CWB Financial Group (CWB) said its net income declined 6% in its latest quarter due to more
funds being set aside to cover potentially bad loans and as its interest margins declined.
The Edmonton-based company, also known as Canadian Western Bank, said it earned $80.8
million in net income, or $0.88 per share, for the quarter ended July 31, down from $86.3 million,
or $0.98 a share, a year earlier.
The profit per share for the quarter matched the average analyst estimate compiled by financial
data firm Refinitiv.
However, the lender said its profits in the quarter were hurt as the bank set aside $13.5 million
for potential loan losses, up from $8.9 million a year ago, as it prepares for an economic
downturn.
CWB Financial Group also reported that its net interest margin fell eight basis points in the
quarter compared with the same period of 2021.
Funding costs have risen quickly with higher interest rates and the bank has been unable to
reprice loans to keep up, said CWB Financial.
The bank’s revenue amounted to $271.7 million, up from $263.2 million in the same quarter a
year ago, as it expands from its traditional market in Western Canada.
The lender, which focuses on small businesses, opened a bank in Mississauga, Ontario in 2020
and plans for more growth across Canada in coming years.
CWB Financial’s stock is down 29% this year and trading at $25.99 per share.
