NON-INTEREST EXPENSES AND EFFICIENCY RATIO
Table 7 - Non-interest Expenses and Efficiency Ratio ($ thousands)
2022
2021
Change from 2021
Salaries and Employee Benefits Salaries
$
286,130
$
271,946
$
14,184
5 %
Employee benefits
59,613
53,190
6,423
12
345,743
325,136
20,607
6
Premises Depreciation
18,439 11,213
17,802 10,388
637 825 639
4 8
Rent
Other
4,622
3,983
16
34,274
32,173
2,101
7
Equipment and Software Depreciation
52,197 41,214
32,422 31,359
19,775
61 31
Other
9,855
93,411
63,781
29,630
46
General Professional fees and services
30,264 13,262 10,366 10,212
20,517 12,894 10,339
9,747
48
Regulatory costs
368
3
Marketing and business development
27
-
Amortization of acquisition-related intangible assets
8,073 8,036 4,187 3,370
2,139 1,879 1,982
26 23 47
Banking charges
9,915 6,169 3,588 2,735 2,167 2,038 1,947
Employee recruitment and training
Loan-related credit reports
218
6
Travel
895
1,840
206
Communications
2,094 1,530 1,501 1,761
73
3
Capital and business taxes
508 446
33 30
Staff relations
Acquisition and integration costs
626
(1,135)
(64)
Other
15,060
12,431
2,629
21
108,349
87,628
20,721
24
Total Non-interest Expenses
$
581,777
$
508,718
$
73,059
14 %
Efficiency Ratio
51.5 %
49.1 %
240 bp
bp – basis point
Total non-interest expenses of $582 million were up 14% ($73 million). The increase included $17 million of costs related to the accelerated amortization as a result of a reduction in estimated useful lives of certain previously capitalized AIRB assets, concurrent with the completion of a material portion of our revised AIRB tools. Adjusted non-interest expenses increased 11%, which was driven by our continued strategic execution, including investment in our people, AIRB tools and processes digital capabilities, the harmonization of our wealth management brands with the launch of CWB Wealth, our new banking centres in Markham, Ontario and downtown Vancouver and expanded client offerings to optimize our business, deliver an unrivaled experience to our clients, and accelerate full-service client growth.
CWB Financial Group 2022 Annual Report | 25
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