P A C I F I C & W E S T E R N 2 ND QUARTER REVIEW JUNE 3, 2008

P A C I F I C & W E S T E R N Advisory The Corporation occasionally makes forward-looking statements about its objectives, operations and targeted financial results. These statements may be written or verbal and may be included in such things as press releases, corporate presentations, Annual Reports and other disclosure documents and communications. By their very nature, forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts, projections and other forward-looking statements will not be achieved. A number of important factors could cause actual results to differ materially from the plans, objectives, expectations, estimates and intentions expressed in such forward-looking statements. These factors include, but are not limited to, the strength of the Canadian economy in general and the strength of local economies within Canada in which we conduct operations; the effect of changes in interest rates; the effects of competition in the markets in which we operate; capital market fluctuations; and the impact of changes in laws and regulations. When relying on forward-looking statements to make decisions, investors and others should carefully consider these factors and other uncertainties or potential events. The Corporation makes no undertaking to update any forward-looking statement that is made from time to time by the Corporation.

P A C I F I C & W E S T E R N Our Mission To maximize the value of our common shares and total return to our shareholders over time, by providing innovative financial solutions to our clients in selected niche markets.

P A C I F I C & W E S T E R N Who We Are Schedule 1 Canadian Chartered Bank Founded August 1 st, 2002 (first in 18 years) Publicly traded on TSX under symbol PWC Branchless Model Head Office in London, Ontario $1.3 billion in Assets $1.0 billion in Loans and Leases 58 Full-time Employees

TSX SYMBOL: PWC

P A C I F I C & W E S T E R N Values Build enduring relationships with winners Own the challenge Our word is our bond Always strive for the win-win solution Only participate in markets well suited to us Respond quickly to our clients’ requests Our reason for being is to build shareholder value

P A C I F I C & W E S T E R N Our Model Focus Niche markets not well served by large banks Quality Seek low credit risk lending opportunities Efficiency Use technology and existing distribution channels Growth Seek markets with high growth potential

P A C I F I C & W E S T E R N Existing Distribution Channels Deposit Services: a) Bank owned brokerage firms b)Large financial planners c)Small independent financial planners Lending & Investing: a) Vendor support program b)Direct dealings with our staff c)Other lenders and brokers

P A C I F I C & W E S T E R N Our Strengths Extensive nationwide low cost funds source High quality portfolio with negligible losses Schedule 1 Canadian Bank Charter Very scalable infrastructure State of the art financial institution software

P A C I F I C & W E S T E R N The Event Unprecedented worldwide liquidity crisis in the banking industry sparked off by a melt down in sub prime/asset backed securities market

P A C I F I C & W E S T E R N The Challenges PWB’s cost of funds has increased like other Canadian Banks on average by about 70 basis points vs GOC Bond Mark to Market accounting rules is creating volatility and a recent reduction in our regulatory capital reducing lending capacity.

P A C I F I C & W E S T E R N Benefits Significant reduction in competition in our lending markets Significant increase in loan spreads has more than offset our cost of funds increase High quality securities can be purchased with extra- ordinary spreads over our cost of funds Opportunity for synergistic acquisitions

P A C I F I C & W E S T E R N Corporate Bond Spreads (BBB)

P A C I F I C & W E S T E R N Our Cost of Funds

P A C I F I C & W E S T E R N Our Cost of Funds

P A C I F I C & W E S T E R N Spreads

P A C I F I C & W E S T E R N 1 Year GIC Rate Comparison

P A C I F I C & W E S T E R N Special Initiatives Discovery Air PW Plus Account Visa Card Versabanq Innovations

P A C I F I C & W E S T E R N Discovery Air

P A C I F I C & W E S T E R N

Sample Card Design Partner Company Logo

PWB is in discussions with large national retailers with the mandate of creating a joint venture to issue a retailer-branded Visa Loyalty Credit Card National retailer brings brand recognition and existing distribution channels to effectively reach potential cardholders across the country. PWB brings Visa issuing ability, Schedule 1 Bank license and capability to manage all credit card activity including payment processing, customer call centre, risk and fraud. New retailer loyalty program embedded within the Visa card –Allows cardholders to earn value-based points/rewards on every purchase regardless of where the Visa card is used. –Creates brand loyalty for the retailer as well as increases in-store traffic of customers returning to redeem points and make additional purchases. –A valued rewards program helps make to get the PWB Visa card to the front of the wallet. Retailer would share in all revenues generated by the card and all costs to manage the program. PWB / National Retailer Issued Visa Card Retailer Brand Here

P A C I F I C & W E S T E R N Versabanq Innovations

P A C I F I C & W E S T E R N Versabanq Innovations –In discussions with numerous, very large potential partners in U.S. and Canada –Strategy is to use existing distribution channels and enhance our partners’ relationship with their customer by filling blank spaces in or enhancing their product portfolio. –Currently in joint development session with one of the largest banking software providers in the world –Our products very well-suited to satisfy demands related to the current liquidity crisis (e.g., syndicated loans and efficient deposit gathering) –Also provide built-in Basel II compliance which will soon be required in the U.S.

P A C I F I C & W E S T E R N Our Securities Pacific & Western Credit Corp. (PWC) Common SharesPWC $5.30 (June 08) Preferred SharesPWC.PR.A $2.90 (Jun 08) (dividend.21) A Notes (04/10)PWC.NT.A $ (Jun 08) (yield 9.25%) C Notes (10/08)PWC.NT.C $ (Jun 08) (yield 9.0%)

P A C I F I C & W E S T E R N Series C Note Arithmetic AmountSpreadRateInterest Risk WeightRWA 1,000, % 90,000 9% Notes 15,000, % 525,000 GICs 16,000, % 615,000 Total 7,750, %6.250% 484,375100% 7,750,000Loans 6,550, %4.700% 307,85020% 1,310,000PSEs & AAAs 1,700, %4.300% 73,1000% -CMHCs 16,000, % 865,325 9,060,000 Net Interest 1.565% 250,325BIS11.038% Return on Note %

P A C I F I C & W E S T E R N Summary Highly efficient entrepreneurial Schedule 1 bank with low risk strategy well positioned to take advantage of the current liquidity crisis.

P A C I F I C & W E S T E R N 2 ND QUARTER REVIEW JUNE 3, 2008