March 3, 2016 11 am eastern

The Canadian Western Bank Q1 earnings report was released this morning. The results were relatively good (earnings flat) considering the fears of large loan losses. The stock is up about 4.6%. I suspect that the difficulty (why the stock is not higher) is that when they reported good results, “the market”, being fearful then suspects that the loan losses simply have not shown up yet but will come. That is certainly partly true but the bank continues to forecast that loan losses will not be at a threatening level though they could certainly lead to a year of low profits.