Corporate Presentation

Transcription

1 Corporate Presentation First Quarter 2012

2 Advisory Forward-looking Statement From time to time, Canadian Western Bank (the Bank) makes written and verbal forward-looking statements. Statements of this type are included in the Annual Report and reports to shareholders and may be included in filings with Canadian securities regulators or in other communications such as press releases and corporate presentations. Forward-looking statements include, but are not limited to, statements about the Bank s objectives and strategies, targeted and expected financial results and the outlook for the Bank s businesses or for the Canadian economy. Forward-looking statements are typically identified by the words believe, expect, anticipate, intend, estimate, may increase, may impact and other similar expressions, or future or conditional verbs such as will, should, would and could. By their very nature, forward-looking statements involve numerous assumptions. A variety of factors, many of which are beyond the Bank s control, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, but are not limited to, general business and economic conditions in Canada including the volatility and lack of liquidity in financial markets, fluctuations in interest rates and currency values, changes in monetary policy, changes in economic and political conditions, regulatory and legal developments, the level of competition in the Bank s markets, the occurrence of weather-related and other natural catastrophes, changes in accounting standards and policies, the accuracy of and completeness of information the Bank receives about customers and counterparties, the ability to attract and retain key personnel, the ability to complete and integrate acquisitions, reliance on third parties to provide components of the Bank s business infrastructure, changes in tax laws, technological developments, unexpected changes in consumer spending and saving habits, timely development and introduction of new products, and management s ability to anticipate and manage the risks associated with these factors. It is important to note that the preceding list is not exhaustive of possible factors. These and other factors should be considered carefully and readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause the Bank s actual results to differ materially from the expectations expressed in such forward looking statements. Unless required by securities law, the Bank does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by it or on its behalf. Assumptions about the performance of the Canadian economy in 2012 and how it will affect CWB s businesses are material factors the Bank considers when setting its objectives. In setting minimum performance targets for fiscal 2012, management s assumptions included: modest economic growth in Canada aided by positive relative performance in the four western provinces; relatively stable energy and other commodity prices; sound credit quality with actual losses remaining within the Bank s historical range of acceptable levels; and, a lower net interest margin attributed to expectations for a prolonged period of very low interest rates due to uncertainties about the strength of global economic recovery and potential adverse effects from the European debt crisis. Management s assumptions at the end of the first quarter remained relatively unchanged compared to those at the 2011 fiscal year end. Major risks that would have a material adverse impact on the Bank s economic expectations include a global economic recession spurred by the European debt crisis, a prolonged recession in the U.S., or a meaningful slowdown in China s economic growth. CGAAP Canadian Generally Accepted Accounting Principles IFRS International Financial Reporting Standards First Quarter 2012 Corporate Presentation SHAREDVISION 2

3 Canadian Western Bank Group Lines of Business Business banking Personal banking Commercial equipment leasing Alternative mortgage lending Corporate trust Personal trust Wealth management Auto and home insurance Bank 40 branches (+ equipment leasing) Trust 8 locations Insurance 2 service centres Wealth management 1 location January 31, 2012 Total assets: ~$15.5 billion Market capitalization (TSX: CWB): ~$2.0 billion 95 consecutive profitable quarters First Quarter 2012 Corporate Presentation SHAREDVISION 3

4 Financial Performance History (CGAAP) Historical Growth (five-year increments) NET INCOME AFTER TAXES ($ thousands) % NET INCOME GROWTH BEFORE TAXES NET INCOME BEFORE TAXES ($ thousands) % ASSET GROWTH TOTAL ASSETS ($ millions) YEAR 1991 $486 $1,309 $1, $1, % $13, % $12, $3,440 96% $46, % $30, $7, % $105, % $72, $14, % $235, % $178,149 Total Loans ($ millions) (1) $14,000 $12,000 $13,523 $12,745 $12,293 $10,496 $9,236 $8,624 $10,000 $8,000 $6,000 $4,000 $2, Q1 12 Target 2012 (1) As of Q1 11, financial results are reported under International Financial Reporting Standards (IFRS) First Quarter 2012 Corporate Presentation SHAREDVISION 4

5 Strategic Priorities Focus 2012 Build on existing competitive strengths client-focused; business banking; niche lending areas Maintain disciplined underwriting and secured lending practices Optimize capital position and evaluate available deployment opportunities Invest in people/infrastructure/technology to support growth and improve efficiency Ongoing expansion of branch network Enhance and diversify base of core retail deposits Increase total revenues by building on cross-partnership opportunities between CWB Group companies/divisions (offer more products to existing clients) Support the development and growth of complementary business lines to increase non-interest (fee-based) income and further diversify sources of net interest income Equipment financing and leasing Alternative mortgages Trust services Insurance Wealth management Strong returns and high growth potential First Quarter 2012 Corporate Presentation SHAREDVISION 5

6 Performance Objectives 2013 (CGAAP) Five-year Targets (established at the beginning of fiscal 2009) Surpass $200 million of net income Achieve 30% earnings contribution from non-interest sources Double income contributions from all CWB operating affiliates Enhance personal banking franchise (grow core deposits and branch network) Increase industry and geographic diversification (specific business units) On-track to meet or beat target Achievement of target will be difficult First Quarter 2012 Corporate Presentation SHAREDVISION 6

7 2012 Minimum Performance Targets (IFRS) 2012 Minimum Target IFRS 2012 Year-to-date Performance Net income available to common shareholders growth (1) 10% 10% Total revenue growth (teb) (1) Loan growth (2) 10% 15% 7% 4% Provision for credit losses (3) 0.20% 0.25% 0.20% Efficiency ratio (teb) (4) 46% 43.7% Return on common equity (5) 15% 15.5% Return on assets (6) 1.05% 1.07% (1) Year-to-date performance for earnings and revenue growth is the current year results over the same period in the prior year. (2) Loan growth is the increase over the past twelve months. (3) Year-to-date provision for credit losses, annualized, divided by average total loans. (4) Efficiency ratio (teb) calculated as noninterest expenses divided by total revenues (teb), excluding the non-tax deductible change in fair value of contingent consideration. (5) Return on common shareholders equity calculated as annualized net income available to common shareholders divided by average common shareholders equity. (6) Return on assets calculated as annualized net income available to common shareholders divided by average total assets. Well positioned early in the year to meet or surpass all 2012 minimum performance targets First Quarter 2012 Corporate Presentation SHAREDVISION 7

8 Financial Performance Q1 12 (IFRS) ($ thousands) Q1 12 Q1 11 Change $ 41,478 $ 37, % Net income available to common shareholders Diluted earnings per share Adjusted cash earnings per share Total Loans Net Income Available to Common Shareholders +15% ($ billions) $13 ($ million) $45 +4% $12.7 billion $12.3 billion $11.0 billion $12 $11 $10 $9 $8 $7 +10% $41.5 million. $37.9 million. $30 $15 $0 $6 Q1 11 Q1 12 Q1 11 Q4 11 Q1 12 First Quarter 2012 Corporate Presentation SHAREDVISION 8

9 Financial Performance Margin Net Interest Margin (teb) and Spread on Loans 3.50% (1) 7.00% 3.25% 6.00% 3.00% 5.00% 2.75% 4.00% 2.50% 3.00% 2.25% 2.00% 2.00% 1.00% 1.75% Q1 08 Q3 08 Q1 09 Q3 09 Q1 10 Q3 10 Q1 11 Q3 11 Q % Net interest margin (teb) (left-scale) Spread on loans (left-scale) Average prime (right-scale) (1) As of Q1 11, financial results are reported under International Financial Reporting Standards (IFRS) Recent downward pressure on net interest margin expected to moderate despite the combined impacts of a very low interest rate environment, flat interest rate curve and increased competition in some areas First Quarter 2012 Corporate Presentation SHAREDVISION 9

10 NIM Financial Performance Margin Net Interest Margin (NIM) vs. CWB Cost of Funds (COF) (spread over 3 year GOC bond) 6.00% IFRS 3.50% 5.00% Acquired National Leasing 3.00% 4.00% 2.50% 3.00% 2.00% 2.00% 1.50% 1.00% 1.00% 0.00% Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan % NIM 3Yr COF to GOC Spread (30d Avg.) First Quarter 2012 Corporate Presentation SHAREDVISION 10 Spread

11 Financial Performance Credit Gross Impaired Loans & Write-offs (as a percentage of average loans) 1.75% (1) $ Gross impaired loans as a % of avg. loans $ Write-offs as a % of avg. loans 1.50% 1.25% 1.00% 0.75% 0.50% 0.25% 0.00% Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 (1) As of Q1 11, financial results are reported under International Financial Reporting Standards (IFRS) Improved credit quality as evidenced by seven consecutive quarters of declining gross impaired loans Low write-offs relative to the level of gross impaired loans reflects secured lending practices and disciplined underwriting Dollar level of gross impaired loans expected to fluctuate around the current level First Quarter 2012 Corporate Presentation SHAREDVISION 11

12 Financial Performance Credit Annual Provision for Credit Losses (as a percentage of average loans) 0.42% 0.58% 0.32% 0.36% 0.29% 0.62% 5-Year Avg. ( CGAAP / 2011 IFRS) Q1 12 (IFRS) 0.22% 0.29% 0.54% 0.57% 0.23% 0.56% 0.34% 0.50% 0.20% 0.17% 0.70% 0.60% 0.50% 0.40% 0.30% 0.20% 0.10% 0.00% BMO CIBC National RBC Scotia TD CWB Canadian Bank Avg. (6)* Demonstrated history of low credit losses relative to the six largest Canadian banks * Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canada s six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD) First Quarter 2012 Corporate Presentation SHAREDVISION 12

13 Financial Performance Credit Provision for Credit Losses (as a percentage of average loans) 1.20% Canadian Bank Avg. (6)* CWB CWB general allowance ($000's) (right-scale) $72,000 (1) 1.00% $60, % $48, % $36, % $24, % 0.20% $12, % Q1 12 $0 (1) As of Q1 11, financial results are reported under International Financial Reporting Standards (IFRS) Provision for credit losses in Q1 12 at the low end of the fiscal 2012 target range * Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canada s six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD) First Quarter 2012 Corporate Presentation SHAREDVISION 13

14 Financial Performance Capital Ratios CWB Historical Capital Ratios (Basel II) IFRS 18% Compared to Peers (Q1 12) 15.4% 14.3% 15.4% 14.6% (Basel II) Tier 1 Total BMO 11.7% 14.6% CIBC 14.3% 18.1% CWB 10.2% 14.6% National 12.7% 15.2% RBC 12.2% 14.5% Scotia 11.4% 13.2% TD 11.6% 14.7% 13.7% 13.5% 15% 12% 9% 10.2% 11.1% 11.3% 11.3% 6% 8.9% 9.1% 3% 0% Q1 12 Tier 1 ratio Total ratio Solid capital position expected to support ongoing growth while providing flexibility to both capitalize on opportunities and manage future challenges First Quarter 2012 Corporate Presentation SHAREDVISION 14

15 Financial Performance Capital & Leverage Regulatory Capital Structure Q1 12 (Basel II) Actual Regulatory Minimum Q1 12 (Basel III) Pro Forma Regulatory Minimum Tangible common equity / CET1 8.2 % 7.5 % 7.0 % Tier 1 capital % Total capital Low Leverage (total assets-to-equity) x x Q1 12 Canadian Western Bank (CGAAP) Canadian Bank Avg. (6)* (CGAAP) IFRS * Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canada s six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD) First Quarter 2012 Corporate Presentation SHAREDVISION 15

16 Financial Performance Capital & Leverage Capital Ratios and Risk-Weighted Assets (RWA) Standardized Advanced Internal Rating Based (AIRB) Average CWB Variance CWB LB BMO BNS CM NA RY TD (AIRB banks) (from Average) Estimated Common Equity Tier 1 Ratio (Basel III) (1) 7.9% 6.6% 6.9% 5.8% 8.2% 7.2% 7.6% 6.6% 7.0% 83 bp Estimated risk weightings by category (2) Residential mortgages 34.9% 18.2% 17.0% 7.3% 4.5% 10.6% 5.8% 10.7% 9.3% 25.6% Other retail loans (3) 75.9% 61.2% 23.7% 34.9% 31.4% 45.3% 20.0% 49.4% 34.1% 41.8% Business loans (4) 96.3% 98.6% 52.7% 65.7% 36.9% 58.2% 59.9% 44.6% 53.0% 43.3% Pro forma CWB and LB assuming 20% reduction in RWA from AIRB 9.8% 8.2% 6.9% 5.8% 8.2% 7.2% 7.6% 6.6% 7.0% 280 bp Pro forma six largest banks assuming 20% increase in RWA from standardized 7.9% 6.6% 5.7% 4.9% 6.8% 6.0% 6.3% 5.5% 5.9% 200 bp (1) "Estimated Common Equity Tier 1 Ratio (Basel III)" calculated as at Oct 31, 2011 based on analysis by Macquarie Capital Markets Canada Ltd. - stated estimates exclude adjustments for IFRS and other relevant changes since the 2011 FYE (2) "Estimated risk weightings by category" based on Oct 31, 2011 company reports of Canada's seven publicly traded Schedule 1 banks. (3) Other retail includes personal loans, credit cards and small business loans treated as retail. (4) Business includes corporate, commercial, medium-sized enterprises and non-bank financial institutions. Provision for Credit Losses (measured as a % of average loans) 10 YR ` Average CWB 0.26% 0.25% 0.25% 0.24% 0.20% 0.16% 0.15% 0.15% ` 0.21% 0.20% 0.21% Canadian Bank Average (6)* 1.00% 0.42% 0.15% 0.21% 0.20% 0.29% 0.56% 0.86% ` 0.53% 0.38% 0.46% Variance -0.74% -0.17% 0.10% 0.03% 0.00% -0.13% -0.41% -0.71% ` -0.32% -0.18% -0.25% * Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canada s six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD) First Quarter 2012 Corporate Presentation SHAREDVISION 16

17 Financial Performance Efficiency Efficiency Ratio (non-interest expenses as a % of total revenues (teb)) 62.8% 62.1% 60.9% 57.6% 58.5% 65% 60% 55% 50% 45% 45.3% 44.1% 48.2% 45.2% 44.6% 40% 35% 30% 25% CWB (teb) (CGAAP) Canadian Bank Avg. (6)* (CGAAP) Exceptional efficiency relative to the six largest Canadian banks demonstrated ability to effectively control costs while supporting sustained growth * Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canada s six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD) First Quarter 2012 Corporate Presentation SHAREDVISION 17

18 Composition of Assets Composition of Assets (as at January 31, 2012) General commercial loans, 18% Total Assets Other assets, 3% Other securities, 3% Commercial mortgages, 17% 18% Preferred shares, 3% Government securities (prov. & GOC), 7% 82% Cash & cash equivalents (including repo), 2% Corporate loans, 5% Real estate project loans, 13% Total loans Other assets Oil & gas production loans, 2% Personal loans & mortgages, 13% Equipment financing, 14% Loans by Lending Sector* *Loans by lending sector exclude the allowance for credit losses ($ millions) Change from Q Q1 12 Q4 11 $ % Commercial mortgages $ 2,702 $ 2,691 $ 11 0% General commercial 2,786 2, % Real estate project loans 1,962 1, % Personal loans & mortgages 2,095 2, % Equipment financing 2,152 2, % Corporate loans % Oil & gas production loans (1) 0% Total loans outstanding $ 12,819 $ 12,365 $ 454 4% First Quarter 2012 Corporate Presentation SHAREDVISION 18

19 Composition of Liabilities and Equity Composition of Liabilities & Equity (as at January 31, 2012) Branch demand & notice deposits, 27% % Weight of Total Branch term deposits, 21% Common equity 7% Other liabilities 1% Preferred equity 4% Subordinated debt 3% Non-controlling interest equity 1% Total 16% Capital markets term deposits, 4% Agent deposits, 32% First Quarter 2012 Corporate Presentation SHAREDVISION 19

20 Funding Sources Deposits Total Branch-raised Deposits (1) Total Demand and Notice Deposits +14% ($ millions) $5,000 $4,500 +9% $4,000 $3,500 ($ millions) $8,000 $7,000 $4,203 $3,695 $3,000 $2,500 $2,000 $1,500 $1,000 $7,379 $6,761 $6,000 $5,000 $4,000 Q1 11 Q1 12 Q1 11 Q1 12 ($ millions) $15,000 Total loans Total deposits Total branch-raised deposits (1) (2) $13,000 $12,961 $12,745 $11,000 $9,000 $7,000 $7,379 $5,000 $3,000 $1, Q1 12 (1) Branch-raised deposits include deposits raised through CWB s trust businesses, Canadian Western Trust and Valiant Trust (2) As of Q1 11, financial results are reported under International Financial Reporting Standards (IFRS) First Quarter 2012 Corporate Presentation SHAREDVISION 20

21 Economic Outlook 18% 15% 12% Jan-11 Jan-12 Provincial Unemployment Rates (seasonally adjusted) Economic strength in Western Canada 2012 Planned Capital Expenditures* Total Canadian oil and gas sector: ~$55 billion (Canadian oil sands: ~$20 billion, or ~36% of total) 9% 6% 3% 0% NL PEI NS NB QC ON MB SK AB BC SOURCE: Statistics Canada 6% Gross Domestic Product (GDP) (seasonally adjusted) 2011(E) 2012(F) Economic strength in Western Canada 4% 2% 0% NL PEI NS NB QC ON MB SK AB BC SOURCE: 2011(E) - GDP estimates published by Statistics Canada 2012 (F) - GDP forecasts of Canada Mortgage and Housing Corporation (CMHC) as published in its Q "Housing Market Outlook" * 2012 Planned Capital Expenditures as estimated in December 2011 by the Canadian Association of Petroleum Producers (CAPP) First Quarter 2012 Corporate Presentation SHAREDVISION 21

22 Infrastructure Banking branches across Western Canada Equipment leasing centre headquartered in Winnipeg (satellite offices across Canada) Trust services offices Vancouver, Calgary, Edmonton, Toronto Insurance call centres Vancouver, Edmonton Wealth management office Edmonton Branch Expansion (square ft.) 190,000 Forecasted growth in branch square footage from the beginning of fiscal % 160, , % 100,000 70,000 Square ft. Grande Prairie 40, % 10, Forecast 2013 Forecast Prince George St. Albert Sherwood Park Edmonton (5) Leduc Kamloops Red Deer Vancouver (4) Kelowna (2) Nanaimo Coquitlam Calgary (5) Richmond Langley Cranbrook Victoria Abbotsford Surrey (2) Medicine Hat Lethbridge Saskatoon (2) Yorkton Regina BC AB SK MB Winnipeg +32% New full-service branch in Richmond, BC opened in Q4 11 First Quarter 2012 Corporate Presentation SHAREDVISION 22

23 Diversification Total Revenues (teb) Net interest income (after provision for credit losses) 85% 4% 2% 4% 3% 2% Credit related fees Retail services fees Trust and wealth management Insurance, net Gains on sale of securities Objective to grow other income to encompass a greater proportion of total revenues Banking and leasing fee income Trust services Wealth management Insurance Enhance product offerings Evaluate potential acquisitions (accretive and complementary) First Quarter 2012 Corporate Presentation SHAREDVISION 23

24 Diversification Equipment Leasing Industry leader in small- and mid-ticket equipment leasing Proven management team and ~300 employees Long history of strong performance (30+ years in business) Approximately 60,000 active leases providing diversification by geography, industry and equipment type Established presence across Canada Synergies with existing banking/lending operations (funding, growth, technology) Provincial Breakdown of Leases (as at January 31, 2012) Total Leases (including securitized portfolios) (as at January 31, 2012) ($ millions) AB, 19% $800 BC, 9% $700 Atlantic and other, 7% $600 SK, 14% $796 $772 $500 QC, 13% $681 $648 $620 MB, 7% $535 $400 $300 $200 ON, 31% Q1 12 First Quarter 2012 Corporate Presentation SHAREDVISION 24

25 Diversification Trust Services Trust offices in Vancouver, Calgary, Edmonton and Toronto Trust assets under administration approaching $7 billion and lower cost deposits of more than $1 billion Over 48,000 CWT investment accounts Scalable growth opportunities that offer both geographic and product expansion Stable source of fee-based revenues (less cyclical than core banking system) Total # of Clients (Valiant Trust) Total Revenues (teb) (Including Optimum Mortgage, a division of CWT) ($ thousands) 340 $60,000 CWT* Valiant 300 $50, $40, $30,000 $20,000 $10,000 $ Q Q1 12 (annualized) * Total revenues (teb) for CWT include net interest income plus other income, excluding changes in fair value of intercompany swaps First Quarter 2012 Corporate Presentation SHAREDVISION 25

26 Diversification Alternative Mortgages Broker-driven model providing residential mortgages across Western Canada and in select regions of Ontario Underwrites alternative mortgages and higher ratio insured mortgages As of Q1 12, alternative mortgages represented ~61% of Optimum s portfolio and carry a weighted average loan-to-value at initiation of ~70% Solid source of loan growth and profitability (blend of fee-based income and interest revenues) Considerable future growth opportunities Total Optimum Mortgages ($ millions) $1,000 $800 $995 $934 $796 $561 $469 $375 $600 $400 $200 $ Q1 12 First Quarter 2012 Corporate Presentation SHAREDVISION 26

27 Diversification Insurance Personal auto and home insurance in Western Canada (British Columbia and Alberta) Distribution of policies through telephone, internet and broker network Offers steady source of revenue independent of economic volatility Average combined ratio over the past five years ( ) of 93% Over 190,000 policies outstanding (solid growth profile) $200,000 Gross Written Premiums ($ 000's) (left-scale) 200,000 $180,000 Policies Outstanding (#) (right-scale) 190,000 $160,000 $140,000 $120,000 $100, , , , , ,000 $80, ,000 $60, Q ,000 First Quarter 2012 Corporate Presentation SHAREDVISION 27

28 Diversification Wealth Management Specializes in wealth and portfolio management Complementary business line with good growth potential Additional synergies with banking and fiduciary trust operations Relatively stable source of fee-based income with low capital investment Assets Under Management (AUM) ($ m illions) $1,000 $750 $844 $816 $795 $878 $838 $847 $500 $250 $ Q1 12 First Quarter 2012 Corporate Presentation SHAREDVISION 28

29 Shareholder Return Historical Valuation (share price and book value per share*) (1) $32.00 $28.00 $24.00 $ % -1% +4% +14% +13% +13% +12% $14.36 $13.87 $14.08 $12.16 $10.70 $9.48 $8.39 $16.00 $ % $8.00 $4.00 $0.00 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Jan-12 * * Book value per share Share price (1) As of Q CWB's financial results are reported under International Financial Reporting Standards (IFRS) * Values adjusted to reflect 2 for 1 stock dividends paid in both 2005 and 2007 First Quarter 2012 Corporate Presentation SHAREDVISION 29

30 Shareholder Return Dividend Growth $34.00 Dividend Payout Ratios**: Quarterly dividend paid in Janaury 2012, annualized $0.60 $31.00 $0.55 Fiscal 2009: ~29% Fiscal 2010: ~19% Fiscal 2011: ~24% Target payout range: 25 30% $28.00 $0.50 $0.45 $25.00 $0.40 $ % $0.35 $ % $0.30 $16.00 $0.25 $13.00 $0.20 $10.00 $ % Canadian Bank Dividend Increases Post Financial Crisis Q Q (declared) $7.00 $ % $4.00 $0.05 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Jan-12 * 21.0% 18.0% Dividends (left scale) Share price (right scale) 14.0% 12.2% * Dividends paid in 2004 appear unusually high as they included the last semi-annual dividend and three quarterly dividends 3.4% 0.0% BMO BNS CM NA RY TD LB CWB ** Dividend payout ratios represent common share dividends (including shares issued under CWB s dividend reinvestment plan (DRIP)) measured as a percentage of net income available to common shareholders Source: Publicly available company reports of Canada s Schedule I Banks (TSX trading symbols: BMO, BNS, CM, LB, NA, RY, TD) First Quarter 2012 Corporate Presentation SHAREDVISION 30

31 CWB Group Corporate Structure President & CEO Larry Pollock Executive Vice President Bill Addington Executive Vice President & CFO Tracey Ball Chief Operating Officer Chris Fowler Executive Vice President Randy Garvey Executive Vice President, and President & CEO, CDI Brian Young President & CEO, National Leasing Nick Logan Mergers & Acquisitions Corporate Initiatives Finance & Tax Credit Risk Treasury Human Resources Canadian Direct Insurance Incorporated (CDI) Corporate Lending Investor Relations Operating Divisions Banking Information Services Internal Audit Canadian Western Trust Company Adroit Investment Management Ltd. Legal Optimum Mortgage Marketing & Product Development Corporate Administration Valiant Trust Company Regulatory Compliance Canadian Western Financial Ltd. Operations First Quarter 2012 Corporate Presentation SHAREDVISION 31

32 Additional Information Shares Outstanding (January 31, 2012) 75.7 million common shares (TSX: CWB) 8.4 million preferred shares (TSX: CWB.PR.A) Employee Share Purchase Plan (ESPP) Approximately 94% employee participation Investor Inquiries Canadian Western Bank Place Suite Jasper Avenue Edmonton, Alberta T5J 3X6 First Quarter 2012 Corporate Presentation SHAREDVISION 32