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Corporate Presentation 4th Quarter 2017

2 CWB Financial Group

Advisory Forward-looking Statements From time to time, CWB makes written and verbal forward-looking statements. Statements of this type are included in the Annual Report and reports to shareholders and may be included in filings with Canadian securities regulators or in other communications such as press releases and corporate presentations. Forward-looking statements include, but are not limited to, statements about CWB’s objectives and strategies, targeted and expected financial results and the outlook for CWB’s businesses or for the Canadian economy. Forward-looking statements are typically identified by the words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “may increase”, “may impact”, “goal”, “focus”, “potential”, “proposed” 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 and are subject to inherent risks and uncertainties, which give rise to the possibility that management’s predictions, forecasts, projections, expectations and conclusions will not prove to be accurate, that its assumptions may not be correct and that its strategic goals will not be achieved.

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

Additional information about these factors can be found in the Risk Management section of CWB’s annual Management’s Discussion and Analysis (MD&A). These and other factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could cause CWB’s actual results to differ materially from the expectations expressed in such forward-looking statements. Unless required by securities law, CWB does not undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by it or on its behalf.

Assumptions about the performance of the Canadian economy over the forecast horizon and how it will affect CWB’s businesses are material factors considered when setting organizational objectives and targets. In determining our expectations for economic growth, we primarily consider economic data and forecasts provided by the Canadian government and its agencies, as well as an average of certain private sector forecasts. These forecasts are subject to inherent risks and uncertainties that may be general or specific. Where relevant, material economic assumptions underlying forward looking statements are disclosed.


Table of Contents

SLIDE SECTION

4 Corporate Overview

9 Banking Focus on Business Owners

20 Complementary Lines of Business

27 Strong Financial Performance

37 Appendix


Corporate Overview


Strategic direction focused on growing CWB franchise with a group of companies that provide

complementary services to core business banking clients

CWB Financial Group

Canadian Western Bank

CWB Optimum Mortgage

Motive Financial

National Leasing

CWB Maxium Financial

CWB Franchise Finance

Canadian Western Trust CWB Wealth Management

McLean & Partners Wealth Management

Canadian Western Financial

October 31, 2017

Total Assets ~ $26.4 billion

Market Capitalization (TSX:CWB) ~ $3.2 billion

Number of Consecutive Profitable Quarters 118

Credit Ratings (DBRS) – Stable Trend

Long-term Senior Debt/Long-term Deposits: A (low)

Short-term Debt: R1 (low)

Subordinated Debentures: BBB (high)

Preferred Shares: Pfd-3

42 Branches

Banking

• Business

• Personal

• Alternative mortgage lending

• Commercial equipment leasing

1 Location 2 Locations

Trust

• Corporate

• Personal

Wealth Management

• Mutual fund services

• Discretionary investment management


CWB Financial Group | Executive Committee

CHRIS FOWLER President & CEO

CAROLYN GRAHAM Executive VP & CFO Finance and Tax, Treasury, Strategy and Investor Relations, Legal, Internal Audit

BOGIE OZDEMIR Executive VP & CRO Enterprise Risk Management, Credit Risk Management, Risk Data Aggregation, Analytics and Reporting, Regulatory Compliance

STEPHEN MURPHY Executive VP Branch Banking Operations, Equipment Financing Group, CWB Optimum Mortgage, CWB Maxium Financial, CWB Franchise Finance, National Leasing

GLEN EASTWOOD Executive VP Business Transformation, Wealth Management, Trust Services

KELLY BLACKETT Executive VP

Human Resources, Corporate Communications

DARRELL JONES Executive VP & CIO Information Services, Infrastructure Planning


Business Footprint| Growing Coast to Coast


Fiscal 2017 Highlights

VERY STRONG CORE OPERATING PERFORMANCE

• Record total revenue (teb) of $729 million from core operations, up 10% year-over-year, including strong 10% growth of net interest income (teb)

• Common shareholders’ net income of $214 million, up 21% and record core pre-tax, pre-provision income (teb) of $391 million, up 10% from last year

• Full-year net interest margin (teb) up 14 basis points to 2.57%

SOLID CREDIT QUALITY

• Gross impaired loans represented 0.72% of total loans, compared to 0.58% last year

• Full-year provision for credit losses as a percentage of average loans of 23 bp, normalized from 38 bp last year

POSITIVE LOAN GROWTH WITH CONTINUED STRATEGIC DIVERSIFICATION

• Year-end loan balance up 6%, with 11% growth outside of Alberta • General commercial loans increased 12% from last year, with 18% growth outside

of Alberta • Solid contributions from CWB Maxium Financial and CWB Franchise Finance • Trend of higher relative contributions from Ontario expected to continue • Positive contributions expected from strategic asset purchase to close January 31

STRONG EXECUTION OF FUNDING DIVERSIFICATION STRATEGY

• Record issuance of senior deposit notes in capital markets • Growth of securitization capabilities • 7% growth in average balance of branch-raised deposits • Stable average balance of broker deposits


Banking Focus on Business Owners


Business Footprint | Locations and Loans by Province(*) Banking Branches Western Canada

CWB Maxium Financial Richmond Hill, ON

CWB Franchise Finance Toronto, ON Montreal, QC

National Leasing Winnipeg, MB (Headquarters) Satellite offices across Canada

Trust Services Office

Vancouver, BC

Wealth Management Offices Edmonton, AB Calgary, AB

* Based on location of security


18%

27%

17% 17%

20%

1%

Commercial mortgages - 18%

General commercial loans - 27%

Real estate project loans - 17%

Equipment financing and leasing - 17%

Personal loans & mortgages - 20%

Oil & gas production loans - 1%

Composition of Loans by Lending Sector As at October 31, 2017

($ millions – excluding the allowance for credit losses) Q4 2017 Q4 2016 Change $ Change %

General commercial loans $ 6,307 $ 5,644 $ 663 12%

Personal loans & mortgages 4,726 4,064 662 16

Commercial mortgages 4,267 4,189 78 2

Real estate project loans 4,030 4,236 (206) (5)

Equipment financing and leasing 3,892 3,711 181 5

Oil & gas production loans 124 221 (97) (44)

Total loans outstanding, excluding the allowance for credit losses $ 23,346 $ 22,065 $ 1,281 6%


35%

19%

10%

36%

Branch demand & notice deposits - 35%

Branch term deposits - 19%

Capital markets term deposits - 10%

Agent deposits - 36%

Composition of Deposits As at October 31, 2017

39%

61%

Business & government deposits

Personal deposits


$11,617 $11,816

$4,000

$6,000

$8,000

$10,000

$12,000

Q4 2016 Q4 2017

Total Branch-raised Deposits ($ millions)

2%

Total Branch-raised Deposits ($ millions)

Funding Sources | Growing Relationship-based Deposits

(1) Branch-raised deposits include deposits raised through CWB’s trust businesses, Canadian Western Trust and Valiant Trust. (2) As of Q1 11, financial results are reported under IFRS, as opposed to GAAP, and are not directly comparable.

(1)

$7,694 $7,641

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

Q4 2016 Q4 2017

-1%

Total Demand and Notice Deposits ($ millions)


Financial Performance | Solid Credit Quality

* “Canadian Bank Avg. (6)” as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canada’s six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD).

• Demonstrated history of low credit losses relative to the six largest Canadian banks


Financial Performance | Credit

• The dollar level of gross impaired loans fluctuates as loans become impaired and are subsequently resolved, and does not directly reflect the dollar value of expected write-offs given tangible security held in support of lending exposures

• Actual credit losses as a percentage of total loans remain low and continue to demonstrate the benefits of CWB’s secured lending practices and disciplined underwriting

• Improving trend in past due loans supports a more positive outlook for credit quality

(1) As of Q1 11, financial results are reported under IFRS, as opposed to GAAP, and are not directly comparable.

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017

Gross Impaired Loans & Write-offs (as a percentage of average loans)

$ Gross impaired loans as a % of avg. loans $ Write-offs as a % of avg. loans

(1)


Financial Performance | Solid Credit Quality




Financial Performance | Strong Capital & Low Leverage Regulatory Capital Ratios (Standardized approach for calculating risk-weighted assets)


Q4 2017 Regulatory Minimum

Common equity Tier 1 capital (CET1) 9.5% 7.0%

Tier 1 capital 10.8% 8.5%

Total capital 12.5% 10.5%

Basel III Leverage Ratio 8.3% 3.0%


Financial Performance | Strong Capital & Low Leverage

* All comparative information as referenced within this presentation is calculated based on information contained in the publicly available company reports for fiscal 2016 of Canada’s six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD) .

Capital Ratios and Risk-Weighted Assets (RWA)

CWB Variance

CWB LB BMO BNS CM NA RY TD ( f ro m A verage)

Common Equity Tier 1 Ratio (Basel III) (1) 9.5% 7.9% 11.4% 11.5% 10.6% 11.8% 10.9% 10.7% -165 bp

Risk weightings by category (2)

Residential mortgages 30.4% 18.8% 7.8% 12.8% 7.1% 11.3% 7.5% 8.6% 21.2%

Other retail loans (3) 76.6% 66.9% 24.5% 39.3% 30.2% 38.9% 22.5% 34.4% 45.0%

Business loans (4) 99.9% 99.8% 38.2% 53.3% 37.9% 43.4% 59.7% 39.0% 54.6%

Pro forma CWB and LB assuming 20% reduction in RWA from AIRB 11.9% 9.9% 11.4% 11.5% 10.6% 11.8% 10.9% 10.7% 76 bp

Pro forma six largest banks assuming 20% increase in RWA from standardized 9.5% 7.9% 9.5% 9.6% 8.9% 9.8% 9.1% 8.9% 21 bp

(1) "Common Equity Tier 1 Ratio (Basel III)" based on Oct 31, 2017 company reports of Canada's eight publicly traded Schedule 1 banks.

(2) "Risk weightings by category" based on Oct 31, 2017 company reports of Canada's eight publicly traded Schedule 1 banks.

(3) Other retail includes personal loans, credit cards and small business loans treated as retail.

(4) Business includes corporate, commercial, medium-sized enterprises and non-bank financial institutions.

Provision for Credit Losses (measured as a % of average loans) 10 YR

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Average

CWB 0.15% 0.15% 0.21% 0.19% 0.19% 0.19% 0.15% 0.17% 0.38% 0.23% 0.20%

Canadian Bank Average (6)* 0.46% 0.86% 0.53% 0.40% 0.37% 0.31% 0.30% 0.28% 0.36% 0.28% 0.41%

Variance -0.31% -0.71% -0.32% -0.21% -0.18% -0.12% -0.15% -0.11% 0.02% -0.05% -0.21%

11.2%

9.3%

(A IR B banks)

Average

11.2%

9.2%

31.6%

45.2%

Advanced Internal Rating Based (AIRB) Standardized


Financial Performance | Regulatory Capital WHAT IF? (Advanced Internal Ratings Based (AIRB) Approach for calculating risk-weighted assets):

FY 2017 (Actual)

Basel III Change Change Change

CET1 capital ratio 9.5% 15.9% +639 bps 13.6% +412 bps 11.9% +241 bps

Tier 1 capital ratio 10.8% 18.0% +718 bps 15.4% +461 bps 13.5% +269 bps

Total capital ratio 12.5% 20.9% +840 bps 17.9% +542 bps 15.7% +318 bps

Risk-weighted assets $21,082,164 $12,649,298 ($8,432,866) $14,757,515 ($6,324,649) $16,865,731 ($4,216,433)

FY 2017 (Actual) Change Change Change

Avg. # of common shares, diluted 88,592 66,362 (22,230) 71,873 (16,719) 77,384 (11,208)

# of preferred shares 10,600 6,570 (4,030) 7,666 (2,934) 8,762 (1,838)

CET1 capital ratio 9.5% 9.5% - 9.5% - 9.5% -

Tier 1 capital ratio 10.8% 10.8% - 10.8% - 10.8% -

Total capital ratio 12.5% 13.7% +122 bps 13.3% +80 bps 13.0% +49 bps

Leverage ratio 8.3x 20.0x +11.7 x 17.1x +8.8 x 15.0x +6.7 x

Shareholders' net income $228,527 $211,491 ($17,036) $215,760 ($12,767) $220,029 ($8,498)

Preferred dividends ($14,250) ($7,227) $7,023 ($8,433) $5,817 ($9,639) $4,611

Common shareholders' net income $214,277 $204,264 ($10,013) $207,327 ($6,950) $210,390 ($3,887)

Return on common shareholders’ equity 10.1% 15.5% +543 bps 13.7% +358 bps 12.3% +217 bps

Diluted earnings per common share (EPS) $2.42 $3.08 +$0.66 $2.88 +$0.47 $2.72 +$0.30

Share price at 13.0x diluted EPS $31.44 $40.01 +$8.57 $37.50 +$6.06 $35.34 +$3.90

Dividend payout ratio (FY 2017 div. of $0.93) 38% 28% -(1051 bps) 30% -(864 bps) 32% -(682 bps)

Book value per common share $24.82 $19.84 -($4.98) $21.11 -($3.71) $22.19 -($2.63)

Average common shareholders' equity $2,124,701 $1,316,854 ($807,847) $1,517,135 ($607,566) $1,717,415 ($407,286)

Common equity Tier 1 capital (CET1) $2,009,530 $1,201,683 ($807,847) $1,401,964 ($607,566) $1,602,244 ($407,286)

Tier 1 capital $2,274,727 $1,366,124 ($908,603) $1,593,812 ($680,915) $1,821,499 ($453,228)

Total capital $2,644,071 $1,735,468 ($908,603) $1,963,156 ($680,915) $2,190,843 ($453,228)

Total exposures $27,305,892 $27,305,892 - $27,305,892 - $27,305,892 -

Assumed price of common shares purchased $36.34 $36.34 - $36.34 - $36.34 -

Assumed price of preferred shares purchased $25.00 $25.00 - $25.00 - $25.00 -

CWB Basel III Pro Forma Capital Ratios (based on specified % change in risk-weighted assets)

-40% -30% -20%

CWB Pro Forma Financial Metrics (based on maintaining the Basel III CET1 ratio and Tier 1 ratio at the same level via the purchase of

common and preferred shares)


Complementary Lines of Business


Lines of Business | Total Revenues (teb)

• Strategic goal to grow non-interest income to encompass a greater proportion of total revenues through

growth in banking and leasing fee income, wealth management and trust services

– organic growth (breadth and depth of both existing and new client relationships) – complementary acquisitions

88% 5%

1%

2%

3%

1%

Composition of Revenues (2017)

Net interest income (teb) - 88%

Credit related fees - 5%

Retail services fees - 1%

Trust services - 2%

Wealth management - 3%

Other - 1%


Lines of Business | Equipment Leasing • Industry leader in small and mid-ticket equipment leasing

• Proven management team and ~350 employees

• Long history of strong performance (43 years in business)

• Approximately 80,000 active leases providing diversification by geography, industry and equipment type

• Established presence across Canada

• Synergies with existing banking/lending operations (funding, growth, technology)


Lines of Business | Specialized Financing • Specialized financing solutions are primarily provided in the areas of health

care, golf, transportation, real estate, and general corporate financing

• Provides loans, equipment leases and structured financing solutions to more than 35,000 clients, mainly in Ontario

• Proven management team

• Long history of strong performance

• Securitized assets that were originated prior to March 1, 2016 were not included in the transaction


Lines of Business | Alternative Mortgages • Broker-driven origination model providing alternative and higher-ratio insured residential

mortgages across Western Canada, and selected regions of Ontario and Atlantic Canada • As at October 31, 2017, alternative mortgages represented ~94% of Optimum’s portfolio

and carry a weighted average loan-to-value at initiation of ~67% • Solid source of loan growth and profitability (blend of fee-based income and interest

revenues) • Considerable future growth opportunities


Lines of Business | Wealth Management • Specialized discretionary wealth and portfolio management

• Complementary business line with good potential for growth • Synergies with banking and fiduciary trust operations

• Relatively stable source of fee-based income with low capital investment


Lines of Business | Trust Services • Trust Services office in Vancouver

• Trust assets under administration over $10 billion; lower cost deposits of more than $1 billion

Note: On August 16, 2017, CWB announced that Canadian Western Trust (CWT) will focus its activities within business lines that are most aligned with the strategic objectives of CWB Financial Group, and will no longer offer self-directed account services to holders of exempt market securities. CWT appointed a successor trustee or custodian, effective September 28, 2017. As a result of the agreement, CWB realized a pre-tax gain on sale of approximately $6 million this quarter and annual revenues from trust services are expected to be approximately $4 million lower next year. Approximately $71 million of deposits and $1.3 billion of assets under administration transferred to the successor trustee on the closing date.

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2013 2014 2015 2016 2017

($ thousands) Total Revenues (teb)

Personal Trust Corporate Trust


Strong Financial Performance


Medium-term Performance Target Ranges

(1) Adjusted cash earnings per common share is calculated as diluted earnings per common share excluding the acquisition-related amortization of intangible assets and the contingent consideration fair value changes, net of tax. Excluded items are not considered to be indicative of ongoing operating performance. Performance for adjusted cash earnings per common share is the current year results over the same period in the year. (2) Adjusted return on common shareholders’ equity is calculated as annualized common shareholders’ net income excluding the acquisition-related amortization of intangible assets and the contingent consideration fair value changes, net of tax, divided by average common shareholders’ equity. (3) Operating leverage is calculated as the growth rate of total revenue (teb) less the growth rate of non-interest expenses, excluding the pre-tax amortization of acquisition-related intangible assets, over the past twelve months. (4) Common equity Tier 1 capital ratio is calculated in accordance with Basel III guidelines issued by the Office of the Superintendent of Financial Institutions Canada (OSFI). (5) Common share dividend payout ratio is calculated as common share dividends declared during the past twelve months divided by common shareholders’ net income earned over the same period.

• Based on expectations for:

• moderate economic growth in Canada over the three- to five-year forecast horizon;

• ongoing strong loan growth at levels relatively consistent with recent performance;

• further optimization of CWB’s funding mix;

• stable credit quality;

• effective expense management in consideration of revenue growth opportunities; and,

• prudent capital management.

Medium-term Target

Range

Operating leverage (3) Positive

Common equity Tier 1 capital ratio under the Standardized approach (4) Strong

Common share dividend payout ratio (5) ~ 30%

Annual adjusted cash earnings per common share growth(1) 7 – 12%

Annual return on common shareholders' equity(2) 12 – 15%


Financial Performance | History Historical Growth (five-year increments)


8,700 9,312 10,575 12,365 14,035 15,653

17,606 19,570 22,065 23,346

$0

$5,000

$10,000

$15,000

$20,000

$25,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Total Loans ($ millions)

(before the allowance for credit losses)

(1)

Year Total Assets (millions)

% Assets Growth Net Income

Before Taxes (thousands)

% Net Income Growth Before Taxes

Net Income After Taxes

(thousands)

1997 $2,023 - $16,253 - $15,837

2002 $3,828 89% $45,716 181% $29,612

2007 $9,525 149% $135,936 197% $96,282

2012 $16,873 77% $254,666 87% $194,457

2017 $26,447 57% $311,888 22% $229,655


Financial Performance | Q4 2017

($ thousands) Q4 2017 Q4 2016 Change

Pre-tax, pre-provision income (teb) $ 104,401 $ 89,497 17%

Common shareholders’ net income 60,833 47,834 27%

Diluted earnings per share 0.68 0.54 26%

Adjusted cash earnings per share 0.74 0.59 25%


Financial Performance | 2017

($ thousands) 2017 2016 Change

Pre-tax, pre-provision income (teb) $ 390,991 $ 353,843 10%

Common shareholders’ net income 214,277 177,761 21%

Diluted earnings per share 2.42 2.13 14%

Adjusted cash earnings per share 2.63 2.26 16%

$177.8

$214.3

$0

$30

$60

$90

$120

$150

$180

$210

$240

2016 2017

21%

Common Shareholders' Net Income ($ millions)

2.43% 2.57%

1.00%

1.40%

1.80%

2.20%

2.60%

3.00%

2016 2017

Net Interest Margin (teb)

14 bp


Quarterly Loan Growth


Financial Performance | Margin

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

1.75%

2.00%

2.25%

2.50%

2.75%

3.00%

3.25%

3.50%

Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015 Q2 2016 Q4 2016 Q2 2017 Q4 2017

Net Interest Margin (teb) and Spread on Loans

Net interest margin (teb) (left-scale) Spread on loans (left-scale) Average prime (right-scale)


Financial Performance | Efficiency


(1) Represents Continuing Operations

• Strong efficiency relative to the six largest Canadian banks – demonstrated ability to effectively control costs while supporting sustained growth

(1) (1) (1)


(1) As of Q1 11, financial results are reported under IFRS, as opposed to GAAP, and are not directly compared.


Financial Performance | Dividends

* Dividend payout ratios represent common share dividends (including shares issued under CWB’s dividend reinvestment plan) measured as a percentage of net income available to common shareholders.

Fiscal 2014 ~ 29%

Fiscal 2015 (1) ~ 33%

Fiscal 2016 ~ 43%

Fiscal 2017 ~ 38%

Medium-term Target range ~ 30%

Dividend Payout Ratios *

(1) Represents Continuing Operations


Appendix


Provincial Economies


Additional Information Shares Outstanding (October 31, 2017)

Employee Share Purchase Plan (ESPP)

• 88.5 million common shares (TSX:CWB) • 5.0 million preferred shares Series B (TSX:CWB:PR:B) • 5.6 million preferred shares Series C (TSX:CWB:PR:C)

• Approximately 94% employee participation

Investor Inquiries

Canadian Western Bank Place Suite 3000 – 10303 Jasper Avenue Edmonton, Alberta T5J 3X6

Tel: 780.969.8337 Toll-free: 1.800.836.1886 [email protected] cwb.com

mailto:[email protected]

http://www.cwb.com/

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