CWB FINANCIAL GROUP PERFORMANCE SELECT FINANCIAL HIGHLIGHTS Table 2 - Select Annual Financial Information ($ thousands, except ratios and per share amounts)
2023
2022
2021
Change from 2022
Results from Operations Total revenue Pre-tax, pre-provision income Common shareholders' net income
$
1,112,574
$
1,076,287
$
1,016,033
$
36,287
3 %
527,529 324,316
521,903 310,302
517,149 327,471
5,626
1 5
14,014
Common Share Information Earnings per share Basic
3.38 3.38 3.58 1.30
3.39 3.39 3.62 1.22
3.74 3.73 3.81 1.16
(0.01) (0.01) (0.04)
- -
Diluted
Adjusted
(1)
Cash dividends paid
0.08 2.31
7 7
Book value
35.79
33.48
33.10
Performance Measures Return on common shareholders' equity
9.8 %
10.1 %
11.6 %
(30) bp
Adjusted return on common shareholders' equity
10.4 0.77 2.34 52.6
10.8 0.79 2.41 51.5
11.8 0.92 2.49 49.1
(40)
Return on assets Net interest margin
(2) (7)
Efficiency ratio
110 300
Operating leverage
(2.2)
(5.2)
(3.3)
Credit Quality Provision for credit losses on total loans as a percentage of average loans (1) Provision for credit losses on impaired loans as a percentage of average loans (1)
0.07
0.14
0.09
(7)
0.04
0.10
0.17
(6)
Balance Sheet Assets
$
42,320,103 37,209,850 33,328,449
$ 41,427,552
$ 37,323,176
$
892,551
2 %
Loans (before the allowance for credit losses)
35,905,622 33,010,462
32,900,951 29,975,739
1,304,228
4 1
Deposits
317,987
(1) Includes provisions for credit losses on loans, committed but undrawn credit exposures and letters of credit. bp – basis point
Financial Highlights of 2023 (compared to 2022) • Loan growth of 4%, including 10% in the general commercial loan portfolio as we executed on our strategic focus of expanding full-service client opportunities that met our risk-adjusted return expectations. Loan growth of 10% in Ontario was supported by our expanding physical presence and growing brand awareness. • Total deposits increased 1% from last year. Branch-raised deposits declined 1%, primarily due to our intentional exit of select higher cost non-full-service client relationships in the year, which we replaced with insured, fixed term broker deposits. • Total revenue increased 3% and reflected a 4% increase in net interest income, partially offset by a 4% decline in non-interest income, primarily due to elevated foreign exchange revenue in the prior year. • Efficiency ratio increased to 52.6% compared to 51.5% in the prior year as expense growth outpaced revenue growth, primarily due to a decrease in net interest margin. • Provision for credit losses on total loans as a percentage of average loans of seven basis points, compared to 14 basis points last year, was driven by a six basis point decline in the provision for credit losses on impaired loans, primarily due to an increase in recoveries of impaired loan write-offs upon final resolution. • Common shareholders’ net income of $324 million was up 5%, primarily driven by higher revenues and a seven basis point decline in the provision for credit losses as a percentage of average loans, partially offset by higher non-interest expenses. Pre-tax, pre-provision income of $528 million was up 1%. • Diluted earnings per common share was relatively consistent with the prior year and adjusted earnings per common share declined 1%. • Our common equity Tier 1 (CET1) ratio of 9.7% increased 90 basis points from the prior year.
18 | CWB Financial Group 2023 Annual Report
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