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Thursday, September 09, 2010 |
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Thursday, September 09, 2010 |
News Release: November 18, 2003 ATB Earnings Exceed $46 Million Edmonton - November 18, 2003 - ATB Financial reported second quarter earnings of $46.2 million for the period ending September 30, 2003, compared to $50.5 million for the same period last year, a decrease of 8.56 per cent. The second quarter results increased ATB's equity to $862.1 million as at September 30, 2003, up by $182.4 million from one year ago. "ATB Financial continues to build on its track record of sustained earnings and increased market share," said Bob Normand, President and CEO of ATB Financial. "A key factor in our ongoing success is our commitment to our customers to provide personal service across our three key lines of business - retail and business, energy and commercial, and investor services." Financial Highlights
BSE Update ATB Financial continues taking proactive steps towards the changing circumstances surrounding the May 20, 2003 discovery of a single case of Bovine Spongiform Encephalopathy (BSE), in a cow from an Alberta farm. Since ATB's first quarter financial report, there have been encouraging developments with respect to the U.S. border re-opening and fortunately, to date, ATB customers have experienced no substantive defaults or business failures. Accordingly, ATB has not increased its loan loss provisions. The fallout from the BSE issue is still unfolding and will not likely be fully known for some time. However, the level of optimism is comparatively higher since ATB's first quarter report. In the meantime, ATB continues to work with its clients one-on-one to determine the best solution to address their needs as a result of the BSE situation. Whenever possible, ATB associates are proactively making every effort to visit customer premises or make telephone contact to fully understand each customer's circumstances. ATB Investor Services In spite of weak second quarter investment industry sales of $245 million (net sales total for Canada, as per Investment Funds Institute of Canada), ATB Investor Services had very strong net sales of $53 million. ATB Investor Services also grew by 1,000 customers during ATB's second quarter. ATB's Compass Portfolio Series continued its strong growth, adding $30 million in assets during the quarter. Marketing In the second quarter ATB Financial introduced new initiatives and products, including a Home Equity Line of Credit special offer allowing customers to leverage the growing equity in their home. In September ATB introduced its 65th anniversary GIC. This two-year, flexible product offered a rate of 3.1%. The Canadian Federation of Independent Business (CFIB) released the results of its most recent member survey and ATB Financial maintained its Alberta market leader status for meeting the needs of small business. ATB sponsored an extensive "attitude and usage study" involving a telephone survey to 1200 Alberta farmers. The study results confirm that ATB continues to lead the market in meeting the needs of agri-industry and almost one out of every two Alberta farm families have a primary or secondary relationship with ATB. ATB in the Community ATB Financial celebrated its 65th anniversary on September 29th, 2003. The occasion was marked by a reception featuring Premier Ralph Klein in Rocky Mountain House, the first ATB Financial branch to open. During the week of September 29th ATB branches and agencies hosted customer appreciation activities including the collection of memorabilia for a time capsule. For the third consecutive year ATB raised funds for STARS through an in-branch campaign and a corporate golf tournament. These initiatives raised a total of $60,000 for STARS. ATB Financial has now donated more than $225,000 to STARS since 1998. During the summer months, ATB sponsored the Calgary Stampede, Edmonton Klondike Days, the Street Performers Festival in Grande Prairie, the ATB Financial Lethbridge International Airshow, and the Alberta Seniors Games in Fort McMurray. ATB was instrumental in bringing the inaugural CentreFest (a street performer festival) to the City of Red Deer. The ATB parade floats visited 36 community parades throughout the province. For over 60 years, ATB has supported youth and agriculture through 4-H. This summer, ATB sponsored the Provincial 4-H Beef Heifer Show in Bashaw and the Provincial 4-H Judging Competition in Olds. Branch Relocations ATB Financial held September sod turning events in Medicine Hat and Grande Prairie for upcoming branch relocations. Both facilities will provide ATB customers with improved access, better parking and more amenities like drive-through ABMs. Economic Outlook The outlook for the Alberta economy today is more positive than the first quarter report. Agricultural exports have fallen by almost 30 per cent during the first half of the 2003 calendar year, chiefly as a result of the BSE discovery. At the present time, observers are cautiously optimistic that the United States, Alberta's principal trading partner, will gradually re-open the border to live cattle over the coming months. Nevertheless, the loss of Alberta's largest cattle export market underlines rural Alberta's vulnerability to market closures. Energy prices remain high and augurs well for a record drilling season. With interest rates falling over the past quarter, Alberta's housing markets remain strong, particularly in the Edmonton region. Due to the outbreak of SARS, tourism, especially in the mountain parks, has suffered. However, with these shocks out of the system and strong U.S. growth, ATB forecasts economic growth picking up over the next three quarters. A key risk to the forecast would be a continued rapid rise of the Canadian dollar relative to the U.S. dollar that would harm the export sector. ATB Financial, an Alberta-based financial institution, was established in 1938. Today, ATB provides personal service to 600,000 customers in 240 Alberta communities. For detailed report, click here. -30- For further information please contact: Brian Countryman |
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