Capital ratios exceed the Basel III targets established through CWB's Internal Capital Adequacy Assessment Process (ICAAP) and are supportive of near-term growth expectations and strategic priorities. The ongoing retention of earnings should support capital requirements associated with the anticipated achievement of the 2013 minimum performance targets.
CWB currently reports its regulatory capital ratios using the Standardized approach for calculating risk-weighted assets. This approach requires the Bank to carry significantly more capital for certain credit exposures compared to requirements under the Advanced Internal Ratings Based (AIRB) methodology used by larger Canadian financial institutions. For this reason, regulatory capital ratios of banks that utilize the Standardized approach versus the AIRB methodology are not directly comparable. Required resources, costs and potential timelines related to the Bank's possible transition to an AIRB methodology for managing credit risk and calculating risk-weighted assets continue to be evaluated. Preliminary analysis confirms a multi-year timeframe will be required. CWB's new core banking system, expected to be implemented in 2015, is a critical component for a number of requirements necessary for AIRB compliance, including the collection and analysis of certain types of data.
Further information relating to the Bank's capital position is provided in Note 14 of the unaudited interim consolidated financial statements as well as the audited consolidated financial statements and MD&A for the year ended October 31, 2012.
Book value per common share at July 31, 2013 was $17.06, compared to $16.82 last quarter and $15.56 one year ago.
Common shareholders received a quarterly cash dividend of $0.18 per common share on June 27, 2013. On August 28, 2013, CWB's Board of Directors declared a cash dividend of $0.18 per common share, payable on September 26, 2013 to shareholders of record on September 19, 2013. This quarterly dividend was 13% higher than the quarterly dividend declared one year ago. The Board of Directors also declared a cash dividend of $0.453125 per Series 3 Preferred Share payable on October 31, 2013 to shareholders of record on October 24, 2013.
Changes in Accounting Policies
There were no new significant accounting policies adopted during the quarter for purposes of presenting the Bank's financial statements under International Financial Reporting Standards (IFRS).
Future Accounting Changes
A number of standards and amendments have been issued by the International Accounting Standards Board (IASB) and are noted on page 51 of the 2012 Annual Report. There were no changes to these items through the third quarter of 2013. The standards and amendments may impact the presentation of financial statements in the future and management is currently reviewing these changes to determine the impact, if any.
CWB continues to monitor activities of the IASB as well as proposed changes to IFRS. Several accounting standards in the process of being amended by the IASB (e.g. loan impairment, leases and insurance) may have a significant impact on the presentation of the Bank's consolidated financial statements in the future.
Controls and Procedures
There were no changes in the Bank's internal controls over financial reporting that occurred during the quarter ended July 31, 2013 that have materially affected, or are reasonably likely to materially affect, the Bank's internal controls over financial reporting.
Most Popular Stories
- Dell Offers Undisclosed Number of Employee Buyouts
- Saab Gets Back into the Game; U.S. Auto Sales Soar
- American Airlines, US Airways Complete Merger
- Authorities Close to Deal with JPMorgan Chase over Madoff Response
- General Dynamics Plans 200 New Jobs in N.M.
- Unemployed Wait as Lawmakers Debate
- U.S. Stocks Rise on Sysco Acquisition
- Apple Activates Customer-Tracking iBeacon
- Tech Giants Call for Controls on Government Snooping
- 2013 Tech Gift Guide: iPad Mini Still Hot; Chromecast a Great Low-Cost Option