Canadian Western Bank Q1 Earnings Report

Canadian Western Bank's earnings took a hit in the first quarter of the fiscal year due to an increase in loan-loss provisions, even though there was a rise in net interest income.

Financial Overview

• Net income dropped to C$87.9 million, or C$0.91 per share, compared to C$94.4 million, or C$0.99 per share, in the same period last year.
• Adjusted earnings reached C$0.93 per share, slightly exceeding analysts' mean estimate of C$0.92 by FactSet.
• Overall revenue increased by 6.3% to C$290 million, falling short of the market's expectation of C$296.2 million.
• Net interest income saw a 6.9% growth to C$259.1 million, while non-interest income saw a modest 1% rise to C$30.9 million.

Credit Loss Provision

• Canadian Western Bank observed a higher provision for credit losses compared to the previous year.
• Provision for the latest quarter stood at 0.19 point, reflecting an increase from the same period last year.
• The bank explained the rise in credit-loss provision as a return to a historical range between 0.18 to 0.23 percentage point.

These results highlight the challenges faced by Canadian Western Bank in managing its loan-loss provisions and maintaining its financial performance.