CWB reports record earnings for the fourth quarter and fiscal 2014
Edmonton, December 3, 2014 – Strong fourth quarter financial performance was marked by record earnings and double-digit loan growth. Record net income available to common shareholders of $58.2 million was up 14% from a year ago, while diluted earnings per common share increased 13% to $0.72. Adjusted cash earnings per common 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 $0.73, up 12%. Earnings growth was based on a 6% increase in total revenues (teb - see definition following the Financial Highlights table) to $159.5 million, a decrease in preferred share dividends and a lower provision for credit losses, partially offset by higher non-interest expenses. Higher total revenues primarily resulted from the benefit of strong 12% loan growth and 3% higher non-interest income, partially offset by a 16 basis point decrease in net interest margin (teb) to 2.56%. Growth in almost all categories of non-interest income more than offset notable declines in both net insurance revenues and net gains on securities. ‘Other’ non-interest income was $4.5 million higher, primarily due to a gain on the sale of CWB’s former Edmonton Main Branch location. Credit related fee income and trust and wealth management fees increased $1.0 million and $0.9 million respectively, while net insurance revenues were $3.6 million lower due to the impact of claims expense related to severe hailstorms in Alberta. Net gains on securities were $1.8 million lower. Higher non-interest expenses primarily relate to increases in salaries and benefits, as well as premises and equipment expense to facilitate business growth. Read the release in full.
For Further Information Contact:
Matt Evans, CFA
Assistant Vice President, Investor Relations
Canadian Western Bank
Phone: (780) 969-8337