DEPOSITS AND FUNDING Table 14 – Deposits ($ thousands)
2023 Total
% of Total
Demand 30,380 980,924
Notice
Term
Personal, branch-raised
$
$
6,616,801 6,139,026
$
4,780,322 2,197,789 9,186,914 3,396,293 19,561,318
$
11,427,503 9,317,739 9,186,914 3,396,293 33,328,449
34 %
Business and government, branch-raised
28 28 10
Deposit brokers Capital markets
- -
- -
Total
$
1,011,304
$
12,755,827
$
$
100 %
% of Total
3 %
38 %
59 %
100 %
2022 Total
% of Total
Demand
Notice
Term
Personal
$
35,688
$
6,654,784 6,456,577
$
3,957,977 2,457,809 7,639,305 4,493,707 18,548,798
$
10,648,449 10,229,001 7,639,305 4,493,707 33,010,462
32 %
Business and government
1,314,615
31 23 14
Deposit brokers Capital markets
- -
- -
Total
$
1,350,303
$
13,111,361
$
$
100 %
% of Total
4 %
40 %
56 %
100 %
Total deposits increased 1% ($0.3 billion) from last year, as higher personal and broker deposit balances were partially offset by lower business and government and capital market deposits. Table 15 – Deposits by Source (as a percentage of total deposits at October 31) 2023 2022 Branch-raised 62 % 63 % Deposit brokers 28 23 Capital markets 10 14 Total 100 % 100 % Branch-raised deposits of $20.7 billion comprised 62% of total deposits and decreased 1% ($0.1 billion) from last year as a 9% ($0.6 billion) increase in fixed term deposits were more than offset by a 5% ($0.7 billion) decrease in demand and notice deposits. Branch-raised demand and notice deposits declined from the prior year primarily due to our intentional exit of select higher cost non-full-service client relationships early in the year, which we replaced with insured, fixed term broker deposits. Lower branch- raised demand and notice deposits also reflected a reduction in account balances as clients continue to deploy excess savings rather than incur debt to manage cash flow in the elevated rate environment. For clients that retained excess savings, we noted a continued preference for term deposits in the current interest rate environment. Other types of deposits are primarily sourced through a deposit broker network and debt capital markets. Capital market deposits decreased 24% ($1.1 billion) as senior deposit note maturities during the year were replaced with broker term deposits due to a lower relative cost compared to new senior deposit note issuances. Capital market deposits now represent 10% of total deposits, compared to 14% last year. The broker deposit market remains an efficient and liquid source of funding. Although these funds are subject to commissions, this cost is countered by a reduced dependence on a more extensive branch network and the benefit of generating insured fixed-term retail deposits over a wide geographic base. At times broker-sourced deposits also reflect a lower relative cost compared to other funding options. We only raise fixed term deposits through this funding channel, with terms to maturity between one and five years, and do not offer a High Interest Savings Account (HISA) product. Broker-sourced deposits increased 20% ($1.5 billion) from last year and represent 28% of total deposits, up from 23% last year. We continue to invest in our securitization capabilities and participate in lease securitization vehicles, the NHA MBS program and the Canada Mortgage Bond (CMB) program. The gross amount of securitized leases and loans was $2.2 billion, compared to $2.1 billion one year ago. The gross amount of mortgages securitized under the NHA MBS program was $1.3 billion, compared to $1.4 billion last year. Funding from the securitization of leases, loans and mortgages totaled $1.0 billion (2022 – $1.2 billion) during the year, including $0.9 billion (2022 – $1.0 billion) of equipment leases and loans, and $0.1 billion (2022 – $0.2 billion) from participation in the CMB program.
CWB Financial Group 2023 Annual Report | 31
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