Canadian Western Bank reported weaker fourth-quarter performance in volatile markets highlighted by very strong loan growth of 6% in the quarter.

The bank said Wednesday eveneing that net income for the fourth quarter was $24.5 million, or 38¢, down 17% compared to last year which included an income tax benefit that increased net earnings by $2.9 million, or 4¢ a share.

Net income before taxes was 10% lower than a year earlier.

Total revenue was $74.1 million, relatively unchanged from a year earlier.

Loan growth was 6% in the quarter and 16% over the past twelve months marking 19 consecutive years of double digit loan growth.

“Despite very strong lending activity, revenue growth and overall profitability continued to be constrained by a significantly lower net interest margin resulting from increased deposit costs related to ongoing market disruptions, consecutive reductions in the prime lending rate, and high liquidity levels maintained in response to market uncertainties and anticipated loan fundings,” the bank said in a release.

During the quarter, CWB announced the acquisition of 72.5% of Adroit Investment Management Ltd., an Edmonton-based firm specializing in wealth management for individuals, corporations and institutional clients.

IE