CWB Reports Record Total Revenues and 6% Quarterly Loan Growth



    Banking and trust earnings up 35%
    Loans outstanding surpass $6 billion

    EDMONTON, March 8 /CNW/ - Canadian Western Bank (CWB on TSX) today
announced quarterly net income of $20.5 million, or $0.32 per diluted share,
on record quarterly total revenues (teb) of $61.7 million. First quarter net
income increased 24% over the same quarter last year while diluted earnings
per share were up 23%. Earnings and revenues benefited from excellent loan
growth of 6% in the quarter and 25% over the past year. Banking and trust net
income of $20.2 million was up 35% over the same quarter last year, marking
this segment's seventh consecutive quarter of record earnings. Earnings from
Canadian Direct Insurance this quarter were minimal as a result of the impact
of severe weather in British Columbia (BC).

    First Quarter Highlights:
    (three months ended January 31, 2007 compared with three months ended
    January 31, 2006 unless otherwise noted)

    
        -  75th consecutive quarter of profitability.
        -  Net income of $20.5 million, up 24%.
        -  Diluted earnings per share of $0.32, up 23%.
        -  Loan growth of 6% in the quarter and 25% over the past twelve
           months.
        -  Record total revenues (teb(1)) of $61.7 million, up 18%.
        -  Return on equity of 15.4%, up 140 basis points.
        -  Efficiency ratio (teb) of 45.7%, an improvement of 80 basis
           points.
        -  Branch raised demand and notice deposits of $1.8 billion, up 36%.
        -  CWB named one of Canada's "50 Best Employers" for 2007, as
           recognized by the Globe and Mail Report on Business magazine.

        (1) Taxable equivalent basis. See definition following Financial
            Highlights table.
    

    The previously announced stock dividend of one common share per common
share held was declared and paid in the first quarter. This stock dividend
doubled the number of shares outstanding and resulted in a corresponding
reduction in the market price per share. All prior period share and per share
information contained in this report have been restated to give effect to this
stock dividend.
    The Board of Directors today declared a quarterly dividend of $0.08 per
common share, payable on April 5, 2007 to shareholders of record on March 22,
2007. Adjusted for the stock dividend paid January 18, 2007, this quarterly
dividend is consistent with the previous quarterly dividend and is 33% higher
than the quarterly dividend declared one year ago.
    "The Bank's strong performance in the first quarter exceeded
expectations, led by 6% loan growth. Our disciplined strategy to build
sustainable, high quality assets will remain front and centre in guiding CWB's
growth, especially within Western Canada's economic landscape," said Larry
Pollock, President & CEO. "CWB's recognition in the quarter as one of Canada's
50 Best Employers was also very important for us. Results from this survey
provided specific feedback on what our people are looking for from their
organization and we'll use this to strengthen our position as an employer of
choice within our markets," added Pollock.

    
    -------------------------------------------------------------------------
    Financial Highlights
    -------------------------------------------------------------------------
                                For the three months ended
    (unaudited)           -------------------------------------- Change from
    ($ thousands, except   January 31   October 31   January 31   January 31
     per share amounts)          2007         2006         2006         2006
    -------------------------------------------------------------------------
    Results of Operations
      Net interest income
       (teb - see below)  $    49,209  $    45,970  $    39,714           24%
      Less teb adjustment       1,164        1,194          872           33
    -------------------------------------------------------------------------
      Net interest income
       per financial
       statements              48,045       44,776       38,842           24
      Other income             12,443       13,595       12,596           (1)
      Total revenues (teb)     61,652       59,565       52,310           18
      Total revenues           60,488       58,371       51,438           18
      Net income               20,458       21,209       16,438           24
      Earnings per common
       share
        Basic                    0.33         0.34         0.27           22
        Diluted                  0.32         0.33         0.26           23
      Return on common
       shareholders'
       equity(1)                 15.4%        16.5%        14.0%     140bp(2)
      Return on average
       total assets              1.10         1.20         1.11           (1)
      Efficiency ratio (teb)     45.7         45.0         46.5          (80)
      Efficiency ratio           46.6         46.0         47.3          (70)
      Net interest margin
       (teb)                     2.65         2.59         2.68           (3)
      Net interest margin        2.58         2.53         2.63           (5)
      Provision for credit
       losses as a
       percentage of
       average loans             0.17         0.18         0.22           (5)
    -------------------------------------------------------------------------
    Per Common Share
      Cash dividends(3)   $      0.08  $      0.07  $      0.06           33%
      Book value                 8.59         8.39         7.69           12
      Closing market value      25.14        21.15        18.63           35
      Common shares
       outstanding
       (thousands)             62,168       61,936       61,323            1
    -------------------------------------------------------------------------
    Balance Sheet and
     Off-Balance Sheet
     Summary
      Assets              $ 7,565,363  $ 7,268,360  $ 6,021,477           26%
      Loans                 6,154,449    5,781,837    4,913,000           25
      Deposits              6,566,652    6,297,007    5,155,717           27
      Subordinated
       debentures             198,126      198,126      198,126            -
      Shareholders' equity    534,228      519,530      471,806           13
      Assets under
       administration       3,553,590    3,344,414    2,972,357           20
    -------------------------------------------------------------------------
    Capital Adequacy
      Tangible common
       equity to risk-
       weighted assets            8.3%         8.6%         9.1%      (80)bp
      Tier 1 ratio                9.8         10.1          9.1           70
      Total ratio                13.2         13.7         13.0           20
    -------------------------------------------------------------------------

    (1) Return on common shareholders' equity is calculated as annualized net
        income divided by average shareholders' equity.
    (2) bp - basis point change.
    (3) A stock dividend effecting a two-for-one split of the Bank's common
        shares was declared and paid during the first quarter of 2007. All
        prior period common share and per common share information have been
        restated to reflect this effective split.
    

    Taxable Equivalent Basis (teb)
    Most banks analyse 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 generally accepted accounting principles (GAAP) and therefore
may not be comparable to similar measures presented by other banks.

    Message to Shareholders

    Canadian Western Bank (CWB or the Bank) is pleased to report strong
financial performance for the first quarter of fiscal 2007. Results marked the
Bank's 75th consecutive profitable quarter, a period spanning almost 19 years.
Other highlights included 6% loan growth that increased total loans
outstanding to over $6 billion, as well as record total revenues (teb). CWB
was also very proud to be named one of Canada's "50 Best Employers" for 2007
by the Globe and Mail Report on Business magazine.
    First quarter net income of $20.5 million increased 24% over the same
quarter last year on total revenue (teb) growth of 18%. Diluted earnings per
share in the quarter were $0.32, up 23% over last year. In comparison to the
previous quarter, net income and diluted earnings per share were down 4% and
3% respectively reflecting a combination of lower income from insurance
operations and a tax benefit that increased the previous quarter's net income
by $2.0 million. Excluding the tax benefit, net income and diluted earnings
per share both increased 7%. The Bank's first quarter return on equity was
15.4% representing a 140 basis point improvement over the same quarter last
year.

    Share Price Performance
    Reflecting the stock dividend paid January 18, 2007 which effectively
achieved a two-for-one stock split, CWB shares ended the first quarter at
$25.14, up from $18.63 one year ago. Including reinvested dividends, the total
return to shareholders over the one year period ended January 31, 2007 was
37%.

    Dividends
    On March 8, 2007, CWB's Board of Directors declared a cash dividend of
$0.08 per common share, payable on April 5, 2007 to shareholders of record on
March 22, 2007. Adjusted for the stock dividend, this quarterly dividend is
consistent with the previous quarterly dividend and is 33% higher than the
quarterly dividend declared one year ago.

    Loan Growth
    The Bank achieved 6% organic loan growth in the quarter which reflects
continued strong business activity throughout Western Canada. As in previous
quarters, Alberta and British Columbia (BC) were the primary areas of growth
while Saskatchewan also showed strong results. Loan growth in the BC region
was particularly robust and we expect this will continue through the remainder
of the year. The real estate and equipment financing divisions showed the
strongest quarterly loan growth with the general commercial and retail sectors
also posting solid performance. With these results we are very well positioned
to achieve our 2007 loan growth target of 14%. New deal flow remains healthy
and we will maintain our focus on high quality assets as we continue to expand
within our markets.
    Our alternative retail mortgage business, Optimum Mortgage (Optimum),
surpassed $274 million of loans outstanding and has more than doubled its
portfolio over the past twelve months. Overall performance within this
business continues to exceed our expectations, producing very strong returns
on a solid risk profile. Optimum's loan book is entirely comprised of
conventional residential first mortgages having an underwritten loan-to-value
ratio of less than 75%. The vast majority of these mortgages carry a fixed
interest rate with the principal being amortized over 25 years or less.

    Credit Quality
    Credit quality remained excellent due to the combination of favourable
economic conditions and disciplined credit underwriting. We continued with
both a consistent charge for credit losses and our practice of not releasing
reserves into net income. As always, we are monitoring the credit environment
very closely and remain confident in the strength and diversity of the Bank's
asset base.

    Branch Deposit Growth
    Deposits raised through our branch network and Canadian Western Trust
Company continued to show very strong growth increasing 5% in the quarter and
27% over the past year. Growth in the demand and notice component was 7% in
the quarter and 36% over the same time last year. Maintaining strong growth in
branch raised deposits remains an important focus for management as success in
this area provides support for the Bank's net interest margin.

    Net Interest Margin
    Net interest margin (teb) in the quarter was 2.65%, six basis points
higher than the previous quarter and three basis points lower than the same
period last year. Reduced liquidity was the main reason for the margin
improvement over the previous quarter. We continue to expect that net interest
margin will remain within a relatively tight band through the foreseeable
future due to the flat interest rate curve.

    Trust Services
    Both of our trust subsidiaries continued to perform very well with total
fee income up 26% over the same quarter last year. Trust assets under
administration increased 20% year-over-year to reach $3.6 billion in the
quarter. Trust services are recognized as a very important part of our overall
business mix and this source of revenue provides an excellent means to
diversify our income. Although Valiant Trust's revenues may be impacted by
uncertainties related to changes in the taxation of income trusts, we expect
ongoing strong performance from both trust subsidiaries.

    Insurance
    Our insurance subsidiary, Canadian Direct Insurance Incorporated
(Canadian Direct), was impacted this quarter by a high level of claims
resulting from unusually severe wind and rainstorms in BC. Canadian Direct's
experience was consistent with the industry and with the nature of its
business when severe weather events occur. Our expectation is that the
contribution from insurance operations will significantly improve over the
balance of the year.
    Canadian Direct, with its recently enhanced Internet distribution
capability, proceeded with plans to add an alternative delivery channel in the
quarter by reaching agreement to pilot sales of a distinct BC auto optional
product produced for and marketed through a broker network. A growing
proportion of customers are also opting to use the Internet to purchase and
renew their auto policies, which provides greater accessibility and ease of
use while improving business efficiencies.

    Outlook
    Canadian Western Bank is off to a very good start for 2007 and our
excellent first quarter loan growth will continue to benefit revenues and
earnings throughout the year. Economic conditions remain healthy across
Western Canada and strong first quarter results have us on track to meet all
of our 2007 performance targets. We will look for Canadian Direct to return to
more normal levels of profitability through the rest of the year and remain
optimistic about new growth opportunities within this segment.
    Aligned with our increased strategic focus on people, CWB's recognition
in the quarter as one of Canada's "50 Best Employers" was especially
gratifying as these results were based on direct feedback from employees. Top
quality people with strong Think Western(R) attitudes are the foundation of
CWB's success and our proactive focus should ensure the Bank remains well
positioned for sustained high quality growth. We look forward to reporting
second quarter results on June 7, 2007.

    -------------------------------------------------------------------------
    Q1 Results Conference Call
    CWB's first quarter results conference call is scheduled for Thursday,
    March 8, 2007 at 3:30 p.m. ET (1:30 p.m. MT). The Bank's executives will
    comment on the first quarter results and respond to questions from
    analysts and institutional investors.

    The conference may be accessed on a listen-only basis by dialing
    416-644-3431 or toll-free 1-800-732-6179. The call will also be webcast
    live on the Bank's website, www.cwbankgroup.com. The webcast will be
    archived on the Bank's website for 60 days.

    A replay of the conference call will be available until March 23, 2007 by
    dialing 416-640-1917 (Toronto) or 1-877-289-8525 (toll-free) and entering
    passcode 21217595, followed by the pound sign.
    -------------------------------------------------------------------------

    About Canadian Western Bank
    Canadian Western Bank offers highly personalized service through 33
branch locations and is the only publicly traded Schedule I chartered bank
headquartered in and regionally focused on Western Canada. The Bank, with
total balance sheet assets of $7.6 billion and assets under administration of
$3.6 billion, specializes in mid-market commercial lending and offers a full
range of retail services. Trust services to independent financial advisors,
corporations, income trusts and individuals are also provided through the
Bank's wholly owned subsidiaries, Canadian Western Trust Company and Valiant
Trust Company. Canadian Direct Insurance Incorporated is a wholly owned
subsidiary providing personal auto and home insurance directly to customers in
BC and Alberta. The common shares of Canadian Western Bank are listed on the
Toronto Stock Exchange under the trading symbol of 'CWB'. For more information
see the Bank's website at www.cwbankgroup.com.

    
    FOR FURTHER INFORMATION CONTACT:

    Larry M. Pollock                         Kirby Hill, CFA
    President and Chief Executive Officer    Senior Manager, Investor and
    Canadian Western Bank                    Public Relations
    Phone: (780) 423-8888                    Canadian Western Bank
                                             Phone: (780) 441-3770
                                             E-mail: kirby.hill@cwbank.com
    

    Management's Discussion and Analysis

    This management's discussion and analysis (MD&A) should be read in
conjunction with the unaudited interim consolidated financial statements for
the period ended January 31, 2007, as well as the audited consolidated
financial statements and MD&A for the year ended October 31, 2006, which are
available on SEDAR at www.sedar.com. Except as discussed below, the factors
discussed and referred to in the MD&A for fiscal 2006 remain substantially
unchanged.

    Overview
    Canadian Western Bank (CWB or the Bank) posted very strong net income for
the first quarter, led by 6% quarterly loan growth and a seventh consecutive
quarter of record earnings from banking and trust operations, which were up
35% over the same quarter last year. The income contribution from Canadian
Direct Insurance (Canadian Direct) was minimal in the quarter due to the
impact on claims from severe wind and rainstorms in British Columbia (BC).
Consolidated first quarter net income increased 24% over the previous year to
$20.5 million while diluted earnings per share were up 23% to $0.32.
    Total revenues (teb) in the quarter were up 18% over the same period last
year to a record $61.7 million. Quarterly revenue growth was driven by very
strong loan growth and increased credit related and trust services fees,
offset by significantly lower income from insurance operations.
    Net income of $20.5 million was 4% lower than the previous quarter
reflecting both a tax benefit that increased the previous quarter's net income
by $2.0  million and a $1.7 million reduction in the earnings contribution
from Canadian Direct. Excluding the tax benefit, first quarter net income
increased 7% and the earnings contribution from core banking and trust
operations was up 17%.
    First quarter return on equity of 15.4% was 140 basis points better than
the same period last year. Return on assets was 1.10%, compared to 1.11% in
the same quarter of 2006.

    Total Revenues (teb)
    Total revenues (teb), which are comprised of net interest income and
other income, were $61.7 million for the quarter representing an 18% increase
over the same period last year and a 4% improvement over the previous quarter.

    Net Interest Income (teb)
    Net interest income (teb) was $49.2 million for the quarter, or 24%
higher than the same quarter last year. This increase reflects 26% growth in
average interest earning assets, partially offset by a three basis point
decrease in net interest margin (teb). Margin compression over the past twelve
months was primarily impacted by changes in the deposit mix and a flattening
interest rate curve, partially offset by lower debenture costs. A flat
interest rate curve, which is when short and long-term rates are almost the
same, can constrain net interest margin as it limits the Bank's ability to
take advantage of different term structures for pricing assets and
liabilities.
    Net interest income (teb) increased 7% ($3.2 million) over the previous
quarter due to a 5% increase in average interest earning assets and a six
basis point improvement in net interest margin. Reduced liquidity levels were
the main reason for the margin improvement over the previous quarter. Net
interest margin is expected to remain within a relatively tight band through
the foreseeable future.
    Note 11 to the unaudited interim financial statements provides a summary
of the Bank's exposure to interest rate risks as at January 31, 2007. Interest
rate risk or sensitivity is defined as the impact on net interest income, both
current and future, resulting from a change in market interest rates. The
Bank's current strategy is to maintain a relatively neutral position. Based on
the interest rate gap position as at January 31, 2007, it is estimated that a
one-percentage point increase in all interest rates would increase net
interest income by approximately 0.4%. This compares to October 31, 2006, when
a one-percentage point increase in all interest rates would have increased net
interest income by approximately 0.1%.

    Other Income
    Other income of $12.4 million was 1% ($0.2 million) lower than the same
quarter last year due to lower net insurance revenues, largely offset by very
strong growth in credit related and trust services fees. Net insurance
revenues in the quarter of $1.2 million were down 65% ($2.2 million) from last
year primarily due to severe wind and rainstorms in BC that resulted in a very
high level of claims in the BC home product line. Credit related fees of $5.7
million were up 25% ($1.1 million) over the same quarter last year while trust
services fees increased 26% ($0.6 million) to $3.2 million.
    In comparison to the previous quarter, other income was down 8%
($1.2 million) due to the same reasons noted above.

    Credit Quality
    Credit quality continued to be excellent and the quarterly provision for
credit losses of $2.6 million remained unchanged from both the previous
quarter and one year ago. The provision for credit losses measured as a
percentage of average loans was 17 basis points in the quarter, compared to 18
basis points last quarter and 22 basis points one year ago.
    Gross impaired loans at January 31, 2007 were $11.5 million, compared
with $10.4 million in the previous quarter and $12.9 million in the first
quarter last year. Gross impaired loans remain at exceptionally low levels,
although the dollar level of these is expected to fluctuate over time within
the Bank's acceptable range as loans become impaired and are subsequently
resolved.
    The total allowance for credit losses (general and specific) represented
485% of gross impaired loans at the end of the first quarter, compared to 514%
last quarter and 346% one year ago. The general allowance as a percentage of
risk-weighted loans remained unchanged from the previous quarter at 88 basis
points, and up from 80 basis points a year earlier.

    Non-interest Expenses
    Non-interest expenses were $28.2 million in the first quarter, up 16%
over the same quarter last year and 5% over the previous quarter. Higher
non-interest expenses in both the quarter and over the past year were mainly a
result of salary and benefit costs related to business growth, annual salary
reviews and increased stock-based compensation charges.
    Year-over-year revenue growth continued to outpace higher non-interest
expenses and the efficiency ratio (teb), which measures non-interest expenses
as a percentage of total revenues (teb), improved 80 basis points from the
same quarter last year to 45.7%. In comparison to the previous quarter, the
efficiency ratio (teb) deteriorated 70 basis points primarily as a result of
higher salary and benefit costs as noted above and lower insurance revenues.
The first quarter efficiency ratio (teb) was 30 basis points better than the
fiscal 2007 target of 46.0%.

    Income Taxes
    The income tax rate (teb) in the first quarter was 33.8%, down from 35.3%
from one year ago. The tax rate before the teb adjustment decreased to 31.2%
compared to 33.0% in the same quarter last year. The lower tax rate reflects
reductions in provincial corporate income tax rates in Alberta, Saskatchewan
and Manitoba, partially offset by higher charges for non-deductible
stock-based compensation.

    Balance Sheet
    Total assets increased 4% ($297 million) in the first quarter and 26%
($1,564 million) over the past twelve months to reach $7,565 million at
January 31, 2007.

    Cash and Securities
    Cash, securities and securities purchased under resale agreements totaled
$1,264 million at January 31, 2007, compared to $1,333 million last quarter
and $974 million one year ago.
    As a result of new accounting standards for financial instruments (refer
to Note 2 to the interim consolidated financial statements), commencing
November 1, 2006 all of CWB's cash and securities have been designated as
available-for-sale and are recorded on the balance sheet at fair value. The
unrealized loss recorded on the balance sheet at January 31, 2007 was $2.1
million, compared to unrecorded and unrealized losses of $0.6 million at
October 31, 2006 and $2.7 million one year ago. The cash and securities
portfolio is composed of high quality debt instruments and fluctuations in
fair value are almost entirely attributed to changes in interest rates and
shifts in the interest rate curve.

    Loans
    Loans at January 31, 2007 increased 6% ($373 million) in the quarter and
25% ($1,241 million) in the past year to $6,154 million. The quarterly
increase reflects strong growth across Alberta and BC with the real estate and
equipment financing divisions showing the largest gains by sector. Optimum
Mortgage also showed very strong loan growth in the quarter and continues to
perform very well. Overall, new deal flow remains healthy and solid loan
growth is expected to continue through the remainder of the year.

    Deposits
    Growth in total branch deposits continued to keep pace with loan growth,
increasing 5% in the quarter and 27% in the past year. Of total branch
deposits, the lower cost demand and notice component increased 7% over the
previous quarter and was 36% higher than the first quarter last year. A
significant portion of the year-over-year growth in total branch deposits
reflects larger commercial and wholesale balances, which can be subject to
greater fluctuation. Strong growth in branch raised deposits continues to
provide support for net interest margin and the Bank will maintain its focus
on increasing this source of funds.
    Total deposits at January 31, 2007 were $6,567 million, an increase of 4%
($270 million) in the quarter and 27% ($1,411 million) over the past year.
Total branch deposits measured as a percentage of total deposits remained
unchanged from twelve months ago at 67% and were up from 66% in the previous
quarter. Demand and notice deposits comprised 27% of total deposits at quarter
end, up from 26% in the previous quarter and 25% one year ago. Total deposits
also include the $105 million deposit note issued in conjunction with the
innovative Tier 1 placement on August 31, 2006.

    Other Assets and Other Liabilities
    Other assets at January 31, 2007 totaled $147 million, compared to
$154 million at the end of the previous quarter and $135 million one year ago.
Other liabilities at quarter end were $266 million, compared to $254 million
the previous quarter and $196 million in the same quarter last year.

    Off-Balance Sheet
    Off-balance sheet items include trust assets under administration, which
totaled $3,554 million at the end of the first quarter, compared to
$3,344 million last quarter and $2,972 million one year ago. Other off-balance
sheet items are composed of standard industry credit instruments (guarantees,
standby letters of credit and commitments to extend credit), the
non-consolidated variable interest entity and, in prior periods, derivative
financial instruments which were primarily interest rate swaps used to manage
sensitivity to interest rate changes. For additional information regarding
other off-balance sheet items refer to Notes 14, 21 and 26 to the audited
consolidated financial statements on pages 57, 63 and 67 respectively in the
Bank's 2006 Annual Report.
    With the November 1, 2006 adoption of new accounting policies for
financial instruments, all derivative financial instruments are recorded on
the balance sheet at fair value. Refer to Notes 2 and 6 to the January 31,
2007 interim consolidated financial statements for further details.

    Capital Management
    CWB's total capital adequacy ratio, which measures regulatory capital as
a percentage of risk-weighted assets, was 13.2% at the end of the first
quarter compared to 13.7% last quarter and 13.0% one year ago. The Tier 1
ratio at January 31, 2007 was 9.8% compared to 10.1% in the previous quarter
and 9.1% last year. Improved capital adequacy ratios in the last twelve months
reflect the placement of $105 million of innovative Tier 1 capital in the
fourth quarter of 2006, while comparatively lower ratios from the previous
quarter reflect robust asset growth. Management's objectives are to maintain a
strong and efficient capital structure that will support continued high
quality asset growth and improve the Bank's return on equity.
    On January 18, 2007, CWB paid a stock dividend of one common share per
common share held, effectively achieving a two-for-one split of the Bank's
common shares and all share and per share information contained in this report
have been restated to give effect to this stock dividend. This stock dividend
doubled the number of shares outstanding and resulted in a corresponding
reduction in the market price per share. The reduced share price makes CWB's
common shares more affordable for retail investors and is expected to broaden
the shareholder base and promote increased liquidity in the market.
    Book value per common share at January 31, 2007 was $8.59, compared to
$8.39 last quarter and $7.69 one year ago.
    Common shareholders received a quarterly cash dividend of $0.08 per
common share ($0.16 on a pre-stock dividend basis) on January 4, 2007. On
March 8, 2007, the Board of Directors declared a quarterly cash dividend of
$0.08 per common share payable on April 5, 2007 to shareholders of record on
March 22, 2007. This quarterly dividend is consistent with the previous
quarterly dividend and is 33% higher than the quarterly dividend declared one
year ago.

    Accounting Policy Changes
    Significant accounting policies are detailed in the notes to the Bank's
October 31, 2006 audited consolidated financial statements. Effective November
1, 2006, the Bank adopted new accounting standards issued by the Canadian
Institute of Chartered Accountants (CICA): Financial Instruments - Recognition
and Measurement, Hedges, Comprehensive Income and Financial Instruments -
Disclosure and Presentation. As a result of adopting these standards, a new
category, accumulated other comprehensive income (loss), has been added to
shareholders' equity where certain unrealized gains and losses are reported
until realization. Refer to Note 2 to the interim consolidated financial
statements for further details.

    Controls and Procedures
    There were no changes in the Bank's internal controls over financial
reporting that occurred during the quarter ended January 31, 2007 that have
materially affected, or are reasonably likely to materially affect, internal
control over financial reporting.

    Updated Share Information
    As at March 2, 2007, there were 62,230,003 common shares outstanding.
Also outstanding were employee stock options, which are or will be exercisable
for up to 5,370,800 common shares for maximum proceeds of $80.9 million.
Outstanding options include 984,400 options granted subject to shareholder and
TSX approval.

    

    Summary of Quarterly Financial Information

                              2007                      2006
                          ------------ --------------------------------------
    ($ thousands)              Q1           Q4           Q3           Q2
    -------------------------------------------------------------------------
    Total revenues (teb)  $    61,652  $    59,565  $    56,884  $    53,011
    Total revenues             60,488       58,731       55,845       52,038
    Net income                 20,458       21,209       17,693       16,667
    Earnings per common
     share
      Basic                      0.33         0.34         0.29         0.27
      Diluted                    0.32         0.33         0.28         0.26
    Total assets ($ millions)   7,565        7,268        6,871        6,476
    -------------------------------------------------------------------------


                              2006                      2005
                          ------------ --------------------------------------
    ($ thousands)              Q1           Q4           Q3           Q2
    -------------------------------------------------------------------------
    Total revenues (teb)  $    52,310  $    48,954  $    49,549  $    44,125
    Total revenues             51,438       47,618       48,593       43,242
    Net income                 16,438       14,814       15,212       12,149
    Earnings per common
     share
      Basic                      0.27         0.24         0.25         0.20
      Diluted                    0.26         0.23         0.24         0.19
    Total assets ($ millions)   6,021        5,705        5,424        5,260
    -------------------------------------------------------------------------
    

    For details on variations between the prior quarters see the summary of
quarterly results section of the Bank's MD&A for the year ended October 31,
2006 and the individual quarterly reports to shareholders which are available
on SEDAR at www.sedar.com.

    Results by Business Segment

    CWB operates in two business segments: 1) banking and trust, and 2)
insurance.

    Banking and Trust
    Operations of the banking and trust segment include commercial and retail
banking services, as well as personal and corporate trust services provided
through CWB's wholly owned subsidiaries, Canadian Western Trust Company and
Valiant Trust Company.
    Banking and trust net income of $20.2 million marked this segment's
seventh consecutive quarter of record earnings. Earnings were up 35% over the
same quarter last year reflecting excellent loan growth and very strong
increases in credit related and trust services fees. First quarter total
revenues (teb) grew 24% and continued to outpace growth in non-interest
expenses. A new benchmark efficiency ratio (teb) in the quarter of 44.3% was
230 basis points better than the same period last year. Quarterly net interest
margin of 2.65% was down five basis points from one year ago primarily due to
changes in the deposit mix and a flattening of the interest rate curve,
partially offset by lower debenture costs. Strong growth in branch generated
deposits continued to provide support for net interest margin in both the
quarter and over the past twelve months.
    In comparison to the previous quarter, banking and trust earnings
increased 5% on 9% growth in total revenues (teb). Excluding the impact of a
$2.0 million tax benefit recognized in the previous quarter of 2006, banking
and trust net income increased 17%. Earnings growth was driven by 6% quarterly
loan growth, a five basis point improvement in net interest margin and an 18%
increase in other income. The margin improvement over the previous quarter
primarily reflects reduced liquidity levels. Other income growth was impacted
by very strong credit related fee income, primarily from the real estate and
equipment financing divisions. Trust services fees were also strong and grew
14% over the previous quarter.

    

                                For the three months ended
                          -------------------------------------- Change from
                           January 31   October 31   January 31   January 31
    ($ thousands)                2007         2006         2006         2006
    -------------------------------------------------------------------------
    Net interest income
     (teb)                $    48,148  $    44,971  $    38,947           24%
    Other income               11,194        9,452        9,061           24
    -------------------------------------------------------------------------
    Total revenues (teb)       59,342       54,423       48,008           24
    Provision for credit
     losses                     2,550        2,550        2,550            -
    Non-interest expenses      26,287       24,611       22,372           17
    Provision for income
     taxes (teb)               10,318        8,026        8,140           27
    -------------------------------------------------------------------------
    Net income            $    20,187  $    19,236  $    14,946           35%
    -------------------------------------------------------------------------
    Efficiency ratio (teb)       44.3%        45.2%        46.6%     (230)bp
    Net interest margin
     (teb)                       2.65         2.60         2.70           (5)
    Average loans
     (millions)           $     5,950  $     5,606  $     4,718           26%
    Average assets
     (millions)                 7,220        6,872        5,730           26
    -------------------------------------------------------------------------

    bp - basis points.
    teb - taxable equivalent basis, see definition following Financial
          Highlights table.


    Insurance
    The insurance segment consists of the operations of CWB's wholly owned
subsidiary Canadian Direct Insurance Incorporated, which provides home and
auto insurance to individuals in BC and Alberta.
    Canadian Direct's $0.3 million net income was 82% ($1.2 million) lower
than the same quarter last year due to unusually high frequency and severity
of claims in the BC home product line related to severe wind and rainstorms.
The claims loss ratio for the BC home product in the quarter was 160% compared
with 53% in the same quarter last year which is reflected in the much higher
than normal overall claims loss ratio of 79%. None of the individual storm
events aggregated sufficient claims for a recovery under the company's
reinsurance coverage.
    Net earned premiums grew 17% ($3.4 million) over the same quarter last
year due to the elimination of quota share reinsurance in November 2006 and
growth in policies outstanding. Canadian Direct's share of the Alberta Risk
Sharing Pools (the Pools) increased quarterly net income before tax by
$0.2 million compared to a reduction of $0.3 million in the same quarter last
year.
    In comparison to the previous quarter, Canadian Direct's net income
decreased 86% ($1.7 million) due primarily to the impact on claims from the
severe weather related events in BC and a $0.8 million reduction in the
pre-tax contribution from the Pools, partially offset by good cost control
evidenced by the lower expense ratio of 24%. Net earned premiums grew by 12%
due mainly to the elimination of quota share reinsurance. The seasonal aspect
of the business where new policy growth is traditionally slow in the first
quarter is reflected in the decrease in gross written premiums.
    Net earned premium growth also continued to be impacted by pricing
pressures from the Insurance Corporation of British Columbia (ICBC) that has
resulted in both a lower average premium per policy and slower growth in new
BC auto policy sales. New policy growth in Alberta has remained strong.
Barring any further severe weather or other catastrophe type events, the
higher volume of policy sales during the busier spring and summer season
should allow for much improved results through the remainder of fiscal 2007.


                                For the three months ended
                          -------------------------------------- Change from
                           January 31   October 31   January 31   January 31
    ($ thousands)                2007         2006         2006         2006
    -------------------------------------------------------------------------
    Net interest income
     (teb)                $     1,061  $       999  $       767           38%
    Other income (net)
      Net earned premiums      23,128       20,709       19,741           17
      Commissions and
       processing fees            606        1,327        1,079          (44)
      Net claims and
       adjustment expenses    (18,176)     (13,230)     (13,380)          36
      Policy acquisition
       costs                   (4,356)      (4,653)      (4,040)           8
    -------------------------------------------------------------------------
    Insurance revenue (net)     1,202        4,153        3,400          (65)
    Gains (losses) on
     sale of securities            47          (10)         135          (65)
    -------------------------------------------------------------------------
    Total revenues (net)
     (teb)                      2,310        5,142        4,302          (46)
    Non-interest expenses       1,906        2,219        1,967           (3)
    Provision for income
     taxes (teb)                  133          950          843          (84)
    -------------------------------------------------------------------------
    Net income            $       271  $     1,973  $     1,492         (82)%
    -------------------------------------------------------------------------
    Policies outstanding      160,435      158,965      150,770            6%
    Gross written
     premiums             $    21,245  $    26,161  $    19,742            8
    Claims loss ratio(1)           79%          64%          68%     1,100bp
    Expense ratio(2)               24           27           25        (100)
    Combined ratio(3)             103           91           93        1,000
    Alberta auto insurance
     risk sharing pools
     impact on net income
     before tax           $       150  $       906  $      (263)          nm
    Average cash and
     securities (millions)         95           99           80           19%
    Average total assets
     (millions)                   155          161          140           11
    -------------------------------------------------------------------------

    bp - basis points.
    teb - taxable equivalent basis, see definition following Financial
          Highlights table.
    nm - not meaningful.

    (1) Net claims and adjustment expenses as a percentage of net earned
        premiums.
    (2) Policy acquisition costs and non-interest expenses net of commissions
        and processing fees as a percentage of net earned premiums.
    (3) Sum of the claims loss and expense ratios.


    Fiscal 2007 Targets

    The performance targets established for the 2007 fiscal year are presented
in the table below together with CWB's actual performance to date.

                                            --------------------------------
                                                   2007       2007 YTD
                                                  Target    Performance(1)
              --------------------------------------------------------------
                 Net income growth                  20%           24%
              --------------------------------------------------------------
                 Total revenue (teb) growth         15%           18%
              --------------------------------------------------------------
                 Loan growth                        14%           25%
              --------------------------------------------------------------
                 Provision for credit losses
                  as a percentage of
                  average loans                0.20% or less    0.17%
              --------------------------------------------------------------
                 Efficiency ratio (teb)             46%          45.7%
              --------------------------------------------------------------
                 Return on equity                   15%          15.4%
              --------------------------------------------------------------
                 Return on assets                 1.10%          1.10%
              --------------------------------------------------------------
              (1) 2007 YTD 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.
    

    Strong first quarter results have the Bank well positioned to meet all of
its 2007 performance targets. New deal flow remains healthy and excellent
first quarter loan growth of 6% will benefit earnings and revenues throughout
the year. Solid revenue growth coupled with diligent expense control should
ensure the efficiency ratio remains at or below the fiscal 2007 target of 46%.
CWB's strong and more efficient capital base will allow for continued high
quality asset growth and supports management's objective to improve return on
equity.
    CWB's strategic plan this year has a particular emphasis on
infrastructure, people, process and business enhancement. Strong organic
growth within Western Canada will be supported by continued infrastructure
development, which will include new branches as well as improvements to
existing facilities. CWB will also increase its proactive efforts to further
distinguish itself as an employer of choice in Western Canada. A recently
launched program branded "cwbalance" recognizes the importance for employees
to achieve an appropriate work-life balance and supports the needs of
individuals outside the workplace. This initiative, along with competitive
compensation packages and excellent career opportunities within a growing
organization, should build upon the Bank's successful history of recruiting
and retaining top-quality talent.
    Consistent with previous years, mid-market commercial banking will be the
primary driver of growth in 2007, supported by strong contributions from
retail banking, trust services and insurance. CWB's growing market position
within Western Canada's robust economies supports management's expectations
for ongoing strong performance across all business lines.
    This management's discussion and analysis is dated as of March 8, 2007.

    Taxable Equivalent Basis (teb)
    Most banks analyse 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 generally accepted accounting principles (GAAP) and therefore
may not be comparable to similar measures presented by other banks.

    Canadian Banking Industry
    Comparative performance indicators of the Canadian banking industry
referred to in this document are obtained from the published results of the
other publicly-traded Schedule I banks (BMO Financial Group, Canadian Imperial
Bank of Commerce, Laurentian Bank of Canada, National Bank of Canada, RBC
Financial Group, Scotiabank and TD Bank Financial Group). Readers are
cautioned that the banks in this industry group have operations and asset size
that may not be directly comparable to each other or to Canadian Western Bank.

    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, fluctuations in interest rates and currency values, changes in
monetary policy, changes in economic and political conditions, legislative and
regulatory developments, the level of competition in the Bank's markets, the
occurrence of weather related and other natural catastrophes, 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. 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. 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.

    

    -------------------------------------------------------------------------
    Consolidated Statement of Income
    -------------------------------------------------------------------------

                               For the three months ended
    (unaudited)           -------------------------------------- Change from
    ($ thousands, except   January 31   October 31   January 31   January 31
     per share amounts)          2007         2006         2006         2006
    -------------------------------------------------------------------------
    Interest Income
      Loans               $    99,143  $    93,077  $    72,119           37%
      Securities               10,054        8,996        6,337           59
      Deposits with
       regulated financial
       institutions             3,055        3,667        2,055           49
    -------------------------------------------------------------------------
                              112,252      105,740       80,511           39
    -------------------------------------------------------------------------
    Interest Expense
      Deposits                 61,318       58,076       38,994           57
      Subordinated
       debentures               2,889        2,888        2,675            8
    -------------------------------------------------------------------------
                               64,207       60,964       41,669           54
    -------------------------------------------------------------------------
    Net Interest Income        48,045       44,776       38,842           24
    Provision for Credit
     Losses                     2,550        2,550        2,550            -
    -------------------------------------------------------------------------
    Net Interest Income
     after Provision for
     Credit Losses             45,495       42,226       36,292           25
    -------------------------------------------------------------------------
    Other Income
      Credit related            5,687        4,627        4,564           25
      Insurance, net (Note 3)   1,202        4,153        3,400          (65)
      Trust services            3,182        2,787        2,534           26
      Retail services           1,756        1,637        1,544           14
      Gains (losses) on
       sale of securities         119          (19)         105           13
      Foreign exchange gains      488          295          417           17
      Other                         9          115           32          (72)
    -------------------------------------------------------------------------
                               12,443       13,595       12,596           (1)
    -------------------------------------------------------------------------
    Net Interest and
     Other Income              57,938       55,821       48,888           19
    -------------------------------------------------------------------------
    Non-interest Expenses
      Salaries and employee
       benefits                17,991       16,837       15,456           16
      Premises and equipment    4,614        4,427        4,167           11
      Other expenses            5,109        5,099        4,247           20
      Provincial capital
       taxes                      479          467          469            2
    -------------------------------------------------------------------------
                               28,193       26,830       24,339           16
    -------------------------------------------------------------------------
    Net Income Before
     Provision for
     Income Taxes              29,745       28,991       24,549           21
    Provision for Income
     Taxes                      9,287        7,782        8,111           14
    -------------------------------------------------------------------------
    Net Income            $    20,458  $    21,209  $    16,438           24%
    -------------------------------------------------------------------------

    Weighted average
     common shares
     outstanding(1)        62,059,180   61,808,846   61,252,051            1%

    Earnings per Common
     Share
      Basic               $      0.33  $      0.34  $      0.27           22%
      Diluted                    0.32         0.33         0.26           23
    -------------------------------------------------------------------------

    (1) A stock dividend effecting a two-for-one split of the Bank's common
        shares was declared and paid during the first quarter of 2007. All
        prior period common share and per common share information have been
        restated to reflect this effective split.

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



    -------------------------------------------------------------------------
    Consolidated Balance Sheet
    -------------------------------------------------------------------------

                                As at        As at        As at  Change from
    (unaudited)            January 31   October 31   January 31   January 31
    ($ thousands)                2007         2006         2006         2006
    -------------------------------------------------------------------------
    Assets
    Cash Resources
      Cash                $     4,495  $     9,070  $     3,222           40%
      Deposits with
       regulated financial
       institutions           287,600      428,435      253,166           14
      Cheques and other
       items in transit        27,262          789        3,098          780
    -------------------------------------------------------------------------
                              319,357      438,294      259,486           23
    -------------------------------------------------------------------------
    Securities (Note 4)
      Issued or guaranteed
       by Canada              315,110      334,379      327,061           (4)
      Issued or guaranteed
       by a province or
       municipality           197,122      168,839      105,688           87
      Other securities        432,592      382,475      281,394           54
    -------------------------------------------------------------------------
                              944,824      885,693      714,143           32
    -------------------------------------------------------------------------
    Securities Purchased
     Under Resale Agreements        -        9,000            -            -
    -------------------------------------------------------------------------
    Loans
      Residential
       mortgages            1,485,744    1,314,988    1,042,613           43
      Other loans           4,724,739    4,520,370    3,915,057           21
    -------------------------------------------------------------------------
                            6,210,483    5,835,358    4,957,670           25
      Allowance for credit
       losses (Note 5)        (56,034)     (53,521)     (44,670)          25
    -------------------------------------------------------------------------
                            6,154,449    5,781,837    4,913,000           25
    -------------------------------------------------------------------------
    Other
      Land, buildings
       and equipment           23,182       24,198       20,845           11
      Goodwill                  6,933        6,933        6,933            -
      Intangible assets         3,088        3,224        3,630          (15)
      Insurance related        52,651       57,136       53,020           (1)
      Derivative related
       amounts (Note 6)         1,263            -            -           nm
      Other assets             59,616       62,045       50,420           18
    -------------------------------------------------------------------------
                              146,733      153,536      134,848            9
    -------------------------------------------------------------------------
    Total Assets          $ 7,565,363  $ 7,268,360  $ 6,021,477           26%
    -------------------------------------------------------------------------

    Liabilities and
     Shareholders' Equity
    Deposits
      Payable on demand   $   351,579  $   391,252  $   301,144           17%
      Payable after
       notice               1,420,850    1,262,270    1,004,240           41
      Payable on a fixed
       date                 4,689,223    4,538,485    3,850,333           22
      Deposit from
       Canadian Western
       Bank Capital Trust     105,000      105,000            -           nm
    -------------------------------------------------------------------------
                            6,566,652    6,297,007    5,155,717           27
    -------------------------------------------------------------------------
    Other
      Cheques and other
       items in transit        40,077       27,474       24,635           63
      Insurance related       118,012      120,936      100,916           17
      Derivative related
       amounts (Note 6)         2,898            -            -           nm
      Other liabilities       105,370      105,287       70,277           50
    -------------------------------------------------------------------------
                              266,357      253,697      195,828           36
    -------------------------------------------------------------------------
    Subordinated Debentures
      Conventional            198,126      198,126      198,126            -
    -------------------------------------------------------------------------
    Shareholders' Equity
      Retained earnings       313,169      297,841      253,985           23
      Accumulated other
       comprehensive
       income (loss) (Note 8)  (2,247)           -            -           nm
      Capital stock           216,158      215,349      213,606            1
      Contributed surplus       7,148        6,340        4,215           70
    -------------------------------------------------------------------------
                              534,228      519,530      471,806           13
    -------------------------------------------------------------------------
    Total Liabilities and
     Shareholders' Equity $ 7,565,363  $ 7,268,360  $ 6,021,477           26%
    -------------------------------------------------------------------------

    nm - not meaningful.

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



    -------------------------------------------------------------------------
    Consolidated Statement of Changes in Shareholders' Equity
    -------------------------------------------------------------------------

                                                  For the three months ended
                                                 ----------------------------
    (unaudited)                                      January 31   January 31
    ($ thousands)                                          2007         2006
    -------------------------------------------------------------------------
    Retained Earnings
    Balance at beginning of period                  $   297,841  $   241,221
      Transition adjustment on adoption of new
       accounting standards (Note 2)                       (166)           -
      Net income                                         20,458       16,438
      Dividends                                          (4,964)      (3,674)
    -------------------------------------------------------------------------
    Balance at end of period                            313,169      253,985
    -------------------------------------------------------------------------
    Accumulated Other Comprehensive Income (Loss) (Note 8)
    Balance at beginning of period                            -            -
      Transition adjustment of adoption of new
       accounting standards (Note 2)                     (1,494)           -
      Other comprehensive income (loss) for the period     (753)           -
    -------------------------------------------------------------------------
    Balance at end of period                             (2,247)           -
    -------------------------------------------------------------------------
    Total retained earnings and accumulated other
     comprehensive income                               310,922      254,846
    -------------------------------------------------------------------------
    Capital Stock
    Balance at beginning of period (Note 7)             215,349      213,098
      Issued on exercise of employee stock options          537          443
      Transferred from contributed surplus on
       exercise or exchange of options                      272           65
    -------------------------------------------------------------------------
    Balance at end of period                            216,158      213,606
    -------------------------------------------------------------------------
    Contributed Surplus (Note 7)
    Balance at beginning of period                        6,340        3,671
      Amortization of fair value of employee stock
       options                                            1,080          609
      Transferred to capital stock on exercise or
       exchange of options                                 (272)         (65)
    -------------------------------------------------------------------------
    Balance at end of period                              7,148        4,125
    -------------------------------------------------------------------------
    Total Shareholders' Equity                      $   534,228  $   471,806
    -------------------------------------------------------------------------



    -------------------------------------------------------------------------
    Consolidated Statement of Comprehensive Income
    -------------------------------------------------------------------------

                                                               For the three
                                                                months ended
    (unaudited)                                                   January 31
    ($ thousands)                                                       2007
    -------------------------------------------------------------------------
    Net Income                                                   $    20,458
    Other Comprehensive Income (Loss)
      Available-for-sale securities, change in unrealized
       gains (losses)                                                 (1,025)
      Derivatives designated as cash flow hedges, change in
       unrealized gains (losses)                                         272
    -------------------------------------------------------------------------
                                                                        (753)
    -------------------------------------------------------------------------
    Comprehensive Income for the Period                          $    19,705
    -------------------------------------------------------------------------

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



    -------------------------------------------------------------------------
    Consolidated Statement of Cash Flow
    -------------------------------------------------------------------------

                                                  For the three months ended
                                                 ----------------------------
    (unaudited)                                      January 31   January 31
    ($ thousands)                                          2007         2006
    -------------------------------------------------------------------------
    Cash Flows from Operating Activities
      Net income                                    $    20,458  $    16,438
      Adjustments to determine net cash flows
        Provision for credit losses                       2,550        2,550
        Depreciation and amortization                     1,424        1,282
        Future income taxes, net                           (391)         (64)
        Gain on sale of securities, net                    (119)        (105)
        Accrued interest receivable and payable, net      2,323        5,146
        Current income taxes payable, net                (2,635)     (12,104)
        Other items, net                                   (940)        (647)
    -------------------------------------------------------------------------
                                                         22,670       12,496
    -------------------------------------------------------------------------
    Cash Flows from Financing Activities
      Deposits, net                                     276,331      242,410
      Debentures issued                                       -       70,000
      Common shares issued                                  537          443
      Dividends                                          (4,964)      (3,674)
    -------------------------------------------------------------------------
                                                        271,904      309,179
    -------------------------------------------------------------------------
    Cash Flows from Investing Activities
      Interest bearing deposits with regulated
       financial institutions, net                       61,698      (28,442)
      Securities, purchased                            (546,151)    (532,328)
      Securities, sale proceeds                         136,923      355,249
      Securities, matured                               350,023      164,854
      Securities purchased under resale
       agreements, net                                    9,000       36,940
      Loans, net                                       (375,162)     (25,287)
      Land, buildings and equipment                        (272)      (2,416)
    -------------------------------------------------------------------------
                                                       (363,941)    (331,430)
    -------------------------------------------------------------------------
    Change in Cash and Cash Equivalents                 (69,367)      (9,755)
    Cash and Cash Equivalents at Beginning of
     Period                                              60,219        3,590
    -------------------------------------------------------------------------
    Cash and Cash Equivalents at End of Period(*)   $    (9,148) $    (6,165)
    -------------------------------------------------------------------------
    (*) Represented by:
        Cash resources per consolidated balance
         sheet                                      $   319,357  $   259,486
        Non-operating, interest bearing deposits
         with regulated financial institutions         (288,428)    (241,016)
        Cheques and other items in transit (included
         in Other Liabilities)                          (40,077)     (24,635)
    -------------------------------------------------------------------------
    Cash and Cash Equivalents at End of Period      $    (9,148) $    (6,165)
    -------------------------------------------------------------------------


    Supplemental Disclosure of Cash Flow Information
      Amount of interest paid in the period         $    59,175  $    35,374
      Amount of income taxes paid in the period          12,272       20,279
    -------------------------------------------------------------------------

    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

        These unaudited interim consolidated financial statements have been
        prepared in accordance with Canadian generally accepted accounting
        principles (GAAP), including the accounting requirements of the
        Superintendent of Financial Institutions Canada (OSFI), using the
        same accounting policies as the audited consolidated financial
        statements for the year ended October 31, 2006, except as described
        in Note 2. Under Canadian GAAP, 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, 2006 as set out on pages 46 to 70 of the
        Bank's 2006 Annual Report.

    2.  Change in Accounting Policies

        Financial Instruments

        Effective November 1, 2006, the Bank adopted new accounting standards
        issued by the Canadian Institute of Chartered Accountants (CICA):
        Financial Instruments - Recognition and Measurement, Hedges,
        Comprehensive Income and Financial Instruments - Disclosure and
        Presentation. As a result of adopting these standards, a new
        category, accumulated other comprehensive income (loss), has been
        added to shareholders' equity and certain unrealized gains and losses
        are reported in accumulated other comprehensive income (loss) until
        realization.

        As a result of adopting these new accounting standards, certain
        financial assets and liabilities are measured at fair value with the
        remainder recorded at amortized cost. The adjustment of the previous
        carrying amounts to comply with the new standards has been recognized
        as an adjustment to either accumulated other comprehensive (loss)
        income or retained earnings at November 1, 2006 and prior period
        consolidated financial statements have not been restated. The
        significant components of CWB's implementation of the standards
        include:

        a) Cash resources, securities, securities purchased under resale
           agreements and securities purchased under reverse resale
           agreements have been designated as available-for-sale and are
           reported on the balance sheet at fair value with changes in fair
           value reported in other comprehensive income, net of income taxes.

        b) Derivative financial instruments are recorded on the balance sheet
           at fair value as either other assets or other liabilities with
           changes in fair value related to the effective portion of cash
           flow interest rate hedges recorded in other comprehensive income,
           net of income taxes. Changes in fair value related to the
           ineffective portion of cash flow hedges or other derivative
           financial instruments are reported in other income on the
           consolidated statement of income. Specific accounting policies
           under the new standards relating to equity contracts that no
           longer qualify for hedge accounting and embedded derivatives are
           further described in Note 6.

        c) Loans, deposits and subordinated debentures continue to be
           recorded at amortized cost using the effective interest method.

        The fair value of a financial instrument on initial recognition is
        normally the transaction price i.e. the value of the consideration
        given or received. Subsequent to initial recognition, financial
        instruments measured at fair value that are quoted in active markets
        are based on bid prices for financial assets and offer prices for
        financial liabilities. For derivative financial instruments where an
        active market does not exist, fair values are determined using
        valuation techniques that refer to observable market data including
        discounted cash flow analysis, option pricing models and other
        valuation techniques commonly used by market participants.

        Transition adjustments recorded at November 1, 2006 include:

                                                         Income
                                             Gross        Taxes          Net
        ---------------------------------------------------------------------
        Retained Earnings
          Fair value of equity
           derivative contracts no
           longer designated as
           hedges                      $       593  $      (195) $       398
          Cumulative amortization of
           loan portfolio premium
           using the effective
           interest method                    (271)          89         (182)
          Fair value of other derivatives
           not designated as hedges           (563)         185         (378)
          Ineffective portion of fair
           value of cash flow hedges            (6)           2           (4)
        ---------------------------------------------------------------------
                                       $      (247) $        81  $      (166)
        ---------------------------------------------------------------------
        Accumulated Other
         Comprehensive Income (Loss)
          Available-for-sale
           securities, unrealized
           gains (losses)              $      (589) $       193  $      (396)
          Effective portion of fair
           value of cash flow hedges,
           unrealized gains (losses)        (1,632)         534       (1,098)
        ---------------------------------------------------------------------
                                       $    (2,221) $       727  $    (1,494)
        ---------------------------------------------------------------------


    3.  Insurance Income

        Insurance income reported in other income on the consolidated
        statement of income is presented net of claims and adjustment
        expenses and policy acquisition costs.

                                              For the three months ended
                                       --------------------------------------
                                        January 31   October 31   January 31
                                              2007         2006         2006
        ---------------------------------------------------------------------
        Net earned premiums            $    23,128  $    20,709  $    19,741
        Commissions and processing fees        606        1,327        1,079
        Net claims and adjustment
         expenses                          (18,176)     (13,230)     (13,380)
        Policy acquisition costs            (4,356)      (4,653)      (4,040)
        ---------------------------------------------------------------------
        Insurance revenues, net        $     1,202  $     4,153  $     3,400
        ---------------------------------------------------------------------

    4.  Securities

        Securities are accounted for at settlement date. Net unrealized gains
        (losses) reflected on the balance sheet as required by the change in
        accounting policies described in Note 2 follow:

                                                                       As at
                                                                  January 31
                                                                        2007
        ---------------------------------------------------------------------
        Deposits with regulated financial institutions           $      (500)
        Securities
          Issued or guaranteed by Canada                                (471)
          Issued or guaranteed by a province or municipality            (232)
          Other securities                                              (913)
        ---------------------------------------------------------------------
                                                                 $    (2,116)
        ---------------------------------------------------------------------

    5.  Allowance for Credit Losses

                                              For the three months ended
                                       --------------------------------------
                                        January 31   October 31   January 31
                                              2007         2006         2006
        ---------------------------------------------------------------------
        Balance at beginning of
         period                        $    53,521  $    51,030  $    42,520
        Provision for credit losses          2,550        2,550        2,550
        Write-offs                             (74)         (75)        (424)
        Recoveries                              37           16           24
        ---------------------------------------------------------------------
        Balance at end of period       $    56,034  $    53,521  $    44,670
        ---------------------------------------------------------------------


                                             As at        As at        As at
                                        January 31   October 31   January 31
                                              2007         2006         2006
        ---------------------------------------------------------------------
        Specific allowance             $     5,085  $     5,484  $     6,829
        General allowance                   50,949       48,037       37,841
        ---------------------------------------------------------------------
        Total allowance                $    56,034  $    53,521  $    44,670
        ---------------------------------------------------------------------


    6.  Derivative Financial Instruments

        The Bank designates certain derivative financial instruments as
        either a hedge of the fair value of recognized assets or liabilities
        or firm commitments (fair value hedge's), or a hedge of highly
        probable future cash flows attributable to a recognized asset or
        liability or a forecasted transaction (cash flow hedges). The Bank
        has designated all interest rate swaps as cash flow hedges. Under the
        new accounting requirements for hedges (refer to Note 2), the Bank's
        equity contracts no longer qualify for hedge accounting.

        Certain derivatives embedded in other financial instruments, such as
        the return on fixed term deposits that are linked to a stock index,
        are treated as separate derivatives when their economic
        characteristics and risks are not closely related to those of the
        host contract and the combined contract is not carried at fair value.
        Embedded derivatives entered into after November 1, 2002 have been
        separated from the host contract and are recorded at fair value.

        Hedge accounting is used for designated derivatives provided certain
        criteria are met. Derivatives that qualify for hedge accounting are
        accounted for at fair value with changes in fair value for the
        effective portion of the hedge reported in other comprehensive
        income. Changes in fair value for the ineffective portion of the
        hedges are reported in other income on the consolidated statement of
        income.

        The change in fair value related to derivatives that are not
        designated as hedges is reported in other income on the consolidated
        statement of income.

        For the period ended January 31, 2007, a net unrealized gain of
        $272 was recorded in other comprehensive income for changes in fair
        value of the effective portion of derivatives designated as cash flow
        hedges and $nil was recorded in other income for changes in fair
        value of the ineffective portion of derivatives classified as cash
        flow hedges. The amounts recognized as other comprehensive income are
        reclassified to net income in the same period when net income is
        affected by the variability in cash flows of the floating rate loans
        which are the hedged item. A net loss of $819 before tax was
        reclassified to net income during the period. A net loss of
        $927 before tax recorded in accumulated other comprehensive income
        (loss) as at January 31, 2007 is expected to be reclassified to net
        income in the next 12 months and will offset variable cash flows from
        floating rate loans.

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

                                               As at January 31, 2007
                                       --------------------------------------
                                          Notional     Positive     Negative
                                            Amount   Fair Value   Fair Value
        ---------------------------------------------------------------------
        Interest rate swaps designated
         as cash flow hedges(1)        $   597,000  $       955  $     2,182
        Equity contracts(2)                  9,570          308           28
        Foreign exchange contracts(3)       20,885            -           70
        Embedded derivative in
         equity-linked deposits(2)             n/a            -          618
        Other forecasted transactions            -          n/a          n/a
        ---------------------------------------------------------------------
        Derivative related amounts                  $     1,263  $     2,898
        ---------------------------------------------------------------------

        (1) Interest rate swaps mature between February 2007 and September
            2008.
        (2) Equity contracts and equity-linked deposits mature between
            February 2007 and March 2011.
        (3) Foreign exchange contracts mature between February 2007 and
            August 2007.

        n/a - not applicable.

        There were no forecasted transactions that failed to occur during the
        quarter.

    7.  Capital Stock and Share Incentive Plan

        Capital Stock                 For the three months ended
                          ---------------------------------------------------
                              January 31, 2007          January 31, 2006
                          ---------------------------------------------------
                            Number of                 Number of
                               Shares       Amount       Shares       Amount
        ---------------------------------------------------------------------
        Common Shares
          Outstanding at
           beginning of
           period          61,936,260  $   215,349   61,227,268  $   213,098
          Issued on
           exercise or
           exchange of
           options            231,986          537       95,838          443
          Transferred from
           contributed
           surplus on
           exercise or
           exchange of
           options                  -          272            -           65
        ---------------------------------------------------------------------
        Outstanding at
         end of period     62,168,246  $   216,158   61,323,106  $   213,606
        ---------------------------------------------------------------------


        Employee Stock Options
                                      For the three months ended
                          ---------------------------------------------------
                              January 31, 2007          January 31, 2006
                          ---------------------------------------------------
                                          Weighted                  Weighted
                                           Average                   Average
                            Number of     Exercise    Number of     Exercise
                              Options        Price      Options        Price
        ---------------------------------------------------------------------
        Options
          Balance at
           beginning of
           period           5,030,040  $     13.07    4,780,024  $      9.78
          Granted             733,600        25.02       48,000        17.49
          Exercised or
           exchanged         (285,140)        6.97     (106,280)        6.03
          Forfeited           (19,500)       18.85      (14,000)       12.40
        ---------------------------------------------------------------------
        Balance at end
         of period          5,459,000  $     14.97    4,707,744  $      9.93
        ---------------------------------------------------------------------
        Exercisable at
         end of period      1,075,800  $      7.13    1,142,444  $      5.46
        ---------------------------------------------------------------------

        A stock dividend effecting a two-for-one split of the Bank's common
        shares was declared and paid during the first quarter of 2007. All
        prior period common share and per common share information have been
        restated to reflect this effective split.

        The terms of the share incentive plan allow the holders of vested
        options a cashless settlement alternative whereby the option holder
        can either (a) elect to receive shares by delivering cash to the Bank
        in the amount of the option exercise price or (b) elect to receive
        the number of shares equivalent to the excess of the market value of
        the shares under option over the exercise price. Of the 285,140
        options (2006 - 106,280) exercised or exchanged in the first quarter,
        option holders exchanged the rights to 197,040 options (2006 -
        38,880) and received 143,384 shares (2006 - 28,438) in return under
        the cashless settlement alternative.

        In the three months ended January 31, 2007, salary expense of $1,080
        (2006 - $609) was recognized relating to the estimated fair value of
        options granted since November 1, 2002. 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
        3.9% (2006 - 3.9%), (ii) expected option life of 4.0 years (2006 -
        4.0 years), (iii) expected volatility of 19% (2006 - 19%), and (iv)
        expected dividends of 1.3% (2006 - 1.3%). The weighted average fair
        value of options granted was estimated at $4.34 (2006 - $3.29) per
        share.

        During the first quarter of 2007, 733,600 options were granted. Of
        this amount, 664,400 options, together with 320,000 options granted
        in 2006, are subject to shareholder and TSX approval.

    8.  Accumulated Other Comprehensive Income (Loss)

        Accumulated other comprehensive income (loss) includes the after tax
        change in unrealized gains and losses on available-for-sale
        securities and cash flow hedging activities.

                                                               For the three
                                                                months ended
                                                                  January 31
                                                                        2007
        ---------------------------------------------------------------------
        Available-for-sale securities
          Transition adjustment on adoption of new accounting
           standards, net (Note 2)                               $      (396)
          Losses from changes in fair value, net of income
           taxes of $540                                              (1,104)
          Reclassification to earnings for gain on sale of
           securities, net of income taxes of $40                         79
        ---------------------------------------------------------------------
        Balance at end of period                                      (1,421)
        ---------------------------------------------------------------------
        Derivatives designated as cash flow hedges
          Transition adjustment on adoption of new accounting
           standards, net (Note 2)                                    (1,098)
          Losses from changes in fair value recognized in equity,
           net of income taxes of $137                                  (275)
          Reclassification to net interest income, net of income
           taxes of $272                                                 547
        ---------------------------------------------------------------------
        Balance at end of period                                        (826)
        ---------------------------------------------------------------------
        Total accumulated other comprehensive income (loss)      $    (2,247)
        ---------------------------------------------------------------------

    9.  Contingent Liabilities and Commitments

        Significant contingent liabilities and commitments, including
        guarantees provided to third parties, are discussed in Note 21 of the
        Bank's audited consolidated financial statements for the year ended
        October 31, 2006 (see pages 63 to 64 of the 2006 Annual Report) and
        include:

                                             As at        As at        As at
                                        January 31   October 31   January 31
                                              2007         2006         2006
        ---------------------------------------------------------------------
        Guarantees and standby letters
         of credit
          Balance outstanding          $   147,698  $   147,339  $   130,941
        Business credit cards
          Total approved limit               7,646        8,291        5,374
          Balance outstanding                1,701        1,883        1,181
        ---------------------------------------------------------------------

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

    10. Trust Assets Under Administration

        Trust assets under administration represent assets held for personal
        and corporate trust clients, administered by subsidiaries, and are
        kept separate from the subsidiaries' own assets.  Trust assets under
        administration are not reflected in the consolidated balance sheet
        and relate to the banking and trust segment.

                                             As at        As at        As at
                                        January 31   October 31   January 31
                                              2007         2006         2006
        ---------------------------------------------------------------------
        Trust assets under
         administration                $ 3,553,590  $ 3,344,414  $ 2,972,357
        ---------------------------------------------------------------------

    11. Interest Rate Sensitivity

        The Bank's exposure to interest rate risk as a result of a difference
        or gap between the maturity or repricing behavior of interest
        sensitive assets and liabilities, including derivative financial
        instruments at the notional amount of $456,000, is discussed in Note
        24 of the audited consolidated financial statements for the year
        ended October 31, 2006 (see page 65 of the 2006 Annual Report). The
        following table shows the gap position for selected time intervals.


                             Floating
                              Rate or                                  Total
                             Within 1       1 to 3     3 Months     Within 1
        ($ millions)            Month       Months    to 1 Year         Year
        ---------------------------------------------------------------------
        January 31, 2007
        Total assets      $     3,320  $       393  $     1,418  $     5,131
        Total liabilities
         and equity             3,420          537        1,274        5,231
        ---------------------------------------------------------------------
        Interest rate
         sensitive gap    $      (100) $      (144)  $      144  $      (100)
        ---------------------------------------------------------------------
        Cumulative gap    $      (100) $      (244)  $     (100) $      (100)
        ---------------------------------------------------------------------
        Cumulative gap as
         a percentage of
         total assets           (1.2%)       (3.0%)       (1.2%)       (1.2%)
        ---------------------------------------------------------------------

        October 31, 2006
        Cumulative gap    $       (74) $      (292)  $     (173) $      (173)
        ---------------------------------------------------------------------
        Cumulative gap as
         a percentage of
         total assets           (0.9%)       (3.7%)       (2.2%)       (2.2%)
        ---------------------------------------------------------------------

        January 31, 2006
        Cumulative gap    $         4  $      (244)  $     (111) $      (111)
        ---------------------------------------------------------------------
        Cumulative gap as
         a percentage of
         total assets            0.0%        (3.6%)       (1.7%)       (1.7%)
        ---------------------------------------------------------------------


                            1 Year to       Over 5  Non-interest
        ($ millions)          5 Years        Years    Sensitive        Total
        ---------------------------------------------------------------------
        January 31, 2007
        Total assets      $     2,594  $       172  $       124  $     8,021
        Total liabilities
         and equity             1,952          118          720        8,021
        ---------------------------------------------------------------------
        Interest rate
         sensitive gap    $       642  $        54  $      (596) $         -
        ---------------------------------------------------------------------
        Cumulative gap    $       542  $       596  $         -  $         -
        ---------------------------------------------------------------------
        Cumulative gap as
         a percentage of
         total assets            6.8%         7.4%            -            -
        ---------------------------------------------------------------------

        October 31, 2006
        Cumulative gap    $       433  $       499  $         -  $         -
        ---------------------------------------------------------------------
        Cumulative gap as
         a percentage of
         total assets            5.5%         6.3%           -%           -%
        ---------------------------------------------------------------------

        January 31, 2006
        Cumulative gap    $       359  $       495  $         -  $         -
        ---------------------------------------------------------------------
        Cumulative gap as
         a percentage of
         total assets            5.3%         7.4%           -%           -%
        ---------------------------------------------------------------------


    12. Segmented Information

        The Bank operates principally in two industry segments - banking and
        trust, and insurance. These two segments differ in products and
        services but are both within the same geographic region. The banking
        and trust segment provides services primarily to personal clients and
        small to medium-sized commercial business clients in Western Canada.
        The insurance segment provides home and auto insurance to individuals
        in British Columbia and Alberta.


                             Banking and Trust             Insurance
                        -----------------------------------------------------
                            Three months ended         Three months ended
                        -----------------------------------------------------
                          Jan 31   Oct 31   Jan 31   Jan 31   Oct 31   Jan 31
                            2007     2006     2006     2007     2006     2006
        ---------------------------------------------------------------------
        Net interest
         income
         (teb)(1)       $ 48,148 $ 44,971 $ 38,947 $  1,061 $    999 $    767
        ---------------------------------------------------------------------
        Less teb
         adjustment        1,085    1,125      837       79       69       35
        ---------------------------------------------------------------------
        Net interest
         income per
         financial
         statements       47,063   43,846   38,110      982      930      732
        Other income(2)   11,194    9,452    9,061    1,249    4,143    3,535
        ---------------------------------------------------------------------
        Total revenues    58,257   53,298   47,171    2,231    5,073    4,267
        Provision for
         credit losses     2,550    2,550    2,550        -        -        -
        Non-interest
         expenses         26,287   24,611   22,372    1,906    2,219    1,967
        Provision for
         income taxes      9,233    6,901    7,303       54      881      808
        ---------------------------------------------------------------------
        Net income      $ 20,187 $ 19,236 $ 14,946 $    271 $  1,973 $  1,492
        ---------------------------------------------------------------------
        Total average
         assets
        ($ millions)(3) $  7,220 $  6,872 $  5,730 $    155 $    161 $    140
        ---------------------------------------------------------------------


                                                             Total
                                                  ---------------------------
                                                      Three months ended
        ---------------------------------------------------------------------
                                                    Jan 31   Oct 31   Jan 31
                                                      2007     2006     2006
        ---------------------------------------------------------------------
        Net interest income (teb)(1)              $ 49,209 $ 45,970 $ 39,714
        Less teb adjustment                          1,164    1,194      872
        ---------------------------------------------------------------------
        Net interest income per financial
         statements                                 48,045   44,776   38,842
        Other income                                12,443   13,595   12,596
        ---------------------------------------------------------------------
        Total revenues                              60,488   58,371   51,438
        Provision for credit losses                  2,550    2,550    2,550
        Non-interest expenses                       28,193   26,830   24,339
        Provision for income taxes                   9,287    7,782    8,111
        ---------------------------------------------------------------------
        Net income                                $ 20,458 $ 21,209 $ 16,438
        ---------------------------------------------------------------------
        Total average assets ($ millions)(3)      $  7,375 $  7,033 $  5,870
        ---------------------------------------------------------------------

        (1) Taxable Equivalent Basis (teb) - Most banks analyse 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 generally accepted accounting
            principles (GAAP) and therefore may not be comparable to similar
            measures presented by other banks.
        (2) Other income for the insurance segment is presented net of net
            claims, adjustment expenses and policy acquisition expenses and
            includes gains on sale of securities.
        (3) Assets are disclosed on an average daily balance basis as this
            measure is most relevant to a financial institution and is the
            measure reviewed by management.

    13. Comparative Figures

        The October 31, 2006 balance sheet has been adjusted to correct the
        classification of certain amounts within deposit liabilities. As a
        result of this correction, deposits payable after notice increased
        $45,582 and deposits payable on demand decreased $45,582.

    14. Future Accounting Changes

        International Financial Reporting Standards

        The CICA plans to converge Canadian GAAP for public companies with
        International Financial Reporting Standards (IFRS) over a transition
        period expected to end in 2011.   The impact of the transition to
        IFRS on the Bank's consolidated financial statements is not yet
        determinable.

        Capital Disclosures

        The CICA issued a new accounting standard which requires the
        disclosure of both qualitative and quantitative information that
        enables financial statement users to evaluate the objectives,
        policies and processes for managing capital. This new standard is
        effective for the Bank beginning November 1, 2007.

    -------------------------------------------------------------------------
    Shareholder Information
    -------------------------------------------------------------------------

    Head Office
    Canadian Western Bank & Trust        Investor Relations
    Suite 2300, Canadian Western         For further financial information
    Bank Place                           contact:
    10303 Jasper Avenue                  Kirby Hill, CFA
    Edmonton, AB  T5J 3X6                Senior Manager, Investor and
    Telephone: (780) 423-8888            Public Relations
    Fax: (780) 423-8897                  Canadian Western Bank
    Website: www.cwbankgroup.com         Telephone: (780) 441-3770
                                         Toll-free: 1-800-836-1886
                                         Fax: (780) 423-8899
    Subsidiary Offices                   E-mail:
    Canadian Western Trust Company       InvestorRelations@cwbankgroup.com
    Suite 600, 750 Cambie Street
    Vancouver, BC  V6B 0A2               Online Investor Information
    Telephone: (800) 663-1124            Additional investor information
    Fax: (604) 669-6069                  including supplemental financial
    Website: www.cwt.ca                  information and a corporate
                                         presentation is available on our
    Canadian Direct Insurance            website at www.cwbankgroup.com.
    Incorporated
    Suite 600, 750 Cambie Street         Complaints or Concerns Regarding
    Vancouver, BC  V6B 0A2               Accounting, Internal Accounting
    Telephone: (604) 699-3678            Controls or Auditing Matters
    Fax: (604) 699-3851                  Please contact either:
    Website: www.canadiandirect.com
                                         Tracey C. Ball
    Valiant Trust Company                Executive Vice President and Chief
    Suite 310, 606 - 4th Street S.W.     Financial Officer
    Calgary, AB  T2P 1T1                 Canadian Western Bank
    Telephone: (403) 233-2801            Telephone: (780) 423-8855
    Fax: (403) 233-2857                  Fax: (780) 423-8899
    Website: www.valianttrust.com        E-mail: tracey.ball@cwbank.com

    Stock Exchange Listing               or
    The Toronto Stock Exchange
    Share Symbol: CWB                    Robert A. Manning
                                         Chairman of the Audit Committee
    Transfer Agent and Registrar         c/o 210 - 5324 Calgary Trail
    Valiant Trust Company                Edmonton, AB  T6H 4J8
    Suite 310, 606 - 4th Street S.W.     Telephone: (780) 438-2626
    Calgary, AB  T2P 1T1                 Fax: (780) 438-2632
    Telephone: (403) 233-2801            E-mail: rmanning@shawbiz.ca
    Fax: (403) 233-2857
    Website:  www.valianttrust.com
    E-mail:                              Quarterly Conference Call and
    inquiries@valianttrust.com        Webcast
                                         Our quarterly conference call and
                                         live audio webcast will take place
    Dividends                            on Thursday, March 8, 2007 at
    Cash dividends paid in the 2007      3:30 p.m. ET. The webcast will be
    calendar year are "eligible          archived on our website at
    dividends" as defined in the         www.cwbankgroup.com for sixty days.
    Income Tax Act.                      A replay of the conference call will
                                         be available until March 23, 2007
                                         by dialing (416) 640-1917 or toll
                                         free (877) 289-8525 and entering
                                         passcode 21217595, followed by the
                                         pound sign.
    





For further information:

For further information: Larry M. Pollock, President and Chief Executive
Officer, Canadian Western Bank, Phone: (780) 423-8888; Kirby Hill, CFA, Senior
Manager, Investor and Public Relations, Canadian Western Bank, Phone: (780)
441-3770, E-mail: kirby.hill@cwbank.com

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