On a year-to-date basis, net income available to common shareholders was up 5% ($6.8 million) to $136.0 million, while diluted earnings per common share increased 2% ($0.03) to $1.71. Adjusted cash earnings per common share declined 1% to $1.74. The difference in the rate of growth between diluted and adjusted cash earnings per share relates to the exclusion in adjusted cash earnings per share of the non-tax deductible change in fair value of contingent consideration related to the 2010 acquisition of National Leasing and the after-tax amortization of acquisition-related intangible assets. The lower growth rate of adjusted cash earnings per share compared to net income available to common shareholders reflects the foregoing, as well as the impact of CWB common shares issued in the third quarter of 2012 in settlement of the contingent consideration associated with National Leasing. Growth in total revenues (teb) of 7% ($27.5 million) was driven by a 6% ($20.0 million) increase in net interest income (teb) and 11% ($6.8 million) growth in other income. The year-to-date net interest margin (teb) of 2.68% was 13 basis points lower than the prior year while non-interest expenses were up 11% ($19.5 million).
Third quarter return on common shareholders' equity (ROE) of 14.0% was 210 basis points lower than the same period in 2012, but up 60 basis points compared to the prior quarter. Year-to-date ROE of 13.9% was 150 basis points lower than the same period last year. Third quarter return on assets of 1.06% compares to 1.19% a year earlier and 1.00% last quarter. Year-to date return on assets was 1.04%, compared to 1.10% in 2012.
Investment in McLean & Partners
On May 17, 2013, CWB completed its previously announced strategic acquisition of 55% ownership of McLean & Partners, a Calgary-based wealth management company. The investment complements CWB's existing wealth management businesses and supports the Bank's strategic objectives to deepen client relationships, diversify revenue and augment future earnings growth. At the outset, the acquisition is slightly accretive to adjusted earnings per common share, but has a modest negative impact on the efficiency ratio. There was no material impact on capital ratios. The addition of McLean & Partners' $896 million of assets under management brings CWB's total to $1,811 million as at July 31, 2013.
Total Revenues (teb)
Total revenues, comprised of both net interest income (teb) and other income, grew 5% ($7.6 million) compared to the same quarter in 2012 and 6% ($8.8 million) over previous quarter to reach $145.7 million. Year-to-date total revenues were $419.8 million, up 7% ($27.5 million) compared to the same period last year.
Net Interest Income (teb)
Q3 2013 vs. Q3 2012
Net interest income of $122.7 million was up 6% ($7.5 million) over the same quarter last year as the revenue contribution from strong loan growth of 12% was offset by an 11 basis point reduction in net interest margin to 2.74%. The change in net interest margin mainly resulted from lower loan yields reflecting the combined impact of sustained very low interest rates and ongoing competitive influences, as well as lower loan fees and payout penalties, partially offset by more favourable fixed term deposit costs.
Q3 2013 vs. Q2 2013
Compared to the previous quarter, net interest income was up 8% ($9.1 million) reflecting the combination of three additional revenue-earning days, a nine basis point increase in net interest margin (teb) and ongoing loan growth. The sequential increase in net interest margin primarily resulted from implementation of the Bank's strategy to reduce average liquidity to a prudent level based on the current economic environment.
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