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CWB Financial Group reports Q4 profit down from year ago, raises dividend

The Canadian Western Bank logo is shown in this undated handout photo. THE CANADIAN PRESS/HO, Canadian Western Bank

CWB Financial Group raised its dividend and reported its fourth-quarter profit fell compared with year ago as its provision for credit losses rose.

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The bank says it upped its quarterly dividend by a penny to 32 cents per share.

The increased payment to shareholders came as CWB reported common shareholders’ net income of $67.7 million or 72 cents per share for the quarter ended Oct. 31, down from $90.0 million or $1.01 per diluted share a year earlier. Revenue totalled $279.8 million, up from $260.6 million in the same quarter last year.

CWB said its provision for credit losses amounted to $12.2 million in its latest quarter compared with a $10.2-million recovery of credit losses in its fourth quarter last year.

On an adjusted basis, CWB said it earned 88 cents per share, down from an adjusted profit of $1.03 per share a year ago.

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Analysts on average had expected a profit of 87 cents per share, according to estimates compiled by financial markets data firm Refinitiv.

“Our performance this year reflected solid growth and continued investment in strategically targeted full-service growth initiatives in a volatile economic environment,” CWB chief executive Chris Fowler said in a statement.

“Our disciplined approach to driving growth within our prudent risk appetite has delivered very strong credit performance and we are in a position of strength to face the potential economic volatility on the horizon.”

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