Canadian Western Bank enjoying fruits of Canadian Direct purchase

In its first earnings release since acquiring Canadian Direct, Edmonton-based Canadian Western Bank says the insurance arm brought in $1.2 million in net income for the second quarter of 2004. Canadian Direct, which was acquired from HSBC Bank during the quarter, produced income per share of $0.08 on a dilute basis, its new parent reports. Canadian Direct was able to pull in a strong combined ratio of 89% for the quarter as well.”We are very pleased with the results generated by newly acquired Canadian Direct Insurance this quarter, an acquisition that diversifies our operations by adding a third pillar of the financial services industry,” states the Canadian West earnings release. Canadian Western says it plans co-branding initiatives to increase awareness of both the parent bank and its insurance arm. “We also continue to explore growth opportunities for both companies within our growing base of customers.”Overall, Canadian Western produced record net income of $11.7 million ($0.79 per share) for the quarter, up $1.3 million from a year ago.