CM - Canadian Western Bank: Outlook Remains Favorable Despite Recent Pullback In Its Share Price
Investment Thesis
The share price of Canadian Western Bank (CBWBF) [TSX:CWB] has pulled back by about 15% since mid-August 2018. Nevertheless, its outlook remains favorable. The bank continues to expect net interest margin expansion in 2018 and 2019. In addition, its mortgage loans are expected to continue to grow at rates much higher than other larger Canadian banks. The bank currently pays a dividend with a dividend yield of about 3.1%. Its shares are slightly undervalued.
CWB data by YChartsOutlook Remains Favorable
Net interest margin expansion
About 90% of Canadian Western Bank’s