Beruflich Dokumente
Kultur Dokumente
Presentation
1st Quarter 2017
Advisory
Forward-looking Statements
From time to time, CWB makes written and verbal forward-looking statements. Statements of this type are included in the Annual Report and reports to shareholders and
may be included in filings with Canadian securities regulators or in other communications such as press releases and corporate presentations. Forward-looking statements
include, but are not limited to, statements about CWBs objectives and strategies, targeted and expected financial results and the outlook for CWBs businesses or for the
Canadian economy. Forward-looking statements are typically identified by the words believe, expect, anticipate, intend, estimate, may increase, may impact,
goal, focus, potential, proposed and other similar expressions, or future or conditional verbs such as will, should, would and could.
By their very nature, forward-looking statements involve numerous assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that
managements predictions, forecasts, projections, expectations and conclusions will not prove to be accurate, that its assumptions may not be correct and that its strategic
goals will not be achieved.
A variety of factors, many of which are beyond CWBs control, may cause actual results to differ materially from the expectations expressed in the forward-looking
statements. These factors include, but are not limited to, general business and economic conditions in Canada, including the volatility and level of liquidity in financial
markets, fluctuations in interest rates and currency values, the volatility and level of various commodity prices, changes in monetary policy, changes in economic and political
conditions, legislative and regulatory developments, legal developments, the level of competition, the occurrence of natural catastrophes, changes in accounting standards
and policies, the accuracy and completeness of information CWB receives about customers and counterparties, the ability to attract and retain key personnel, the ability to
complete and integrate acquisitions, reliance on third parties to provide components of business infrastructure, changes in tax laws, technological developments,
unexpected changes in consumer spending and saving habits, timely development and introduction of new products, and managements ability to anticipate and manage the
risks associated with these factors. It is important to note that the preceding list is not exhaustive of possible factors.
Additional information about these factors can be found in the Risk Management section of CWBs annual Managements Discussion and Analysis (MD&A). These and other
factors should be considered carefully, and readers are cautioned not to place undue reliance on these forward-looking statements as a number of important factors could
cause CWBs actual results to differ materially from the expectations expressed in such forward-looking statements. Unless required by securities law, CWB does not
undertake to update any forward-looking statement, whether written or verbal, that may be made from time to time by it or on its behalf.
Assumptions about the performance of the Canadian economy over the forecast horizon and how it will affect CWBs businesses are material factors considered when setting
organizational objectives and targets. In determining our expectations for economic growth, we primarily consider economic data and forecasts provided by the Canadian
government and its agencies, as well as an average of certain private sector forecasts. These forecasts are subject to inherent risks and uncertainties that may be general or
specific. Where relevant, material economic assumptions underlying forward looking statements are disclosed.
Gross impaired loans represented 0.57% of total loans, up from 0.55% in Q1 2016
STABLE CREDIT and down from 0.58% last quarter
QUALITY Provision for credit losses of 27 bp of average loans consistent with managements
fiscal 2017 guidance of 25-35 bps
Average loan balance growth of 10% and total loan growth of 7% from Q1 2016
Strong 14% year-over-year growth in general commercial loans, including
STRONG GROWTH OF
contributions of CWB Maxium Financial and CWB Franchise Finance
AVERAGE AND TOTAL
Strong 17% year-over-year increase in personal loans and mortgages, including
LOAN BALANCES
contributions of CWB Optimum Mortgage
Trend of higher relative contributions from Ontario expected to continue
Equipment Leasing
Centre
Winnipeg, MB (Headquarters)
Satellite offices across Canada
Wealth Management
Offices
Edmonton, AB
Calgary, AB
($ millions excluding the allowance for credit losses) Q1 2017 Q1 2016 Change $ Change %
General commercial loans $ 5,500 $ 4,810 690 14
Real estate project loans 4,195 3,740 455 12
Personal loans & mortgages 4,178 3,562 616 17
Commercial mortgages 4,126 4,196 (70) (2)
Equipment financing and leasing 3,711 3,815 (104) (3)
Oil & gas production loans 173 329 (156) (47)
Total loans outstanding $ 21,883 $ 20,452 $ 1,431 7%
(1) Branch-raised deposits include deposits raised through CWBs trust businesses, Canadian Western Trust and Valiant Trust.
(2) As of Q1 11, financial results are reported under IFRS, as opposed to GAAP, and are not directly comparable.
* Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canadas six largest banks (TSX
trading symbols: BMO, BNS, CM, NA, RY, TD).
Demonstrated history of low credit losses relative to the six largest Canadian banks
(1) As of Q1 11, financial results are reported under IFRS, as opposed to GAAP, and are not directly comparable.
The dollar level of gross impaired loans fluctuates as loans become impaired and are subsequently resolved,
and does not directly reflect the dollar value of expected write-offs given tangible security held in support of
lending exposures
Actual credit losses as a percentage of total loans remain low and continue to demonstrate the benefits of
CWBs secured lending practices and disciplined underwriting
Expect periodic increases in the balance of impaired loans going forward, partially due to the lagging impact
of the 2015 2016 regional recession
CWB Financial Group 14
Financial Performance | Credit
(1) As of Q1 11, financial results are reported under IFRS, as opposed to GAAP, and are not directly comparable.
* Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canadas
six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD).
* Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canadas six largest banks (TSX
trading symbols: BMO, BNS, CM, NA, RY, TD).
(1)
Common Equity Tier 1 Ratio (Basel III) 9.2% 8.0% 10.1% 11.0% 11.3% 10.1% 10.8% 10.4% 10.6% -142 bp
(2)
Risk weightings by category
Residential mortgages 30.4% 17.2% 8.0% 11.3% 6.4% 11.7% 7.5% 8.8% 9.0% 21.4%
Other retail loans (3) 76.6% 66.3% 25.2% 41.7% 31.9% 37.9% 22.6% 34.3% 32.3% 44.3%
Business loans (4) 99.9% 100.1% 42.0% 58.1% 35.2% 47.0% 58.4% 44.6% 47.6% 52.3%
Pro forma CWB and LB assuming 20% reduction in RWA from AIRB 11.4% 10.0% 10.1% 11.0% 11.3% 10.1% 10.8% 10.4% 10.6% 82 bp
Pro forma six largest banks assuming 20% increase in RWA from standardized 9.2% 8.0% 8.5% 9.1% 9.4% 8.3% 8.9% 8.7% 8.8% 38 bp
(1) "Common Equity Tier 1 Ratio (Basel III)" based on Oct 31, 2016 company reports of Canada's eight publicly traded Schedule 1 banks.
(2) "Risk weightings by category" based on Oct 31, 2015 company reports of Canada's eight publicly traded Schedule 1 banks.
(3) Other retail includes personal loans, credit cards and small business loans treated as retail.
(4) Business includes corporate, commercial, medium-sized enterprises and non-bank financial institutions.
* All comparative information as referenced within this presentation is calculated based on information contained in the publicly available company reports
for fiscal 2016 of Canadas six largest banks (TSX trading symbols: BMO, BNS, CM, NA, RY, TD) .
CWB Basel III Pro Forma Capital Ratios (based on specified % change in risk-weighted assets)
Tangible common equity $1,863,264 $1,123,959 ($739,305) $1,311,286 ($551,978) $1,498,613 ($364,651)
Tier 1 capital $2,233,364 $1,343,864 ($889,500) $1,567,842 ($665,522) $1,791,819 ($441,545)
Total capital $2,669,334 $1,779,834 ($889,500) $2,003,812 ($665,522) $2,227,789 ($441,545)
Total exposures $26,092,247 $26,092,247 - $26,092,247 - $26,092,247 -
Assumed price of common shares purchased $25.54 $25.54 - $25.54 - $25.54 -
Assumed price of preferred shares purchased $25.00 $25.00 - $25.00 - $25.00 -
Strategic goal to grow non-interest income to encompass a greater proportion of total revenues through
growth in banking and leasing fee income, wealth management and trust services
organic growth (breadth and depth of both existing and new client relationships)
complementary acquisitions
(1)
(1) CWB Wealth Management also contributed $29M to assets under management at January 31, 2017.
(1)
(1) As of Q1 11, financial results are reported under IFRS, as opposed to GAAP, and are not directly comparable.
* Canadian Bank Avg. (6) as referenced within this presentation is calculated based on information contained in the publicly available company reports of Canadas six largest banks (TSX
trading symbols: BMO, BNS, CM, NA, RY, TD).
(1) Represents Continuing Operations
Strong efficiency relative to the six largest Canadian banks demonstrated ability to
effectively control costs while supporting sustained growth
Investor Inquiries
Canadian Western Bank Place Tel: 780.969.8337
Suite 3000 10303 Jasper Avenue Toll-free: 1.800.836.1886
Edmonton, Alberta InvestorRelations@cwbank.com
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