CWB Financial Group

CWB reports record earnings for the fourth quarter and fiscal 2013

EDMONTON, December 4, 2013 - Strong fourth quarter financial performance was marked by record earnings and the achievement of another year of double-digit loan growth. Record net income available to common shareholders of $51.2 million was up 19% ($8.2 million) compared to the same quarter last year while diluted earnings per common share increased 16% to $0.64. Adjusted cash earnings per share, which excludes the after-tax amortization of acquisition-related intangible assets and the non-tax deductible change in fair value of contingent consideration, was a record $0.65, also up 16%. Total revenues, measured on a taxable equivalent basis (teb - see definition following the Financial Highlights table), grew 15% ($19.5 million) to reach a record $152.7 million driven by the combined benefits of strong 12% year-over-year loan growth, a four basis point increase in net interest margin to 2.75% and 31% ($6.2 million) higher other income. Very strong growth in other income mainly reflected a $6.2 million positive change in net insurance revenues and a $2.5 million increase in trust and wealth management fee income, partially offset by $3.1 million lower net gains on securities. Net insurance revenues were impacted in the fourth quarter of 2012 by increased claims expense related to severe hailstorms in Alberta. Revenues from trust and wealth management were materially higher compared to a year earlier mainly due to the addition of McLean & Partners Wealth Management, acquired in the third quarter of 2013.

Compared to last quarter, net income available to common shareholders increased 8% ($3.7 million) as positive contributions from $9.3 million higher net insurance revenues, 2% quarterly loan growth and a stable net interest margin were partially offset by a $4.7 million decline in net gains on securities and a $2.5 million reduction in the ‘other’ component of other income. Net insurance revenues were negatively impacted in the prior quarter by increased claims expense related to catastrophic southern Alberta floods and severe hailstorms. The ‘other’ component of other income was higher last quarter primarily due to gains realized on the sale of residential mortgages. Diluted and adjusted cash earnings per common share both increased 7% ($0.04).
Record annual net income available to common shareholders of $187.2 million increased 9% ($15.0 million) compared to 2012 while diluted earnings per common share was up 6% to $2.35. Adjusted cash earnings per share of $2.39 improved 4% from $2.30 in the prior year. Record total revenues (teb) of $572.5 million increased 9% reflecting 8% ($34.9 million) growth in net interest income (teb) and 16% ($13.1 million) higher other income. Growth in net interest income was driven by strong loan growth, partially offset by the impact of a nine basis point reduction in net interest margin (teb) to 2.70%. Read the release in full.

For further information contact:

Matt Evans, CFA
Senior Manager, Investor Relations
Canadian Western Bank
Phone: (780) 969-8337
E-mail: matt.evans@cwbank.com