CWBFG Annual Report 2022

Table 25 - Risk-Weighted Assets ($ thousands)

Cash, Securities and Resale Agreements

Risk- Weighted Assets

Other Items

Loans

Total

Corporate Sovereign

$

-

$

23,369,672

$

- - - - - - - -

$

23,369,672

$ 23,262,046

4,336,608

16,941

4,353,549

3,388

Bank

100,630 190,238

4,479

105,109

24,605

Retail residential mortgages

7,115,548

7,305,786

1,992,858

Other retail Excluding small business entities

- - - - - - -

140,398

140,398

97,604

Small business entities

5,320,304

5,320,304

4,009,523

Equity

10,305

10,305

10,305

Undrawn commitments

546,553

546,553 143,279

546,631

Operational risk

- -

143,279

1,790,993

Derivative exposures

19,059

19,059

9,881

Other

230,759

949,655

1,180,414

670,166

As at October 31, 2022

$

4,627,476

$

36,754,959

$

1,111,993

$

42,494,428

$ 32,418,000

As at October 31, 2021

$

3,725,667

$

33,573,547

$

930,493

$

38,229,707

$ 29,500,491

Table 26 - Risk-Weighting Category ($ thousands)

150% and greater

0%

20%

35%

50%

75%

100%

Balance

Weighted

Corporate

$

138,383 $

2,018 $

- $

- $

- $ 23,164,526 $

64,745 $ 23,369,672 $ 23,262,046

Sovereign

4,336,608

16,941

- -

- - -

- -

-

- -

4,353,549

3,388

Bank

-

100,630

4,479

105,109

24,605

Retail residential mortgages

1,663,596

-

5,606,072

23,171

12,132

815

7,305,786

1,992,858

Other retail

Excluding small business entities

10,112 35,151

205

- - - - - - -

- - - - - - -

130,078

-

3

140,398

97,604

Small business entities

1,389

5,190,675

46,790 10,305 546,396

46,299

5,320,304

4,009,523

Equity

- - - -

- - -

- - -

-

10,305

10,305

Undrawn commitments

157

546,553 143,279

546,631

Operational risk

- -

143,279

1,790,993

Derivative exposures

18,564

1

494

19,059

9,881

Other

553,204

7,922

59,374

517,610

42,304

1,180,414

670,166

As at October 31, 2022

$ 6,737,054 $

147,669 $ 5,606,072 $

- $ 5,403,299 $ 24,302,238 $

298,096 $ 42,494,428 $ 32,418,000

As at October 31, 2021

$

5,742,447 $

175,113 $ 5,030,099 $

- $ 5,052,422 $ 21,896,363 $

333,263 $ 38,229,707 $ 29,500,491

AIRB TRANSITION UPDATE

We have materially completed the development of revised AIRB tools, incorporating targeted enhancements and the final 2023 CAR guidelines. Next year, we will commence integration of our revised AIRB tools into our business processes and data. Once our AIRB tools have been successfully implemented across the business, we will operate them for a sufficient period of time to support a successful resubmission of our application. Our transition to the AIRB approach for regulatory capital purposes is one of our key strategic priorities, as it will support our long-term growth and diversification aspirations with a sustainable and scalable operating model. Measuring our credit risk using an AIRB approach is expected to boost our capital ratios, as risk-weighted assets will be calculated more accurately using risk-sensitive models that reflect our strong underwriting track record. This will put us on more equal footing with our large bank competitors and allow us to enhance return on capital. Our historically strong credit performance will be elevated through use of our new tools and processes by leveraging better analytical information to identify high-quality lending opportunities through improved risk-based pricing capabilities and broaden our addressable market.

BOOK VALUE PER COMMON SHARE

Book value per common share at October 31, 2022 of $33.48 was up 1% from $33.10 last year. Compared to last year, the increase primarily reflects sustained common shareholders’ net income generation partially offset by a decline in AOCI and an increase in common shares outstanding.

38 | CWB Financial Group 2022 Annual Report

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