CORRECTED-Canadian Western sets aside more money for loan losses

Tue May 3, 2016 2:19pm EDT
 
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(Corrects to change currency to Canadian dollars from U.S. dollars in paragraph 4)

May 3 (Reuters) - Canadian Western Bank said it set aside more money to cover bad loans for the full year, hurt by weak oil prices.

The bank said it expects annual provision for credit losses to be between 0.35 percent and 0.45 percent of average loans. The company had earlier forecast it at the higher end of a 0.18 percent-0.23 percent range.

A more then 60 percent drop in oil prices has forced banks to cut credit lines for oil and gas companies.

For the second quarter, Canadian Western has recorded about C$40 million for loan losses, including C$33 million for losses on the oil and gas production portfolio.

Canadian Western said it expected to post a profit for the second quarter on June 2.

Canadian Western's direct exposure to the energy industry is about 5 percent of total loans outstanding, the company said in March. (Reporting by Arathy S Nair in Bengaluru)