CWB reports fourth quarter and full year 2020 financial and strategic performance

CWB Financial Group (TSX: CWB) (CWB) today announced financial performance for the year ended October 31, 2020, with annual net income available to common shareholders of $249 million and adjusted earnings per common share of $2.93, both down 7% from last year. Fourth quarter net income available to common shareholders of $63 million and adjusted earnings per common share of $0.75, were up 2% and 1%, respectively, from the third quarter.

“We delivered solid results in a very challenging environment as we continue to make significant progress to become the best full-service bank for business owners in Canada”, said Chris Fowler, President and CEO. “Our earnings were resilient against this economic backdrop, with pre-tax, pre-provision earnings up 2% year over year. We enhanced our differentiated client experience and full-service offering, as we completed a wealth acquisition that positions us to become a leader in the Canadian private wealth industry, expanded our presence in Ontario and achieved key steps in our digital roadmap. Our very strong annual branch-raised deposit growth of 20% and loan growth of 12% in Ontario confirms that our strategic path is delivering results.”

“Our strong financial position provided stability through this period of unprecedented economic volatility. Our strong branch-raised deposit growth and proactive deposit pricing measures provided a five basis point sequential increase in our fourth quarter net interest margin. The strength of our balance sheet enabled us to support our clients when they needed us the most and we provided payment deferrals to over 25% of our loans at the peak this summer. Since then, we have worked with our clients to resume scheduled payments and now have only 1% of our loan portfolio on payment deferral arrangements. The approach we are taking with clients experiencing temporary financial difficulty is proactive and prudent. Our overall credit quality remains strong with very low write-offs due to the secured nature of our lending portfolio, disciplined underwriting practices and effective loan management.”
“Our strong capital ratios supported investment in our wealth acquisition, and our Tier 1 and Total capital were bolstered through our successful issuance of limited recourse capital notes, making us the first bank outside of the large Canadian banks to do so. We continue to support our clients and invest in our key strategic priorities. Our 2021 plans include expansion of our digital capabilities and product offerings to enhance our client experience, ongoing support for our teams to reinforce our position as a destination for top talent, and continued business efficiency initiatives. Our Advanced Internal Ratings Based (AIRB) transformation proceeds through this period of economic volatility as we undertake a full parallel run of our tools and processes to support transition to the AIRB approach for regulatory capital and risk management.”

“We will prudently manage through the current volatility and invest in new opportunities to drive broad-based growth as the economy recovers. We are well positioned to accelerate our progress against our goal to become the best full-service bank for business owners in Canada.”

Read the Report to Shareholders in full


Chris Williams, MBA
AVP, Investor Relations
Phone: (780) 508-8229
Email: [email protected]