Canadian Western Bank posts relatively unchanged profit in Q1

Canadian Western Bank (TSE:CWB, Mkt cap 1.97B, P/E 9.14, Div/yield 0.23/3.90, EPS 2.58, Shares 80.56M) says “solid” first-quarter results have ensured it is “well positioned at the outset of an important year”.

The Edmonton-based bank showed that it could hold steady in spite of ongoing economic weakness in its home province of Alberta.

Canadian Western Bank solid results well positioned important year

Canadian Western Bank – “solid” first-quarter results have ensured it is “well positioned at the outset of an important year”

It posted shareholders’ net income from continuing operations of $52.1 million, down 1% from $52.4 million, compared to the same quarter a year earlier. Diluted earnings per common share of 65 cents and adjusted cash earnings per common share of 66 cents remained consistent from last year.

Year-over-year growth in the bank’s loan and deposit business was tempered by lower margins on interest received compared to interest paid out, $2.9 million in losses on securities from volatile financial markets and the increase in Alberta’s provincial corporate tax rate to 12% from 10%, introduced by the NDP last June.

Meanwhile, loans grew by 12% and deposits increased by 11%, it said in a press release.

Chris Fowler, CWB’s president and CEO, believes the firm’s recent acquisition of CWB Maxium Financial will soon prove fertile, noting how Maxium’s specialized financing originations will provide “attractive returns and are complementary to our existing lending verticals.”

He added: “With 80% of its business in Ontario, Maxium will accelerate expansion of CWB’s geographic footprint in Central and Eastern Canada. Both the Maxium acquisition and the upcoming launch of our new core banking system represent significant steps in the continued execution of CWB’s strategic direction.”

Fowler also confirmed that with the Canadian economy still feeling the effects of low oil prices, CWB is working “proactively with our clients, particularly in Alberta and Saskatchewan, to address related operating challenges.”

Edmonton based Canadian Western Bank offers a range of financial services through more than 40 branch locations in Western Canada. The bank offers Personal banking, business banking and investing services. Personal banking include the provision of bank accounts, mortgages, loans, credit cards, banking services such as online banking, mobile banking and ATM banking, creditor insurance and travel insurance. Business banking includes provision of business lending, business accounts, cash management services, credit cards and services to small businesses. Its investing services include a range of Guaranteed Investment Certificates (GICs), Registered Retirement Savings Plans (RRSPs), Tax-Free Savings Accounts (TFSAs), Registered Retirement Income Fund Products (RRIFs), Registered Education Savings Plan (RESP) and mutual funds. More from Reuters »

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