EDMONTON, Feb. 25 /CNW/ - Third-quarter profits at ATB Financial (ATB)
rose $30.8 million, or 86.2 per cent, as margins and loan volumes
improved and credit losses reduced.
Net income for the quarter ending December 31, 2010 was $66.6 million,
compared to $35.8 million during the same quarter last year. Adjusted
net income - which excludes a recovery on asset-backed commercial paper
- was $58.9 million, an increase of $20.4 million over last year's
Net interest income was particularly strong as a result of a stabilized
interest rate environment and a 4.0% increase in average loan volumes.
Net interest income reached $193.8 million, up $16.1 million, or 9.0
per cent from the same quarter last year.
The organization also recorded gains in its securitization program as
increasing longer-term interest rates boosted the value of assets
related to the program. A $10-million recovery on provisions for
asset-backed commercial paper was also recorded. As anticipated, the
risk of loss is decreasing and the estimated value of the investment
Profits for the first nine months of the 2010-2011 fiscal year outpaced
the previous year by 34.9%, largely because of increased margins on ATB
products and lower provisions for credit losses.
"As the effects of the recession on our customers start to reverse,
we're beginning to deliver improved financial results to Albertans,"
said Dave Mowat, ATB's President and CEO.
"Our loan portfolio, a bellwether for the province, is increasingly
resilient, and that's good news for both ATB and Alberta."
Retail Financial Services (RFS) - ATB's largest line of business includes branches and agencies
throughout Alberta. Assets, primarily consisting of loans, stood at
$15.7 billion at the end of the third quarter. Operating revenue was
$108.5 million. (Comparables to last year's third quarter have not been
disclosed, as 2009-10 results for this line comprised both RFS and a
realigned line of business, Independent Business and Agriculture.)
Independent Business and Agriculture financial services (IB&Ag) - This line of business, newly created in the first quarter of the
fiscal year, provides services to Alberta's small businesses, farmers
and other agriculture customers. Its assets stood at $4.0 billion at
the end of the third quarter. Operating revenue was $65.3 million.
During the third quarter, IB&Ag was officially launched to Albertans as
a dedicated line of business through the Ingredients for Success
campaign which focused on Alberta entrepreneurs.
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 increased $173.1 million over the last
year to $5.3 billion. Operating revenue was $56.4 million, an increase
over last year of $2.6 million or 4.9 per cent.
ATB Investor Services (IS) - This line of business is responsible for growing and protecting
wealth for more than 52,000 customers. Investor Services continues to
build assets under management and administration, which increased to
$5.9 billion this quarter, up $1.1 billion, or 22.9%, from the third
quarter last year.
ATB in the Community - In October 2010, ATB's associates across Alberta held their annual
fundraising campaign for the United Way. Including 50% corporate
matching from ATB Financial, ATB's associates raised a total of
$620,000. ATB also sponsored the All-Albertan Song Contest through its
community website wearealberta.ca. Nearly 200 entries were received and
Calgary's Danny Vacon won top prize, including $10,000 cash, for his
song Gold and Green, which will be included in Alberta Music's 2012 Showcase CD.
About ATB Financial - ATB Financial is the largest Alberta-based financial institution,
with assets of $26.5 billion. It provides Retail Financial Services,
Independent Business and Agriculture Financial Services, Investor
Services, and Corporate Financial Services to more than 680,000
Albertans in 243 communities. It provides service through 166 branches
and 130 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. ATB has
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 third-quarter financial results, including Management's
Discussion and Analysis, please visit www.atb.com
SOURCE ATB Financial
For further information:
Director of External and Media Relations
(780) 913-8905 (cell); (780) 408-6529 (office)