Edmonton, June 2, 2016 – Canadian Western Bank (TSX: CWB) (CWB) today announced second quarter financial performance which included strong growth in pre-tax, pre-provision (PTPP) earnings and the significant negative impact of persistent low oil prices on the credit performance of oil and gas production loans. Common shareholders’ net income from Continuing Operations of $32.2 million was down 37% compared to the same quarter in 2015, primarily due to total pre-tax provisions for credit losses of $39.7 million, up from $7.4 million last year. Diluted earnings per common share of $0.40 and adjusted cash earnings per common share of $0.41 were down 38% and 37%, respectively. PTPP earnings were up 8% to $84.5 million mainly due to the combined positive impact of very strong 14% year-over-year loan growth and 7% higher non-interest income. This was partially offset by a 10 basis point decrease in net interest margin and 10% increase in non-interest expenses.
Compared to the prior quarter, common shareholders’ net income from Continuing Operations, diluted earnings per common share and adjusted cash earnings per common share were each down 38% primarily due to the impact of higher provisions for credit losses. PTPP earnings were 4% higher, reflecting the combined benefits of very strong 4% loan growth, a 32% increase in non-interest income and relatively stable net interest margin, partially offset by higher non-interest expenses.
The total year-to-date pre-tax provision for credit losses increased to $48.6 million from $14.4 million last year, contributing to 19% lower common shareholders’ net income from Continuing Operations. Diluted and adjusted cash earnings per common share declined 19% and 18%, respectively. Year-to-date PTPP earnings of $165.9 million increased 6% as the positive impact of very strong 9% loan growth was partially offset by an 11 basis point decrease in net interest margin, an 8% increase in non-interest expenses and 6% lower non-interest income.
For further information, please contact:
Matt Evans, CFA
AVP, Investor Relations
Canadian Western Bank
Phone: (780) 969-8337
E-mail: [email protected]