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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