Canadian Western Bank Profit Up 10% In 3Q

September 5, 2008 4:54 p.m. EST

Edmonton, Alberta (AHN) - Canadian Western Bank reported Friday a 10 percent increase in profits for the third quarter at $26.3 million, its 81st straight quarterly profit.

The Star reported that the bank, despite the profit, has written down its annual earnings growth target due to decreasing net interest margins and a $2.9 million tax benefit it received a last year.

Net income is expected to increase 15 percent, while revenue up 17 percent. Earnings forecast is at $1.69 a share for the fiscal year ending October.

The quarter's earnings were at 41 cents per share, an 11 percent increase, which resulted to sustained loan growth at 3 percent, partially offset by a lower net interest margin.

The bank's banking and trust segment posted an increase of 9 percent in earnings to $23.8 million, while its insurance segment was up 13 percent to $2.5 million.

Canadian Western also announced a cash dividend of 11 cents per share, same as the previous quarter but up 22 percent a year ago.

The bank operates 35 branches in Western Canada.