WHO WE ARE CWB is the only full-service bank in Canada with a strategic focus to meet the unique financial needs of businesses and their owners. Our teams take a relationship-based approach to deliver a uniquely proactive client experience through highly personalized service, specialized expertise, customized solutions and faster response times. We provide full-service business and personal banking, nation-wide specialized financing in targeted industries, comprehensive wealth management offerings, and trust services. We are firmly committed to the responsible creation of value for all our stakeholders and our approach to sustainability will support our continued success. GROWTH STRATEGY AND VISION Our highly engaged teams operate within a client-centric, collaborative and change-ready culture, with a core focus to achieve our vision to become the best full-service bank for business owners in Canada. We continue to transform our capabilities to offer a superior full-service client experience through a complete range of in-person and evolving digital channels. These improving capabilities have accelerated growth of full-service client relationships in specifically targeted segments that fit within our strategic growth objectives and prudent risk appetite. Ongoing strategic execution will create long-term value for shareholders as we deliver strong growth of full-service clients and capitalize on the opportunities available to us as we continue to expand our geographic footprint outside of Western Canada, including an increased presence in the Ontario market.
Our differentiated market position and transformation-focused strategy has set the stage for CWB to be a disruptive force in Canadian financial services, deliver profitable long-term growth and enhance shareholder returns for years to come.
STRATEGIC TRANSACTION On June 1, 2020, we completed the acquisition of 100% of the common shares of iA Investment Counsel Inc., an investment counsellor operating under the brands T.E. Wealth and Leon Frazer & Associates (the wealth acquisition). The purchase price of $87 million was paid in cash upon closing and represented an investment of 30 basis points of regulatory capital. The wealth acquisition is a transformative step forward for CWB to become a leader in private wealth for Canadian business owners and their families, with focused capabilities in complex financial planning and investment management and an extended geographic footprint, to support our continued growth of strong client relationships across the country. T.E. Wealth and Leon Frazer & Associates provide financial planning and wealth management services targeting high-net-worth Canadian families. T.E. Wealth is also one of the largest and most reputable providers of investment management and financial education services to Indigenous communities, with offerings provided under the T.E. Wealth Indigenous Services brand. With a significant portion of the client base in Ontario, the wealth acquisition will support our continued growth of strong full-service client relationships across the country. The integration of our wealth management operations will provide a differentiated private wealth experience to our clients, and continues to progress in line with our expectations. The wealth acquisition contributed $5.8 billion to assets under management, advisement and administration on the acquisition date, which grew to $7.1 billion at October 31, 2021 (October 31, 2020 – $5.9 billion) primarily due to market value appreciation supported by full advisor retention and no significant client attrition related to the acquisition. Indigenous Services assets under advisement of $1.7 billion at acquisition have increased to $2.0 billion at October 31, 2021 (October 31, 2020 – $1.8 billion). The operations of the wealth acquisition, which were only included in our financial results for five months in the prior fiscal year, contributed $36 million (2020 – $15 million) to non-interest income and $37 million (2020 – $18 million) to non-interest expenses, which included $2 million (2020 – $2 million) of integration costs as well as $3 million (2020 – $1 million) of amortization of acquisition-related intangible assets. The wealth acquisition has contributed approximately $0.04 to adjusted earnings per common share (1) in fiscal 2021, surpassing our previous expectations.
(1) Non-GAAP measure – refer to definition and detail provided on page 18.
CWB Financial Group 2021 Annual Report | 19
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