- Canadian Western Bank reported a net interest margin of 2.49%, slightly below the estimate of 2.5%, but up from last year’s 2.4%.
- The Common Equity Tier 1 ratio stands at 10.3%, meeting the estimate and up from 9.7% the previous year.
- Provision for credit losses rose significantly to C$40.0 million, compared to C$9.84 million last year, and exceeding the estimate of C$23.4 million.
- Adjusted earnings per share dropped to C$0.67 from C$0.94 last year, missing the estimate of C$0.88.
- Net interest income increased by 5.1% year-over-year, reaching C$269.3 million, surpassing the estimate of C$267.5 million.
- Total revenue grew by 6.1% year-over-year to C$309.5 million, beating the estimated C$303.9 million.
- Analysts have rated the stock with 2 buys and 4 holds, with no sell ratings.
A look at Canadian Western Bank Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Canadian Western Bank, a Schedule I chartered bank in western Canada, shows a positive long-term outlook based on its Smartkarma Smart Scores. With high scores in Value and Momentum, the company is positioned well for growth and potential returns. The Value score indicates that the company is currently undervalued compared to its intrinsic worth, presenting an opportunity for investors. Additionally, its strong Momentum score suggests a positive trend in the stock price, reflecting investor confidence and potential future growth.
Although Canadian Western Bank has lower scores in Dividend, Growth, and Resilience, the overall outlook remains promising. The company’s focus on commercial loans, real estate financing, and retail services provides a diversified revenue stream. While there may be room for improvement in certain areas like growth and resilience, the high scores in Value and Momentum indicate a solid foundation for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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