Regional bank increases profits on higher revenue
Canadian Western earns $214.27-million in fiscal 2017
CANADIAN WESTERN Bank has released its fourth quarter and fiscal 2017 financial results.
“CWB’s strategic execution and financial performance in fiscal 2017 were both very strong,” said Chris Fowler, president and chief executive officer. “We maintained our focus on business owners while delivering growth across a broader geographic footprint with increased industry diversification. We also made significant progress toward the upcoming transformation of our capital management processes, and worked to ensure our ongoing technology investments and process improvements position us to meet the rapid pace
of growth and change within our industry. Alongside this strong strategic execution, we delivered record total revenues from core operations and record core pretax, preprovision income, with this latter metric exceeding $100-million in back-to-back quarters for the first time. We also delivered higher net interest margin in every quarter, positive operating leverage, strong credit quality and increased our annual common share dividend for the 25th consecutive year. To cap off the year, we announced a highly strategic and accretive acquisition of equipment loans and leases, and general commercial lending assets. As we close fiscal 2017, I want to thank our people for their passion and commitment to help both our clients and CWB achieve our strategic goals. Today, we have an incredible opportunity to create exceptional client experiences for business owners across Canada. There is no doubt in my mind that CWB’s future looks more exciting than ever before. Thanks to our tremendous teams, I am very confident in our ability to achieve our full potential together.”
Fourth quarter fiscal 2017 highlights (compared with the same period in the prior year):
• Very strong operating performance, with record core common shareholders’ net income of $61-million, up 27 per cent and record core pretax, preprovision income (teb (taxable equivalent basis)) of $104-million, up 17 per cent’
• Diluted and adjusted cash earnings per common share of 68 cents and 74 cents, up 26 per cent and 25 per cent, respectively;
• The gain on sale related to the appointment of a successor trustee for Canadian Western Trust’s exempt market securities business contributing six cents to adjusted cash earnings per common share;
• Record total revenue (teb) from core operations of $196-million, up 16 per
cent with strong 14-per-cent growth of net interest income (teb);
• Net interest margin (teb) of 2.64 per cent, up 28 basis points from last year and four basis points from last quarter;
• Provision for credit losses as a percentage of average loans of 20 basis points, down from 24 basis points last year and unchanged from previous quarter.
Full-year fiscal 2017 highlights (compared with the prior year):
• Very strong operating performance with common shareholders’ net income of $214-million, up 21 per cent, and record core pretax, preprovision income (teb) of $391-million, up 10 per cent;
• Diluted and adjusted cash earnings per common share of $2.42 and $2.63, up 14 per cent and 16 per cent, respectively;
• Record total revenue (teb) from core operations of $729-million, up 10 per cent, including 10-per-cent growth of net interest income (teb) and 16 per cent higher non-interest income;
• Positive operating leverage of 0.3 per cent;
• Loan growth of 6 per cent, with 11-per-cent growth outside of Alberta and 18-per-cent growth of non-Alberta general commercial loans;
• Net interest margin of 2.57 per cent, up 14 basis points, with sequential increases in every quarter;
• Provision for credit losses as a percentage of average loans of 23 basis points, down from 38 basis points;
• Gross impaired loans representing 0.72 per cent of total loans, up from 0.58 per cent last year and down from 0.74 per cent last quarter;
• Increased the bank’s annual common share dividend for the 25th consecutive year.
(See CWB Table 1 on page 41)
We seek Safe Harbor.
Erika Flores condensed this news release ([email protected]watch.com). Albrecht Wilhelm Albert Bellstedt, Andrew John Bibby, Christopher Hector Fowler, Linda Margaret Owerri Hohol, Robert Adrian Manning, Sarah A Morgan-Silvester, Margaret Jean Mulligan, Robert Lawrence Phillips, Raymond Joseph Protti, Ian MacNevin Reid, Hugh Sanford Riley, Alan MacDonald Rowe
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