Post by
DeanEdmonton on May 28, 2021 10:18am
Improved Earnings, but Still Some Large performance Gaps
While earnings are up markedly, it is the result of much lower loan loss provisions compared to the same p[eriod last year. There is 7% loan growth and 18% growth in branch sourced deposists but this Bank is still heavily dpenadant on wholesale deposits to fund their loan book. Loans are running at 32 billion versus branch deposits of 18 billion. Net interest margins are weak and other income is not spectacular either. ROE is running at under 11% and Tier one capital is adequate but not growning nearly as fast as it is in the bigger Banks. Overall, I would say this Bank's share price is well ahead of its current performance. I would look at National or Royal long before buying CWB at these levels.
Comment by
DeanEdmonton on Apr 09, 2022 12:10pm
I posted this back in May 2021. I remain of the same opinion. CWB share price have not performed anywhere near as well as its bigger competitors. There is a very good reason why it trades at lower PE and below book.