The stock of Canadian Western Bank (CWB) plunged 5% last Friday (Dec. 6) after the financial institution delayed its latest financial results without explanation.
The Edmonton, Alberta-based bank lost more than $300 million in market value in what was its biggest one-day decline since May 2023 after it delayed its fiscal fourth-quarter earnings.
The lender issued a news release at 2:40 a.m. on Dec. 6 saying it plans to report the results by mid-December and canceled a scheduled conference call with no reasons provided.
However, separately, the bank announced that it is raising its quarterly dividend by 3%.
The unusual situation prompted investors and traders to hit the “sell” button on Canadian Western Bank stock, and more selling could occur today (Dec. 9) when markets reopen.
Making matters worse, analysts say the delayed filing of financial results could be a sign that Canadian Western Bank’s $5 billion takeover by National Bank of Canada (NA) is in trouble.
National Bank won approval to acquire Canadian Western Bank in September of this year from Canada’s competition regulator.
However, if there are financial issues at Canadian Western Bank, the deal could be called off, say some analysts who cover the financial sector.
Neither Canadian Western Bank nor National Bank of Canada have commented publicly on the current situation or status of their deal.
National Bank of Canada’s stock fell 3% on Dec. 6 to finish trading at $132.75 per share. The stock has gained 32% year to date.
The stock of Canadian Western Bank is currently at $55.59 per share, having risen 81% this year, largely due to its takeover.
