Summer Sale
50% off Premium Yearly
Opinions Jerome Hass
Canadian Western BankCWB.TOCOMMENTFeb 08, 2016
Jerome HassStock price when the opinion was issued
As of Feb 04, 2025. Market Open.
You might be interested:
Likes this bank because it is run differently than other Canadian banks (more energy clients). Fundamentals of bank look good. Technical aspects of chart look great. Believes stock could hit $40. Will continue to hold.
Keith Richards
EPS of $0.88 beat estimates of $0.8209 and revenues of $283.51M beat estimates of $276.84M. Net income available to shareholders was $83M, an increase of 19% compared to the prior quarter. Management noted its strong financial results were driven by branch-raised deposit growth, improved sales, and discipline on managing expenses. Its annual loan growth of 6% led net interest income higher by 5%, and overall the market was pleased with these results. Management expects mid single-digit percentage growth in loans and low single-digital percentage growth in branch-raised deposits growth for FY2023. There are some concerns on the economy ahead from management, however, it believes its prudent lending approach and expense management will help to offset some of this weakness. Overall this was a decent quarter for the company.
Unlock Premium - Try 5i Free
Very cheap. Strong balance sheet, decent yield, very nice upside potential. The West is coming back thanks to oil. Banks in general have been under pressure to raise more reserves. Rising interest rates are mixed for the banks.
Ross Healy
Largely a regional bank. Reasonable-sized commercial business outside Western Canada. Prefers the bigger banks, with their diversification by line of business and geography. Applauds its efforts to grow, but banking is increasingly a business where size and scale gives the big players an advantage.
This bank had a great run over the previous 10 years, but has gone through a rough patch recently. He is Short this, largely because of its exposure to Western Canada. Thinks there is a rough patch coming. If you look at how they performed in 2008-2009, a lot of the provisions really didn’t come in until late 2009, and carried on until 2011. Feels the market is not anticipating some of the issues they are going to have. Also, in the last conference call, they have a very substantial “preferred share book” which has been very hard hit. They did not take a write down to that portfolio, but it they wrote it down to its current market value, it would essentially wipe out at least the last quarter if not more in terms of earnings. He can still see a 10%-20% downside.