03:07 PM EDT, 05/31/2024 (MT Newswires) -- Canadian Western Bank ( CWESF ) reported Q2 core cash EPS of $0.81 vs. NBF $0.87 and consensus of $0.86.

CWB reported softer than expected second quarter results, writes National Bank's Gabriel Dechaine. A primary issue was the weaker than expected top line, with flat loan growth (and, in turn, NIM) weighing on performance for the second consecutive quarter.

Dechaine has cut loan growth forecasts for the year, with modest growth anticipated in 2025, assuming Bank of Canada rate cuts are delivered. Credit performance was another soft spot, with PCLs and GILs both exceeding expectations. "Like other banks, CWB has been hit by impaired loan formations in the trucking sector. While this category is expected to generate more formations in the second half, we believe the pace will be slower than what was evident this quarter."

Target cut to $30, from $37. Maintain Outperform.

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