Third Quarter 2022 Highlights (compared to
the same period in the prior year)
Diluted earnings
per
share (EPS)
|
Total
revenue
|
Pre-tax, pre-
provision income(1)
|
Loans(2)
|
Branch-raised
deposits(1)
|
$0.88
|
$272 million
|
$132 million
|
$35.2
billion
|
$20.4
billion
|
Down
10%
|
Up 3%
|
Down
4%
|
Up 9% in
total;
Up 13% in
Ontario
|
Up 9%
|
This news release and accompanying financial
highlights are supplementary to CWB's 2022 Third Quarter Report to
Shareholders and 2021 Annual Report and should be read in
conjunction with those documents.
EDMONTON, AB, Aug. 26,
2022 /CNW/ - CWB Financial Group (TSX: CWB) (CWB)
announced financial performance for the three and nine months ended
July 31, 2022, with quarterly common
shareholders' net income of $81
million, up 9% sequentially and down 6% from the same period
last year. Our Board of Directors declared a cash dividend of
$0.31 per common share, consistent
with the dividend declared last quarter and up two cents, or 7% from last year.
"Our teams delivered very strong loan growth this quarter from
clients within our risk appetite that met our strict underwriting
and pricing criteria," said Chris
Fowler, President and CEO. "We expect annual percentage loan
growth in the high single-digits for fiscal 2022 as we maintain our
disciplined lending approach in the current environment. We
continue to expect double-digit annual growth of branch-raised
deposits by deepening customer relationships and winning new
full-service banking clients."
"Our strategy remains focused on building the best bank for
business owners in Canada, and our
teams have made strong progress this quarter. We opened our new
banking centre in Markham to build
on strong growth momentum in Ontario and drive further geographic
diversification of our business. Our new personal and small
business digital platforms were launched to enhance our client
experience and support efficient full-service client growth. We
also made significant progress on our Advanced Internal Ratings
Based (AIRB) transition project, which further supports our
long-term growth and diversification aspirations with a sustainable
and scalable operating model. Later this year, the full integration
of our Virtual COO solution into our digital banking offering will
provide a differentiated tool for small business owners to better
understand and predict their cash flow needs and financial health
of their operations."
"Execution of our strategic priorities continues to elevate the
strength of our organization, and our demonstrated history of
prudent risk management positions us well to navigate through
recessionary conditions, should they arise. The progress we have
made to transform our business provides a strong foundation to
accelerate growth of full-service client relationships and enhance
our profitability."
(1) Non-GAAP
measure – refer to definitions and detail provided on page
5.
|
(2) Excludes
the allowance for credit losses.
|
Financial Performance
Q3 2022,
compared to
Q2 2022(1)
|
Common shareholders'
net income of $81 million
|
Up 9%
|
Diluted EPS of
$0.88
|
Up 7%
|
Adjusted Return on
Equity (ROE) of 10.7%
|
Up 40 bp
|
Efficiency ratio of
51.3%
|
Down 240 bp
|
Compared to the prior quarter, common shareholders' net income
increased as the impact of 5% revenue growth more than offset a two
basis point increase in the total provision for credit losses as a
percentage of average loans(1). Higher revenue reflected
a 6% increase in net interest income partially offset by a 5%
decrease in non-interest income. Higher net interest income
reflected the combined impact of strong 4% sequential loan growth,
including 3% in Ontario, three
additional interest-earning days and a one basis point expansion in
net interest margin(1). The increase in net interest
margin reflected the net positive impact of the Bank of
Canada policy interest rate
changes in the second and third quarters, partially offset by an
increased proportion of higher-cost broker deposits in our funding
mix. Further expansion of net interest margin has been constrained
by an increase in funding costs that has outpaced growth in loan
yields in a highly competitive environment, which we expect will
eventually normalize. We delivered very strong branch-raised
deposit(1) growth of 3% in the quarter, which helped
support stability in our net interest margin. Non-interest expenses
were comparable to the prior quarter as we continued to execute on
our strategic priorities as planned, but reduced other expenditures
which improved our efficiency ratio. The total provision for credit
losses as a percentage of average loans was two basis points higher
than the prior quarter, with a four basis point increase in the
performing loan provision, primarily driven by a slight
deterioration in macroeconomic factors compared to the prior
quarter and strong sequential loan growth. To support strong loan
growth while prudently managing our capital, we issued common
shares for net proceeds of $35
million at an average share price of $26.10 under our at-the-market common equity
distribution program (ATM) this quarter. Despite the recent
downward pressure on our share price, the net earnings contributed
by the incremental loan growth supported by the ATM issuances this
quarter more than offsets the dilutive impact of the incremental
common shares issued, driving an ongoing increase in earnings per
share and ROE.
Q3 2022,
compared to
Q3 2021(1)
|
Common shareholders'
net income of $81 million
|
Down 6%
|
Diluted EPS of
$0.88
|
Down 10%
|
Adjusted ROE of
10.7%
|
Down 160 bp
|
Efficiency ratio of
51.3%
|
Up 360 bp
|
Compared to the same quarter last year, common shareholders' net
income decreased as 3% revenue growth was more than offset by
higher non-interest expenses and an increase in the total provision
for credit losses as a percentage of average loans. Branch-raised
deposit growth of 9% reflects our franchise building strategy to
expand our full-service client relationships. Net interest income
increased 5%, driven by 9% loan growth partially offset by an eight
basis point decline in net interest margin. The decrease in net
interest margin primarily reflected higher growth in funding costs
as compared to asset yields with an increased proportion of
higher-cost broker deposits in our funding mix and lower yielding
loans in our asset mix. Non-interest income decreased 6%, primarily
due to higher net gains on security sales recognized last year.
Non-interest expenses were up 11% from the prior year, primarily
driven by additional costs associated with the continued investment
in our people, AIRB tools and processes, digital capabilities, and
product offering to optimize our business, deliver an unrivaled
experience to our clients, and accelerate full-service client
growth. The total provision for credit losses as a percentage
of average loans was five basis points higher than the same quarter
last year, which reflected a 13 basis point increase in the
performing loan provision, as we recognized a performing loan
recovery last year due to the significant improvement in forecast
economic conditions, partially offset by an eight basis point
decline in the impaired loan provision.
YTD 2022,
compared to
YTD 2021(1)
|
Common shareholders'
net income of $243 million
|
Up 2%
|
Diluted EPS of
$2.67
|
Down 2%
|
Adjusted ROE of
10.9%
|
Down 70 bp
|
Efficiency ratio of
51.1%
|
Up 330 bp
|
(1) Adjusted ROE, efficiency
ratio, branch-raised deposits, net interest margin and the
provision for credit losses on total loans as a percentage of
average loans are non-GAAP measures. Refer to definitions and
detail provided on page 5.
|
On a year-to-date basis, the increase in common shareholders'
net income was driven by 5% growth in revenue and a decline in the
provision for credit losses, partially offset by an increase in
non-interest expenses. Revenue growth reflected a 6% increase in
net interest income attributable to 9% annual loan growth,
partially offset by a six basis point decline in net interest
margin. Non-interest income was up 4%. Non-interest expenses were
up 13% and reflected the impact of our strategic investments in our
people, AIRB tools and processes, digital capabilities, and product
offering. The total provision for credit losses as a percentage of
average loans was two basis points lower than prior year, due to an
11 basis point decline in the impaired loan provision partially
offset by a nine basis point increase in the performing loan
provision, as we recognized an eight basis point recovery last year
due the significant improvement in forecast economic
conditions.
Strategic Performance
We continue to transform our capabilities to offer a superior
full-service client experience through a complete range of
in-person and digital channels. These expanded capabilities,
delivered by our highly engaged and client-centric teams, will
accelerate growth of full-service client relationships in
specifically targeted segments that fit within our strategic growth
objectives and prudent risk appetite. Our strategic execution will
enable us to continue to deliver strong growth of full-service
client relationships and capitalize on the opportunities available
to us as we continue to expand our presence in key markets. This
quarter, we:
- Opened the new Markham banking
centre, building on the strategic success of our first Ontario location in Mississauga in 2020. The targeted expansion of
our banking centre footprint in Ontario and enhancement of our digital
capabilities supports further geographic diversification of our
business.
- Successfully launched our new personal and small business
digital banking platforms. The new platforms feature a rich user
interface underpinned by enhanced security capabilities. The small
business platform will initially provide cash flow predictive
modelling and integration with third party accounting platforms.
Incremental features will be integrated into the platform as part
of the full Virtual COO launch later this year, which include the
ability to perform simulations that enable small businesses to
better understand and predict the cash flow needs and financial
health of their operations.
- Delivered strong progress on the development of revised AIRB
tools incorporating significant enhancements and the final 2023
Capital Adequacy Requirements (CAR) guidelines, with completion of
a material portion targeted around the end of the current fiscal
year. Upon completion, we will implement and operate our revised
AIRB tools across the business for a sufficient period of time to
support a successful resubmission of our application. We expect to
incur incremental and non-recurring non-interest expenses from the
accelerated depreciation of our legacy AIRB intangible assets as
further discussed in the Outlook section of our Q3 2022
Management's Discussion and Analysis.
- Consolidated and relocated our regional office and banking
centre within downtown Vancouver
to a new modern flagship banking centre. The highly visible
location on West Georgia provides
prominent branding and supports a hybrid workspace that elevates
our client experience.
About CWB Financial Group
CWB Financial Group (CWB) is the only full-service financial
institution in Canada with a
strategic focus to meet the unique financial needs of businesses
and their owners. We provide our nation-wide clients with
full-service business and personal banking, specialized financing,
comprehensive wealth management offerings, and trust services. Our
teams deliver a uniquely proactive and differentiated level of
service to clients in targeted industries where we have deep
expertise. Clients choose CWB for our highly personalized service,
specialized expertise, customized solutions and faster response
times.
As a public company on the Toronto Stock Exchange (TSX), CWB
trades under the symbols "CWB" (common shares), "CWB.PR.B" (Series
5 preferred shares) and "CWB.PR.D" (Series 9 preferred shares). We
are firmly committed to the responsible creation of value for all
our stakeholders and our approach to sustainability will support
our continued success. Learn more at www.cwb.com.
Fiscal 2023 Third Quarter Results
Conference Call
CWB's third quarter results conference call is scheduled for
Friday, August 26, 2022, at
10:00 a.m. ET (8:00 a.m. MT). CWB's executives will comment
on financial results and respond to questions from analysts.
The conference call may be accessed on a listen-only basis by
dialing (416) 764-8688 (Toronto)
or 1 (888) 390-0546 (toll-free) and entering passcode: 06609647.
The call will also be webcast live on CWB's website:
www.cwb.com/investor-relations/quarterly-reports.
A replay of the conference call will be available until
September 2, 2022 by dialing (416)
764-8677 (Toronto) or 1 (888)
390-0541 (toll-free) and entering passcode: 609647#.
Forward-looking
Statements
From time to time, we make written and verbal forward-looking
statements. Statements of this type are included in our Annual
Report and reports to shareholders and may be included in filings
with Canadian securities regulators or in other communications such
as media releases and corporate presentations. Forward-looking
statements include, but are not limited to, statements about our
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 our
predictions, forecasts, projections, expectations and conclusions
will not prove to be accurate, that our assumptions may not be
correct, and that our strategic goals will not be achieved.
A variety of factors, many of which are beyond our 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 housing market
conditions, 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,
material changes to trade agreements, transition to the Advanced
Internal Ratings Based (AIRB) approach for regulatory capital
purposes, legislative and regulatory developments, legal
developments, the level of competition, the occurrence of natural
catastrophes, outbreaks of disease or illness that affect local,
national or international economies, supply chain disruptions,
changes in accounting standards and policies, information
technology and cyber risk, the accuracy and completeness of
information we receive 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 our 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 sections of our annual 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 our actual results to
differ materially from the expectations expressed in such
forward-looking statements. Any forward-looking statements
contained in this document represent our views as of the date
hereof. Unless required by securities law, we do not undertake to
update any forward-looking statement, whether written or verbal,
that may be made from time to time by us or on our behalf. The
forward-looking statements contained in this document are presented
for the purpose of assisting readers in understanding our financial
position and results of operations as at and for the periods ended
on the dates presented, as well as our strategic priorities and
objectives, and may not be appropriate for other purposes.
Assumptions about the performance of the Canadian economy over
the forecast horizon and how it will affect our business are
material factors considered when setting organizational objectives
and targets. In determining expectations for economic growth, we
consider our own forecasts, economic data and forecasts provided by
the Canadian government and its agencies, as well as certain
private sector forecasts. These forecasts are subject to inherent
risks and uncertainties. Where relevant, material economic
assumptions underlying forward-looking statements are disclosed
within the Outlook and Allowance for Credit Losses sections of our
interim and annual MD&A.
Non-GAAP Measures
We use a number of financial measures and ratios to assess our
performance against strategic initiatives and operational
benchmarks. Some of these financial measures and ratios do not have
standardized meanings prescribed by Generally Accepted Accounting
Principles (GAAP) and may not be comparable to similar measures
presented by other financial institutions. Non-GAAP financial
measures and ratios provide readers with an enhanced understanding
of how we view our financial performance. These measures and ratios
may also provide the ability to analyze trends related to
profitability and the effectiveness of our operations and
strategies, and are disclosed in compliance with National
Instrument 52-112 Non-GAAP and Other Financial Measures
Disclosure.
To calculate non-GAAP financial measures,
we exclude certain items from our financial results
prepared in accordance with IFRS. Adjustments relate to items which
we believe are not indicative of underlying operating
performance. Our non-GAAP financial measures include:
- Adjusted non-interest expenses – total non-interest expenses,
excluding pre-tax amortization of acquisition-related intangible
assets, and acquisition and integration costs. Acquisition and
integration costs include direct and incremental costs incurred as
part of the execution and integration of the acquisition of the
businesses of T.E. Wealth and Leon
Frazer & Associates that occurred in June 2020.
- Adjusted common shareholders' net income – total common
shareholders' net income, excluding the amortization of
acquisition-related intangible assets, and acquisition and
integration costs, net of tax.
- Pre-tax, pre-provision income – total revenue less adjusted
non-interest expenses.
The following table provides a reconciliation of our non-GAAP
financial measures to our reported financial results.
Adjusted Financial
Measures
|
|
|
|
|
|
|
|
|
For the three months
ended
|
|
Change from July
31
2021
|
|
For the nine months
ended
|
Change from July
31
2021
|
|
(unaudited)
(thousands)
|
|
July
31
2022
|
|
|
April 30
2022
|
|
|
July 31
2021
|
|
|
|
|
July
31
2022
|
|
|
July 31
2021
|
|
|
Non-interest
expenses
|
$
|
142,130
|
|
$
|
141,457
|
|
$
|
128,112
|
|
|
11
|
%
|
$
|
414,994
|
|
$
|
367,916
|
|
13
|
%
|
Adjustments (before
tax):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets(1)
|
|
(2,557)
|
|
|
(2,557)
|
|
|
(2,032)
|
|
|
26
|
|
|
(7,655)
|
|
|
(6,041)
|
|
27
|
|
Acquisition and
integration costs(2)
|
|
(207)
|
|
|
(58)
|
|
|
(451)
|
|
|
(54)
|
|
|
(265)
|
|
|
(868)
|
|
(69)
|
|
Adjusted
non-interest expenses
|
$
|
139,366
|
|
$
|
138,842
|
|
$
|
125,629
|
|
|
11
|
%
|
$
|
407,074
|
|
$
|
361,007
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shareholders'
net income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments
(after-tax):
|
$
|
80,809
|
|
$
|
74,164
|
|
$
|
86,280
|
|
|
(6)
|
%
|
$
|
242,615
|
|
$
|
237,473
|
|
2
|
%
|
Amortization of
acquisition-related intangible assets(1)
|
|
1,914
|
|
|
1,913
|
|
|
1,485
|
|
|
29
|
|
|
5,728
|
|
|
4,416
|
|
30
|
|
Acquisition and
integration costs(2)
|
|
156
|
|
|
44
|
|
|
340
|
|
|
(54)
|
|
|
200
|
|
|
655
|
|
(69)
|
|
Adjusted common
shareholders' net income
|
$
|
82,879
|
|
$
|
76,121
|
|
$
|
88,105
|
|
|
(6)
|
%
|
$
|
248,543
|
|
$
|
242,544
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
271,712
|
|
$
|
258,761
|
|
$
|
263,215
|
|
|
3
|
%
|
$
|
796,449
|
|
$
|
755,409
|
|
5
|
%
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
non-interest expenses (see above)
|
|
139,366
|
|
|
138,842
|
|
|
125,629
|
|
|
11
|
|
|
407,074
|
|
|
361,007
|
|
13
|
|
Pre-tax,
pre-provision income
|
$
|
132,346
|
|
$
|
119,919
|
|
$
|
137,586
|
|
|
(4)
|
%
|
$
|
389,375
|
|
$
|
394,402
|
|
(1)
|
%
|
(1) Net of
income tax of $643 for the three months ended July 31, 2022 (Q2
2022 – $644, Q3 2021 – $547) and $1,927 for the nine months ended
July 31, 2022 (Q3 2021 – $1,625).
|
(2) Net of
income tax of $51 for the three months ended July 31, 2022 (Q2 2022
– $nil, Q3 2021 – $111) and $65 for the nine months ended July 31,
2022 (Q3 2021 – $213).
|
Non-GAAP ratios are calculated using the non-GAAP financial
measures defined above. Our non-GAAP ratios include:
- Adjusted earnings per common share – diluted earnings per
common share calculated with adjusted common shareholders' net
income.
- Adjusted return on common shareholders' equity – annualized
adjusted common shareholders' net income divided by average common
shareholders' equity, which is total shareholders' equity excluding
preferred shares and limited recourse capital notes.
- Efficiency ratio – adjusted non-interest expenses divided by
total revenue.
- Operating leverage – growth rate of total revenue less growth
rate of adjusted non-interest expenses.
Supplementary financial measures are measures that do not have
definitions prescribed by GAAP, but do not meet the definition of a
non-GAAP financial measure or ratio. Our supplementary
financial measures include:
- Return on assets – annualized common shareholders' net income
divided by average total assets.
- Net interest margin – annualized net interest income divided by
average total assets.
- Return on common shareholders' equity – annualized common
shareholders' net income divided by average common shareholders'
equity.
- Write-offs as a percentage of average loans – annualized
write-offs divided by average total loans.
- Book value per common share – total common shareholders' equity
divided by total common shares outstanding.
- Branch-raised deposits – total deposits excluding broker term
and capital market deposits.
- Provision for credit losses on total loans as a percentage of
average loans – annualized provision for credit losses on loans,
committed but undrawn credit exposures and letters of credit
divided by average total loans. Provisions for credit losses
related to debt securities measured at fair value through other
comprehensive income (FVOCI) and other financial assets are
excluded.
- Provision for credit losses on impaired loans as a percentage
of average loans – annualized provision for credit losses on
impaired loans divided by average total loans.
- Provision for credit losses on performing loans as a percentage
of average loans – annualized provision for credit losses on
performing loans (Stage 1 and 2) divided by average total
loans.
- Average balances – average daily balances.
|
For the three months
ended
|
Change from
|
|
For the nine months
ended
|
Change from
|
|
(unaudited)
(thousands, except per
share amounts)
|
|
July 31
2022
|
|
|
April 30
2022
|
|
|
July 31 2021
|
|
July 31
2021
|
|
|
July 31
2022
|
|
|
July 31
2021
|
|
July 31
2021
|
|
Results from
Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
240,593
|
|
$
|
226,109
|
|
$
|
230,021
|
|
5
|
%
|
$
|
699,774
|
|
$
|
662,438
|
|
6
|
|
Non-interest
income
|
|
31,119
|
|
|
32,652
|
|
|
33,194
|
|
(6)
|
|
|
96,675
|
|
|
92,971
|
|
4
|
|
Total
revenue
|
|
271,712
|
|
|
258,761
|
|
|
263,215
|
|
3
|
|
|
796,449
|
|
|
755,409
|
|
5
|
|
Pre-tax,
pre-provision income(1)
|
|
132,346
|
|
|
119,919
|
|
|
137,586
|
|
(4)
|
|
|
389,375
|
|
|
394,402
|
|
(1)
|
|
Common
shareholders' net income
|
|
80,809
|
|
|
74,164
|
|
|
86,280
|
|
(6)
|
|
|
242,615
|
|
|
237,473
|
|
2
|
|
Common Share
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per
common share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.88
|
|
$
|
0.82
|
|
$
|
0.99
|
|
(11)
|
%
|
$
|
2.67
|
|
$
|
2.72
|
|
(2)
|
|
Diluted
|
|
0.88
|
|
|
0.82
|
|
|
0.98
|
|
(10)
|
|
|
2.67
|
|
|
2.72
|
|
(2)
|
|
Adjusted(1)
|
|
0.90
|
|
|
0.84
|
|
|
1.01
|
|
(11)
|
|
|
2.73
|
|
|
2.78
|
|
(2)
|
|
Cash
dividends
|
|
0.31
|
|
|
0.30
|
|
|
0.29
|
|
7
|
|
|
0.91
|
|
|
0.87
|
|
5
|
|
Book
value
|
|
33.90
|
|
|
33.43
|
|
|
32.88
|
|
3
|
|
|
33.90
|
|
|
32.88
|
|
3
|
|
Closing market
value
|
|
25.87
|
|
|
32.41
|
|
|
34.01
|
|
(24)
|
|
|
25.87
|
|
|
34.01
|
|
(24)
|
|
Common shares
outstanding (thousands)
|
|
92,988
|
|
|
91,569
|
|
|
88,122
|
|
6
|
|
|
92,988
|
|
|
88,122
|
|
6
|
|
Performance
Measures(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common
shareholders' equity
|
|
10.4
|
%
|
|
10.0
|
%
|
|
12.1
|
%
|
(170)
|
bp
|
|
10.7
|
%
|
|
11.3
|
%
|
(60)
|
bp
|
Adjusted return
on common shareholders' equity
|
|
10.7
|
|
|
10.3
|
|
|
12.3
|
|
(160)
|
|
|
10.9
|
|
|
11.6
|
|
(70)
|
|
Return on
assets
|
|
0.81
|
|
|
0.79
|
|
|
0.94
|
|
(13)
|
|
|
0.84
|
|
|
0.90
|
|
(6)
|
|
Net interest
margin
|
|
2.43
|
|
|
2.42
|
|
|
2.51
|
|
(8)
|
|
|
2.44
|
|
|
2.50
|
|
(6)
|
|
Efficiency
ratio
|
|
51.3
|
|
|
53.7
|
|
|
47.7
|
|
360
|
|
|
51.1
|
|
|
47.8
|
|
330
|
|
Operating
leverage
|
|
(7.7)
|
|
|
(10.3)
|
|
|
(1.7)
|
|
(600)
|
|
|
(7.3)
|
|
|
(3.0)
|
|
(430)
|
|
Credit
Quality(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for
credit losses on total loans as a percentage of average
loans(2)
|
|
0.16
|
|
|
0.14
|
|
|
0.11
|
|
5
|
|
|
0.14
|
|
|
0.16
|
|
(2)
|
|
Provision for
credit losses on impaired loans as a percentage of average
loans(2)
|
|
0.12
|
|
|
0.14
|
|
|
0.20
|
|
(8)
|
|
|
0.13
|
|
|
0.24
|
|
(11)
|
|
Balance
Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
$
|
40,403,938
|
|
$
|
38,927,826
|
|
$
|
36,649,461
|
|
10
|
%
|
|
|
|
|
|
|
|
|
Loans(3)
|
|
35,244,720
|
|
|
34,041,369
|
|
|
32,256,833
|
|
9
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
32,386,014
|
|
|
31,298,278
|
|
|
29,605,018
|
|
9
|
|
|
|
|
|
|
|
|
|
Debt
|
|
3,430,921
|
|
|
3,135,870
|
|
|
2,849,182
|
|
20
|
|
|
|
|
|
|
|
|
|
Shareholders'
equity
|
|
3,727,567
|
|
|
3,636,036
|
|
|
3,472,517
|
|
7
|
|
|
|
|
|
|
|
|
|
Off-Balance
Sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wealth
management(4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
under management and administration
|
|
8,055,456
|
|
|
8,278,744
|
|
|
8,416,975
|
|
(4)
|
|
|
|
|
|
|
|
|
|
Assets
under advisement(5)
|
|
1,968,299
|
|
|
1,992,438
|
|
|
2,061,520
|
|
(5)
|
|
|
|
|
|
|
|
|
|
Assets under
administration - other(6)
|
|
14,090,563
|
|
|
14,471,848
|
|
|
13,274,099
|
|
6
|
|
|
|
|
|
|
|
|
|
Capital
Adequacy(7)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common equity
Tier 1 ratio
|
|
8.9
|
%
|
|
8.9
|
%
|
|
8.8
|
%
|
10
|
bp
|
|
|
|
|
|
|
|
|
Tier 1
ratio
|
|
10.7
|
|
|
10.8
|
|
|
10.8
|
|
(10)
|
|
|
|
|
|
|
|
|
|
Total
ratio
|
|
12.2
|
|
|
12.3
|
|
|
12.4
|
|
(20)
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
full-time equivalent staff
|
|
2,674
|
|
|
2,617
|
|
|
2,593
|
|
3
|
%
|
|
|
|
|
|
|
|
|
(1) Non-GAAP
measure – refer to definitions and detail provided on page
5.
|
(2) Includes
provisions for credit losses on loans, committed but undrawn credit
exposures and letters of credit.
|
(3) Excludes
the allowance for credit losses.
|
(4) Certain
comparative figures have been reclassified to conform with the
current period's presentation.
|
(5)
Primarily comprised of assets under advisement related to our
Indigenous Services wealth management business.
|
(6)
Comprised of trust assets under administration, third-party leases
under administration and loans under service agreements.
|
(7)
Calculated using the Standardized approach in accordance
with guidelines issued by the Office of the Superintendent of
Financial Institutions Canada (OSFI).
|
SOURCE CWB Financial Group