Canadian Western Bank (CWB), which had originally scheduled the release for December 7, has now rescheduled it for “mid-December.”
In a statement issued on Saturday, CWB explained that the delay is due to a legal claim it is addressing, which is impacting the bank’s ability to finalize certain financial details for the quarter.
The bank emphasized that it expects to resolve the issue by the new release date and confirmed that the matter has no connection to National Bank’s current plans to acquire CWB.
“The decision to reschedule is unrelated to CWB’s potential acquisition by National Bank of Canada,” the bank said in a statement. “We continue to expect forward progress of the transaction and expect it to close as planned and within previously announced timelines.”
CWB says the delay instead stems from a legal claim received “very late in the process” against CWB Maxium Financial Ltd., one of the bank’s wholly owned subsidiaries, and that it has initiated a full investigation into the matter.
“The claim contains several allegations, including allegations of unethical conduct by a named individual,” CWB disclosed, adding that the named individual is a sales agent of Maxium with no lending approval authority.
“Our investigation also supports that the loans in question were appropriately authorized within our credit approval process, including a thorough review and approval of each loan by our credit risk management team, which is a centralized control function independent of our business lines,” CWB added.
Based on what is known at this time, CWB said it doesn’t expect the claims outcome to have a significant impact on its financial results.
Edmonton-based CWB offers both personal and commercial banking services with a strong presence in Western Canada as well as Ontario. As of the third quarter, the bank reported a total loan portfolio of $37.4 billion, including $6.7 billion in commercial lending and $7 billion in personal loans and mortgages.
The planned $5-billion acquisition by National Bank of Canada would add 65,000 customers and nearly 40 branches to the Quebec-based bank, further expanding its presence in Western Canada.
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Last modified: December 9, 2024