PROVISION FOR CREDIT LOSSES The provision for credit losses as a percentage of average loans of 14 basis points consisted of a ten basis point provision related to impaired loans and a four basis point provision related to performing loans. This compared to a nine basis point provision for credit losses last year, including a 17 basis point charge related to impaired loans and an eight basis point recovery related to performing loans. In dollar terms, the provision for credit losses of $46 million compared to $27 million last year. The provision for credit losses on impaired loans was a $32 million charge compared to a $51 million charge last year, while the provision for credit losses on performing loans was a $14 million charge compared to a recovery of $24 million last year. For additional information on the estimation of the performing loan allowance, refer to the Allowance for Credit Losses section of our MD&A.
Quarterly write-offs fluctuate as loans become impaired and are subsequently resolved. Our approach to managing credit risk has proven to be very effective and write-offs as a percentage of average loans of nine basis points remained well below our five-year average of 19 basis points.
Table 14 - Provision for Credit Losses (as a percentage of average loans)
IAS 39 (1)
Provision for credit losses on total loans
Provision for credit losses on impaired loans
(1) Fiscal 2018 was prepared in accordance with IAS 39 Financial Instruments: Recognition and Measurement and have not been restated. (2) Non-GAAP measure – refer to definitions and detail provided on page 16.
PAST DUE LOANS Loans are considered past due when a customer has not made a payment by the contractual due date.
Table 15 - Past Due Loans
1 - 30 days
31 - 60 days
61 - 90 days
As at October 31, 2022
As at October 31, 2021
Past due performing loans of $298 million were 118% higher than prior year. Past due loans were at historical lows at the prior year-end. Over the last year borrower credit performance began to normalize. Past due performing loans as a percentage of total gross loans are now relatively consistent with pre-COVID-19 pandemic levels.
32 | CWB Financial Group 2022 Annual Report
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