Western Financial Group Inc. posted a 45% jump in net income as revenues for the High River, Alta.-based financial institution grew by 10% in the third quarter of this year.
WFG said consolidated revenue for the three months ended Sept.30 increased 10% to $8.1 million from $7.3 million a year ago, while consolidated net income increased 45% to $516,810 from $356,677 in 2002. Net income per share was 3¢ vs 1¢ in 2002.
WFG credited much of the increase in revenue top strong performance by its agency network. WFG provides insurance, investments and agency banking services to towns and small cities throughout British Columbia, Alberta and Saskatchewan.
For the nine months to Sept.30, consolidated revenue was up 16% to $24.1 million while consolidated net income increased 21% to $1.5 million (8¢ per share) from $1.3 million (7¢) in 2002.
WFG said that with these results, it expects to be at the higher end of its forecast $1.6 million to $2 million in net income for 2003.
“Overall, we are very pleased with the progress made so far this year,” said WFG CEO Scott Tannas in a statement. “Our net income continues to grow quickly, while we make major business development leaps at the same time – this is a rare combination. That said, we still see much opportunity for organic growth and internal efficiencies, in addition to growing through acquisition.”
WFG said growth at its banking subsidiary, Bank West, “continues as projected, with new loan funding running between $2 million and $3 million per month.
“Operating costs for Bank West have been less than projected, resulting in an operating loss that is slightly lower than budgeted. With systems and initial product offering running smoothly, the Bank and Western Financial Group are now focusing on accelerating the loan-funding pace, in order to shorten the bank’s time-to-breakeven target, currently at Q4 2004.”
WFG said to meet that target Bank West is developing new products for launch early in 2004. The bank is also considering portfolio acquisitions, WFG said.