CWB reports financial performance for the fourth quarter and fiscal 2016
Edmonton, December 1, 2016– Canadian Western Bank (TSX: CWB) (CWB) today announced fourth quarter and fiscal 2016 financial performance. Core operating performance for the fourth quarter was strong based on 6% growth of pre-tax, pre-provision (PTPP) income to $89.5 million. Common shareholders’ net income of $47.8 million was down 10% from $53.0 million a year ago. Net interest income and non-interest income both increased 7%; however, the combined impact of moderate growth of non-interest expenses, increased provisions for credit losses, acquisition-related fair value changes and higher preferred share dividends resulted in lower earnings.
CWB’s core operating performance for fiscal 2016 was also strong based on achievement of record total revenues and 8% growth of pre-tax, pre-provision income to $353.8 million. However, common shareholders’ net income of $177.8 million was 15% lower. Growth of 7% in net interest income (teb) was driven by very strong 13% loan growth, partially offset by the impact of a 13 basis point reduction in net interest margin (teb) to 2.43%. Higher total revenues were more than offset within common shareholders' net income by an increase in the annual provision for credit losses to 38 basis points as a percentage of average loans, compared to 17 basis points last year, and a 7% increase in non-interest expenses. Although credit quality outside of CWB’s portfolio of oil and gas loans remained stable, higher provisions for credit losses resulted from losses recorded against oil and gas loans.
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For further information, please contact:
Matt Evans, CFA
Senior AVP, Strategy & Investor Relations
Canadian Western Bank
Phone: (780) 969-8337