EDMONTON, Nov. 16, 2017 /CNW/ - Alberta's largest homegrown financial institution reported a net income of $62.8 million for the quarter ending September 30, 2017. That's nearly 80 per cent more than ATB's net earnings for the same quarter a year ago ($35.2 million).
Similar to the company's first quarter, the improved net income is due to a significant decrease in loan loss provisions. Loan loss provisions for ATB's second quarter were $47.2 million, compared to $78.5 million for the same period a year earlier.
Operating revenue was up $19.7 million from the same quarter a year ago, and can be attributed to strong net interest income, improvements in the Canadian dollar, and revenue earned from ATB Investor Services. ATB Investor Services continued its success story with $17.6 billion in assets under administration, an increase of $2.1 billion compared to this quarter last year.
This quarter's results also tell a broader story of the company's commitment to make banking work for Albertans.
"Our customers are unique—no two are alike, so they need options," said Dave Mowat, ATB's President & CEO. "Making banking work for Albertans and Alberta businesses means listening to their specific situations and implementing strategies that will meet their varying needs, and ultimately help them achieve their financial goals, whatever they may be."
ATB continues to support growth in Alberta's business sector. ATB authorized 2,863 loans to small and mid-sized Alberta businesses in Q2, which is up 6.9 per cent from the second quarter a year ago. The total value of business loans approved in the second quarter was $789 million, an increase of $52 million compared to the second quarter last year.
Beyond the balance sheet, a number of recent initiatives demonstrate ATB's commitment to providing options that empower customers to bank in a way that's most convenient for them, regardless of their financial situations.
ATB is at the forefront in the use of new technologies designed to make banking smart, simple and helpful for customers, chalking up a number of firsts. ATB's recent launch of the world's first full-featured virtual banking assistant in Facebook Messenger in partnership with Finn.ai makes access to secure, day-to-day personal banking as easy as initiating a Messenger conversation.
ATB is among the first financial institutions to offer our customers the new Interac e-Transfer Autodeposit and Request Money services. Customers also received more options to pay for purchases with ATB becoming the only regional financial institution in Canada to provide customers with access to Samsung Pay.
ATB is also making banking work for people who face many challenges in their lives. The grand opening of Four Directions Financial, a partnership between ATB Financial and Boyle Street Community Services, makes banking more accessible to people living in poverty. In addition to giving these people the dignity and support of having a regular bank account, biometric identification technology is used to help those don't have traditional ID—a first for Alberta, and a first in Canada for deploying this approach for the underbanked.
Two of ATB's Calgary branches are participating directly in a Dementia Friendly Communities pilot program, aimed at recognizing and supporting the unique challenges faced by people with dementia.
Read ATB's complete second quarter results here.
About ATB Financial
With assets of $49.6 billion, ATB Financial is Alberta's largest home-grown financial institution. Established in 1938, ATB is a network of 174 branches, 142 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: Michelle Stead, Senior Content Editor, Media & Story, ATB Financial, 587-987-4213, [email protected]