ATB Financial records best year yet

EDMONTON, May 29, 2014 /CNW/ - ATB Financial has closed the books on a record-setting year. Customer loyalty finished at record levels, team member engagement rose to an all time high and those factors combined to post a record net profit for the year ending March 31, 2014, of $276.4 million.

"Alberta is a special place with talented people and great businesses and we have assembled ATB team members who love the challenge of keeping up to them," says Dave Mowat, ATB's President & CEO.

"Albertans are shaping the future in one of the strongest economies anywhere in North America," he says. "Combine that fact with the dedication and innovation of ATB team members, and add the loyalty of our growing number of customers, and you get some pretty impressive results for Albertans and for ATB."

Record loan and deposit growth were the main drivers of ATB's results. Loans grew by $4.2 billion or 14.3 per cent over the previous fiscal year, to reach $33.9 billion. Total personal and business deposits increased by 15.1 per cent to reach $27.3 billion. ATB's total assets now stand at $37.7 billion, up 13.9 per cent compared to last year.

ATB generated $1.4 billion in operating revenue compared to $1.2 billion in the previous fiscal year, an increase of 9.8 per cent. Net interest income increased by $87.9 million, or 10.0 per cent, to $966 million.   

The 2013-14 fiscal year saw ATB's provision for credit losses decrease by 7.7 per cent to $42.4 million.

ATB Investor Services enjoyed its best year on record, reaching new heights with $11 billion in assets under management and $17.5 million in net income.

ATB's annual engagement survey of team members achieved its highest ever score with 81 per cent engagement, representing a 4 per cent increase over the previous fiscal year.

Operational Highlights

ATB's four areas of expertise feature more than 5,055 team members serving more than 676,000 Albertans and Alberta-based businesses. Here's a quick look at what's been keeping them busy.

Retail Financial Services – This area of expertise includes branches and agencies across Alberta. Assets, primarily consisting of loans, stood at $18.5 billion, up from $16.7 billion last year. Operating revenue was $461.6 million, consistent with the prior year. During the fiscal year, RFS introduced Clear-Cut mortgages, posting our best rates and simplifying the customer experience. RFS also launched Alberta Private Client to serve high net worth customers with customized financial advice.

Business and Agriculture – This area of expertise provides services to Alberta's small- and mid-sized businesses, farmers and other agriculture customers. Total assets were $5.7 billion at year-end, up from $4.8 billion the previous year. Operating revenue was $298.2 million, up from $274.9 million the year previous. During the fiscal year, Business and Agriculture developed a game-changing approach to limit personal guarantees on business loans. Business and Agriculture also launched the quarterly Business Beat survey and ATB Business and ATB Economy Indexes to monitor Alberta's business climate.

Corporate Financial Services – This area of expertise provides services to Alberta's senior-market companies in energy, commercial, and food, forestry and real estate. Assets increased by $1.6 billion to over $9.7 billion. Operating revenue was $341.6 million, up from $293.8 million the previous year. In 2013-14, CFS launched the Mezzanine Debt Program for Alberta's exploration and production market, and introduced, together with Business and Agriculture, ATB Equipment Finance, to provide solutions for major equipment purchases.

ATB Investor Services – Investor Services focuses on producing greater prosperity for our clients. ATBIS increased assets under management and administration to $11 billion, up by $2.4 billion from the previous year, while mutual fund assets grew by 32 per cent, doubling industry growth. Operating revenue of $105.3 million was up 30.7 per cent from $80.6 million the previous year. During the fiscal year, ATBIS launched ATB Online Advice, the first ever website allowing Albertans to plan online for investment and debt goals, with support from qualified advisors.

ATB in the Community – In 2013-14, ATB's Corporate Social Responsibility and Community Investment team oversaw numerous projects, events, donations, sponsorships, and fundraisers that show just how much Alberta means the world to us. Highlights include $2.9 million in corporate donations, $2.5 million in fundraising, and $5.5 million in sponsorships. ATB team members volunteered a total of 28,000 hours to worthy causes across the province, including the cleanup efforts following the devastating floods in southern Alberta in June.

About ATB Financial – ATB Financial is the largest Alberta-based financial institution, with assets of more than $37 billion. We provide personal, business, agriculture, corporate and investor financial services to more than 676,000 Albertans and Alberta-based businesses at 304 locations across the province as well as online, telephone and mobile banking. ATB has won numerous national workplace awards, including recognition as one of Canada's best 50 employers, one of Canada's top companies for young people, and the only Alberta company to be named one of Canada's Passion Capitalists: companies that grow and protect the energy needed to generate superior results over the long term. ATB was also nominated in four categories in the Canadian Society of Corporate Secretaries' Excellence in Governance Awards, including named a finalist for Best Overall Corporate Governance.

For complete year-end financial results, including Management's Discussion and Analysis and ATB's 2013-14 annual report, please visit www.atb.com.




ATB FINANCIAL



201314 HIGHLIGHTS




2014

2013

For the year ended March 31


restated

Operating results($ in thousands)



Net interest income

$            966,012

$            878,152

Other income 

384,447

351,585

Operating revenue 

1,350,459

1,229,737

Provision for credit losses

42,395

45,923

Non-interest expenses

949,091

869,392

Net income before payment in lieu of tax

358,973

314,422

Payment in lieu of tax

82,564

73,122

Net income

$            276,409

$            241,300

Financial position($ in thousands)



Net loans

$       33,885,144

$       29,658,461

Total assets

$       37,667,229

$       33,080,094

Total deposits

$       27,316,438

$       23,731,371

Equity

$         2,583,934

$         2,255,461

Key performance measures(%)



Return on average assets

0.78

0.75

Operating revenue growth

9.8

9.8

Other income to operating revenue

28.5

28.6

Operating expense growth

9.2

3.1

Efficiency ratio 

70.3

70.7

Net interest spread

2.85

2.85

Credit losses to average loans

0.13

0.16

Net impaired loans to total gross loans

0.10

0.26

Net loan growth

14.3

11.0

Performing loan growth

14.4

11.1

Total asset growth

13.9

6.6

Total deposit growth

15.1

6.8

Return on risk weighted assets (1)

1.1

1.0

Growth in assets under management (1)

28.1

20.8

Other information



Investor Services' assets under management



  and administration ($ in thousands)

$       11,029,074

$         8,608,538

Branches

171

171

Agencies

133

130

ABMs

274

273

Team members (head count) (2)

5,055

5,250




1 These are new key performance measures for the fiscal year.



2 Number of team members includes casual and commissioned associates.



SOURCE ATB Financial

For further information: please contact Glenn Kubish, Director of Media & Story, ATB Financial, (780) 408-6529, (587) 984-5275, gkubish@atb.com