CWB FINANCIAL GROUP PERFORMANCE SELECT FINANCIAL HIGHLIGHTS Table 4 - Select Annual Financial Information ($ thousands, except ratios and per share amounts)
2022
2021
2020
Change from 2021
Results from Operations Total revenue
$
1,076,287
$
1,016,033
$
897,395 469,318 248,956
$
60,254
6 %
Pre-tax, pre-provision income (1)
521,903 310,302
517,149 327,471
4,754
1
Common shareholders' net income
(17,169)
(5)
Common Share Information Earnings per share Basic
3.39 3.39 3.62 1.22
3.74 3.73 3.81 1.16
2.86 2.86 2.93 1.15
(0.35) (0.34) (0.19)
(9) (9) (5)
Diluted
Adjusted (1)
Cash dividends paid
0.06 0.38
5 1
Book value (1)
33.48
33.10
31.76
Performance Measures (1) Return on common shareholders' equity
10.1 %
11.6 %
9.3 %
(150) bp
Adjusted return on common shareholders' equity
10.8 0.79 2.41 51.5
11.8 0.92 2.49 49.1
9.5
(100)
Return on assets
0.76 2.45 47.7
(13)
Net interest margin
(8)
Efficiency ratio
240
Operating leverage
(5.2)
(3.3)
(2.7)
(190)
Credit Quality (1) Provision for credit losses on total loans as a percentage of average loans (2) Provision for credit losses on impaired loans as a percentage of average loans (2)
0.14
0.09
0.32
5
0.10
0.17
0.18
(7)
Balance Sheet Assets
$
41,440,143 35,905,622 33,019,047
$ 37,323,176
$ 33,937,865
$ 4,116,967
11 %
Loans (before the allowance for credit losses)
32,900,951 29,975,739
30,167,719 27,310,354
3,004,671 3,043,308
9
Deposits
10
(1) Non-GAAP measure – refer to definitions and detail provided on page 16. (2) Includes provisions for credit losses on loans, committed but undrawn credit exposures and letters of credit.
bp – basis point
Financial Highlights of 2022 (compared to 2021)
• Loan growth of 9%, including 11% growth in Ontario, which reflects the continued execution against our geographic diversification objectives, and 14% in the general commercial loan portfolio as we executed on our strategic focus of expanding full-service client opportunities. • Branch-raised deposit growth of 8%, as strong growth from new full-service clients was partially dampened by reductions in the deposit balances of other clients. • Common shareholders’ net income of $31 0 million was down 5%, and diluted earnings per common share was down 9%, primarily driven by an increase in the provision for credit losses on performing loans. • Pre-tax, pre-provision income of $522 million was up 1%. • Total revenue increased 6% and reflected a 5% increase in net interest income and a 10% increase in non-interest income. • Efficiency ratio increased to 51.5% compared to 49.1% as expense growth outpaced revenue growth as we made several strategic investments this year, which will benefit revenue growth in future periods. • Provision for credit losses on total loans as a percentage of average loans of 14 basis points was five basis points higher than last year primarily due to an increase in the performing loan provision, reflecting a deterioration in the forward-looking macroeconomic outlook, compared to a recovery recognized in the prior year. • Provision for credit losses on impaired loans of ten basis points was down seven basis points from last year. Gross impaired loans represented 0.46% of gross loans, down from 0.61% last year and reflect historically low levels. • Basel III regulatory capital ratios under the Standardized approach for calculating risk-weighted assets of 8.8% common equity Tier 1 (CET1), 10.6% Tier 1 and 12.1% Total capital were relatively stable compared to the prior year.
20 | CWB Financial Group 2022 Annual Report
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