Canadian Western Bank Group

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Transcription:

Canadian Western Bank Group Second Quarter 2011 Corporate Presentation

ADVISORY Forward-looking Statements From time to time, Canadian Western Bank (the Bank) makes written and verbal forward-looking statements. Statements of this type are included in the Annual Report and reports to shareholders and may be included in filings with Canadian securities regulators or in other communications such as press releases and corporate presentations. Forward-looking statements include, but are not limited to, statements about the Bank s objectives and strategies, targeted and expected financial results and the outlook for the Bank s businesses or for the Canadian economy. Forward-looking statements are typically identified by the words believe, expect, anticipate, intend, estimate, may increase, may impact and other similar expressions, or future or conditional verbs such as will, should, would and could. By their very nature, forward-looking statements involve numerous assumptions. A variety of factors, many of which are beyond the Bank s control, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, but are not limited to, general business and economic conditions in Canada including the volatility and lack of liquidity in financial markets, fluctuations in interest rates and currency values, changes in monetary policy, changes in economic and political conditions, regulatory and legal developments, the level of competition in the Bank s markets, the occurrence of weatherrelated 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 2011 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 2011, management s assumptions included: moderate 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, including consideration for National Leasing; modest inflationary pressures and gradual increases in the prime lending interest rate beginning in early-to-mid calendar year 2011; and, a relatively stable net interest margin supported by a low deposit cost environment, favourable yields on both new lending facilities and renewed accounts, and relatively stable investment returns reflecting high quality assets held in the securities portfolio. At the end of the second quarter, management believes increased commodity prices and related inflationary pressures could negatively impact the global economic recovery. Ongoing economic uncertainties have also reduced the likelihood of upward movements in the Canadian prime lending interest rate before the latter part of calendar 2011. 2

CANADIAN WESTERN BANK GROUP 92 Consecutive Profitable Quarters, 23 Years Lines of Business Mid-market commercial banking specialty Retail banking Commercial equipment leasing Alternative mortgage lending Personal trust Corporate trust Wealth management Auto and home insurance Bank 39 branches (+equipment leasing) Trust 8 locations Insurance 2 service centres Wealth management 1 location 3

STRATEGIC PRIORITIES FOCUS 2011 Maintain disciplined underwriting and secured lending practices Evaluate opportunities to deploy available capital Invest in people/infrastructure/technology to support growth and improve efficiency Expand branch network (target of 50 CWB branches by 2015) Enhance and diversify base of core retail deposits Develop and grow affiliate companies with a focus on increasing sources of both net interest income and non-interest income Small- and mid-ticket leasing Residential mortgages Trust services Insurance Wealth management 4

PERFORMANCE OBJECTIVES 2013 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 retail banking franchise (including branch network and core deposits) Increase industry and geographic diversification (specific business units) 5

FINANCIAL HIGHLIGHTS Financial Performance Second Quarter 2011 ($ thousands) Q2 11 Q2 10 Change Net income Banking & trust $ 40,952 $ 34,485 19 % Insurance 3,488 3,399 3 Diluted earnings per share 0.53 0.47 13 Net Interest Margin (teb) Total Quarterly Net Income +11bp 3.25% 3.00% +17% 6 $44.4 million $37.9 million -1bp 2.76% 2.88% 2.87% 2.75% 2.50% 2.25% 2.00% 1.75% 1.50% Q2 10 Q2 11 Q2 10 Q1 11 Q2 11 Banking & trust Insurance

FINANCIAL HIGHLIGHTS Financial Performance Year-to-date 2011 ($ thousands) YTD 2011 YTD 2010 Change Net income Banking & trust $ 82,371 $ 71,175 16 % Insurance 6,021 6,744 (11) Diluted earnings per share 1.07 0.99 8 7 Net Interest Margin (teb) Total Quarterly Net Income +21bp 3.00% +13% $88.4 million $77.9 million 2.87% 2.66% 2.50% 2.00% 1.50% 1.00% YTD 2010 YTD 2011 YTD 2010 YTD 2011 Banking & trust Insurance

2011 MINIMUM TARGETS & PERFORMANCE 2011 Minimum Target 2011 Year-to-date Performance (1) Net income growth (2) 6% 13% Net income growth before taxes (3) 10% 8% Total revenue growth (teb) 12% 15% Loan growth 10% 14% Provision for credit losses 0.20% 0.25% 0.21% Efficiency ratio (teb) 46% 45.4% Return on common equity (4) 15% 16.3% Return on assets (5) 1.20% 1.24% (1) 2011 year-to-date performance for earnings and revenue growth is the current year results over the same period in the prior year, loan growth is the increase over the past twelve months, and performance for ratio targets is the current year-to-date results annualized. (2) Net income, before preferred share dividends. (3) Net income before income taxes (teb), non-controlling interest in subsidiary and preferred share dividends. (4) Return on common equity calculated as annualized net income after preferred share dividends divided by average common shareholders equity. (5) Return on assets calculated as annualized net income after preferred share dividends divided by average total assets. Strong year-to-date performance has CWB well positioned to surpass all fiscal 2011 targets Evaluating strategies to further improve the return on common shareholders equity 8

FINANCIAL PERFORMANCE HISTORY Year Total Assets ($ millions) % Asset Growth Net Income Before Taxes ($ thousands) Starting in 1984 $31 1984 $50 61% 1,352 1985 $106 113% 2,408 1986 $131 23% 540 1987 $134 3% 546 1988 $277 106% -2,336 1989 $341 23% 1,727 1990 $418 22% 1,444 1991 $486 16% 1,309 1992 $543 12% 1,346 1993 $598 10% 1,884 1994 $706 18% 5,078 1995 $1,331 89% 11,147 1996 $1,754 32% 13,953 1997 $2,023 15% 16,253 1998 $2,386 18% 20,393 1999 $2,692 13% 26,270 2000 $3,060 14% 35,435 2001 $3,440 12% 46,582 2002 $3,828 11% 45,716 2003 $4,344 13% 59,823 2004 $4,919 13% 63,647 2005 $5,705 16% 81,385 2006 $7,268 27% 105,443 2007 $9,525 31% 135,936 2008 $10,601 11% 146,020 2009 $11,636 10% 148,437 2010 $12,702 9% 211,180 Shaded areas represent prior recessionary periods 9

NIM FINANCIAL PERFORMANCE MARGIN Net Interest Margin (NIM) vs. CWB Cost of Funds (COF) (spread over 3 year GOC bond) 5.50% 3.00% 4.50% 2.50% 3.50% CWB 10-year average annual net interest margin (teb) of 2.55% (2001 2010) 2.00% 2.50% 1.50% 1.50% 1.00% 0.50% 0.50% -0.50% Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08 Oct-08 Apr-09 Oct-09 Apr-10 Oct-10 Apr-11 0.00% NIM 3Yr COF to GOC Spread (30d Avg) 10 Spread

FINANCIAL PERFORMANCE MARGIN Net Interest Margin (teb) and Spread on Loans 3.50% 3.25% 3.00% 2.75% 2.50% 2.25% 2.00% 1.75% Q2 07 Q4 07 Q2 08 Q4 08 Q2 09 Q4 09 Q2 10 Q4 10 Q2 11 Net interest margin (teb) (left scale) Spread on loans (left scale) Average prime (right scale) Improvement in net interest margin (teb) over the same period last year mainly reflects changes in interest rates and an improved liquidity mix In view of increased competition and other factors, further material improvement in net interest margin (teb) compared to Q2 11 is unlikely 11 6.50% 5.50% 4.50% 3.50% 2.50% 1.50%

FINANCIAL PERFORMANCE CREDIT Gross Impaired Loans & Write-offs (as a percentage of average loans) 1.75% $ 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% Apr-01 Apr-02 Apr-03 Apr-04 Apr-05 Apr-06 Apr-07 Apr-08 Apr-09 Apr-10 Apr-11 Improved credit quality evidenced by four consecutive quarters of reducing gross impaired loans Actual write-offs for the year expected to remain within the Bank s range of acceptable levels 12

0.50% FINANCIAL PERFORMANCE CREDIT Annual Provision for Credit Losses (as a percentage of average loans) 0.55% 0.39% 0.32% 0.48% 0.59% 5-Year Avg. (2006 2010) 0.22% 0.28% 0.43% 0.55% 0.33% 0.47% 0.39% 0.46% Q2 11 0.19% 0.17% 0.7% 0.6% 0.5% 0.4% 0.3% 0.2% 0.1% 0.0% BMO CIBC National RBC Scotia TD CWB Canadian Bank Avg. (6)* * 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) 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 1.00% $60,000 0.80% $48,000 0.60% $36,000 0.40% $24,000 0.20% 0.21% $12,000 0.00% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011 $0 Provision for credit losses expected to remain within the lower- to mid-level of the 2011 target range of 20 to 25 basis points of average loans Based on the current view of credit quality, the dollar level of the general allowance for credit losses should increase over the latter half of fiscal 2011 14 * 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)

FINANCIAL PERFORMANCE CAPITAL RATIOS CWB Historical Capital Ratios 16.6% 18% 15.4% Compared to Peers (Q2 11) 14.3% 13.7% 13.7% 13.5% 15% (Basel II) 12.4% Tier 1 Total BMO 13.8% 17.0% CIBC 14.7% 18.9% CWB 11.8% 16.6% National 14.1% 17.5% RBC 13.6% 15.7% Scotia 12.0% 13.9% TD 12.7% 16.3% 12% 9% 11.8% 11.3% 11.3% 8.9% 9.1% 10.1% 6% 9.7% 3% 0% 2005 2006 2007 2008 2009 2010 Q2 11 Tier 1 ratio Total ratio Capital augmented since December 2010 with the issuance of 7.2 million CWB common shares upon the exercise of warrants, partially offset by warrants purchased under Normal Course Issuer Bids Very well positioned for the new Basel III capital standards beginning in 2013 15

FINANCIAL PERFORMANCE CAPITAL & LEVERAGE Regulatory Capital Structure (as at April 30, 2011) Q2 11 (Basel II) Actual Current Regulatory Minimum Q2 11 (Basel III) Pro Forma Expected Regulatory Minimum Tangible common equity 9.2 % 8.6 % 7.0 % Tier 1 capital 11.8 7.0 % 9.5 8.5 Total capital 16.6 10.0 14.3 10.5 Low Leverage (total assets-to-equity) 26 22 18 14 10 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011 Canadian Western Bank Canadian Bank Avg. (6) * 16 * 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)

FINANCIAL PERFORMANCE ASSETS Composition of Assets (as at April 30, 2011) General commercial loans, 18% Loans by Province Other assets, 3% Other securities, 2% Preferred shares, 3% Government securities (prov & GOC), 6% Commercial mortgages, 18% Q2 11 Q2 10 British Columbia 33% 33% Alberta 48% 48% Saskatchewan 6% 6% Manitoba 3% 3% Cash & cash equivalents (including Repo), 4% Corporate loans, 4% Oil & gas production loans, 2% Real estate project loans, 13% Ontario & other 10% 10% Personal loans & mortgages, 14% Equipment financing, 13% Loans by Lending Sector* Total Assets 83% 17% Total loans Other assets ($ millions) Change from Q4 2010 Q2 11 Q4 10 $ % Commercial mortgages $ 2,516 $ 2,458 $ 58 2% General commercial 2,508 2,197 311 14% Realestate project loans 1,715 1,576 139 9% Personal loans & morgages 1,933 1,794 139 8% Equipment financing 1,727 1,624 103 6% Corporate loans 609 660 (51) -8% Oil & gas production 310 266 44 17% Total loans outstanding $ 11,318 $ 10,575 $ 743 7% *Loans by lending sector exclude the allowance for credit losses 17

FINANCIAL PERFORMANCE ASSETS (LOAN GROWTH) Total Loans Outstanding ($ millions) ($ millions) $12,000 $10,000 $11,546 $11,239 $10,496 $9,236 $8,624 $7,406 $8,000 $6,000 $4,000 $2,000 Target 2011 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011 Total loans grew 3% ($352 million) in the quarter, 7% ($742 million) year-to-date and 14% ($1,372 million) in the past twelve months All lending sectors showing positive growth prospects; strong volume in the pipeline for new loans consistent with increased business optimism and an improved economic outlook 18

FINANCIAL PERFORMANCE FUNDING SOURCES Composition of Liabilities & Equity (as at April 30, 2011) Branch demand & notice deposits, 29% % Weight of Total Common equity 8% Other liabilities 2% Preferred share 2% Subordinated debt 4% Innovative instruments 1% Total 17% Agent deposits, 30% 19 Branch term deposits, 22% Capital markets term deposits, 2%

FINANCIAL PERFORMANCE FUNDING SOURCES Total Branch-raised Deposits (1) Total Demand and Notice Deposits ($ millions) ($ millions) +14% +12% $3,997 $3,495 $4,000 $3,500 $3,000 $2,500 $2,000 $6,942 $6,205 $1,500 $1,000 Q2 10 Q2 11 Q2 10 Q2 11 $7,000 $6,000 $5,000 $4,000 $3,000 (1) ($ millions) $13,000 Total loans Total deposits Total branch-raised deposits $11,000 $9,000 $7,000 $5,000 $3,000 $1,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 YTD 2011 (1) Branch-raised deposits include deposits raised through CWB s fiduciary trust businesses, Canadian Western Trust and Valiant Trust. 20

FINANCIAL PERFORMANCE EFFICIENCY Efficiency Ratio (non-interest expenses as a % of total revenues (teb)) 62.8% 62.1% 60.3% 60.9% 60.8% 58.9% 57.6% 65% 60% 55% 50% 45% 45.5% 45.6% 44.1% 48.2% 45.2% 44.6% 46.0% 40% 35% 30% 25% Q2 11 2006 2007 2008 2009 2010 5 Yr Avg. (2006-2010) CWB (teb) Canadian Bank Avg. (6)* Exceptional efficiency relative to the six largest Canadian banks demonstrated ability to effectively control costs while maintaining investment necessary to support 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) 21

ECONOMIC OUTLOOK Canada s economic fundamentals support expectations for moderate growth in 2011 Western Canada expected to perform well relative to the rest of Canada strong resource-based economies Provincial Unemployment Rates (seasonally adjusted) 18% 15% Economic strength in Western Canada 12% 9% 6% 3% 0% NL PEI NS NB QC ON MB SK AB BC SOURCE: Statistics Canada Apr-10 Apr-11 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 2005 +53% 160,000 Prince George Kamloops Grande Prairie St. Albert Edmonton (5) Leduc Courtenay Vancouver (4) Saskatoon (2) Kelowna (2) Red Deer Coquitlam Nanaimo Yorkton Langley Calgary (5) Surrey (2) Victoria Cranbrook Abbotsford Medicine Hat Regina Lethbridge Sherwood Park 130,000 100,000 70,000 Square ft. 40,000 10,000 2005 2006 2007 2008 2009 2010 2011 Forecast 2012 Forecast 2013 Forecast BC AB SK MB Winnipeg +42% +46% +32% New full-service branches in Surrey, BC & Sherwood Park, AB opened in Q4 10 Branch expansion in Medicine Hat, AB completed in Q2 11 23

COMPOSITION OF INCOME % Net interest income (teb) % Other income 24% 23% 24% 28% 24% 23% 76% 77% 76% 72% 76% 77% 2006 2007 2008 2009 2010 YTD 2011 Medium-term objective to grow other income to encompass 30% of total revenues % of other income 30% 70% % net interest income (teb) Trust services & wealth management Insurance Other (accretive and complementary) enhance fee-based income fill product gaps 24

BUSINESS DIVERSIFICATION National Leasing Industry Leader in Small-ticket Equipment Leasing Acquired February 1st, 2010 Strong management team and ~300 employees Long history of strong performance (30+ years in business) over 58,000 active leases providing diversification by geography, industry and equipment type established presence across Canada synergies with existing banking/lending operations (funding, growth, technology) Much higher yields compared to the Bank s core lending business; partially offset by an increased provision for credit losses Provincial Breakdown of Leases (as at April 30, 2011) Total Leases (including securitized portfolios) (as at April 30, 2011) ($ millions) $800 AB, 19% BC, 10% Atlantic and other, 7% $700 $600 SK, 13% $719 $500 QC, 13% $681 $648 $620 $535 $400 MB, 7% $465 $401 $300 ON, 31% $200 2005 2006 2007 2008 2009 2010 Q2 2011 25

BUSINESS DIVERSIFICATION Trust Services Canadian Western Trust (CWT) & Valiant Trust Trust offices in Vancouver, Calgary, Edmonton and Toronto Trust assets under administration over $6 billion; lower cost deposits more than $1 billion 47,000+ CWT investment accounts Scalable growth opportunities that support both geographic and product expansion Stable source of fee-based revenues (less cyclical than core banking business) # of Clients (Valiant Trust) Total Revenues (teb) Including Optimum Mortgage, a Division of CWT ($ thousands) 320 $50,000 CWT* Valiant 280 $40,000 240 $30,000 306 276 254 246 233 214 200 160 $20,000 $10,000 120 $0 2005 2006 2007 2008 2009 2010 Q2 2011 2006 2007 2008 2009 2010 YTD 2011 (annualized) * Total revenues (teb) for CWT include net interest income plus other income, excluding changes in fair value of intercompany swaps. 26

BUSINESS DIVERSIFICATION Optimum Mortgage Residential Mortgage Lender Business started by CWB in 2004 Broker-driven model providing residential mortgages across Western Canada and in select regions of Ontario Underwrites alternative mortgages and higher ratio insured mortgages. As at Q2 11, alternative mortgages represented ~59% of Optimum s total portfolio and carry a weighted average loan-to-value at initiation of ~70% Strong source of loan growth and excellent profitability (blend of fee-based income and interest revenues) Significant growth opportunities business still in the early stages of realizing potential Total Optimum Mortgages ($ m illions) $1,000 $800 $882 $796 $561 $469 $375 $600 $400 $200 $0 2005 2006 2007 2008 2009 2010 Q2 2011 27

BUSINESS DIVERSIFICATION Canadian Direct Insurance Personal Auto & Home 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 (2006 2010 average combined ratio of 93%; Q2 11 combined ratio of 93%) Over 187,700 policies outstanding (solid growth profile) $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 Gross Written Premiums ($ 000's) (left scale) Policies Outstanding (#) (right scale) 200,000 190,000 180,000 170,000 160,000 150,000 140,000 130,000 $60,000 2004 2005 2006 2007 2008 2009 2010 Q2 2011 (annualized) Gross written premiums in 2004 reflect a 10-month fiscal year due to CWB acquisition 120,000 28

BUSINESS DIVERSIFICATION Adroit Investment Management Wealth & Portfolio Management Acquired in December 2008 Specializes in wealth and portfolio management Complementary business line with good growth potential fills an important product gap for high net worth and corporate clients additional synergies with banking and fiduciary trust operations Provides a relatively stable source of fee-based income with low capital investment Assets Under Management (AUM) ($ millions) $1,000 $750 $827 $795 $878 $838 $847 $711 $631 $500 $250 $0 2005 2006 2007 2008 2009 2010 Q2 2011 29

SHAREHOLDER RETURN Historical Valuation (share price and book value per share*) $32.00 $28.00 $24.00 $20.00 +16% +4% +14% +13% +13% +12% $14.66 $14.08 $12.16 +11% $10.70 $9.48 $8.39 $7.48 $6.73 $16.00 $12.00 $8.00 $4.00 $0.00 Oct-00 Oct-01 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Apr-11 * * Book value per share Share price * Values adjusted to reflect 2 for 1 stock dividends paid in both 2005 and 2007 30

SHAREHOLDER RETURN Dividend Growth Dividend Increases: June 2011 (+8%) December 2010 (+18%) June 2008 (+10%) December 2007 (+11%) June 2007 (+13%) December 2006 (+14%) September 2006 (+17%) December 2005 (+20%) $36.00 Quarterly dividend declared in June 2011, annualized $32.00 $28.00 $24.00 $20.00 $16.00 +27% $0.60 $0.55 Dividend Payout Ratios**: Fiscal 2009: ~29% Fiscal 2010: ~19% Target payout range: 25-30% * Dividends paid in 2004 appear unusually high as they included the last semi-annual dividend and three quarterly dividends ** 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 31 $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $12.00 $8.00 $4.00 $0.00 Oct-02 Oct-03 Oct-04 Oct-05 Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 * Dividends (left scale) Share price (right scale)

SHAREHOLDER RETURN Shares Outstanding (May 27, 2011) 74.2 million common shares (TSX: CWB) 5.3 million warrants (TSX: CWB.WT) 8.4 million preferred shares (TSX: CWB.PR.A) Employee Share Purchase Plan (ESPP) Over 94% employee participation Canadian Schedule I Banks - Common Shareholder Annual Total Rate of Return (1) for the Calendar Years 1991-2010 Bank 12/31/2010 1991-2000 2001-2010 1991-2010 2006 2007 2008 2009 2010 2006-2010 Royal Bank $52.24 20.2% 11.2% 15.6% 26.0% -5.5% -25.9% 63.7% -4.0% 6.8% CIBC $78.33 17.6% 9.6% 13.6% 32.9% -25.6% -23.1% 41.6% 20.4% 5.3% Bank of Montreal $57.48 23.2% 8.1% 15.4% 9.8% -15.0% -41.3% 91.3% 7.9% 2.5% Scotiabank $57.10 26.1% 14.1% 20.0% 16.7% -0.1% -31.6% 57.2% 20.5% 8.6% TD Bank $74.25 22.1% 8.9% 15.3% 16.6% 2.8% -35.1% 59.2% 16.6% 7.6% National Bank $68.52 17.7% 14.1% 15.9% 12.8% -17.3% -36.6% 101.8% 18.4% 7.2% Laurentian Bank $48.06 12.2% 9.7% 10.9% -7.7% 13.6% 7.3% 28.9% 16.2% 11.0% Canadian Western Bank $28.36 23.2% 17.7% 20.4% 49.2% 20.3% -59.6% 82.2% 31.7% 11.7% S&P/TSX Bank Index 1,987 n/a n/a n/a 20.0% -7.0% -31.3% 62.6% 10.6% 6.6% S&P/TSX Composite Index 14,137 n/a n/a n/a 17.3% 9.8% -33.0% 35.1% 17.6% 6.5% (1) Dividends reinvested quarterly at quarter end price Source: Bloomberg 32

CWB GROUP CORPORATE STRUCTURE President & CEO Larry Pollock Executive Vice President Bill Addington Executive Vice President & CFO Tracey Ball Executive Vice President Chris Fowler Executive Vice President Randy Garvey Mergers & Acquisitions Corporate Initiatives Finance & Tax Credit Risk Treasury Human Resources Corporate Lending Investor Relations Operating Divisions Banking Information Services Internal Audit Adroit Investment Management Ltd. Legal Optimum Mortgage Canadian Western Financial Ltd. Marketing & Product Development Corporate Administration Regulatory Compliance Business Process Improvement 33 Executive Vice President, and President & CEO, CDI Brian Young President & CEO, National Leasing Nick Logan Canadian Direct Insurance Incorporated (CDI) Canadian Western Trust Company Valiant Trust Company

INVESTOR RELATIONS Shareholder Inquiries Canadian Western Bank Place Suite 3000 10303 Jasper Avenue Edmonton, Alberta T5J 3X6 InvestorRelations@cwbank.com www.cwbankgroup.com 34