Canadian Western Bank reports solid Q3 earnings

For the third quarter ended July 31, CWB Financial Group (CWB) says it’s earning were strong — it cites positive loan growth with significantly higher net interest margin, a lower provision for credit losses, record total revenue (pre-tax, pre-provision income) and earnings growth.

In its release, the bank says common shareholders’ net income was $56.3 million and pre-tax, pre-provision income was $100.9 million, up 24% over last year. The bank’s non-interest income was also higher, the release says.

As reported by Financial Post, CWB also announced a dividend hike of 4% to $0.24 per quarter, “marking the first dividend increase since 2015 after West Texas Intermediate and global oil prices collapsed.”

Regarding CWB Wealth Management, CWB says in its report to shareholders that management expects further increases in wealth management revenues over the medium-term due to “solid performance within CWB Wealth Management, including organic growth of discretionary investment services, and further growth of proprietary investment products introduced last year.”

Assets under management for the third quarter were nearly $2 billion as at July 31, compared to $1.9 billion a year earlier and $2 billion last quarter.

Going forward, CWB adds, “Management will realize gains on the sale of residential mortgage portfolios as opportunities become available. Such gains are anticipated to be a recurring, although sporadic, source of ‘other’ non-interest income.”

Staff

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