EDMONTON, May 30, 2012 /CNW/ - ATB Financial (ATB) finished the year ending March 31, 2012, with another year of solid performance thanks to the incalculably strong work of associates and patience of customers who stayed firm through the financial institution's conversion to a new banking system.
Net income of $195.1 million rose 12.8 per cent on operating revenues that climbed over the $1.1-billion mark for the first time in the history of this province's largest home-grown financial institution.
Net loans increased by 6.2 per cent to $26.7 billion, balanced with growth of 6.1 per cent in personal and business deposits to $22.3 billion.
Provisions for credit losses reflected the strength of the Alberta economy and decreased to $23.3 million, a 62 per cent drop from the previous year. At the same time, ATB recovered $64.7 million on asset-backed commercial paper as the investment's risk continued to decrease and its estimated value improved.
Dave Mowat, ATB Financial's President and Chief Executive Officer, said the financial results bear out the strength of ATB's associates who serve the customers, and our customers' patience and resilience as we worked through our banking system conversion.
"We don't pretend we didn't have problems when we changed over our banking system," Mowat said. "It was a trying time for all of us. Looking back, while it was an amazing accomplishment, we stretched the patience of both our customers and associates. We appreciate them sticking with us and now have a modern high capacity system to build on.
"The challenge we now face is to make sure we harness every possible benefit of the new system and make it work for us and our customers."
Within its year-end results, ATB expensed a payment in lieu of tax of $58.3 million to the provincial government, along with an additional $26.7 million in deposit guarantee fees.
This is the first year end that ATB has reported under the International Financial Reporting Standards (IFRS) framework. As a result, all comparative numbers have been adjusted, where appropriate, to reflect results as they would have looked under this new framework.
ATB's four lines of business feature more than 5,300 associates serving more than 635,000 Albertans and Alberta-based businesses. Here's a quick look at what's been keeping them busy.
Retail Financial Services (RFS) - This line of business includes branches and agencies across Alberta along with a Customer Contact Centre, online and telephone banking channels. Assets, primarily consisting of loans, stood at $16 billion, up from $15.8 billion last year, at year-end. Operating revenue was more than $447 million, an increase from the previous year's total of $428.9 million. RFS restructured its management team, with the goal of better knowing and serving the province's unique markets, and expanding the role of the branch managers. RFS opened three new branches, Airdrie Sierra Springs, Calgary Walden and Edmonton Millcreek.
Business and Agriculture (B&Ag) - B&Ag developed plans to launch a $100-million new Alberta Business Growth Fund in May 2012 to provide cash flow and stretch growth financing for established and proven business entities. The B&Ag line of business posted total assets of $4.2 billion at year-end, up by $88.4 million over the previous year. Operating revenue was more than $265 million, up from $256 million the year previous.
Corporate Financial Services (CFS) - CFS celebrated ten years in operation, providing services to Alberta's mid- and senior-market companies in energy, commercial, and food & forestry. CFS saw its assets increase by more than $1 billion to over $6.4 billion. Operating revenue was $246 million, up 7.7 per cent from $228 million the previous year. CFS introduced the online banking platform and supporting cash management relationships to its clients and the marketplace.
ATB Investor Services (IS) - IS grows and protects wealth for more than 55,000 customers. IS continued to build assets under management and administration, which increased to $7.1 billion in 2011-2012, up by $870 million from the previous year. Operating revenue of $66.7 million was up 17.6 per cent from $56.7 million the previous year. This year, IS received the Thomson Reuters Lipper Award for best mixed-asset fund group, based on risk-adjusted return.
ATB in the Community - In 2011-12, ATB's associates contributed almost $2.9 million to Alberta causes and communities, through charitable donations, fundraising and volunteer time. Associates raised $635,000 (including $227,000 corporate match donation) for the United Way and $565,000 for the Stollery and Alberta Children's Hospital foundations through the Teddy for a Toonie campaign. This year, ATB developed our first corporate social responsibility report to demonstrate how we support our associates, notably on the wellness front, and the communities we serve.
About ATB Financial - ATB Financial is the largest Alberta-based financial institution, with assets of more than $30 billion. We provide personal, business, agriculture, corporate and investor financial services to more than 635,000 Albertans and Alberta-based businesses in 242 communities. We provide service through 170 branches and 130 agencies, telephone and internet banking, a Customer Contact Centre, and automated banking machines. ATB Financial was established in 1938 and has been a provincial Crown corporation since 1997. ATB has won numerous national workplace awards, including recognition as one of Canada's best 50 employers.
For complete year-end financial results, including Management's Discussion and Analysis and ATB's 2011-12 annual report, please visit www.atb.com.
|For the years ended March 31||2012||2011|
|Operating results ($ in thousands)|
|Net interest income||$||815,375||$||770,206|
|Provision for credit losses||23,255||61,856|
|Net income before payment in lieu of tax||253,387||232,203|
|Payment in lieu of tax||58,279||59,298|
|Financial position ($ in thousands)|
|Key performance measures based on net income (%)|
|Return on average assets||0.63||0.63|
|Operating revenue growth||9.7||n/a|
|Other income to operating revenue||27.2||24.6|
|Operating expense growth||16.0||n/a|
|Net interest spread||2.80||2.90|
|Credit losses to average loans||0.09||0.25|
|Net impaired loans to total gross loans||0.35||0.30|
|Net loan growth||6.2||4.3|
|Performing loan growth(1)||6.1||4.2|
|Total asset growth||5.1||8.0|
|Total deposit growth||6.1||5.1|
|Investor Services' assets under management|
|and administration ($ in thousands)||$||7,126,005||$||6,256,313|
|Associates (head count) (2)||5,386||5,363|
| 1 Performing loans exclude the impact of impaired loans and loan loss provisions.
2 Number of associates includes casual and commissioned associates.
For further information:
Glenn Kubish, Director of Media & Story, ATB Financial, (780) 408-6529, (587) 984-5275, email@example.com