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ATB's 2nd quarter keeps steady profit pace

Friday, November 23, 2012 6:43 PM

EDMONTON, Nov. 23, 2012 /CNW/ - ATB Financial has continued its healthy momentum in the current fiscal year, closing the books on the second quarter by posting a solid profit.

Net income for the quarter ending September 30, 2012, was $55 million, up $5.1 million, or 10.3 per cent, from the same quarter last year, and up 0.8 million or 1.5 per cent from the results of the first quarter.

Total operating revenue for the second quarter was $290.6 million, an increase of $15.6 million from the second quarter last year, and virtually unchanged from the previous quarter. Non-interest expenses were $211.6 million, up 3.7 per cent from the same quarter last year, but down almost 2 per cent from the previous quarter.

Net loans and total deposits both saw increases in the second quarter. Net loans stand at $28.4 billion, up $2.1 billion, or 8 per cent, from the same quarter a year ago, while total deposits reached $23.1 billion, up 3.2 per cent over the same quarter last year.

"We're pleased with these results," said Dave Mowat, ATB's President and CEO. "They reflect the strength of our customers and Alberta's economy, and we expect solid growth to continue."

"The growth is a reflection of the trust our customers continue to extend to us, and the dedication of our associates who earn that trust."

Operational Highlights

Retail Financial Services (RFS) - This line of business includes branches and agencies across the province. Operating revenue was $113.3 million, an increase of $3.5 million, or 3.2 per cent, over the previous quarter, and up $2.1 million, or 1.9 per cent, over the same quarter last year.

Business and Agriculture (B&Ag) - This line of business provides services to Alberta's small- and mid-sized businesses, farmers and other agriculture customers. Operating revenue was $70.0 million, up $2.7 million, or 4.1 per cent, over the previous quarter. B&Ag's owner occupied real-estate campaign wrapped up in the quarter, in which $217 million in new loan funding was generated.

Corporate Financial Services (CFS) - This line of business provides services to Alberta's senior-market companies in energy, food, forestry, real estate and other industry segments. Operating revenue was $73.1 million, an increase of $8.6 million, or 13.3 per cent, from the previous quarter, and up $12.2 million, or 20 per cent, from the same quarter last year.

ATB Investor Services (IS) - This line of business offers its clients integrated, world-class wealth management expertise. Operating revenue of $19.5 million was up from $16.8 million in the same quarter last year, an increase of 16 per cent.

ATB in the Community - All summer, ATB's associates volunteered and raised funds for several deserving local charities, including Edmonton's Capital City Clean-up, the Wild Pink Yonder trail ride for breast cancer, and Habitat for Humanity builds in Lethbridge and Medicine Hat. In July, ATB sponsored chuckwagon driver Codey McCurrach in his first appearance at the Calgary Stampede, where McCurrach claimed the top rookie award. ATB also became title sponsor for the Edmonton Symphony Orchestra's annual Symphony Under the Sky concert series August 31 to September 3 at Hawrelak Park.

About ATB Financial - ATB Financial is the largest Alberta-based deposit-taking financial institution, with assets of $32 billion. We offer retail financial services, business and agricultural financial services, corporate financial services, and investor services to more than 635,000 Albertans and Alberta-based businesses in 242 communities in our province.

We provide those services through 171 branches and 130 agencies, mobile, telephone and online banking, an Alberta-based customer care centre, and automated banking machines.

    For the three months ended         For the six months ended    
    Sept 30     June 30     Sept 30         Sept 30     Sept 30
($ in thousands)   2012     2012     2011         2012     2011
Operating results                                
Net interest income   $ 221,706   $ 206,620   $ 203,024         $ 428,326   $ 403,860
Other income   68,870     84,041     71,972         152,911     145,652
Total operating revenue   290,576     290,661     274,996         581,237     549,512
Provision for credit losses   7,519     4,534     6,106         12,053     9,079
Non-interest expenses   211,616     215,744     204,096         427,360     402,418
Net income before PILOT   71,441     70,383     64,794         141,824     138,015
Payment in lieu of tax   16,431     16,188     14,903         32,619     31,744
Net income   $ 55,010   $ 54,195   $ 49,891         $ 109,205   $ 106,271
Financial position                                
Net loans   $ 28,356,304   $ 27,448,066   $ 26,246,167         $ 28,356,304   $ 26,246,167
Total assets   32,704,492     32,017,670     31,515,107         32,704,492     31,515,107
Total deposits   23,088,892     22,914,585     22,377,472         23,088,892     22,377,472
Equity   $ 2,152,747   $ 2,125,899   $ 2,037,441         $ 2,152,747   $ 2,037,441
Key performance measures (%)                                
Return on average assets   0.68     0.69     0.63         0.68     0.70
Operating revenue growth   5.7     5.9     10.4         5.8     N/A
Other income to operating revenue   23.7     28.9     26.2         26.3     26.5
Operating expense growth   3.7     8.8     20.0         6.2     N/A
Efficiency ratio   72.8     74.2     74.2         73.5     73.2
Net interest spread   2.88     2.77     2.78         2.82     2.83
Credit losses to average loans   0.11     0.07     0.09         0.09     0.07
Net impaired loans to total gross loans   0.30     0.32     0.30         0.30     0.30
Net loan growth1   8.0     6.2     5.0         8.0     5.0
Total asset growth1   3.8     1.7     11.1         3.8     11.1
Total deposit growth1   3.2     3.8     7.7         3.2     7.7

1 Measures are calculated by comparing current quarter balances against the same quarter of the previous year. 

SOURCE: ATB Financial

Glenn Kubish
ATB Financial
(780) 408-6529, (587) 984-5275

(Source: CNW )
(Source: Quotemedia)


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