The top executive at Canadian Western Bank (CWB) says the lender is well-positioned for any potential losses from credit risk.

Chris Fowler spoke with BNN Bloomberg Friday after CWB released fourth-quarter earnings that reported a profit increase and higher net income. 

Common shareholders’ net income came in at $76 million, up from $67.7 million a year earlier, and the Edmonton-based bank also reported fourth-quarter credit-loss provisions of $9.8 million, lower than the $12.2 million figure a year ago. 

Fowler, president and CEO at Canadian Western Bank, said the organization is focused on navigating its way through a volatile economy, and considering economic trends to set up its provisions. 

“We sit in what we believe is a very good position in our total provision for credit loss,” Fowler said.

“We want to always be on top of that, be really aware of the impact of those macro economic factors on your portfolio, you want to be ready for it.”

Provisions for credit losses refer to the practice of determining an allowance for credit losses and bringing it in line with the amount absorbable in a portfolio, according to a definition published by TD Bank.

Canadian banks have raised loan-loss provisions amid higher interest rates to account for consumers potentially failing to pay back loans. 

EARNINGS REACTION

Shares for Canadian Western Bank were trading up on Friday afternoon following the earnings release.

TD Cowen said it viewed CWB’s fourth-quarter results as positive, with analyst Marcel Mclean writing in a Friday note that provisions for credit losses were “much better” than the estimate of $20.2 million.