EDMONTON, Aug. 21, 2017 /CNW/ - Alberta's largest homegrown financial institution reported a net income of $63.1 million for the quarter ending June 30, 2017, more than 2.5 times ATB's net earnings for the same quarter a year ago ($25 million).
The improved net income is primarily due to a significant decrease in loan loss provisions. Loan loss provisions for ATB's first quarter were $21.5 million, compared to $93.5 million in the first quarter a year earlier.
"Declining loan loss provisions are a sign that Alberta's economy is improving and business confidence is returning this year," said Dave Mowat, ATB's President & CEO. "It's also a reflection of the calibre and grit of Albertans and ATB's commitment to support them through the tough times."
In the first quarter ATB authorized 3,479 loans to small and mid-sized Alberta businesses, which is up 10% from the first quarter a year ago. The total value of business loans approved in the first quarter was $875 million, an increase of $121 million compared to the first quarter last year.
Despite positive signs that the Alberta economy is starting to turn a corner, operating revenue was $371.4 million during the first quarter, down by $9 million from the same quarter a year ago.
ATB also saw an increase of $13.5 million in non-interest expenses over the previous year's quarter. The increase can be attributed in large part to ATB's investment in people and new technology to improve the customer experience. ATB introduced Android Pay during the quarter and is exploring the use of robotics with Pepper the robot, artificial intelligence and automation software. This focus on technology reflects a commitment to enhancing ATB's service to its customers.
ATB Investor Services also continued its success story this quarter with $17.2 billion in assets under administration, an increase of $2.2 billion compared to this quarter last year.
ATB's community involvement this quarter included participation in the Canada150in150 storytelling initiative in celebration of Canada's 150th anniversary, the return of Symphony in the City, a performance by ATB All-Albertan Song Contest Winner 100 Mile House, and the 18th annual Teddy for a Toonie campaign for the Stollery Children's Hospital and Alberta Children's Hospital.
For ATB's complete first quarter results, please click here.
About ATB Financial
With assets of $48.6 billion, ATB Financial is Alberta's largest home-grown financial institution. Established in 1938, ATB is a network of 173 branches, 143 agencies, a Customer Care Centre, two Entrepreneur Centres, along with mobile and online banking. ATB's more than 5,000 team members help more than 730,000 customers in 247 Alberta communities.
SOURCE ATB Financial
For further information: For interview requests, please contact: Connie Smart, Corporate Reporter, ATB Financial, 587-785-0915, [email protected]