Canadian Western Bank increases its dividend, but its profits fall

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Canadian Western Bank’s profit fell in the fourth quarter despite an increase in revenue as the bank raised more money for potentially bad loans and saw costs rise.

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The bank’s adjusted profit was $82 million or $0.88 per share in the three months ending Oct. 31, down 15% from the same quarter a year ago. CWB joins most of the Big Six banks in raising its quarterly dividend, in its case by one cent to $0.32 per share.

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For the full year 2022, CWB reported earnings fell 5% to $3.39 per share. Common shareholders’ net income edged down 1% to $310 million.

« Our performance this year reflects solid growth and continued investment in strategically targeted, full-service growth initiatives in a volatile economic environment, » CWB President and CEO Chris Fowler said in a statement. press accompanying the results.

“Our strategic execution has delivered enhancements to our digital capabilities, increased our physical presence in key markets and further enhanced our customer offering to provide a foundation for accelerating full-service customer growth,” Fowler added. “We are focused on delivering strong core operating performance next year and delivering on the financial performance targets we have set for 2024.”

CWB quarterly revenue rose 7% to $280 million as net interest income increased during an aggressive rate hike cycle. However, higher expenses and provisions for credit losses, which rose 14% to $167 million, reduced profitability.

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