Edmonton – ATB Financial reached a milestone this quarter. Thanks to Albertans continuing to do business at Alberta’s own financial institution, ATB saw its earned equity reach $2 billion for the first time in our history.
Earnings at ATB Financial were down 8.4% from last year due largely to an increase in operating expenses required to make the transition to a new state-of-the-art banking system.
ATB’s net income for the quarter ending September 30, 2011 was $51.2 million, compared to $55.9 million over the same quarter last year. However, profits for the first six months of the 2011-2012 fiscal year continue to outpace the previous year by 7.2%.
Operating revenue for the second quarter was $276.7 million, an increase of $27.7 million over the same quarter last year. Non-interest expenses, on the other hand, increased to $204.1 million compared to $170.1 million in the second quarter of fiscal year 2010-2011.
Loans have grown to $26.2 billion at the end of September, a solid increase of 5.0% from a year ago. The loan loss provision expense has decreased from the same quarter last year.
“It was another solid quarter for ATB, and the credit goes to our associates and our customers, whose perseverance and patience helped us through the launch of our new banking system and allowed ATB to continue to grow our business,” said Dave Mowat, ATB’s President and Chief Executive Officer.
“Looking ahead, we anticipate higher-than-normal expenses as we continue to stabilize our new banking system and serve our customers through the transition. We’re also expecting continued volatility in financial markets and low interest rates. However, I’m confident ATB will rise to the challenge and continue to meet the financial needs of Albertans.”
Retail Financial Services (RFS) – This line of business includes branches and agencies throughout Alberta. Operating revenue was $114.9 million, an increase of $7.6 million, or 7.0 per cent, over last year.
Independent Business and Agriculture financial services (IB&Ag) – This line of business provides services to Alberta’s small businesses, farmers and other agriculture customers. Operating revenue was $68.8 million, an increase of $3.8 million, or 5.8 per cent, over last year.
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. Operating revenue was $66.5 million, an increase over last year of $7.7 million or 13.0 per cent.
ATB Investor Services (IS) – This line of business is responsible for growing and protecting wealth for more than 55,000 customers. Investor Services continues to build assets under management and administration, which increased to $6.3 billion this quarter, up $0.7 billion, or 12.8 per cent from the second quarter last year.
ATB in the Community – In August, 2011, ATB Financial announced its fundraising totals for the 12th annual Teddy for a Toonie campaign. ATB associates and customers across Alberta raised more than $563,000 for children’s health. Money raised in northern Alberta (over $298,000) was donated to the Stollery Children’s Hospital in Edmonton and was directed towards its emergency room expansion project. Money raised in southern Alberta (over $264,000) was donated to the Blood and Marrow Transplantation program at Alberta Children’s Hospital in Calgary. Since 2000, ATB’s Teddy for a Toonie campaign has raised nearly $5 million for children’s health and wellness in Alberta.
About ATB Financial – ATB Financial is the largest Alberta-based financial institution, with assets of over $30 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 168 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 Maclean’s Magazine 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
For further information, please contact:
(780) 886-4398 (cell); (780) 495-1343 (office)