Canadian Western Bank is reporting lower profits for the second quarter ended April 30.

The Edmonton-based bank cited low interest rates that squeezed its revenues.

Earnings for the quarter were $6.43 million or 47¢ a share for, compared with profits of $7.08 million or 54¢a share for the same period last year.

Total revenues fell 2.5% to $25.8 million from $25.2 million. Return on equity fell to 10.1% from 13.8%.

Larry Pollock, Canadian Western’s president and CEO, said the bank’s second quarter performance was positive in light of the low interest rates that have prevailed so far this year.

Pollock said that the bank’s low loan loss experience, now only about a quarter of the industry average, reflects its long standing strategy to adhere to a policy of asset based lending.

The bank’s annual loan-loss provision for 2002 is estimated at 0.26 per cent of average loans, about a quarter of the provisions set aside by the other Canadian banks so far this year, Pollock said.

“The bank has no material exposure outside of Canada or in the telecommunications or high-tech sectors so it was not affected by any of the recent high profile corporate failures,” Canadian Western said in a release.