EDMONTON, Feb. 15, 2017 /CNW/ - ATB Financial has reported a net income of $65.0 million for the quarter ending December 31, 2016, double ATB's net earnings for the same quarter a year ago ($32.5 million). The improvement in net income for Alberta's largest homegrown financial institution is due to a sharp decrease in loan loss provisions.
Loan loss provisions for ATB's third quarter were $16.9 million, compared to $91.3 million in the third quarter a year earlier.
The decrease in loan loss provisions is a result of improvements in Alberta's economy and ATB's decision to guide customers through difficult times, not abandon them. As Alberta businesses get accustomed to the "new normal" of lower energy prices, they are gaining confidence.
"Our customers have shown tremendous courage and we're matching that by sticking with them to the best of our best ability," said Dave Mowat, ATB's President & CEO. "We believe that working with customers to help get them to a better place is the best decision for us and them in the long run. And we're in this for the long run."
While there are some positive signs, Alberta's economy remains slow and that has had an impact on ATB's operating revenue, which dropped to $350.2 million during the third quarter, down $29.5 million from the same quarter a year ago. However, ATB continues to invest in technology, recently introducing enhanced mobile apps for personal and business customers, online global transfers and Apple Pay for Interac debit.
ATB Investor Services had its best earning quarter ever and reached a major milestone, surpassing $16 billion in assets under administration. ATB Investor Services is differentiating itself in the industry, connecting with its customers and making investing easier, with innovations such as ATB Prosper, a completely digital online investment platform.
In the community, ATB team members, including corporate matching, raised $702,000 in just two weeks for the United Way in Alberta. Since 2001, ATB has raised over $9 million for the United Way. ATB also held its sixth All-Albertan Song Contest with CKUA radio. Edmonton's 100 Mile House won the top prize of $10,000 for their song Run, about a family's experience escaping the Fort McMurray wildfire.
For ATB's complete third quarter results, please click here.
Q3 FY 17 By the Numbers
$65.0 M – Net Income
100.3% - Increase from Q3 16
$350.2 M – Operating revenue
7.8% - Decrease from Q3 16
$40.6 B – Loans
1.5% - Increase from Q3 16
$33.8 B – Deposits
6.7% - Increase from Q3 16
$48.7 B – Total assets
5.6% - Increase from Q3 16
Q3 FY 17 By the People
715,486 – Customers
5,008 – Team members
SOURCE ATB Financial
For further information: For more information or interview requests, please contact: Barry Strader, Corporate Reporter, ATB Financial, 780-495-1343 (office); 780-886-4398 (mobile), firstname.lastname@example.org