EDMONTON, AB, Dec. 7, 2024 /CNW/ – CWB Financial Group (CWB) is providing an update concerning its announcement that the release of its fourth quarter and fiscal 2024 financial results were rescheduled to mid-December 2024.
The decision to reschedule is unrelated to CWB’s potential acquisition by National Bank of Canada. We continue to expect forward progress of the transaction and expect it to close as planned and within previously announced timelines.
The decision was triggered by our receipt of a legal claim against CWB Maxium Financial Ltd. (Maxium), a wholly owned subsidiary of CWB, very late in our process to approve and disclose our annual financial results that by its nature required prudent investigation. The self-represented claimant seeks damages in the amount of $18 Million, as well as general and punitive damages, and costs, related to the provision of certain loans to corporations affiliated with the claimant and the resolution of these loans, which is occurring through a court-approved receivership process.
The claim contains several allegations, including allegations of unethical conduct by a named individual. CWB has rigorous ethical and professional standards in place, and we are undertaking a full investigation. The investigation to date has confirmed 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. Our investigation is ongoing, and we are committed to taking any appropriate action based on our findings.
Based on current knowledge, we do not expect the outcome of this claim to have a material effect on the consolidated financial statements.
SOURCE Canadian Western Bank
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