- Wednesday, October 16, 2024
Canadian Western Bank (CWB) saw a significant increase in its stock price following the release of better-than-expected earnings for the latest quarter. The gains were driven by higher net interest income, which more than offset an increased provision for credit losses.
Share Performance
In late morning trading, CWB shares soared 8.5% to reach 28.52 Canadian dollars (US$21.12), pushing the year-to-date advance to 19%.
Q3 Financial Highlights
CWB reported a net income of C$83.1 million, or C$0.86 per share, for the third quarter, compared to C$132.3 million, or C$0.88 per share, in the same period last year. The FactSet consensus estimate for earnings per share was C$0.79.
On an adjusted basis, pre-share earnings stood at C$0.88 for the three months ending July 31.
The bank's net interest margin expanded by 0.11 percentage point, driven by targeted loan growth in its commercial-loan portfolio and the maturing and repricing of fixed-term assets at higher market interest rates.
Overall revenue rose by 4.3% to reach C$283.5 million, with net interest income increasing by 4.8% to C$252.2 million, surpassing analyst expectations of C$248.8 million.
President and CEO Chris Fowler expressed confidence in CWB's future revenue growth during the final quarter of the fiscal year. He highlighted expense management efforts and anticipated delivering an annual adjusted return on equity within the targeted range of 10% to 11% by 2023.
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