EDMONTON, Nov. 10, 2016 /CNW/ - Loans, deposits and operating revenue all grew year-over-year as ATB Financial reported its results for the second quarter of the fiscal year. Those factors contributed to $35.2 million in net income for the quarter ending September 30, 2016. While ATB's net income is down 38.4 per cent compared to the same quarter last year, it's up more than $10 million from the previous quarter ending June 30, 2016.
Lower loan loss provisions played the biggest role in the recent increase in profit. During the second quarter, ATB recorded a loan loss provision of $78.5 million compared to $93.5 million in the previous quarter.
"Loan loss provisions are still having a major impact on ATB's bottom line as low commodity prices continue to affect the Alberta economy," said Dave Mowat, ATB's President & CEO. "However, as prices begin to stabilize, we believe there's reason for cautious optimism."
Compared to the same quarter a year ago, ATB's loan portfolio grew by 3.7 per cent to $40.5 billion, while deposits grew by 3.3 per cent to $33.4 billion. ATB's second quarter operating revenue of $372.7 million was just over one per cent more than what was generated in the same quarter a year ago.
"Economic uncertainty makes for big challenges and we've had our share of those," added Mowat. "Still, we've managed to win new business by listening to Albertans and providing the best possible solutions for them. We're still helping new and existing customers and businesses, and we're strengthening partnerships in our communities."
ATB's second quarter highlights included:
- Enhancement of online and mobile packages to make it easier for customers to do their banking.
- Ranking number one in Alberta for small businesses in the CFIB's Battle of the Banks.
- Launch of the unique Choose Alberta GIC, which includes a bonus that increases as Alberta's employment rate improves.
To hear more from Mowat on ATB's second quarter results, watch this video.
Meanwhile, ATB Investor Services' assets under administration grew by $1.7 billion since last year's second quarter to $15.6 billion. ATB Investor Services generated net income of $9.7 million during the second quarter, up 19.1 per cent over the same quarter a year ago.
In the community, ATB announced its 16th annual Teddy for a Toonie campaign raised $804,000 for the Stollery and Alberta Children's Hospitals. ATB Centre, the City of Lethbridge's newest and largest recreation centre, officially opened its first phase in September.
And ATB sponsored numerous community events across Alberta including the Tour of Alberta professional road cycling stage race, Mackenzie Tour-PGA Tour Canada's ATB Financial Classic in Calgary, Edmonton's International Fringe Theatre Festival, Edmonton Symphony Orchestra's Symphony in the City and Symphony Under the Sky, and Calgary Pride Festival.
For ATB's complete second quarter results, click here.
Q2 FY 17 By the Numbers
$35.2 M – Net Income
38.4% - Decrease from Q2 16
$372.7 M – Operating revenue
1.0% - Increase from Q2 16
$40.5 B – Loans
3.7% - Increase from Q2 16
$33.4 B – Deposits
3.3% - Increase from Q2 16
$47.9 B – Total assets
5.2% - Increase from Q2 16
Q2 FY 17 By the People
3,566 – New customers
5,013 – Team members
SOURCE ATB Financial
For further information: For more information or interview requests, please contact: Barry Strader, Corporate Reporter, ATB Financial, 780-495-1343 (office); 780-886-4398 (mobile), email@example.com