BRITISH COLUMBIA – National Bank of Canada (NBC) has acquired Canadian Western Bank (CWB) for a reported $5 billion.
NBC, based in Montreal, made the announcement Tuesday. The transaction is subject to the approval of two-thirds of the shareholders of CWB headquartered in Edmonton at a meeting in September 2024, with the deal expected to close by the end of 2025.
The transaction brings together two complementary banks with growing businesses, enabling the united bank to enhance services to customers by offering a comprehensive product and service platform at national scale, with a regionally focused service model.
“This transaction is about growth and brings together two great banks with a complementary footprint in personal and commercial banking, and supports our objectives in Western Canada and across the country,” says Laurent Ferreira, President and CEO of NBC. “CWB has developed an attractive banking franchise with a reputation for exceptional service with deep customer relationships across a number of priority industries and service lines. This combination will provide customers with access to a broader range of services, expertise and products, along with the benefits of supporting technological investment and innovation. “When we combine these strengths with our commercial and retail banking offering, leading wealth management and capital markets franchises, we will be able to do more for clients, both existing and new, and unlock significant value creation opportunities.”
Chris Fowler, CEO of CWB, states “We are proud to come together with National Bank and are confident that this combination will create incredible value for our clients, teams, communities and our shareholders. Together, we can offer Canadians more choice by combining CWB’s four-decade legacy of serving business owners and their families with National Bank’s scale, complementary market expertise and the technological capabilities necessary to accelerate our growth.
“Our two organizations share similar values grounded in an unwavering commitment to our clients, a deep history of entrepreneurship and a commitment to giving back in the communities we serve. We’re excited to build on this legacy together.”
Today, Alberta and British Columbia represent approximately 24% of National Bank’s assets under administration, including managing more than $24 billion in client assets, and more than $25 billion in authorized credit for Western Canadian businesses. Western Canada is already a priority growth market for National Bank and the combination with CWB’s small and mid-market business and exposure in growing sectors such as equipment finance will contribute to National Bank becoming an even more valuable partner to Canadian banking and wealth management customers.
With $37 billion in loans, CWB is a full-service bank in Canada focused on servicing businesses, their owners and their families, offering services in business and personal banking, equipment financing, trust services and wealth management through its 39 branches located across Western Canada and Ontario. CWB will increase National Bank’s commercial banking portfolio by approximately 52%, adding domestic earning power and enhancing loan and revenue diversification.
Business Examiner Staff
