EDMONTON, May 25, 2011 /CNW/ - ATB Financial (ATB) saw record revenues
and net income of $198.5 million in 2010-11, as interest income grew,
its loan portfolio strengthened, and the organization began to recover
previous provisions on asset-backed commercial paper (ABCP).
For the year ending March 31, 2011, net income increased 55.7 per cent
on operating revenues that exceeded the $1-billion mark for the first
time in the history of Alberta's biggest homegrown financial
Net loans (including securitized mortgages) grew 4.4 per cent to $25.0
billion, while total personal and business deposits increased 5.1
percent to $21.0 billion.
Provisions for credit losses improved to $28.5 million, a 51.7 per cent
drop from 2009-10, while ATB recovered $28.8 million on ABCP as the
investment's risk decreased and its estimated value improved.
Dave Mowat, ATB Financial's President and CEO, said the numbers add up
to "an encouraging year that demonstrates the strength and capability
of our business and again proves the value of ATB to Albertans."
"We're building an ATB that fires on all cylinders regardless of the
economic cycle. In fact, ATB did more business than ever during the
recent downturn - and it was good business. That shows on a solid
balance sheet, and it benefited 680,000 Albertans who relied on our
expertise, advice and deep understanding of the province during a tough
patch in the economy."
ATB expensed a payment in lieu of tax of $59.3 million (up $21.2 million
from last year) to the provincial government, and paid an additional
$24.5 million in deposit guarantee fees.
It continues to work toward meeting certain key aspects of the
international banking regulatory standard Basel II this summer, and is
ready to switch to International Financial Reporting Standards (IFRS),
Canada's new accounting standard.
"Basel II, the move to IFRS, our payment-in-lieu-of-tax, our increasing
deposit guarantee fee, our market-based products and services - all
show that ATB aims to be seen in the same competitive and regulatory
light as other Canadian financial institutions. Yes, we have a unique
ownership structure, but the playing field itself is more level than
ever," Mowat said.
Retail Financial Services (RFS) - ATB's largest line of business includes branches and agencies
throughout Alberta. Assets, primarily consisting of loans, stood at
$15.7 billion at year-end. Operating revenue was $428.3 million.
(Comparables to last year's year-end are not available, as 2009-10
results for this line comprised both RFS and a realigned line of
business, Independent Business and Agriculture.) RFS opened two new
branches during the year, Sylvan Lake and Medicine Hat Northlands, and
built newly expanded premises at Lethbridge Paramount and Red Deer
Independent Business and Agriculture (IB&Ag) - Newly created in the first quarter of the fiscal year, IB&Ag provides
services to Alberta's small businesses, farmers and other agriculture
customers. Assets stood at $4.1 billion at year-end. Operating revenue
was $256.0 million. IB&Ag was officially launched to Albertans through
the Ingredients for Success campaign, which focused on Alberta
Corporate Financial Services (CFS) - CFS provides services to Alberta's mid- and senior-market companies
in three sub-lines - Energy, Commercial, and Food & Forestry. CFS's
assets increased $252 million year-over-year to $5.3 billion. Operating
revenue was $228.0 million, an increase over last year of $18.3
million, or 8.7 per cent. ATB also took a 19.9-per-cent interest in
AltaCorp Capital Inc., a Calgary-based financial advisory service firm
that provides investment banking to the three cornerstones of the
Alberta economy - energy, agriculture and technology.
ATB Investor Services (IS) - IS grows and protects wealth for more than 52,000 customers. IS
continues to build assets under management and administration, which
increased to $6.3 billion in 2010-11, up $1.1 billion, or 21.5%, from
last year. This year, IS piloted ATB Connect, which uses
high-definition video-conferencing technology to link customers across
Alberta to investment advisers in urban locations.
ATB in the Community - In 2010-11, ATB's associates contributed more than $2.7 million
through a combination of charitable donations, fundraising and
volunteer time. Associates raised $630,000 for the United Way and
$600,000 for the Stollery and Alberta Children's Hospital foundations
through the Teddy for a Toonie campaign. New programs launched during
the year included a major sponsorship of the Art Gallery of Alberta, a
post-secondary bursary program for Alberta students formerly in
government care, and an elementary school program called Junior ATB,
which sees students run real working banks in their classrooms.
About ATB Financial - ATB Financial is the largest Alberta-based financial institution,
with assets of $27.4 billion. It provides personal, independent
business, agriculture, corporate, and investor financial services to
more than 680,000 Albertans in 242 communities. It provides service
through 167 branches and 130 agencies, telephone and Internet banking,
a Customer Contact Centre, and Automated Banking Machines. ATB
Financial 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 50 Best Employers by Report on
For complete year-end financial results, including Management's
Discussion and Analysis and ATB's 2010-11 annual report, please visit
SOURCE ATB Financial
For further information:
Shawn Ohler, Director of External and Media Relations
(780) 913-8905 (cell); (780) 408-6529 (office); email@example.com