ATB's 3rd quarter maintains solid earnings momentum

EDMONTON, Feb. 20, 2013 /CNW/ - Strong balance sheet growth and increased earnings are the story of the third quarter of the current fiscal year for ATB Financial.

Net income for the quarter ending December 31, 2012, was $58.3 million, up $11.7 million (+25.0 per cent) from the same quarter last year, and up $14.6 million (+9.6 per cent) on a year-to-date basis over last year.

Total operating revenue for the third quarter was $307.1 million, an increase of almost $26 million (+9.2 per cent) from the third quarter last year and up $57.7 million year to date. Non-interest expenses were $217.4 million, up 0.5 per cent from the same quarter last year and up 4.2 per cent year to date.

Net loans and total deposits both increased in the third quarter. Net loans stood at $29.3 billion, up $2.7 billion (+10.3 per cent) from the same quarter a year ago, while total deposits reached $23.8 billion, up 8.4 per cent over the same quarter last year.

"The results show that our momentum continues, and we expect no change in that moving ahead," said Dave Mowat, ATB's President and CEO. "Behind those numbers is a strong provincial economy and the efforts of our customers who build it every day."

"Later this year, we will celebrate ATB's 75th anniversary, and the growth you see in our profits reflects both our knowledge of our province and the trust our customers have in us to put that knowledge to work for them."

Operational Highlights

Retail Financial Services - This line of business includes branches and agencies across the province. Operating revenue was $113.8 million, a slight increase from the previous quarter and an increase of $1.6 million (+1.5 per cent) over the same quarter last year.

  • Retail Financial Services includes a unique, sophisticated, Alberta-based Customer Care Centre that deals with customer inquiries. By the end of February, care centre associates will have fielded more than 1 million calls, finding solutions for ATB customers new and old.

Business and Agriculture - This line provides services to Alberta's small- and mid-sized businesses, farmers and other agriculture customers. Operating revenue was $69.4 million, virtually unchanged from results in the previous quarter and the same quarter last year.

  • Business and Agriculture's popular "Long Love This Land" video now has more than 20,000 views on YouTube, and its glowing reviews are piling up. The Red Deer Museum + Art Gallery plans to show the video, a tribute to the farmers and agribusiness experts in Alberta, in an upcoming exhibition.

Corporate Financial Services - This line of business provides services to Alberta's senior-market companies in energy, food, forestry, real estate and other industry segments. Operating revenue was $76.1 million, an increase of $3 million (+4.1 per cent) from the previous quarter, and up $15.5 million (+25.6 per cent) from the same quarter last year.

  • In January, Corporate Financial Services and AltaCorp Capital hosted a two-day, institutional investor conference, focusing on the combined extensive coverage of the Canadian energy services and infrastructure sector, drawing 200 attendees.

ATB Investor Services - This line of business offers its clients integrated, world-class wealth management expertise. Operating revenue of $20.5 million was up $1 million (+5.2 per cent) from the previous quarter, and up $4.1 million (+25.2 per cent) from the same quarter last year.

  • ATB Investor Services recently surpassed $8 billion in assets under management. Four of its Compass funds received an A+ rating and the other two received an A grade in Fundata Inc.'s review of 23,000 mutual funds across Canada.

ATB In The Community - ATB's fun hockey commercials featuring Mark Giordano of the Calgary Flames and Jordan Eberle of the Edmonton Oilers have hit the air. The ads are part of ATB's overall hockey strategy, which connects Albertans to the game that connects us all.

ATB's annual United Way fundraising campaign raised $682,000, including a corporate matching donation—a new record. ATB was a finalist for Canada's Passion Capitalists Awards, marking the internal energy and intensity needed to generate superior and sustainable results.

About ATB Financial - ATB Financial is the largest Alberta-based deposit-taking financial institution, with assets of $33 billion. We offer retail financial services, business and agricultural financial services, corporate financial services, and investor services to more than 635,000 Albertans and Alberta-based businesses in 242 communities in our province.

ATB FINANCIAL                        
FY 2013 Q3 HIGHLIGHTS                        
    For the three months ended       For the nine months ended
    Dec 31   Sept 30   Dec 31       Dec 31   Dec 31
($ in thousands)   2012   2012   2011       2012   2011
Operating results                        
Net interest income   $          225,613   $          221,706   $                 203,247       $                   653,939   $           607,107
Other income                  81,491                  68,870                         77,917       234,402   223,569
Total operating revenue                307,104                290,576                       281,164       888,341   830,676
Provision for credit losses                  13,921                    7,519                           4,237       25,974   13,316
Non-interest expenses                217,416                211,616                       216,324       644,776   618,742
Net income before PILOT                  75,767                  71,441                         60,603                             217,591   198,618
Payment in lieu of tax                  17,427                  16,431                         13,938       50,046   45,682
Net income   $            58,340   $            55,010   $                   46,665       $                   167,545   $           152,936
Financial position                        
Net loans   $     29,311,399   $     28,356,304   $            26,579,300       $              29,311,399   $      26,579,300
Total assets           33,013,357           32,704,492                  30,634,865                        33,013,357            30,634,865
Total deposits           23,771,732           23,088,892                  21,921,613                        23,771,732            21,921,613
Equity   $       2,189,005   $       2,152,747   $              2,083,519       $                2,189,005   $        2,083,519
Key performance measures (%)                        
Return on average assets   0.71   0.68   0.59       0.69   0.66
Operating revenue growth   9.2   5.7   4.9       6.9   10.2
Other income to operating revenue   26.5   23.7   27.7       26.4   26.9
Operating expense growth   0.5   3.7   17.8       4.2   17.5
Efficiency ratio   70.8   72.8   76.9       72.6   74.5
Net interest spread   2.87   2.88   2.73       2.84   2.80
Credit losses to average loans   0.19   0.11   0.06       0.12   0.07
Net impaired loans to total gross loans   0.23   0.30   0.28       0.23   0.28
Net loan growth1   10.3   8.0   5.1       10.3   5.1
Total asset growth1   7.9   3.8   7.4       7.9   7.4
Total deposit growth1   8.4   3.2   5.9       8.4   5.9
1 Measures are calculated by comparing current quarter balances against the same quarter of the previous year.


SOURCE: ATB Financial

For further information:

Glenn Kubish
Director of Media & Story
ATB Financial
(587) 984-5275, (780) 408-6529


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