Edmonton, December 18, 2024 – CWB Financial Group (TSX: CWB) (CWB) today announced financial performance for the year ended October 31, 2024, with annual common shareholders’ net income of $268 million, diluted earnings per common share (EPS) of $2.76 and adjusted EPS(1) of $3.01.
“As we progress toward closing the National Bank transaction, our teams have remained focused on delivering a differentiated experience for business owners and their families while supporting the integration planning process,” said Chris Fowler, President and CEO. “We continue to retain the deep relationships we have with our clients, the engagement of our teams remains strong, and our balance sheet is resilient. We are well positioned to deliver prudent growth and solid financial performance.”
“I sincerely thank all team members for their significant efforts this year. We remain on track to complete the acquisition with National Bank. I am excited about the future for Canadian Western Bank and am confident that the combination of our two banks will create incredible value for our clients, teams, communities, and shareholders.”
Quarterly common shareholders’ net income of $62 million and adjusted EPS of $0.67 declined 19% and 29%, respectively, compared to the same quarter last year. Pre-tax, pre-provision income(1) of $143 million was consistent with last year. Lower common shareholders’ net income was primarily driven by a provision for credit losses on impaired loans(1) of 38 basis points, compared to an impaired loan provision of eight basis points in the prior year, which was significantly below our normal historical experience.
On a sequential basis, quarterly common shareholders’ net income increased 50% and adjusted EPS increased 12%, driven by a 16 basis point reduction in the provision for credit losses. Pre-tax, pre-provision income was consistent with last quarter.
On an annual basis, common shareholders’ net income and adjusted earnings per share were down 17% and 16%, respectively. Pre-tax, pre-provision income increased 8% and we delivered positive operating leverage(1) of 1.4%, reflecting solid revenue growth and prudent expense management. Lower common shareholders’ net income primarily reflected a 30 basis point increase in the provision for credit losses on impaired loans.
Our Board of Directors declared a cash dividend of $0.36 per common share, which is up two cents, or 6%, from the dividend declared last year and one cent, or 3%, from the dividend declared last quarter.
(1) Adjusted EPS, pre-tax, pre-provision income, the provision for credit losses on total loans as a percentage of average loans and operating leverage are non-GAAP measures. Refer to definitions and detail provided on pages 6 and 7.
FOR FURTHER INFORMATION CONTACT:
Chris Williams
AVP, Investor Relations
CWB Financial Group
Phone: 780-508-8229
Email: [email protected]