Diluted and adjusted cash earnings per common share up 16% and 9%, respectively
Very strong 13% annual branch-raised deposit growth
Strong 10% annual loan growth, with increased geographic and industry diversification
CWB Financial Group (TSX: CWB) (CWB) today announced strong third quarter financial performance with common shareholders’ net income of $71 million and pre-tax, pre-provision income of $117 million, up 14% and 6%, respectively, from the third quarter last year. Total revenue of $218 million was up 7%, including a 7% increase in net interest income and 2% higher non-interest income. The increase in net interest income reflects strong 10% loan growth, partially offset by a four basis point decrease in net interest margin to 2.60%. Under IFRS 9, the provision for credit losses improved to 19 basis points of average loans, compared to 21 basis points under IAS 39 in the same quarter last year. Non-interest expenses were 7% higher and reflect continued investment to advance our strategic direction. Acquisition-related fair value changes were $5 million lower, reflecting completion of the earn-out period on February 28, 2019 for the contingent consideration related to the successful and accretive acquisition of CWB Maxium Financial, and preferred share dividends were $2 million higher. The higher growth rate of common shareholders’ net income compared to pre-tax, pre-provision income primarily reflects decreased acquisition-related fair value changes, the lower provision for credit losses and a reduced effective tax rate with a cut in Alberta corporate income tax rates. Diluted and adjusted cash earnings per common share of $0.81 and $0.82 were up 16% and 9%, respectively, with less than $0.02 of earnings per common share related to the change in Alberta corporate income tax rates.
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