CWB FINANCIAL GROUP PERFORMANCE SELECT FINANCIAL HIGHLIGHTS Table 4 - Select Annual Financial Information ($ thousands, except ratios and per share amounts)
2019 (2)
2021
2020
Change from 2020
Results from Operations Total revenue
$
1,016,033
$
897,395 469,318 248,956
$
861,604 461,130 266,940
$
118,638 47,831 78,515
13 %
Pre-tax, pre-provision income (1)
517,149 327,471
10 32
Common shareholders' net income
Common Share Information Earnings per share Basic
3.74 3.73 3.81 1.16
2.86 2.86 2.93 1.15
3.05 3.04 3.15 1.08
0.88 0.87 0.88 0.01 1.34
31 30 30
Diluted
Adjusted (1)
Cash dividends paid
1 4
Book value (1)
33.10
31.76
29.29
Performance Measures (1) Return on common shareholders' equity
11.6 %
9.3 %
10.9 %
230 bp
Adjusted return on common shareholders' equity
11.8 0.92 2.49 49.1
9.5
11.3 0.88 2.60 46.5
230
Return on assets
0.76 2.45 47.7
16
Net interest margin
4
Efficiency ratio
140
Operating leverage (3)
(3.3)
(2.7)
(1.8)
(60)
Credit Quality (1) Provision for credit losses on total loans as a percentage of average loans (4)
0.09
0.32
0.21
(23)
Provision for credit losses on impaired loans as a percentage of average loans (4)
0.17
0.18
0.21
(1)
Balance Sheet Assets
$
37,323,176 32,900,951 29,975,739
$ 33,937,865
$ 31,424,235
$ 3,385,311
10 %
Loans (before the allowance for credit losses)
30,167,719 27,310,354
28,476,727 25,351,361
2,733,232 2,665,385
9
Deposits
10
(1) Non-GAAP measure – refer to definitions and detail provided on page 18. (2) In fiscal 2020, we adopted IFRS 16 Leases . Comparative figures for fiscal 2019 have been prepared in accordance with IAS 17 Leases and have not been restated. (3) Excluding the impact of the wealth acquisition, our operating leverage would have been negative 1.7% in fiscal 2021 (2020 – negative 1.0%). (4) Includes provisions for credit losses on loans, committed but undrawn credit exposures and letters of credit.
bp – basis point
Financial Highlights of 2021 (compared to 2020)
• Strong loan growth of 9%, with continued execution against our geographic diversification objectives, including 10% growth in Ontario. • Very strong branch-raised deposit growth of 16%, including 26% growth of demand and notice deposits, which resulted in a 10% reduction in our more expensive broker deposits. • Common shareholders’ net income of $327 million, up 32%. • Diluted and adjusted earnings per common share of $3.73 and $3.81, both up 30%. • Pre-tax, pre-provision income of $517 million, up 10%. • Total revenue increased 13% and surpassed $1 billion for the first time in our history. • Efficiency ratio of 49.1% increased compared to 47.7% last year, due to the impact of the wealth acquisition and continued investment in strategic execution, including operating and enhancing our AIRB tools and processes. Excluding the wealth acquisition, the efficiency ratio of 47.7% compared to 46.9% last year. • Provision for credit losses on total loans represented nine basis points as a percentage of average loans, compared to 32 basis points last year, primarily driven by the impact of a more optimistic macroeconomic outlook associated with the ongoing economic recovery. As a percentage of average loans, the provision for credit losses on impaired loans of 17 basis points was one basis point lower than last year and remains below our five-year average of 19 basis points. • Gross impaired loans represented 0.61% of gross loans, down from 0.85% last year. • Basel III regulatory capital ratios under the Standardized approach for calculating risk-weighted assets of 8.8% common equity Tier 1 (CET1), 10.8% Tier 1 and 12.4% Total capital were stable compared to the prior year.
22 | CWB Financial Group 2021 Annual Report
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