EDMONTON, Nov. 18 /CNW/ - Double-digit loan growth and continued profitability in the face of tighter margins marked second-quarter results at ATB Financial (ATB).
Net income in this year's second quarter (before payment in lieu of tax) was $56.0 million, down 8.6 per cent from last year.
Net loans (including securitized mortgages) were up 13.1 per cent over last year's second quarter to $23.7 billion, while retail deposits increased 5.2 per cent to $20.6 billion.
ATB Investor Services saw the funds it manages grow 17.3 per cent to $4.7 billion.
ATB's slight drop in net income from last year's second quarter was prompted mainly by lower interest rates. ATB's allowance for credit loss expense improved slightly year-over-year, from $13.9 million to $10.3 million.
"The results are solid. Whether it is for a business loan, for retail banking, or for wealth-management expertise and advice, more Albertans than ever are choosing ATB," said Dave Mowat, ATB Financial's President and CEO.
"But we are not taking anything for granted. The marketplace is still challenging, and economic uncertainty remains. We have to keep working hard to delight our customers, grow our business, and watch our expenses."
Personal and Business Financial Services (PBFS) - ATB's largest line of business includes branches and agencies throughout Alberta. Assets, primarily consisting of loans, grew $1.9 billion, or 11.4 per cent, over the last year. Operating revenue increased slightly by $0.3 million. ATB opened its Windermere branch in southwest Edmonton during the quarter.
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. CFS's assets grew $0.8 billion, or 18.0 per cent over the last year. Operating revenue increased over last year by $24.1 million, or 83.9 per cent.
ATB Investor Services (IS) - This line of business is responsible for growing and protecting wealth for more than 48,000 customers. At the end of the first quarter, client assets under IS's management and administration reached $4.7 billion, up $0.7 billion from last year's second quarter, or 17.3 per cent.
ATB in the Community - ATB's associates and customers raised $554,384 for the Stollery and Alberta Children's Hospital foundations during the 10th annual Teddy for a Toonie campaign. ATB also launched a new website - http://www.wearealberta.ca - which celebrates Alberta's stories and details ATB's corporate social responsibility efforts.
About ATB Financial - ATB Financial is the largest Alberta-based financial institution, with assets of $27.2 billion. It provides Personal and Business Financial Services, Investor Services, and Corporate Financial Services to more than 690,000 Albertans in 243 communities. It provides service through 165 branches and 133 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. Alberta Venture magazine named ATB Alberta's Most Respected Corporation in the area of corporate social responsibility. ATB has also been named one of Canada's 50 Best Employers by Report on Business Magazine, one of the 75 Best Workplaces in Canada by the Great Place to Work Institute, and one of Canada's Top 100 Employers and Alberta's Top 50 Employers by Mediacorp Canada Inc.
For complete second-quarter financial results, please visit www.atb.com
SOURCE ATB Financial
For further information: For further information: Shawn Ohler, Director of External and Media Relations, ATB Financial, (780) 913-8905 (cell), (780) 408-6529 (office), e-mail: email@example.com