September 1, 2010 / 9:29 PM / 7 years ago

UPDATE 1-Canadian Western Bank profit rises on acquisition

* Adj EPS C$0.48 vs est C$0.45

* Revenue rises 30 pct

TORONTO, Sept 1 (Reuters) - Canadian Western Bank (CWB.TO) said on Wednesday its third-quarter profit surged 47 percent, as interest margins were helped by the February acquisition of equipment lender National Leasing.

Edmonton, Alberta-based CWB earned C$46.6 million ($44.4 million), or 59 Canadian cents a share, in the quarter ended July 31, up from C$28.7 million, or 38 Canadian cents a share, a year earlier.

Stripping out certain tax items, the bank earned 48 Canadian cents a share, it said.

Analysts on average had expected a profit of 45 Canadian cents a share, according to Thomson Reuters I/B/E/S/.

Quarterly revenue at the bank, which does much of its business with Alberta’s energy sector, rose 30 percent to a record C$111.0 million, the regional lender said.

“While we are optimistic about the economic outlook for our markets, particularly over the long term, lingering recessionary impacts are still apparent, most notably in Alberta,” Chief Executive Larry Pollock said in a statement.

“Our pipeline for new loans remains in line with expectation and we plan to continue our long history of double-digit loan growth,” he said.

Canadian Western paid C$130 million in cash and stock for National Leasing, part of Pollock’s plan to double the size of Canadian Western Bank from last year’s levels over the next four years.

The bank’s Tier 1 capital ratio, a closely-watched measure of a bank’s stability edged up to 11.4 percent from a year-before 11.2 percent.

$1=$1.05 Canadian Reporting by Cameron French; editing by Peter Galloway

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