Strong growth drives solid year-end earnings for ATB Financial

EDMONTON, May 29, 2013 /CNW/ - ATB Financial (ATB) recorded a significant increase in profits in the fiscal year ending March 31, 2013.

ATB finished the year with a net income of $244.8 million, an increase of 25.5 per cent over the previous year, on operating revenues of $1.2 billion.

Net loans reached $29.7 billion, an increase of 11.0 per cent compared to last year, while total personal and business deposits reached $23.7 billion, an increase of 6.8 per cent year over year.

Provisions for credit losses were $45.9 million, compared to $23.3 million a year ago, in what is viewed as a return to a more traditional figure for that category.

Meanwhile, ATB recognized an increase of $86.9 million on the value of its asset-backed commercial paper investment as the term to maturity and the risk of loss continue to reduce.

ATB Investor Services had its best year on record, outpacing industry growth and winning for the second year in a row the prestigious Lipper Award in the mixed asset funds group category for its Compass Portfolio Series.

Dave Mowat, ATB's President and Chief Executive Officer, said the financial results highlight ATB's ability to place 75 years of Alberta know-how at the service of businesses and individuals in this province.

"The story of this year at ATB has been the story of resilience," Mowat said. "The associates of ATB have dug into the challenge of organizational and banking system changes and devoted their expertise and effort to serve our loyal customers."

ATB expensed a payment in lieu of tax of $73.1 million to the provincial government, along with an additional $29.0 million in deposit guarantee fees.

Operational Highlights

ATB's four lines of business feature more than 5,200 associates serving more than 654,000 Albertans and Alberta-based businesses. Here's a quick look at what's been keeping them busy.

Retail Financial Services - This line of business includes branches and agencies across Alberta along with a Customer Care Centre, and online, mobile, and telephone banking channels. Assets, primarily consisting of loans, stood at $16.7 billion, up from $16.0 billion last year. Operating revenue was $452.2 million, an increase from the previous year's total of $447.4 million.

Business and Agriculture - This line provides services to Alberta's small- and mid-sized businesses, farmers and other agriculture customers. Total assets were $4.8 billion at year-end, up by $565.8 million over the previous year. Operating revenue was $274.8 million, up from $265.4 million the year previous. During the fiscal year, Professional Practice was introduced as a key part of the line of business strategy, designed to elevate the entire sales force to sales professionals.

Corporate Financial Services - This line provides services to Alberta's senior-market companies in energy, commercial, and food, forestry and real estate. Assets increased by $1.7 billion to over $8.1 billion. Operating revenue was $296.4 million, up more than $50 million from the previous year. CFS delivered its best results to date, while achieving ATB's highest score to date on client satisfaction and loyalty.

ATB Investor Services - Investor Services celebrated its 10th anniversary in December 2012. The group continued to focus on producing greater prosperity for our clients while consuming less time on antiquated processes and reducing the huge amounts of paper we use. The line increased assets under management and administration to $8.6 billion, up by $1.5 billion from the previous year. Operating revenue of $80.6 million was up 21 per cent from $66.7 million the previous year.

ATB in the Community - In 2012-13, 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 $2.3 million in corporate donations, $1.75 million in fundraising, and $5.8 million in sponsorships. ATB is always looking for new ways to use our financial know-how and our associates' community spirit to help make this province an even better place to work and live.

About ATB Financial - ATB Financial is the largest Alberta-based financial institution, with assets of more than $33 billion. We provide personal, business, agriculture, corporate and investor financial services to more than 654,000 Albertans and Alberta-based businesses in 242 communities. We provide service through 171 branches and 130 agencies. 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 best 50 employers.

For complete year-end financial results, including Management's Discussion and Analysis and ATB's 2012-13 annual report, please visit www.atb.com.

ATB FINANCIAL    
2012-13 HIGHLIGHTS    
     
For the year ended March 31 2013 2012
Operating results ($ in thousands)      
Net interest income $ 878,152 $ 815,375
Other income    351,585   304,883
Operating revenue    1,229,737   1,120,258
Provision for credit losses   45,923   23,255
Non-interest expenses   865,892   843,616
Net income before payment in lieu of tax   317,922   253,387
Payment in lieu of tax   73,122   58,279
Net income $ 244,800 $ 195,108
Financial position ($ in thousands)        
Net loans $ 29,658,461 $ 26,708,813
Total assets $ 33,080,094 $ 31,019,740
Total deposits $ 23,731,371 $ 22,221,032
Equity $ 2,255,461 $ 2,061,563
Key performance measures (%)        
Return on average assets   0.76   0.63
Operating revenue growth   9.8   9.7
Other income to operating revenue   28.6   27.2
Operating expense growth   2.6   16.0
Efficiency ratio    70.4   75.3
Net interest spread   2.85   2.80
Credit losses to average loans   0.16   0.09
Net impaired loans to total gross loans   0.26   0.35
Net loan growth   11.0   6.2
Performing loan growth   11.1   6.1
Total asset growth   6.6   5.1
Total deposit growth   6.8   5.8
Other information        
Investor Services' assets under management        
  and administration ($ in thousands) $ 8,608,538 $ 7,126,005
Branches   171   170
Agencies   130   130
ABMs   273   276
Associates (head count) (1)   5,250   5,386

1 Number of associates 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


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