Canadian Western Bank is anticipating robust financial performance in the upcoming year following an increase in earnings for the latest quarter. The regional lender surpassed market expectations, benefiting from higher revenue and a decrease in the provision for credit losses.
Solid Fourth-Quarter Performance
The net income for the fiscal fourth quarter rose to 76.8 million Canadian dollars ($56.5 million), or C$80 a share, compared to C$67.7 million, or C$0.72, in the previous year. Adjusted per-share earnings for the three-month period ending in October were C$0.94, surpassing the mean estimate of C$0.88 by analysts polled by FactSet.
Revenue Growth and Improved Efficiency
During the quarter, Canadian Western Bank’s overall revenue increased by 4.3% to C$291.8 million, which was in line with market expectations. Net interest income also saw a 6.7% rise to C$256.3 million. The provision for credit losses as a percentage of average loans decreased by 0.11 percentage points compared to the previous quarter and dropped by 0.03 percentage points from the same period last year.
Confident Outlook
Despite ongoing economic and market volatility, President and Chief Executive Chris Fowler expressed confidence in the company’s ability to maintain a strong performance in the new fiscal year. The organization’s strategic reorganization initiatives, implemented late in the quarter, have improved operational efficiency. This has led to resource redeployment towards priority activities aligned with their differentiated strategy.
Dividend Increase
To reward its shareholders, the bank’s board approved a cash dividend of C$0.34 per share for the fourth quarter, which is an increase of C$0.01.
