Revenues break $1-billion mark, net income grows 56 per cent

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 institution.

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.

Operational Highlights

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 North.

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 entrepreneurs.

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 Business Magazine.

For complete year-end financial results, including Management's Discussion and Analysis and ATB's 2010-11 annual report, please visit www.atb.com

SOURCE ATB Financial

For further information:

Shawn Ohler, Director of External and Media Relations
ATB Financial
(780) 913-8905 (cell); (780) 408-6529 (office); sohler@atb.com


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