Edmonton and Calgary — In a quarter that saw deposits rise, loans rise, and loan loss provisions rise, ATB Financial maintained its strong financial position.
“When the provincial economy gets through the current challenges, we may well look back on the third quarter of the current financial year as the time the oil-price crisis made itself sharply felt across the province, and as the time that ATB stayed the course and did not abandon good customers and good businesses,” said Dave Mowat, ATB’s President & CEO.
At December 31, 2015, total deposits stood at $31.7 billion, up from $29.8 billion at December 31, 2014.
At December 31, 2015, net loans were $40.0 billion, up from $36.7 billion at December 31, 2014.
Provisions for credit losses, a category that is a clear gauge of the challenges faced by companies in the oil and gas sector, and related service sectors, were $91.3 million in the third quarter.
In the third quarter, our capital ratios for regulatory purposes improved reflecting overall improved strength in our balance sheet. This reflects the positive impact of the increase in ATB’s borrowing limit, approved by the Province in November, 2015.
“While loan loss provisions are a sign of the times with Alberta’s economy, there is still good business happening here,” Mowat said. “Our loan numbers to small and medium sized businesses this year compared to last year is a good sign of what is starting to grow. We don’t loan out of hope, or out of a good story. We make these loans after we do our due diligence.”
In the third quarter of the current fiscal year, ATB authorized 5,472 loans to businesses. This is a jump of almost 30 per cent compared to our results in the same quarter of the previous year, when 4,222 loans were approved.
But ATB does recognize that times are turbulent for many families in Alberta, and continues to reach out to customers whose payroll has stopped or who have been identified as potentially hurt by the economic downturn. About 1,000 customers have already been reached and advised about available options, and calls will continue through the year. ATB has also introduced a special enhanced debt management program that focuses on customers who have lost their jobs.
While there’s a lot of uncertainty in the financial markets, customers are trusting ATB Investor Services more than ever to manage their investments. By the end of the third quarter, ATB Investor Services’ assets under management grew to $14.3 billion, an increase of $1.7 billion from December 31, 2014.
ATB team members and customers continued their generosity in the community during the third quarter. In October, ATB team members, along with corporate matching, contributed $760,000 to the United Way across Alberta. And in December, Albertans donated $1.25 million to community organizations through ATBCares.com. ATB has set aside $150,000 to match 15 per cent of donations made to Alberta charities on the site.
To find the full report on ATB’s third quarter, click here.
Q3 16 By the Numbers
$32.5M – Net income
$381.2M – Operating revenue
1.7% – Increase from Q3 15
$40.0B – Loans
9.1% – Increase from Q3 15
$31.7B – Deposits
6.2% – Increase from Q3 15
$46.1B – Total assets
12.1% – Increase from Q3 15
$91.3M – Provision for credit losses
Q3 16 By the People
4,128 – Customer growth
5,210 – ATB team members