EDMONTON, March 2, 2012 /CNW/ - Profits for the third quarter of this fiscal year remained steady at ATB Financial (ATB) despite continued higher-than-normal operating expenses related to implementing a new state-of-the-art banking system.
Net income for the quarter ending December 31, 2011 was $48.4 million. Profits for the first nine months of the 2011-12 fiscal year are ahead of last year's pace. Through three quarters of the current fiscal year, net income stands at $158.2 million compared to $134.9 million at the same time last year, an increase of $23.3 million largely due to a reduction in the provision for credit losses.
Total operating revenue for the third quarter was $283.4 million up 5.8 per cent from a year ago. Non-interest expenses were $216.3 million, up 17.8 per cent from the same quarter last year. As the anticipated work to stabilize its new banking system continues, ATB remains focused on improving efficiency and productivity and managing expenses.
Net loans and total deposits both experienced solid gains. Net loans registered $26.6 billion, up $1.3 billion from a year ago, while total deposits also increased by $1.3 billion to $22.0 billion.
"This has been one of the most challenging quarters for ATB," said Dave Mowat, ATB's President and CEO.
"Introducing and stabilizing our new banking system has tested the patience of both our customers and associates. We owe a huge debt of gratitude to our customers and associates who have stuck with us through the challenges we faced. Thanks to their support, we continue to do great business for Albertans in all corners of the province."
Retail Financial Services (RFS) - This line of business includes branches and agencies throughout Alberta. Operating revenue was $112.2 million, an increase of $3.6 million, or 3.3 per cent, over last year.
Business and Agriculture financial services (B&Ag) - This line of business provides services to Alberta's independent businesses, farmers and other agriculture customers. Operating revenue was $65.7 million, an increase of $0.4 million, or 0.6 per cent, over last year.
Corporate Financial Services (CFS) - This line of business provides services to Alberta's mid- and senior-market companies in three sub-lines - Energy, Commercial, and Food & Forestry. Operating revenue was $65.6 million, an increase over last year of $9.1 million or 16.1 per cent.
ATB Investor Services (IS) - This line of business is responsible for growing and protecting wealth for more than 55,000 customers. Investor Services continues to build assets under management and administration, which increased to $6.6 billion this quarter, up $0.7 billion, or 11.8 per cent from the second quarter last year. Operating revenues were $16.4 million up 11.8 per cent from a year ago.
ATB in the Community - ATB's annual United Way campaign proved to be another success. Associates and customers, combined with corporate matching from ATB, raised over $635,000 which will be distributed to United Way member agencies across Alberta. Through the hard work and generosity of associates and customers, ATB branches in the Edmonton area raised $45,000 for the Christmas Bureau of Edmonton. And in November, ATB launched its second annual Young Artists Competition. Grade four students across Alberta will be asked to submit original works of art that convey a part of Alberta's history. 30 winning entries will be selected to be displayed at the Art Gallery of Alberta in Edmonton in the spring of 2012.
About ATB Financial - ATB Financial is the largest Alberta-based financial institution, with assets of over $30 billion. It provides Retail Financial Services, Business and Agriculture Financial Services, Investor Services, and Corporate Financial Services to more than 680,000 Albertans in 243 communities. It provides service through 170 branches and 130 agencies, telephone and Internet banking, a Customer Contact Centre, and Automated Banking Machines. ATB has been named one of Canada's 50 Best Employers by Maclean's Magazine and one of Canada's Top 100 Employers and Alberta's Top 55 Employers by Mediacorp Canada Inc.
For complete third-quarter financial results, including Management's Discussion and Analysis, please visit www.atb.com
|FY 2012 Q3 HIGHLIGHTS|
|For the three months ended||For the nine months ended|
|Dec 31||Sep 30||Dec 31||Dec 31||Dec 31|
|($ in thousands)||2011||2011||2010||2011||2010|
|Net interest income||$ 203,247||$ 203,024||$ 201,624||$ 607,107||$ 570,788|
|Total operating revenue||283,446||276,745||267,913||837,465||753,629|
|Provision for credit losses||4,237||6,106||31,815||13,316||50,046|
|Net income before PILOT||62,885||66,543||52,396||205,407||176,926|
|Payment in lieu of tax||14,463||15,305||19,879||47,243||42,013|
|Net income||$ 48,422||$ 51,238||$ 32,517||$ 158,164||$ 134,913|
|Net loans||$ 26,579,300||$ 26,246,167||$ 25,285,444||$ 26,579,300||$ 25,285,444|
|Equity||$ 2,088,747||$ 2,040,912||$ 1,835,616||$ 2,088,747||$ 1,835,616|
|Key performance measures (%)|
|Return on average assets||0.62||0.65||0.46||0.69||0.64|
|Operating revenue growth||5.8||11.1||n/a||11.1||n/a|
|Other income to operating revenue||28.3||26.6||24.7||27.5||24.3|
|Operating expense growth||17.8||20.0||n/a||17.5||n/a|
|Net interest spread||2.74||2.78||2.93||2.80||2.82|
|Credit losses to average loans||0.06||0.09||0.50||0.07||0.27|
|Net impaired loans to total gross loans||0.28||0.30||0.30||0.28||0.30|
|Net loan growth||5.1||5.0||n/a||4.3||n/a|
|Total asset growth||7.6||11.1||n/a||8.0||n/a|
|Total deposit growth||6.4||8.7||n/a||5.1||n/a|
For further information:
(780) 886-4398 (mobile); (780) 495-1343 (office)