CWB reports second quarter 2020 financial and strategic performance

Edmonton, May 29, 2020 – CWB Financial Group (TSX: CWB) (CWB) today announced financial performance for the three and six month periods ended April 30, 2020. Our second quarter report includes discussion of how the COVID-19 pandemic and economic impact has affected our financial results and our business. We also provide an update on our continued strategic execution to enhance our differentiated full-service client experience.

Financial Performance

“We started this quarter with strong financial performance, including robust branch-raised deposit growth and very strong new lending both within our strategically targeted general commercial portfolio and in Ontario.” said Chris Fowler, President and CEO. “As the quarter progressed, a significant economic slowdown commenced as Canadian government agencies enacted measures to slow the spread of COVID-19. We were proactive in our approach to dealing with the economic challenges that this pandemic presented for our business and our clients’ businesses.”

“Our past investments in technology infrastructure supported the rollout of our business continuity plan and enabled us to smoothly transition over 85% of our team members to work remotely. We quickly mobilized our teams to reach out to clients to provide advice, support, and offer the right solutions for those in need of financial assistance. Our teams were among the first in the industry to deliver loan relief to businesses, and we put their minds more at ease by efficiently processing changes. Through this challenging period, I am pleased with the very positive feedback we have received for our proactive approach to client service and our #CWBHasYourBack program. With so much change asked of our team members this quarter, it is especially rewarding that confidential employee survey results supported our recognition as one of the 50 Best Workplaces in Canada for 2020 by Great Place to Work CanadaTM.”

Chris Fowler continued, “The significant actions we have taken over the last decade to strengthen and diversify our business enable us to face this challenging environment from a position of stability and confidence. Our dedicated employees and diversified business, supported by strong capital and liquidity levels allow us to continue to proactively help our clients navigate this difficult time and enable CWB to achieve ongoing success.”

“The deteriorating economic and financial market conditions put pressure on our operating results, particularly on the estimated provision for credit losses on performing loans and net interest income. While our estimated provision for credit losses on performing loans increased this quarter based on an adverse shift in macroeconomic forecasts, we continue to see the benefit from our strategic actions over many years to diversify our loan portfolio. Our disciplined and secured lending model, with no significant exposure to unsecured personal borrowing including credit cards, continues to support the resilience of our business. Our capital ratios remain strong and well above regulatory requirements, and we hold ample liquidity to support our clients and continue to invest in our strategic priorities.”

“Working remotely has not stopped us from advancing our strategic initiatives. This quarter, we announced both the acquisition of T.E. Wealth and Leon Frazer & Associates as well as the submission of our formal application for transition to the Advanced Internal Ratings Based (AIRB) approach for regulatory capital and risk management. Both events represent significant opportunities to fundamentally enhance our operating model to put us on a more equal footing with our competition, increase our addressable market and support full service client relationships. While we are focused on maintaining our strength today, we continue to execute on the opportunities of tomorrow.”

 

Read the release in full

 

FOR FURTHER INFORMATION CONTACT:

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