A big jump in net interest income and the sale of a real estate investment helped Pacific & Western Credit Corp. significantly reduce its net loss, to $63,000 from $1.7 million in the first quarter ended Jan. 31.

The quarter was the first in which its wholly owned subsidiary, Pacific & Western Bank of Canada, operated entirely as a federally chartered bank. To coincide its yearend with that of other publicly traded Canadian banks, PWC changed its yearend from Dec.31 to Oct. 31. On a per share basis, fully diluted, the loss was 1¢ vs 20¢ a year earlier.

Describing the results as “encouraging,” the bank said its overall spread increased by more than 50% over that achieved for the year ended Oct. 31, 2002 and its loan and mortgage portfolio increased significantly. “Expenses remain tightly controlled,” the bank said. “On an annualized basis, our expenses as a percentage of total assets continue to be among the best in the industry. Now that we can compete with the other banks on a level playing field, we expect our profitability to return to its historic levels.”

In other highlights for the quarter ended Jan. 31 vs the quarter ended Dec. 31, 2001: assets were reduced to $707 million from $733 million by shedding low-spread securities; mortgages and loans increased from $414 million to $452 million; and expenses decreased to $1.7 million from $1.9 million, or to .96% of assets from 1.05% of assets, on an annualized basis.

Net interest income for the period was $1.27 million vs $432,000.

PWC also said it has bolstered its personnel involved in lending and leasing with a number of experienced bankers. The lending services department has been organized into teams: commercial financing, primarily serving southwestern Ontario; corporate and public sector financing, serving all of Canada; and specialty financing in Canada’s northern regions.