Canadian Western Bank announced updated expectations for its second quarter fiscal 2016 provision for credit losses. In view of the weak oil price environment and borrowing base redeterminations that reflect current information, CWB has recorded approximately $33 million of second quarter provisions for credit losses on the oil and gas production portfolio. CWB now expects the consolidated second quarter provision for credit losses to be approximately $40 million.

“This unusual level of provisioning directly reflects the current impact of persistent low energy prices on our oil and gas production clients. Our capital ratios are strong, and outside of this portfolio credit quality is consistent with our prior expectations,” said Chris Fowler, president and CEO. “We previously indicated that we expected our fiscal 2016 annual provision for credit losses to be at the high end of a range between 18 and 23 basis points as a percentage of average loans. We now expect the annual provision to fall in a range between 35 and 45 basis points.”