Western Financial achieves earnings boon for 2004

Financial services group and broker network consolidator Western Financial Group (TSX: WES) saw net income almost double last year to $4.22 million compared with the $2.12 million reported for 2003. This equates to earnings of 18c a share for the latest reporting period versus the 11c a share reported for 2003.Western Financial increased 2004 revenue by 29.3% to $42.24 million from the $32.66 million reported the year prior. Although the company’s banking operation, Bank West, was able to boost revenue during 2004 by almost 2.5 times to $695 million (2003: $285 million), the banking business saw its operating income loss rise for the latest reporting period to $1.12 million (2003: $1.03 million). "The strong and growing earnings power of our core business enabled us to continue to invest in future growth business units, such as Bank West, and still show significant overall gains," says company president Scott Tannas.A company statement notes that Bank West continues to build its loan book, which during 2004, grew on average by $2.23 million a month. By the end of 2004, the loan book stood at $43.4 million. During the year, the banking operation launched a credit line combined with MasterCard in a joint arrangement with Wells Fargo. Western Financial also expanded its "WFG Agency Network" of community brokerages during 2004 to 54 locations from 47 offices.