Canadian Western Bank today reported a 10% increase in profit in a third quarter highlighted by record total revenues.

The Edmonton-based bank said net income for the quarter ended July 31 was $26.3 million, or 42¢ share, compared with $24 million, or 39¢ a share, in the year-ago period.

The results reflect continued strong loan growth of 3% in the quarter and 15% over the past twelve months, the bank said.

The bank drew attention to its “significantly lower net interest margin.”

“Net interest margin continued to be constrained by increased deposit costs related to ongoing market disruptions, a lower prime lending rate and higher liquidity levels maintained in response to events in financial markets,” CWB said in a release.

Revenue for the quarter rose 8% to a record $76.4 million, despite the significant impact of sustained pressure on net interest margin. Revenue in the year-ago period was $70.7 million.

On a segment basis, banking and trust earnings of $23.8 million were up 9% over the same period last year with continued strong loan growth and fee income more than offsetting the impact of a significantly lower net interest margin.

Third quarter net income from insurance operations of $2.5 million represented a 13% increase compared to one-year ago.

“Our solid third quarter and year-to-date results further confirm CWB’s strong market position and sound risk profile in what continued to be a very
challenging environment for the entire financial sector, both in Canada and globally,” stated Larry Pollock, President and CEO.

http://www.newswire.ca/en/releases/archive/September2008/04/c7760.html