EDMONTON, Aug. 21, 2012 /CNW/ - ATB Financial has started the current fiscal year by continuing our momentum in posting a solid profit and signaling our commitment to productivity improvements across the enterprise.
Net income for the quarter ended June 30, 2012 was $54.2 million, down $2.2 million, or 3.9 per cent, from the same quarter last year, but up $12 million, or 28.5 per cent, from the previous quarter that ended March 31.
Total operating revenue for the first quarter was $290.7 million, an increase of $16.1 million from the first quarter of fiscal 2012, and up slightly from the previous quarter. Non-interest expenses were $215.7 million, up more than 8 per cent from the same quarter last year, but down 4 per cent from the previous quarter.
ATB's non-interest expenses grew significantly over the last half of the previous fiscal year as we undertook the implementation of our new banking system. The task of achieving the full benefits of the new banking system and removing the costs of initial implementation is under way. The focus now is on improving both productivity and earnings in the quarters ahead.
Both net loans and total deposits increased in the first quarter. Net loans stood at $27.4 billion, up $1.6 billion, or 6.2 per cent, from a year ago, while total deposits increased by $1.1 billion, or 4.9 per cent, to $23.2 billion over the same quarter last year.
"The solid results in the first quarter of the year are good news for all ATB associates and customers who, together, have worked through the challenges of our new banking system," said Dave Mowat, ATB's President and CEO.
"Moving ahead, our goal is to become a more productive company, earning the trust and respect of even more Albertans and Alberta-based businesses."
Operational Highlights
Retail Financial Services (RFS) - This line of business includes branches and agencies throughout the province. Operating revenue was $109.8 million, a decrease of $2.2 million, or 1.9 per cent, over the same quarter last year.
Business And Agriculture (B&Ag) - This line of business provides services to Alberta's small- and mid-sized businesses, farmers and other agriculture customers. Operating revenue was $67.2 million, an increase of $4.1 million over the same quarter last year.
Corporate Financial Services (CFS) - This line of business provides services to Alberta's senior-market companies in four distinct units: energy, diversified, food and forestry and real estate. Operating revenue was $64.5 million, an increase of $2.9 million or 4.8 per cent over the first quarter last year.
ATB Investor Services (IS) - This line of business offers its customers integrated, world-class wealth management expertise. Operating revenue of $18.4 million was up from $16.2 million in the same quarter last year, an increase of 14 per cent.
ATB In The Community - In 2011-2012, ATB's associates contributed almost $2.9 million to Alberta causes and communities through charitable donations, fundraising and volunteer time. Most recently, $725,000 was raised by ATB associates and customers through our Teddy for a Toonie campaign that supports Alberta Children's Hospital in Calgary and the Stollery Children's Hospital in Edmonton.
About ATB Financial - ATB Financial is the largest Alberta-based deposit-taking financial institution, with assets of $32 billion. We offer retail financial services, business and agricultural financial services, corporate financial services, and investor services to more than 635,000 Albertans and Alberta-based businesses in 242 communities in our province.
We provide those services through 170 branches and 130 agencies, mobile, telephone and online banking, a Customer Care Centre, and automated banking machines. ATB has won numerous national workplace awards, including recognition as one of Canada's best 50 employers.
ATB FINANCIAL | |||||||||
FY 2013 Q1 HIGHLIGHTS | |||||||||
For the three months ended | |||||||||
June 30 | March 31 | Dec 31 | June 30 | ||||||
($ in thousands) | 2012 | 2012 | 2011 | 2011 | |||||
Operating results | |||||||||
Net interest income | $ 206,620 | $ 208,268 | $ 203,247 | $ 200,836 | |||||
Other income | 84,041 | 81,314 | 77,917 | 73,680 | |||||
Total operating revenue | 290,661 | 289,582 | 281,164 | 274,516 | |||||
Provision for credit losses | 4,534 | 9,939 | 4,237 | 2,973 | |||||
Non-interest expenses | 215,744 | 224,874 | 216,324 | 198,322 | |||||
Net income before PILOT | 70,383 | 54,769 | 60,603 | 73,221 | |||||
Payment in lieu of tax | 16,188 | 12,597 | 13,938 | 16,841 | |||||
Net income | $ 54,195 | $ 42,172 | $ 46,665 | $ 56,380 | |||||
Financial position | |||||||||
Net loans | $ 27,448,066 | $ 26,708,813 | $ 26,579,300 | $ 25,853,675 | |||||
Total assets | 32,017,670 | 31,019,740 | 30,634,865 | 31,481,687 | |||||
Total deposits | 23,156,175 | 22,272,042 | 22,022,973 | 22,083,755 | |||||
Equity | $ 2,125,899 | $ 2,061,563 | $ 2,083,519 | $ 1,936,990 | |||||
Key performance measures (%) | |||||||||
Return on average assets | 0.69 | 0.54 | 0.59 | 0.77 | |||||
Operating revenue growth | 5.9 | 8.2 | 4.9 | 16.0 | |||||
Other income to operating revenue | 28.9 | 28.1 | 27.7 | 26.8 | |||||
Operating expense growth | 8.8 | 12.1 | 17.8 | 14.7 | |||||
Efficiency ratio | 74.2 | 77.7 | 76.9 | 72.2 | |||||
Net interest spread | 2.77 | 2.81 | 2.73 | 2.89 | |||||
Credit losses to average loans | 0.07 | 0.15 | 0.06 | 0.05 | |||||
Net impaired loans to total gross loans | 0.32 | 0.35 | 0.28 | 0.32 | |||||
Net loan growth | 6.2 | 6.2 | 5.1 | 4.9 | |||||
Total asset growth | 1.7 | 5.1 | 7.4 | 11.1 | |||||
Total deposit growth | 4.9 | 6.1 | 6.4 | 6.2 | |||||
SOURCE: ATB Financial
For further information:
Glenn Kubish
Director of Media & Story
ATB Financial
(587) 984-5275 (cell); (780) 408-6529 (office)
[email protected]
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