ATB powers through the challenging Alberta economy

EDMONTON, May 27, 2016 /CNW/ - Loans, deposits, assets and operating revenue all experienced healthy growth during ATB Financial's fiscal year ending March 31, 2016. ATB's operating revenue of $1.5 billion was up 5.8 per cent over the previous year, loans grew by 7.1 per cent and deposits grew by 0.9 per cent in what was a tough year for Alberta's economy.

"There's no doubt a lot of individuals and businesses in Alberta are hurting right now," said Dave Mowat, ATB's President & CEO. "And that pain is now being felt more than ever in Fort McMurray as the community recovers from the devastating wildfire."

While profits are down from last year's record performance, ATB's year-end results reflect an economy that's stronger than the current headlines might suggest.

Overall, ATB earned a net income of $108.1 million, down from the previous year's record profit of $328.7 million. The biggest reason for the drop in profit was an increase in provisions for loan losses, which climbed to $387.6 million, up from $72.6 million the previous year.

Mowat emphasized that loan loss provisions are just that: provisions. Actual loan losses for the year were $75.8 million. The $387.6 million provision is a conservative estimate of ultimate loan losses that ensures the results reported reflect the underlying risk that may be present in the Alberta economy.

"There are good businesses in Alberta that have struggled in these unprecedented economic times," added Mowat. "It's our job, more than ever, to challenge ourselves to listen and create sound solutions for our customers."

ATB's operating results were led by record years in two of ATB's areas of expertise: Business & Agriculture and ATB Investor Services. Business & Agriculture authorized 14,742 loans to small and mid-sized businesses during the fiscal year, worth a total of $3.1 billion. That helped Business & Agriculture generate a net income of $110.5 million, up 10.8 per cent from the previous fiscal year. ATB Investor Services' net income jumped 37.1 per cent year-over-year to $31.4 million.

In the face of a challenging economy, all four areas of expertise have stepped in to help customers affected by the economic downturn. ATB's Retail Financial Services team helped over 500 ATB customers with a special debt management program designed specifically for the economic downturn. The program featured payment deferrals, debt restructuring, investment redemption and personal loans for up to $5,000.

ATB's Business & Agriculture team members have been able to help business customers by deferring loan payments for up to six months, knowing that when the economy turns around, so will their businesses.

ATB Corporate Financial Services' recently formed Turnaround Assistance Group has assigned its team of specialists to help Alberta businesses connect with the experts they need, no matter their situation. 

In addition to the more than 67,000 clients currently investing with ATB Investor Services, ATBIS provided free financial guidance and education to more than 10,000 Albertans directly and through ATB Online Advice.

With the devastating wildfires in Ft. McMurray, ATB immediately took action to ensure the safety and security of our own team members who live and work in Ft. McMurray. Specific programs were put in place to support customers affected by the fires including providing immediate access to cash, raising credit limits, and deferring payments on loans, mortgages and credit cards for up to four months. More steps will be taken as we have a better understanding of the impact on both residents and businesses and especially as the community begins to rebuild.

During the fiscal year, ATB donated $10.7 million to community organizations across Alberta. Those donations included corporate matching to the annual Teddy for a Toonie campaign, which raised a total of $928,000 for the Stollery and Alberta Children's Hospital foundations. ATB team members also donated $760,000, including corporate matching, to the United Way. And Albertans donated $2.9 million to registered charities through atbcares.com, with an additional $250,000 in matching from ATB.

ATB team members were also generous with their time, donating over 25,000 in volunteer hours in 2015.

ATB also continued its support of major events in Alberta, including the Tour of Alberta, Edmonton International Fringe Theatre Festival, Edmonton Comedy Festival, PGA Tour Canada's ATB Financial Classic in Calgary, Calgary International Film Festival, Calgary Pride Festival, National Music Centre and Lethbridge Dragonboat Festival.

And ATB was named the fourth-best place to work in Canada by the Great Place to Work Institute.

Watch this video or more from Dave Mowat on ATB's fiscal year.

For complete financial results, including management discussion and analysis, visit ATB.com.

FY16 By the Numbers

$108.1 M – Net Income
67.1% - Decrease from FY15

$1.5 B – Operating revenue
5.8% - Increase from FY15

$40.4 B – Loans
7.1% - Increase from FY15

$30.9 B – Deposits
0.9% - Increase from FY15

$46.8 B – Total assets
8.5% - Increase from FY15

FY16 By the People

26,698 – New customers

5,065 – Team members

SOURCE ATB Financial

or interview requests, please contact: Barry Strader, Corporate Reporter, ATB Financial, 780-495-1343 (office); 780-886-4398 (mobile), [e-mail]