The Canadian Press
CWB Financial Group said a takeover deal by National Bank is progressing well as it reported its fourth-quarter profit fell compared with a year ago.
“We remain on track to complete the acquisition with National Bank,” said chief executive Chris Fowler in a statement.
“As we progress toward closing the National Bank transaction, our teams have remained focused on delivering a differentiated experience for business owners and their families while supporting the integration planning process.”
The bank delayed its results expected on Dec. 6 because of a legal claim, but said Wednesday that the issue has no impact on its financial statements and it has found no internal control issues on its financial reporting.
CWB reported $62.2 million in common shareholders’ net income or 63 cents per diluted share for the quarter ended Oct. 31, down from $76.8 million or 80 cents per diluted share in the same quarter last year.
Profits fell as the bank’s provision for credit losses amounted to $40 million, up from $9.8 million a year earlier, while revenue totalled $309.5 million, up from $291.8 million a year ago.
On an adjusted basis, the bank says it earned 67 cents per share in its latest quarter compared with an adjusted profit of 94 cents per share in the same quarter last year.
The legal claim against a subsidiary of the bank is seeking $18 million, as well as general and punitive damages, related to loans that are being resolved through a court-approved receivership process. CWB says the claim also contains several allegations including of unethical conduct.
National Bank is working to complete its deal to buy CWB in an agreement valued at about $5 billion. The takeover has shareholder and Competition Bureau approval, but still requires the go-ahead from Canada’s banking regulator and the finance minister.
Moody’s upgraded National Bank’s long-term ratings this week, based on its outperformance compared with the other Big Six banks.