March 4, 2010 / 1:54 PM / 8 years ago

UPDATE 1-Canadian Western Bank Q1 profit rises

* Q1 diluted EPS C$0.52 vs C$0.40 yr-ago

* Beats expectations for C$0.39 EPS

TORONTO, March 4 (Reuters) - Canadian Western Bank (CWB.TO) said on Thursday its quarterly profit rose 56 percent to a record C$40 million as net interest income surged, surpassing analysts’ expectations.

Edmonton, Alberta-based CWB reported net income of C$40.0 million ($38.8 million), or 52 Canadian cents a share on a diluted basis, in the first quarter that ended Jan. 31. That compared with C$25.6 million, or 40 Canadian cents a share, in the same period a year earlier.

The regional bank issues preferred shares in March, which diluted the per-share earnings.

Analysts on average were expecting profit of 39 Canadian cents a share, according to Thomson Reuters I/B/E/S.

The bank said banking and trust earnings surged as the positive impact from a recovery in net interest margin and a 3 percent growth in loans pushed total revenue 27 percent higher.

Net income from insurance was a record C$3.3 million.

Chief Executive Larry Pollack said margins recovered more quickly than the bank had expected, while favorable capital market conditions further boosted earnings.

“While it will be very difficult to duplicate these exceptional results through the remaining three quarters, fiscal 2010 is so far shaping up to be a great year for CWB,” Pollack said in a statement.

CWB offers personal and commercial banking in Canada’s western provinces of Manitoba, Saskatchewan, Alberta and British Columbia. ($1=$1.03 Canadian) (Reporting by Andrea Hopkins, editing by Maureen Bavdek)

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