Canadian Western Bank’s profit slipped in the fourth quarter despite an increase in revenue as the bank shored up more money for potentially souring loans and saw costs rise.
The bank’s adjusted earnings was $82 million or $0.88 per share in the three-month period ending Oct. 31, down 15 per cent from the same quarter last year. CWB joining most of the Big Six banks by raising its quarterly dividend, in its case by one cent to $0.32 per share.
For the full fiscal 2022 year, CWB’s reported profit slipped five per cent to $3.39 per share. Common shareholders’ net income edged down one per cent to $310 million.
“Our performance this year reflected solid growth and continued investment in strategically targeted full-service growth initiatives in a volatile economic environment,” CWB president and chief executive Chris Fowler said in a press release accompanying the results.
“Our strategic execution has delivered enhancements to our digital capabilities, increased our physical presence in key markets, and further improved our client offering to provide a foundation to accelerate full-service client growth,” Fowler added. “We are focused to deliver strong core operating performance next year and achieve the financial performance targets we have set for 2024.”
CWB’s quarterly revenue rose by seven per cent to $280 million as net interest income grew during an aggressive rate hiking cycle. However, increasing expenses and credit loss provisions, which rose 14 per cent to $167 million, led to the reduction in profitability.