Their pandemic-era strategy drove strong increases in profits
CWB Financial Group reported that its Q1 2022 profit defied expectations with a strong annual increase stemming from what the lender called its effective pandemic-era strategy.
Profit attributable to common shareholders reached $87.6 million (92 cents per diluted share) during the quarter ending Jan. 31. This was much higher than the $79.2 million (91 cents per diluted share) seen during the same period a year ago, CWB said.
Revenue amounted to nearly $266 million, up from $245.1 million last year. Provisions for credit losses totalled $9.1 million, versus $13.5 million during the same quarter in 2021.
“Execution of our winning strategy focused on business owners continues to drive accelerated growth of full-service clients, as our teams leverage our expanding products, capabilities, and brand presence in Ontario,” said Chris Fowler, chief executive at CWB.
Read more: CWB reveals latest earnings data
“Our new lending volume remained strong this quarter,” Fowler added. “While our net loan growth was constrained by an elevated level of payouts and paydowns, the strength of our lending pipelines gives us confidence that we remain on track to deliver double-digit loan growth for the year.”
CWB reported that it earned 99 cents per share on an adjusted basis during the just-concluded quarter, up from 93 cents per share last year. Experts’ polling by financial markets data firm Refinitiv initially pegged CWB’s adjusted profit at just 97 cents per share.