Canadian Western Bank posts record quarterly earnings of $56.6M; revenue up 11%

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EDMONTON – Canadian Western Bank (TSX:CWB) has reported record quarterly earnings in the third quarter amid an 11 per cent increase in total revenue.

Canadian Western, which offers a full range of business and personal banking services in Canada’s four western provinces, reported after markets closed Wednesday that net income available to common shareholders was $56.6 million or 70 cents per diluted share, from up from $47.5 million or 60 cents per share in the comparable prior-year period.

Adjusted cash earnings increased 16 per cent to 71 cents per share from 61 cents.

Total revenue on a tax equivalent basis was $159.8 million, up from $144 million, reflecting the positive impact of strong 12 per cent loan growth and a 22 per cent increase in non-interest income, which more than offset a 12 basis point decline in net interest margin to 2.58 per cent.

“Record earnings this quarter were driven by solid results across our banking, trust, insurance and wealth management businesses, as well as the impact of last quarter’s preferred share transactions,” Chris Fowler, CWB group president and chief executive said in a statement accompanying the earnings.

“We’ve achieved our annual double-digit loan growth target within the first nine months and credit quality has been better than expected. (But) while relatively stable net interest margin supported our results this quarter, a challenging interest rate environment and competitive factors continue to pressure this key metric,” Fowler added.

Shares in Canadian Western Bank had closed up 30 cents at $42.66 on Wednesday.

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