Canadian Western Bank Profit Falls On Higher Credit Provisions Potential Sale Costs
Canadian Western Bank Profit Falls on Higher Credit Provisions, Potential Sale Costs Canadian Western Bank (CWB) reported a 20% decline in quarterly profit as it increased provisions for credit losses and incurred costs related to a potential sale. Key Points: CWB's net income fell to C$49.1 million in the three months ended Jan. 31, from C$61.9 million a year earlier. The bank increased its provisions for credit losses by C$15.2 million to C$39.1 million, citing economic uncertainty and the impact of higher interest rates on borrowers. CWB also incurred C$6.4 million in costs related to a potential sale of the bank, which is currently under review. The bank's revenue rose 5% to C$237.6 million, driven by higher interest income and fees. CWB's common equity tier 1 (CET1) capital ratio, a measure of financial strength, remained strong at 12.1%. CWB's results were in line with analyst expectations. The bank's shares were down slig...