Western Financial Group posted a 75% jump in net income in the second quarter, thanks in large part to gains at its insurance brokerage network.
The High River, Alta.-based company said consolidated net income for the three months ended June 30 increased to $834,057 from $477,662 for the second quarter of 2002; net income per share was 6¢ a share vs 3¢ a year earlier. Consolidated revenue for the three months was up 22% to $9.2 million from $7.6 million in 2002.
WFG operates WFG Agency Network, Western Canada’s leading insurance brokerage network, and Bank West, the first new domestic bank in Canada in several years, which opened Jan. 30.
The company said WFG Agency Network “has achieved significant growth and efficiency with operating margins improving to 21%. The company continues to enjoy strong increases in both same-store customer revenue and same-store customer count.”
At Bank West, revenue was $102,561 with a loss before interest, taxes, depreciation and amortization of $178,016.
The bank said its “pace of growth continues to accelerate, with the rate of loan funding achieving consistent month-over-month gains.”
It said it expects Bank West’s loan portfolio to reach the $10-million milestone by the end of August. Operating costs for Bank West have been less than projected, resulting in an operating loss that is slightly lower than budgeted.”
For the six months ended June 30, WFG reported that consolidated revenue increased 19% to $16.1 million, while net income was up 12% to slightly more than $1.0 million; net income per share was 5¢ vs 6¢ in 2002.
WFG said it is on target to achieve its forecast $1.6 million to $2 million in net income by yearend.