CWBFG Annual Report 2022

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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