A subsidiary of financial services holding company Dundee Bancorp Inc. has been granted a Schedule I Bank charter.

The firm said yesterday that Dundee Wealth Bank has been granted a charter from the Minister of Finance as a Schedule I Bank.

The new bank complements Dundee’s wealth management subsidiary, Dundee Wealth Management Inc.

On November 15, CIBC World Markets issued a new report on Dundee Wealth, lowering its earnings estimates, but reiterating its “sector outperformer” rating and leaving the target price for the stock unchanged.

The report noted that Dundee Wealth reported third quarter EBITDA of $19.5 million, which was below its forecast of $27 million. Earnings from investment management were stronger than expected, but the brokerage and corporate sides were weaker than expected. The difference between estimated and actual earnings was attributed to higher expenses, particularly costs associated with the integration of Cartier Partners Financial.

“Operationally DW appears very strong (net flows remain industry leading) and post integration EBITDA could be materially higher than current results,” CIBC noted in the report. Although it cautions that “… integration risk [could be] too high to be patient with the stock.”