Concentra Bank (Concentra) posted solid first quarter financial results, as reported to shareholders on June 14, 2018 via the company's Q1 Investor Relations update.
Also reported, the Concentra Board of Directors declared a first quarter cash dividend of $0.139539 per common share, representing a $1.34 million total quarterly payment to common shareholders.
Concentra's financial performance was highlighted in the Q1 year-to-date results with Concentra recording a net income of $10.7 million, up from $8.5 million in 2017; and generating a return on equity of 11.1%, an increase from the 9.1% reported in the year prior. Concentra adopted IFRS 9 effective, January 1, 2018 resulting in a transitional adjustment of a $9.4 million reduction to opening retained earnings. The Q1 results are reported in accordance with IFRS 9.
Concentra ended the quarter with total reported assets of $9.2 billion, with CET-RWA and leverage ratios of 13.1% and 4.6%, respectively. Concentra maintains a high quality composition of capital, with levels increasing through 2018, and in excess of regulatory minimum requirements.
Notable business highlights from Q1 include:
- strong results in commercial lending
- Alt A volumes beat expectations
- consumer lending volumes outpaced expectations
- continued improvement in portfolio credit quality
- continued diversification of funding sources
Also noteworthy, Concentra was named one of Canada's Best Managed Companies for the 15th consecutive year, retaining its Platinum Club designation. The Best Managed program continues to be a mark of excellence for Canadian-owned companies with revenues over 15 million.
In summary for Q1, Concentra remains focused on delivering value to owners through consistent dividends, and building a stronger franchise model.
Concentra delivers a quarterly dividend payment to provide a more frequent and consistent return to our common shareholders. Since 2005, Concentra has returned $75 million in dividend payments to common shareholders1, executing on its strategy to drive growth in the credit union system.
Demonstrating consistently strong financial performance and shareholder returns reinforces the value Concentra provides for Canadian credit unions.
Quarterly Results Materials
Detailed quarterly results materials, including the webcast, presentation, and the Investor Fact Sheet are available
Caution Regarding Forward-Looking Statements
From time to time Concentra makes written and verbal forward-looking statements. These are included in the MD&A, periodic reports to shareholders, regulatory filings, press releases, Concentra presentations and other Concentra communications. Forward-looking statements are made in connection with business objectives and targets, Concentra strategies, operations, anticipated financial results and the outlook for Concentra, its industry, and the Canadian economy. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of Concentra to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, changes in accounting standards, the nature of our customers and rates of default, competition, and other.
All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting Concentra and the Canadian economy. Although Concentra believes the assumptions used to make such statements are reasonable at this time there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by Concentra in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its lending business, a continuation of the current level of economic uncertainty that affects market conditions, continued acceptance of its products in the marketplace, and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Concentra does not undertake to update any forward-looking statements that are contained herein.
1 Formerly class A shares.