EDMONTON, AB, Dec. 7, 2024
/CNW/ - CWB Financial Group (CWB) is providing an update concerning
its announcement that the release of its fourth quarter and fiscal
2024 financial results were rescheduled to mid-December 2024.
The decision to reschedule is unrelated to CWB's potential
acquisition by National Bank of Canada. We continue to expect forward progress
of the transaction and expect it to close as planned and within
previously announced timelines.
The decision was triggered by our receipt of a legal claim
against CWB Maxium Financial Ltd. (Maxium), a wholly owned
subsidiary of CWB, very late in our process to approve and disclose
our annual financial results that by its nature required prudent
investigation. The self-represented claimant seeks damages in the
amount of $18 Million, as well as
general and punitive damages, and costs, related to the provision
of certain loans to corporations affiliated with the claimant and
the resolution of these loans, which is occurring through a
court-approved receivership process.
The claim contains several allegations, including allegations of
unethical conduct by a named individual. CWB has rigorous ethical
and professional standards in place, and we are undertaking a full
investigation. The investigation to date has confirmed that
the named individual is a sales agent of Maxium with no lending
approval authority. Our investigation also supports that the loans
in question were appropriately authorized within our credit
approval process, including a thorough review and approval of each
loan by our credit risk management team, which is a centralized
control function independent of our business lines. Our
investigation is ongoing, and we are committed to taking any
appropriate action based on our findings.
Based on current knowledge, we do not expect the outcome of this
claim to have a material effect on the consolidated financial
statements.
SOURCE Canadian Western Bank
