EDMONTON, Feb. 12, 2019 /CNW/ - Third-quarter results for ATB Financial show strong growth in revenue and a net income of $51.8 million for the quarter ending December 31, 2018, after accounting for loan loss provisions of $69.3 million which mirror the state of Alberta's economy.
The quarter was marked by challenges in the energy market as the oil patch contended with rising production and ongoing pipeline constraints, pushing the price of Western Canadian Select downwards. However, despite ongoing challenges, the largest Alberta-built financial institution saw deposits grow to $35.9 billion, an increase of 7.1 per cent from the same quarter in 2017, and loans increase by 8.9 per cent to $47 billion.
"As Albertans, we continue to be resilient through challenging times; these past months have shown that," said ATB President & CEO Curtis Stange. "Despite these headwinds, ATB continues to be forward-focused and looking for opportunities to make banking work for all Albertans."
Although a production cut in oil has boosted the price of Alberta's oil, ongoing uncertainty about pipeline construction has stalled capital investment. Despite concern around pipelines and other global pressures, Alberta continues to hold its own among the provinces. Retail activity, manufacturing, wholesale trade and other economic indicators are hovering around pre-recession levels while sectors including agriculture, tourism and the tech sector have seen growth.
"As we move into the next quarter, we are evolving ATB in several key areas to better deliver remarkable experiences for our customers," said Stange. "ATB Brightside, our upcoming digital-only bank has started subscribing early adopters who will have access to the experience this year. We also have more than 3,000 customers using our new business banking online platform with more to come. Being customer obsessed cannot be left to chance. With these changes, we are reaffirming our intention and commitment to consistently deliver on that promise."
Highlights of the quarter include:
ATB also continued to be recognized as one of Canada's best workplaces, this time being included for the first time in the 2018 list of Best Workplaces in Alberta. 2019 AON Best Employers in Canada also recognized ATB for the fourth consecutive year.
ATB Wealth, ATB Financial's asset management division, was also awarded two 2018 Thomson Reuters Lipper Fund awards.
Q3 FY19 By the numbers
$51.8 million - net income
44.9% decrease from Q3 FY18
$427.2 million - operating revenue
5.0% increase from Q3 FY18
$35.9 billion - deposits
7.1% increase from Q3 FY18
$47.0 billion - loans
8.9% increase from Q3 FY18
$54.9 billion - total assets
8.3% increase from Q3 FY18
Q3 FY19 People numbers
768,059 - total customers
5,567 - ATB team members
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About ATB Financial
With $54.9 billion in assets, ATB Financial is an Alberta-built financial institution. But don't let that fool you—we're so much more than a bank. We got started in 1938 to help Albertans through tough economic times, and today we have 176 branches, 143 agencies, a Client Care Centre, four entrepreneur centres, and mobile and online banking. And did you know we're fast becoming the digital bank and the bank for entrepreneurs? We're already the place to work for our more than 5,500 team members who love to serve our 760,000-plus customers in 247 Alberta communities. To find out more, visit us at atb.com.
SOURCE ATB Financial