Edmonton, September 1, 2016 – Canadian Western Bank (TSX: CWB) (CWB) today announced third quarter financial performance which, compared to the same quarter in 2015, included very strong and geographically diverse loan growth, strong branch-raised deposit growth and steady growth in pre-tax, pre-provision (PTPP) earnings. Common shareholders’ net income from Continuing Operations of $45.6 million was down 11%. Loan growth of 14%, including the addition of CWB Franchise Finance assets, was very strong and well-balanced by industry segment. Non-interest income was up 47%, primarily due to the influence of net losses on securities last year and gains on the sale of residential mortgages in the current period. These positive earnings drivers were more than offset by the combined impact of several factors, including increased energy-related provisions for credit losses, a 17 basis point decline in net interest margin, moderate growth of non-interest expenses, the addition of acquisition-related contingent consideration fair value changes reflecting performance within CWB Maxium Financial (CWB Maxium), higher preferred share dividends, and the 20% increase to CWB’s income tax rate in Alberta. Diluted earnings per common share of $0.55 and adjusted cash earnings per common share of $0.60 were down 14% and 8%, respectively. The common share issuance on July 7, 2016 reduced quarterly earnings per common share by $0.01. PTPP earnings were up 6% to $82.2 million.
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For further information, please contact:
Matt Evans, CFA
Senior AVP, Strategy & Investor Relations
Canadian Western Bank
Phone: (780) 969-8337
E-mail: [email protected]