Q3 2024 Canadian Western Bank Earnings Call Transcript
Key Points
- Canadian Western Bank (CBWBF) achieved 4% growth in pre-tax, pre-provision income in Q3 2024.
- Net interest margin saw significant improvement due to targeted loan growth and optimized funding.
- General commercial loan growth was 5% on an annual basis, supporting 11% average annual loan growth over the last five years.
- The bank's disciplined lending approach resulted in selective originations and strong credit performance in commercial real estate portfolios.
- Sequential CET1 ratio improved by 12 basis points to approximately 10.2%, demonstrating capital resiliency.
- Significant increase in provision for credit losses on impaired loans, primarily due to two specific loans.
- Gross impaired loans increased by 24 basis points from the previous quarter.
- Adjusted earnings per share decreased by $0.28 from the prior year, driven by higher provisions for credit losses.
- Non-interest income decreased by 4% sequentially, driven by reductions in the fair value of select debt securities and lower foreign exchange income.
- Operating expenses increased due to new banking centers, higher deposit insurance costs, and investments in digital capabilities.
Good morning. My name is Joanna, and I will be your conference operator today. At this time, I would like to welcome everyone to CWB's third-quarter 2024 financial results conference call and webcast. (Operator Instructions)
Thank you and I will turn the call over to Chris Williams, Assistant Vice President, Investor Relations. Please go ahead, Chris.
Good morning, and welcome to our third quarter 2024 financial results conference call. We'll begin this morning's presentation with opening remarks from Chris Fowler, President and Chief Executive Officer; followed by Matt Rudd, Chief Financial Officer; and Carolina Parra, Chief Risk Officer. Also present today are Stephen Murphy, Group Head, Commercial, Personal and Wealth; and Jeff Wright, Group Head, Client Solutions and Specialty Businesses. After prepared remarks, they will be available to take your questions.
As noted on Slide 2, statements may be made on this call that are forward-looking in nature, which involve assumptions that
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