CBWBF - Canadian Western Bank: COVID-19's Impact On Provisions Appears To Have Peaked

Earnings of Canadian Western Bank (CBWBF) plunged by 28% sequentially to C$0.59 per share in the second quarter of this fiscal year. A surge in provision expense amid the COVID-19 pandemic and the contraction in net interest margin were the major contributors to the earnings decline. The bank’s earnings will likely improve in the remaining half of the year from the second quarter’s decline. The second quarter’s provisioning will likely cover the pandemic-driven loan impairments in the remainder of the year; hence, the provision expense will likely decrease in the year ahead.

Moreover, loan growth