Edmonton— The results for the first quarter of ATB Financial’s current fiscal year reflect the unfolding story of Alberta’s economy in 2015, says ATB President & CEO Dave Mowat.
“The biggest stresses we are seeing stem from the impact of low oil prices. Alberta has very experienced leadership in our energy sector and they are showing a healthy dose of caution and prudence,” says Mowat. “As a result, ATB’s story is the story of Alberta right now.”
Credit loss provisions for the fiscal year’s opening quarter totalled $57.5 million, which is an increase of $47.1 million from the first quarter last year. The provision led to net income of $65.8 million in Q1, a decrease of $18.0 million, or 21.5 per cent, from a year ago.
“It’s important to note that it’s early in the year, and a loan loss provision is not an actual loss,” says Mowat. “It’s an estimate of what losses could be based on our reading of how the year will progress. We did anticipate this situation and it is consistent with the current economic situation.”
ATB estimates loan loss provisions of around $168 million at year’s end compared to $72.6 million for the prior year.
Hear more from Mowat in this video.
Aside from loan loss provisions, ATB had a solid quarter. During the first quarter ending June 30, 2015, ATB generated operating revenue of $398.5 million, up $44.0 million or 12.4 per cent from the same quarter last year. Net loans for the first quarter stood at $38.2 billion, up 11.2 per cent from the first quarter last year. And total deposits were $31.0 billion, up 8.4 per cent quarter to quarter.
“The rest of the story is that, as our loan growth shows, we are very much open for the business of building Alberta’s future,” Mowat says. “That is work worth doing, and it’s possible only because of the loyalty of our customers and the creativity of the people who work at ATB.”
For ATB’s complete results, visit ATB.com.
Q1 By The Numbers
$65.8M – Net income
21.5% – Decrease from Q1 15
$398.5M – Operating revenue
12.4% – Increase from Q1 15
$38.2B – Loans
11.2% – Increase from Q1 15
$31.0B – Deposits
8.4% – Increase from Q1 15
$43.5B – Total assets
11.1% – Increase from Q1 15
$57.5M – Provision for credit losses
64.1% – Efficiency Ratio
2.2% – Improvement from Q1 15
Q1 By The People
7,517 – Customer growth
5,245 – ATB Team Members