Edmonton, December 3, 2015 – CWB Group reported solid results for the fourth quarter and fiscal 2015. Highlights included record earnings from Continuing Operations, supported by strong 11% loan growth over the past twelve months, ongoing stable credit quality and very strong 17% growth in branch raised demand and notice deposits. Common shareholders’ net income from Continuing Operations of $208.1 million increased 1%, while diluted and adjusted cash earnings per common share were both up 2% to $2.59 and $2.63, respectively. Earnings growth primarily resulted from higher net interest income and lower preferred share dividends, partly offset by lower non-interest income, increased non-interest expenses and a marginally higher provision for credit losses. Growth in net interest income was driven by strong loan growth, partially offset by the impact of a three basis point reduction in net interest margin (teb) to 2.56%. Increases in most categories of non-interest income were more than offset by a $17.9 million decrease in the contribution from net gains/losses on securities and a $3.4 million decrease in ‘other’ non-interest income. Net losses on securities of $4.3 million this year primarily reflect active risk management in view of macroeconomic conditions and changes in the pricing and liquidity of the Canadian preferred share market. The increase in non-interest expenses primarily reflects higher salaries and benefits, mainly resulting from hiring activity and the compensation changes described above, as well as increased premises and other expenses to facilitate business growth. The annual provision for credit losses was at the low end of management’s target range reflecting ongoing stable credit quality. Increased provisions compared to last year mainly reflect overall growth of the loan portfolio. Read the release in full.
For Further Information Contact:
Matt Evans, CFA
Assistant Vice President, Investor Relations
Canadian Western Bank
Phone: (780) 969-8337
E-mail: [email protected]