ATB's 1st quarter delivers solid profit
EDMONTON, Aug. 22, 2013 /CNW/ - ATB Financial (ATB) has started the current fiscal year by maintaining strong momentum in earnings and growth, and, against a backdrop of natural disaster, displaying deep commitment to Alberta communities.
"In both Fort McMurray and southern Alberta, ATB associates instinctively knew what was needed and they did it," said Dave Mowat, ATB's President and CEO. "That created an on-the-ground response on both humanitarian and financial fronts that was immediate and effective."
Notwithstanding a $10 million provision for flood-related losses, net income for the quarter ended June 30, 2013, was $65.8 million, up $11.6 million, or 21.5 per cent, from the same quarter last year.
Non-interest expenses were $222.6 million, an increase of 3.2 per cent from the same quarter last year. Total operating revenue for the first quarter was $324.7 million, an increase of $34.1 million, or 11.7 per cent, from the first quarter of 2012.
Net loans and total deposits both saw gains in the first quarter. Net loans stood at $30.7 billion, up $3.2 billion, or almost 12 per cent, from a year ago, while total deposits increased by $1.2 billion, or 5.1 per cent, to $24.1 billion over the same quarter last year.
"We are seeing thousands of new individual and business customers every month," Mowat said. "This growth, combined with increasing efficiency, tells the story of ATB's first quarter."
Retail Financial Services - This line of business includes branches and agencies throughout the province. Operating revenue was $113.4 million, an increase of $3.7 million, or 3.4 per cent, over the same quarter last year. ATB's retail line planned for the introduction of clear mortgage rates, which occurred, to both industry and consumer applause, earlier this month.
Business & Agriculture - This line of business provides services to Alberta's small- and mid-sized business, farm and agricultural customers. On healthy loan and deposit growth, operating revenue was $73.4 million, an increase of $6.2 million, or 9.2 per cent, over the same quarter last year. Business & Agriculture associates took a leading role in the current YYC Is Open initiative, a campaign encouraging Albertans to support flood-affected small business. The program will soon expand to southern Alberta communities.
Corporate Financial Services - This line of business provides services to Alberta's senior-market companies in energy, commercial, and food, forestry and real estate. Operating revenue was $83.6 million, up $19.1 million, or 29.7 per cent, over the first quarter last year.
Investor Services - This line of business offers its customers integrated wealth management expertise. Investor Services enjoyed its best-ever start to the year and biggest market share gains in any quarter. Assets under management surpassed the $9-billion mark. Operating revenue of $24.0 million was up $5.6 million, or 30.1 per cent, from the same quarter last year.
ATB Governance - ATB was a finalist for the Best Overall Corporate Governance award at the Canadian Society of Corporate Secretaries' Excellence in Governance Awards held in Halifax earlier this month. ATB was also nominated in the categories of Best Sustainability, Ethics and Environmental Governance Program and Best Approach to Board and Committee Support.
ATB In The Community - The first quarter saw ATB donate $100,000 to the Red Cross and establish a Canadian Red Cross Relief Fund at branches across the province to respond to the southern Alberta floods.
About ATB Financial - ATB Financial is the largest Alberta-based financial institution, with assets of more than $33 billion. ATB provides personal, business, agriculture, corporate and investor financial services to more than 662,000 Albertans and Alberta-based businesses in 242 communities. ATB provides service through 171 branches and 130 agencies, mobile, telephone, and online banking, a Customer Care Centre, and automated banking machines. ATB was established in 1938 and has been a provincial Crown corporation since 1997. ATB has won numerous national workplace awards, including recognition as one of Canada's best 50 employers.
ATB Financial turns 75 this year.
|FY 2014 Q1 HIGHLIGHTS|
|For the three months ended|
|June 30||March 31||June 30|
|($ in thousands)||2013||2013||2012|
|Net interest income||$ 231,821||$ 224,213||$ 206,620|
|Total operating revenue||324,745||341,396||290,661|
|Provision for credit losses||16,632||19,949||4,534|
|Net income before PILOT||85,495||96,831||70,383|
|Payment in lieu of tax||19,664||23,076||16,188|
|Net income||$ 65,831||$ 73,755||$ 54,195|
|Net loans||$ 30,682,145||$ 29,658,461||$ 27,448,066|
|Total assets||$ 33,741,492||$ 33,080,094||$ 32,017,670|
|Total deposits||$ 24,083,077||$ 23,731,371||$ 22,914,585|
|Equity||$ 2,310,981||$ 2,255,461||$ 2,125,899|
|Key performance measures (%)|
|Return on average assets||0.78||0.91||0.69|
|Operating revenue growth||11.7||17.9||5.9|
|Other income to operating revenue||28.6||34.3||28.9|
|Operating expense growth||3.2||(0.1)||8.8|
|Net interest spread||2.9||2.9||2.8|
|Credit losses to average loans||0.22||0.27||0.07|
|Net impaired loans to total gross loans||0.22||0.26||0.32|
|Net loan growth1||11.8||11.0||6.2|
|Total asset growth1||5.4||6.6||1.7|
|Total deposit growth1||5.1||6.8||4.1|
|1 Measures are calculated by comparing current quarter balances against the same quarter of the previous year.|
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