News Release:

November 28, 2000

Second Quarter Results, six months ended September 30, 2000
ATB Leads in Small Business Lending in Alberta

Edmonton, Alberta – Alberta Treasury Branches (ATB) continued to maintain strong earnings reporting net income of $43.3 million for the quarter ended September 30, 2000. This is an increase of $4.7 million, or 12.21% from the previous quarter. These results increased ATB’s retained earnings to $354.6 million, as at September 30, 2000.

"The personalized customer service we provide is a hallmark of ATB and we measure our success by the competitive products and services we provide," says Paul G. Haggis, President & CEO of ATB. "We continue to augment the services we offer, providing more choice and continually looking for ways to improve our operations to meet the changing needs of our customers. Our customers appreciate having options and continue to demonstrate their loyalty to ATB as their first choice financial services provider."

• Core net interest income of $90.3 million; an increase of 20.70% over the $74.8 million reported for the same quarter last year.
• Non-interest expenses of $61.8 million; an increase of 2.72% over the $60.2 million for the same quarter last year.
• ATB’s efficiency ratio (non-interest expenses as a percentage of total core revenues) was 57.41%; compared to 62.95% for the same six-month period last year.
• The allowance for credit losses (including specific and general loan loss allowances) exceeds gross impaired loans by $48.5 million. Net impaired loans represent a negative 0.51% of total loans at September 30, 2000, compared to a negative 0.59% at September 30, 1999.
• Total assets at $11.2 billion; an increase of 10.16% over last year.
• Total loans at $9.4 billion; increased 11.39% over last year.
• Customer deposits at $10.6 billion; increased 8.48% over last year.

Small business is a core focus for ATB and we continue to dedicate a tremendous effort to support this market. A national survey recently released by the Canadian Federation of Independent Business confirmed ATB’s initiatives to better support Alberta small business are on track. The survey found that ATB’s share of the small business market now leads all major financial institutions in the province.

The survey, conducted in the spring of 2000, cited quality of service as the top reason for small business changing financial institutions, followed by availability of credit.

Century GIC (Series One) - A 5-year Redeemable Century Guaranteed Investment Certificate (GIC) was introduced to commemorate Alberta’s centennial in 2005. The 2000 Redeemable Century GIC is the first of six annual Century GICs that will be issued for a limited time in October each year. Purchasers of the 5-year Redeemable Century GIC will also qualify for a $100,000 draw in December 2005. Due to overwhelming customer demand, ATB extended the sale of the Series One Century GIC to November 11, 2000.

The Alberta Gold My Rewards MasterCardâ , a credit card loyalty program to accumulate points that can be redeemed for travel or merchandise, was introduced in late September.

The differentiating feature of the Alberta Gold My Rewards MasterCardâ is that points for travel can be redeemed anytime, anywhere, with any airline. As well, any combination of points and cash can be used for travel.

Customers earn one point for every dollar charged and points will not expire. A program catalogue outlining travel features and merchandise is available on ATB’s website, www.atb.com.

The AgriBusinessCard is being well accepted, with continued interest from our customers. The card is designed for customers with lower loan requirements. Many customers with operating loans now use the AgriBusinessCard for this purpose.

The total number of AgriBusinessCards issued has almost doubled since March 2000, while the card’s share of the small agri-industry portfolio increased by over 16.5%.

The roll-out of a new tool to assist in credit decision making continues. All MasterCardâ consumer applications are now evaluated using this tool. The result is faster turnaround of credit approvals. New functionality will be added over the next six months to support the full product line.

We are also committed to upgrading our branch network. Two branches relocated during the quarter. The Grande Prairie Northview branch opened in late August. The branch relocated from the Grande Prairie Mall to a new 4,500 square foot facility at 11507 – 99^th Street. At the end of September, the Calgary Sunridge branch relocated to a new 6,500 square foot free-standing building at the Spectrum Shopping Centre, 2555 – 32^nd Street, in Northeast Calgary. Both new branches provide increased convenience and improved accessibility for their customers.

An additional 52 seats were added to the existing 130 seat Customer Contact Centre located in Calgary, to handle inbound and outbound sales. This additional capability will help to strengthen our relationship with our existing customers.

ATB is a proud community sponsor and participated in a number of activities throughout the summer. For example, in Calgary, we sponsored the Wild Cow Milking Contest at the Calgary Stampede; and in Edmonton we presented the annual Klondike Days Parade and Circusmania, a new family event during K-Days. ATB also co-sponsored the Lethbridge International Air Show and the opening ceremonies of the Alberta Summer Games in Grande Prairie.

A new concept for a parade float was developed with three modular pieces representing technology, youth accounts, and community involvement. These floats participated in 38 parades across Alberta, including Edmonton, Calgary, Red Deer; and numerous rural communities from Manning in the north, to Lloydminster in the east; Onoway in the west; and Bow Island in the south.

ATB is one of the leading lenders to the agri-industry in Alberta. We recognize that young people are the future for the agri-industry in Alberta and we support young people belonging to Alberta 4-H. During the quarter, the top 20 finishers in the ATB Provincial 4-H judging competition were awarded with team jackets. These competitors will now compete in judging competitions in Canada and the United States.

On behalf of the Board, Management and Staff of ATB, we appreciate your loyalty and thank you for entrusting ATB with your business. With your continued support we will maintain the momentum by meeting and exceeding your expectations through profitable growth.

Copies of the quarterly financial report and financial statements are available here.

Highlights

For further information please contact:

Maya Pungur
Manager, Corporate Communications
Alberta Treasury Branches
(780) 408-7266
e-mail: mpungur@atb.com

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