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CWB - Canadian Western Bank News Story

C$26.57 -0.0  -0.0%

Last Trade - 25/09/20

Sector
Financials
Size
Mid Cap
Market Cap £1.36bn
Enterprise Value £3.20bn
Revenue £517.6m
Position in Universe 158th / 2679

UPDATE 1-Canadian Western Bank profit falls, warns of oil impact

Thu 1st September, 2016 1:19pm
* Net income down 11 pct to C$45.6 million 
    * EPS down 8 percent to C$0.60 
 
 (Adds comment from company, data) 
    TORONTO, Sept 1 (Reuters) - Canadian Western Bank  CWB.TO  
on Thursday posted a drop in third-quarter earnings, and warned 
the lower price of crude will keep its oil and gas loan 
portfolio under strain in the energy-producing province of 
Alberta. 
     The bank, which mainly lends to clients in the western 
provinces of Canada, including Alberta, reported net income of 
C$45.6 million ($35 million) in the quarter ending July 31, down 
11 percent compared with a year earlier. Earnings per share fell 
by 8 percent to C$0.60. 
    "Our outlook for the remainder of 2016 reflects expectations 
for ongoing credit stress and macroeconomic uncertainty within 
Alberta, primarily related to the impact of persistent low oil 
prices," the bank said in a statement. 
    The bank said its portfolio of loans to oil and gas 
producers remained under strain, with funds set aside to cover 
bad loans higher than normal levels. Crude prices struck a 
13-year low early this year although there was a partial 
recovery in the time period covered by the bank's third quarter. 
    As Canada's top oil-producing province, Alberta has been hit 
hard by the crude price slump and the impact was exacerbated by 
wildfires earlier this year, which led to the evacuation of 
90,000 residents and prompted some energy firms to suspend oil 
operations. 
    Canada's biggest six banks, which are more diversified than 
Canadian Western, had each reported earnings results that beat 
forecasts during the latest quarter.  
    ($1 = 1.3115 Canadian dollars) 
 
 (Reporting by Matt Scuffham; editing by Susan Thomas and W 
Simon) 
 ((matthew.scuffham@thomsonreuters.com; +1-416-687-7591; Reuters 
Messaging: matthew.scuffham.reuters.com@reuters.net)) 
 
Keywords: CANADIAN WESTERN RESULTS/
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