CWB Financial Group (TSX: CWB) (CWB) announced financial performance for the three and six months ended April 30, 2023. Quarterly common shareholders’ net income of $70 million was down 26% and adjusted earnings per share (EPS)(1) of $0.74 was down 27% from last quarter, primarily reflecting a 21 basis point increase in the provision for credit losses as a percentage of average loans(1), the impact of three fewer interest-earning days and a six basis point decrease in net interest margin(1). The prior quarter results reflected the reversal of a previously recognized impaired loan write-off, which drove a net recovery of credit losses and the recognition of additional interest income that provided a three basis point increase to net interest margin. The provision for credit losses of 12 basis points this quarter remained below our five-year historical average, and reflected continued strong credit performance.
Our Board of Directors declared a cash dividend of $0.33 per common share, up one cent, or 3%, from the dividend declared last quarter and up two cents, or 6%, from last year.
“The strength and stability of our organization enabled us to navigate the significant volatility in the global banking industry this quarter. Subsequent to the emergence of these events, we grew branch-raised deposits(1), continued to maintain prudent levels of liquidity, and increased our regulatory capital ratios with no use of the at-the-market (ATM) program this quarter,” said Chris Fowler, President and CEO. “We drove solid loan growth across our national footprint, with especially strong growth in Ontario and general commercial loans, and delivered another quarter of low credit losses.”
“Based on our assessment of market pricing relative to risk and considering the expected volatility in economic conditions, we have targeted lower annual loan growth than previously expected. We are well positioned to capitalize on opportunities to accelerate new client growth when conditions improve, as we have in past periods of economic volatility. While we do not expect to achieve our annual pre-tax, pre-provision income(1) and efficiency ratio(1) targets for this year, we are adjusting our expense trajectory to align to the lower loan growth outlook and deliver an annual adjusted return on equity(1) in line with our 2023 target.”
“We continue to earn national recognition for our commitment to a people first culture and are very proud that for the second consecutive year CWB placed within the top 25 on this year’s Best WorkplacesTM in Canada. We thank our teams for their continued dedication and focus to make CWB the best bank for business owners in Canada.”
Chris Williams
AVP, Investor Relations
CWB Financial Group
Phone: 780-508-8229
Email: [email protected]