CWB reports strong second quarter and year-to-date financial performance
Edmonton, June 2, 2011 – Canadian Western Bank (TSX: CWB) today announced strong financial
performance marking the Bank’s 92nd consecutive profitable quarter, a period spanning 23 years. Second
quarter net income of $44.4 million increased 17% compared to the same quarter last year while diluted
earnings per common share increased 13% to $0.53. Quarterly total revenues (teb) of $121.8 million grew
10% as the positive impact of strong 14% year-over-year loan growth and an improved net interest margin
offset lower other income. On a year-to-date basis, net earnings of $88.4 million, or $1.07 per diluted
common share, increased 13% and 8% respectively, reflecting the combined positive impact of strong loan
growth and a 21 basis point improvement in net interest margin (teb).
Second quarter net income for the banking and trust segment of $41.0 million was up 19% over a year
earlier mainly driven by strong loan growth and an improved net interest margin. Banking and trust
segment total revenues (teb) were up 10% to $114.2 million. Quarterly net income from the insurance
segment was $3.5 million, up $0.1 million compared to a year earlier, as the positive impact of 6% growth
in net earned premiums and higher interest income offset increased net claims expense.
“Our core focus on business banking with complementary diversification in other financial services
continues to payoff for CWB shareholders, as demonstrated by our strong results through the second
quarter and year-to-date,” said Larry Pollock, President and CEO. “Solid economic activity coupled with our
ongoing commitment to offer customers a best-in-class service experience underpins our optimism about
new growth opportunities. We will continue to deploy resources in sectors we believe will grow faster than
the economy as a whole; areas where we have demonstrated expertise and can build on our competitive
advantages. Overall credit quality continued to improve and we expect this positive trend will be maintained
as the economy strengthens further. In addition, our very strong position relative to both existing capital
requirements and the new Basel III capital rules provide the Bank significant flexibility to utilize available
capital for accretive opportunities that may arise.” Read the release in full.