Series 5 Preferred Shares: CWB.PR.B

Transfer Agent and Registrar
Valiant Trust Company
Suite 310, 606 4th Street S.W.
Calgary, AB T2P 1T1
Telephone: (403) 233-2801
Fax: (403) 233-2857
Website: http://www.valianttrust.com/
Email: [email protected]

Eligible Dividends Designation
CWB designates all dividends for both common and preferred shares paid to
Canadian residents as "eligible dividends", as defined in the Income Tax Act
(Canada), unless otherwise noted.

Dividend Reinvestment Plan
CWB's dividend reinvestment plan allows common and preferred shareholders to
purchase additional common shares by reinvesting their cash dividend without
incurring brokerage and commission fees. For information about participation
in the plan, please contact the Transfer Agent and Registrar or visit
cwb.com.

Investor Relations
Investor & Public Relations
Canadian Western Bank
Telephone: (780) 969-8337
Toll-free: 1-800-836-1886
Fax: (780) 969-8326
Email: [email protected]

Online Investor Information
Additional investor information including supplemental financial information
and corporate presentations are available on CWB's website at cwb.com.

Quarterly Conference Call and Webcast
CWB's quarterly conference call and live audio webcast will take place on
August 28th, 2014 at 1:00 p.m. ET (11:00 a.m. MT). The conference call may
be accessed on a listen-only basis by dialing 647-788-4922 or toll-free 877-
223-4471. The webcast will be archived on CWB's website at cwb.com for sixty
days. A replay of the conference call will be available until September 11,
2014 by dialing 416-621-4642 (Toronto) or 1-800-585-8367 (toll-free) and
entering passcode 78022131.

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