Western Financial Sees Stellar 2-Q Earnings Gain

Alberta-based broker network and bank Western Financial Group (TSX: WES) saw net earnings for the first half of this year more than double to $2 million compared with the $957,000 reported for the first six months of 2003. This translates to earnings of 9 a share against the 5 a share reported the year prior (reflecting an 80% gain in earnings per share over the 12 months).

The company’s revenue for the first half of 2004 rose 23% year-on-year to $19.6 million from the $16.0 million produced a year ago. The group’s banking operation posted a $491,000 loss for the first half of this year, with its “corporate operations” also reflecting a loss of $1.1 million. However, Western Financial’s core broker business posted pre-tax earnings of $5.5 million for the latest six month period compared with the $4.1 million shown the year before.

For the second quarter ending June 2004, Western Financial produced net income of $1.2 million, showing a 40.6% year-on-year increase over the $834,000 in earnings posted the year prior. However, earnings dropped to 5 a share for the latest quarter from the 6 a share made at the end of the same period last year. The company’s revenue for the second quarter of this year rose by 16.3% to $10.7 million compared with the $9.2 million reported for the second quarter of 2003.