CWB net income rises 76 per cent

Canadian Western Bank (TSX:CWB) said its net income rose 76 per cent to $37.9 million in the second quarter thanks to its acquisition of National Leasing Group Inc.

EDMONTON — Canadian Western Bank (TSX:CWB) said its net income rose 76 per cent to $37.9 million in the second quarter thanks to its acquisition of National Leasing Group Inc.

The Edmonton-based bank recorded its 88th consecutive profitable quarter spanning 22 years as it earned 47 cents per share for the period ended April 30.

That compares to 30 cents a year ago when profits totalled $21.6 million.

Revenues increased to $111 million from $75.4 million.

The bank said its higher profits mainly reflect an 83 basis point improvement in net interest margin to 2.76 per cent. Its loans also grew by nine per cent since last year, and were up six per cent in the quarter, including the acquisition of National Leasing.

The acquisition contributed $3.9 million, or five cents per share to net profits.

Its Tier 1 capital ratio stood at 11.4 per cent and total capital ratio was 14.5 per cent%,

Canadian Western Bank had more than $12 billion in total assets.

The bank’s board declared an 11-cent dividend payable July 2 to shareholders of record on June 17.

The banking and trust segment, which includes a full three months of performance from National Leasing, earned $34.5 million, up 78 per cent compared to the same quarter last year.

Segment revenues grew 49 per cent to $103.4 million.

Net income from insurance operations increased 54 per cent to $3.4 million, reflecting lower claims experience and continued business growth.

President and CEO Larry Pollock said the bank’s businesses are performing better than it had expected at the beginning of its fiscal year.

“Although we expect earnings growth to moderate for the remaining two quarters, it’s shaping up to be a great year for Canadian Western Bank,” he stated.

Shares of the bank were ahead 3.7 per cent, or 87 cents, to $24.36 in morning trading on the Toronto Stock Exchange.