Canadian Western Bank (TSE:CWB) said Friday the impact of a year-earlier tax recovery was one of the reasons for a 4% drop in third-quarter results.
Net income in the most recent quarter was $44.7 million while earnings per share were 52 cents, down 12% on last year. The prior year's earnings included the impact of a $7.5 million income tax recovery.
As at 10.26 am EDT, shares in the Alberta-based regional bank were down 1.5%, or 45 cents, at $29.58.
The large decrease in earnings per share also reflects a greater number of shares outstanding in the latest quarter, the bank said, highlighting strong loan growth and a further improvement in overall credit quality.
Revenue for the three months ending July 31 rose to $120.3 million from $108.3 million in the fiscal 2010 period, prompted by a 6% increase in loan growth, Canadian Western said.
President and CEO Larry Pollock said: “Exceptional third-quarter loan growth supported by strong year-to-date contributions from all of our businesses has CWB Group on track to achieve another year of record results.
"Strong loan growth is apparent across all of our lending sectors and we are also seeing a further improvement in overall credit quality."
Pollock added that the bank remains positive about the economic outlook, particularly over the long term, "but we are also cautious about potential spillover effects in our markets from global economic uncertainties and increased market volatility".