Canadian Western Bank Raises Dividend as Profit Rises to Annual Record
Canadian Western Bank, the country’s eighth-biggest lender, raised its dividend for the first time since 2008 after reporting record annual profit.
“We had an outstanding year; it will be hard to repeat that,” Chief Executive Officer Larry Pollock, 63, said today in an interview. “This is about as good as it can get in every respect.”
The quarterly payout rose by 2 cents, or 18 percent, to 13 cents a share, the Edmonton, Alberta-based bank said today in a statement. Net income for the period ended Oct. 31 rose 29 percent to C$39.1 million ($39 million), or 48 cents a share, from $30.4 million, or 39 cents, a year earlier.
Canadian Western has posted 90 consecutive profitable quarters, the longest current streak among Canadian banks. Revenue rose 24 percent to C$108.4 million.
Canadian Western said it had adjusted profit of 49 cents a share, compared with the 48-cent estimate of eight analysts surveyed by Bloomberg.
Canadian Western rose C$1.07, or 4 percent, to C$28.19 by the 4 p.m. close of trading on the Toronto Stock Exchange, the highest since February 2008. The stock has risen 28 percent this year, outpacing the 5.8 percent increase of the 10-company S&P/TSX Banks Index.
The bank posted record annual profit of C$163.6 million, surpassing last year’s record profit of C$106.3 million.
Laurentian Bank of Canada, the last Canadian bank to release fourth-quarter earnings, is scheduled to report results tomorrow.