EDMONTON, Feb. 20, 2014 /CNW/ - ATB is reporting net income of $74.6 million for the quarter ending December 31, 2013, which is 28 per cent higher than its profit in the same quarter last year.
Total operating revenue for the third quarter reached $339.4 million, up from $307.1 million in the same quarter last year, thanks mainly to Alberta businesses and individuals seeking out more loans. An increase in the funds managed by ATB Investor Services contributed year-over-year growth in non-interest income of $13.8 million or nearly 17 per cent.
Deposits increased by $1.6 billion in the third quarter to now stand at $26.6 billion, up $2.8 billion from a year ago. Net loans, meanwhile, are at $32.7 billion, a $3.4 billion increase from the same time last year.
Through three quarters, ATB's earnings for the current fiscal year reached $215 million, an increase of $47.5 million, or 28.4 per cent, compared to the first nine months of 2012-2013.
ATB's Business & Agriculture area of expertise had a strong quarter, earning a net income of $33.2 million, up 16.1 per cent over the same period last year. So far this year Business & Agriculture's customers have borrowed and deposited a combined increase of $1.8 billion, the highest in ATB's history.
Non-interest expenses for the third quarter reached $235 million, up 8.1 per cent from the same quarter last year. However, since operating revenue increased at a faster pace than did expenses, ATB's efficiency ratio—the ratio of non-interest expenses to operating revenue—dropped to 69.3 per cent. That represents an improvement of more than 1.5 per cent from last year's third quarter (70.8 per cent).
"It's encouraging to see our team members building ATB's momentum and serving an increased number of Alberta businesses and individuals. We have welcomed 19,000 new retail customers since the start of the fiscal year," said Dave Mowat, ATB's President and CEO.
"Our team members and customers are coming together to make this year ATB's best yet."
Retail Financial Services - This area of expertise includes branches and agencies throughout the province providing financial services, including private banking, to individuals. Operating revenue for the first three quarters was $346 million, $4.4 million better than the same period last year.
Business & Agriculture - This area of expertise provides services to Alberta's small- and mid-sized business, farm and agricultural customers. Thanks to healthy loan and deposit growth, operating revenue through the first three quarters was $223.3 million, up $17.3 million, or 8.4 per cent, compared to the same period last year.
Corporate Financial Services - This area of expertise provides services to Alberta's senior market companies in energy, commercial, and food, forestry and real estate. Operating revenue for the first three quarters was $258.2 million, up $46.4 million, or 21.9 per cent, over the last year. During the third quarter, CFS and Business & Ag collaborated to successfully launch ATB Equipment Finance to fulfill a growing demand for equipment finance needs in Alberta.
Investor Services - This area of expertise offers its customers integrated wealth management expertise. Investor Services is enjoying its best year to date. Assets under management surpassed $10 billion during the third quarter. Year to date operating revenue of $76.3 million was up $17.8 million, or 30.4 per cent, from last year. In November, Investor Services introduced its new Online Advice tool, allowing Albertans to create and fulfill investment plans when and where it is convenient for them, while still having the availability and security of expert advice and service.
ATB In The Community - During the third quarter, ATB raised over $1.17 million for charities and continued to put our financial expertise to work in our communities. In October, ATB's annual United Way campaign raised $670,000 in just two weeks. The ATB Cares website, which allows people to donate to 84,000 registered charities with ATB matching a portion of donations, saw a record $500,000 in donations. Empower U, a financial literacy and matched savings program for women in Edmonton, has now enrolled 272 women since 2012. Junior ATB opened in five new schools in Calgary, Red Deer and Vulcan, bringing the total to 32 province-wide. The program teaches children financial literacy skills as they run their own school-based banks.
About ATB Financial - ATB Financial is an Alberta-based financial service provider engaged in retail and commercial banking, credit cards, wealth management and investment management services with assets of more than $36 billion and servicing Albertans in 242 communities. ATB has won numerous national workplace awards, including recognition as one of Canada's best 50 employers, one of Alberta's top 65 employers and one of Canada's top employers for young people.
For complete third quarter financial results, including Management's Discussion and Analysis, please visit atb.com.
|FY 2014 Q3 HIGHLIGHTS|
|For the three months ended||For the nine months ended|
|Dec 31||Sept 30||Dec 31||Dec 31||Dec 31|
|($ in thousands)||2013||2013||2012||2013||2012|
|Net interest income||$ 244,112||$ 241,943||$ 225,613||$ 717,876||$ 653,939|
|Total operating revenue||339,360||339,231||307,104||1,003,336||888,341|
|Provision for credit losses||7,434||16,144||13,921||40,210||25,974|
|Net income before PILOT||96,900||96,867||75,767||279,262||217,591|
|Payment in lieu of tax||22,287||22,279||17,427||64,230||50,046|
|Net income||$ 74,613||$ 74,588||$ 58,340||$ 215,032||$ 167,545|
|Net loans||$ 32,727,919||$ 31,786,913||$ 29,311,399||$ 32,727,919||$ 29,311,399|
|Total assets||$ 36,438,032||$ 35,218,660||$ 33,013,357||$ 36,438,032||$ 33,013,357|
|Total deposits||$ 26,556,372||$ 24,947,812||$ 23,771,732||$ 26,556,372||$ 23,771,732|
|Equity||$ 2,516,506||$ 2,417,594||$ 2,189,005||$ 2,516,506||$ 2,189,005|
|Key performance measures (%)|
|Return on average assets||0.81||0.86||0.71||0.82||0.69|
|Return on risk weighted assets||1.15||1.18||0.97||1.14||0.96|
|Operating revenue growth||10.5||16.7||9.2||12.9||6.9|
|Other income to operating revenue||28.1||28.7||26.5||28.5||26.4|
|Operating expense growth||8.1||6.9||0.5||6.1||4.2|
|Net interest spread||2.8||2.9||2.9||2.9||2.8|
|Credit losses to average loans||0.09||0.21||0.19||0.17||0.12|
|Net impaired loans to total gross loans||0.10||0.14||0.23||0.10||0.23|
|Net loan growth1||11.7||12.1||10.3||11.7||10.3|
|Total asset growth1||10.4||7.7||7.9||10.4||7.9|
|Total deposit growth1||11.7||8.1||8.4||11.7||8.4|
|1 Measures are calculated by comparing current quarter balances against the same quarter of the previous year.|
SOURCE: ATB Financial
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