Table 15 - Deposits ($ thousands)
2021 Total
% of Total
Demand
Notice
Term
Personal
$
41,271
$
7,274,688
$
7,882,861
$
15,198,820
50 %
Business and government
1,310,964
5,838,025
3,296,949
10,445,938
35
Capital markets
-
-
4,330,981
4,330,981
15
Total
$
1,352,235
$
13,112,713
$
15,510,791
$
29,975,739
100 %
% of Total
4 %
44 %
52 %
100 %
2020 Total
% of Total
Demand
Notice
Term
Personal
$
35,520
$
6,128,753
$
9,497,047
$
15,661,320
57 %
Business and government
949,514
4,399,327
2,750,691
8,099,532
30
Capital markets
-
-
3,549,502
3,549,502
13
Total
$
985,034
$
10,528,080
$
15,797,240
$
27,310,354
100 %
% of Total
4 %
38 %
58 %
100 %
We delivered strong execution against our funding diversification strategy during the year. Total deposits of $30.0 billion were up 10% ($2.7 billion).
Personal deposits declined 3% ($463 million) during the year as growth in our demand and notice deposits due to strong performance from CWB Trust Services was more than offset by a significant decline in fixed-term personal deposits sourced through brokers. Business and government deposits increased 29% ($2.3 billion) primarily driven by our full-service banking centres. Demand and notice deposits comprised 48% of total deposits at October 31, 2021, compared to 42% last year.
Table 16 - Deposits by Source (as a percentage of total deposits at October 31)
2021
2020
Branch-raised
64 %
61 %
Deposit brokers
21 15
26 13
Capital markets
Total
100 %
100 %
References to branch-raised deposits within our MD&A include all deposits generated through our full-service banking centres, including deposits raised via CWB Trust Services, Motive Financial and Valiant Trust’s deposit -taking franchise. Accelerated branch-raised business and personal deposit growth is an ongoing strategic focus for us as success in this area provides a lower cost of funding with the opportunity to generate transaction fee revenue. Consistent with our commercial focus, we generate a considerable portion of our branch-raised deposits from business clients that tend to hold larger balances compared to personal clients, which can increase the volatility of demand and notice deposits. Refer to the Liquidity Management section of our MD&A for additional information. We have consistently delivered strong growth of relationship-based, branch-raised deposits over the past several years. Branch-raised deposits of $19.3 billon increased 16% ($2.6 billion) from last year, with very strong 26% growth of demand and notice deposits, as we leveraged our enhanced cash management tools and products to broaden our access to lower cost funding by attracting new clients both within and outside of our banking centre footprint. Branch-raised deposits represented 64% of total deposits at October 31, 2021, compared to 61% last year. Our banking centres contributed approximately three quarters of the increase in branch-raised deposits from last year with the remainder generated from CWB Trust Services. CWB Trust Services raises deposits through notice accounts, including cash balances held in self-directed registered accounts as well as corporate trust deposits, and fixed term deposits through our branch network. CWB Trust Services deposits grew 17% ($580 million) from the prior year, primarily due to underlying client growth generated by our existing trust services clients and the onboarding of new clients. Motive Financial deposits remained relatively stable with last year despite strategic deposit pricing reductions during the year.
Other types of deposits are primarily sourced through a deposit broker network and debt capital markets. Capital market deposits increased $0.8 billion from last year, as we capitalized on strong debt market conditions through five senior deposit note issuances, and represented 15% of total deposits, up from 13% in the prior year.
The broker deposit market remains an efficient and liquid source of funding. Although these funds are subject to commissions, this cost is countered by a reduced dependence on a more extensive branch network and the benefit of generating insured fixed-term retail deposits over a wide geographic base. We only raise fixed term deposits through this funding channel, with terms to maturity between one and five years, and do not offer a High Interest Savings Account (HISA) product. Strong branch- raised deposit growth this year resulted in lower outstanding balances of broker deposits compared to last year. Broker deposits of $6.4 billion comprised 21% of total deposits at October 31, 2021, down from $7.1 billion, or 26%, last year. We continue to invest in our securitization capabilities and participate in lease securitization vehicles, the NHA MBS program and the Canada Mortgage Bond (CMB) program. The gross amount of securitized leases and loans was $1.9 billion, compared to $1.7 billion one year ago. The gross amount of mortgages securitized under the NHA MBS program was $1.4 billion, up from $1.1 billion one year ago. Funding from the securitization of leases, loans and mortgages totaled $1.4 billion (2020 – $1.3 billion) during the year, including $0.9 billion (2020 – $1.1 billion) of equipment leases and loans, and $0.5 billion (2020 – $0.2 billion) from participation in the CMB program.
OTHER ASSETS AND OTHER LIABILITIES
Other assets at October 31, 2021 totaled $837 million and were relatively consistent with last year. Other liabilities totaled $798 million at October 31, 2021 compared to $871 million last year, with the decrease primarily related to a reduction in securities sold under repurchase agreements.
CWB Financial Group 2021 Annual Report | 35
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