Canadian Western Bank said on Thursday its quarterly profit increased 9% as solid loan growth offset lower net interest margins.

Edmonton-based CWB reported net income of $28.7 million, or 38¢ a share, for the third quarter ended July 31. That’s up from $26.3 million, or 41¢ a share, in the year-earlier period.

The bank issued preferred shares in March, which diluted the per share earnings.

CWB said total loans increased 12% from a year ago, while net interest margin was 12 basis points lower.

Total revenues for the quarter were a record $85.5 million, up 12% from a year ago. The increase was helped by record quarterly net income from the insurance segment of $3.2 million, up 30%.

The provision for credit losses rose to $3.4 million, up 11% from $3 million a year ago.

Tier I capital rose to 11.2%, and the quarterly dividend was unchanged 11¢ cents a share.

“We are pleased with both our third quarter and year-to-date results, particularly given the impact from margin compression and a recessionary environment,” said Larry Pollock, president and CEO, in a release.

CWB offers personal and commercial banking in Canada’s western provinces of Manitoba, Saskatchewan, Alberta and British Columbia.

http://www.newswire.ca/en/releases/archive/September2009/03/c9609.html