CWBFG Annual Report 2022

CAPITAL STRUCTURE AND REGULATORY CAPITAL RATIOS

2022

2021

Regulatory Capital, Net of Deductions Common equity Tier 1 (1)

$

2,861,456

$

2,601,438

Tier 1 (1)

3,436,456

3,176,438

Total

3,925,118

3,650,366

Capital Ratios

Common equity Tier 1

8.8 %

8.8 %

Tier 1

10.6

10.8

Total

12.1

12.4

Leverage Ratio (2)

8.1

8.6

(1) In Q2 2020, OSFI introduced transitional arrangements related to the capital treatment of performing loan allowances, resulting in a portion of allowances that would otherwise be included in Tier 2 capital to be included, subject to a scaling factor set at 50% for fiscal 2021 and 25% for fiscal 2022. The implementation of this transitional arrangement, net of related tax, resulted in an $5,576 increase to CET1 and Tier 1 capital (October 31, 2021 – $5,847) and had a negligible impact on the CET1 and Tier 1 ratios at October 31, 2022 (October 31, 2021 – negligible impact). The transitional arrangement has no impact on the Total capital ratio. (2) Sovereign-issued securities that qualify as High Quality Liquid Assets under the Liquidity Adequacy Requirements guideline were temporarily excluded from the leverage ratio exposure measure until December 31, 2021. This temporary exclusion positively impacted our leverage ratio by approximately 30 basis points at October 31, 2021.

28. SUBSIDIARIES

As at October 31, 2022, we, either directly or indirectly through our subsidiaries, control the following significant subsidiaries:

Canadian Western Bank Subsidiaries (1) (Annexed in accordance with subsection 308 (3) of the Bank Act)

Carrying Value of Voting Shares Owned by CWB (2)

Address of Head Office

CWB National Leasing Inc.

1525 Buffalo Place Winnipeg, Manitoba

$

134,458

CWB Wealth Management Ltd.

Suite 3000, 10303 Jasper Avenue Edmonton, Alberta

118,660

CWB Wealth Partners Ltd.

801 10th Ave SW Calgary, Alberta

Canadian Western Financial Ltd.

Suite 3000, 10303 Jasper Avenue Edmonton, Alberta

CWB Maxium Financial Inc.

Suite 1, 30 Vogell Road Richmond Hill, Ontario

30,812

Canadian Western Trust Company

Suite 3000, 10303 Jasper Avenue Edmonton, Alberta Suite 3000, 10303 Jasper Avenue Edmonton, Alberta

19,136

Valiant Trust Company

10,582

(1) We, either directly or through our subsidiaries, own 100% of the voting shares of each entity. (2) The carrying value of voting shares is stated at the cost of our equity in the subsidiaries in thousands of dollars.

29. COMPARATIVE FIGURES

Certain prior year figures have been reclassified to conform to the current year’s presentation.

108 | CWB Financial Group 2022 Annual Report

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