Edmonton-based Canadian Western Bank has increased its quarterly dividend by 7% as second quarter net income increased by the same amount.
Net income available to common shareholders increased 7% to $39.7 million in the quarter ended April 30 compared to the same quarter last year, while adjusted cash earnings per common share was unchanged at $0.55.
Record total revenues of $127.9 million also represented a 7% increase over the same quarter last year as the positive impact of very strong loan growth was partially offset by a 21 basis point reduction in net interest margin.
Total loans surpassed the $13 billion milestone based on very strong growth of 4% in the quarter.
“Our tremendous loan growth over the past year demonstrates the ongoing potential of our core business banking focus in Western Canada,” said Larry Pollock, president and CEO of CWB, in a release.
While economic activity remains relatively strong in Western Canada, Pollock noted Canada is not immune to the troubles in Europe and the continuing low interest rate environment.
“We will continue to closely monitor potential impacts from global economic headwinds, including the ongoing turmoil in the euro zone.”
“Net interest margin stabilized this quarter, as expected, but very low interest rates coupled with ongoing competitive pressures will likely continue to constrain profitability and earnings growth until we have a more normal interest rate environment,” Pollock said.