BNS - Canadian Western Bank: Solid Quarter But 2019 Outlook May Not Be That Bright
Investment Thesis
Canadian Western Bank (CBWBF) ((TSX:CWB)) delivered solid Q1 2019 earnings. However, its top and bottom line growth rates will likely continue to decelerate in 2019 due to weak economic outlook, flat net interest margin, and elevated Canadian household debts. The company’s share price is undervalued. The bank offers a 3.6%-yielding dividend. However, given the current macroeconomic environment, we think conservative investors should wait for a better entry point.
Source: YCharts
Recent Developments: Q1 2019 Highlights
Canadian Western Bank delivered solid Q1 2019 earnings with revenue growth of 10% year over year.