OFF-BALANCE SHEET
Off-balance sheet items include assets under management, advisement and administration.
Table 26 - Off-balance sheet items ($ thousands)
2021
2020
Wealth management Assets under management
$
7,818,170 $
6,229,674
Assets under advisement and administration
2,936,035
2,224,839
Assets under administration - other (1)
14,031,042
11,081,581
(1) Comprised of trust assets under administration, third-party leases under administration and loans under service agreements.
Wealth management assets under management, advisement and administration, including the wealth acquisition, were $10.8 billion at year end (October 31, 2020 – $8.5 billion). The wealth acquisition contributed $5.8 billion to assets under management, advisement and administration at the June 1, 2020 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 our 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).
Other assets under administration totaled $14.0 billion at October 31, 2021 (October 31, 2020 – $11.1 billion). The increase from last year reflected CWB Trust Services growth.
Other off-balance sheet items are comprised of standard industry credit instruments (guarantees, standby letters of credit and commitments to extend credit). We do not utilize, nor do we have exposure to, collateralized debt obligations or credit default swaps. For additional information regarding other off-balance sheet items refer to Note 19 of the consolidated financial statements for the year ended October 31, 2021.
SUMMARY OF QUARTERLY RESULTS AND FOURTH QUARTER QUARTERLY RESULTS
The financial results for each of the last eight quarters are summarized in Table 27. In general, our performance reflects a consistent growth trend, although the second quarter contains three fewer revenue-earning days and two fewer days during leap years, such as 2020. The financial results beginning in the second quarter of 2020 were adversely impacted primarily by the emergence of COVID-19 and related market disruption, while results in 2021 reflect the impact of the ongoing economic recovery. Detailed MD&A along with unaudited interim consolidated financial statements for each quarter, except for the fourth quarters, are available for review on SEDAR at www.sedar.com and on our website at www.cwb.com. Copies of the quarterly reports to shareholders can also be obtained, free of charge, by contacting InvestorRelations@cwbank.com.
Table 27 - Quarterly Financial Highlights ($ thousands, except per share amounts)
2021
2020
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Results from Operations Net interest income
$ 229,925
$ 230,021
$ 216,964
$ 215,453
$ 206,640
$ 200,773
$ 190,988
$ 201,010
Non-interest income
30,699
33,194
30,142
29,635
29,935
25,711
23,376
18,962
Total revenue
260,624 122,747
263,215 137,586
247,106 126,342
245,088 130,474
236,575
226,484
214,364
219,972
Pre-tax, pre-provision income (1)
116,267
119,949
113,314
119,788
Common shareholders' net income
89,998
86,280
71,956
79,237
63,380
62,252
51,381
71,943
Earnings per share Basic
1.01 1.01
0.99 0.98
0.83 0.82
0.91 0.91
0.73 0.73
0.71 0.71
0.59 0.59
0.82 0.82
Diluted
Adjusted (1)
1.03
1.01
0.84
0.93
0.75
0.74
0.60
0.83
Return on common shareholders' equity
12.2 %
12.1 %
10.6 %
11.3 %
9.2 %
9.1 %
7.9 %
11.2 %
Adjusted return on common shareholders' equity (1)
12.5 0.97
12.3 0.94
10.8 0.84
11.5 0.91
9.5
9.4
8.0
11.3
Return on assets (1)
0.75
0.75
0.65
0.91
Net interest margin (1)
2.47
2.51
2.53
2.47
2.45
2.40
2.40
2.54
Efficiency ratio (1)(2)
52.9
47.7
48.9
46.8
50.9
47.0
47.1
45.5
Provision for credit losses on total loans as a percentage of average loans (1)(3) Provision for credit losses on impaired loans as a percentage of average loans (1)(3)
(0.12)
0.11
0.20
0.18
0.26
0.33
0.49
0.18
(0.04)
0.20
0.27
0.24
0.10
0.22
0.22
0.15
(1) Non-GAAP measure – refer to definitions and detail provided on page 18. (2) Excluding the impact of the wealth acquisition, our efficiency ratio would have been 52.0%, 46.3%, 47.1% and 45.1% for the four quarters of fiscal 2021 (2020 - 49.2% and 45.7% for the fourth and third quarter, respectively). (3) Includes provisions for credit losses on loans, committed but undrawn credit exposures and letters of credit.
42 | CWB Financial Group 2021 Annual Report
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