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Thursday, September 09, 2010 |
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Thursday, September 09, 2010 |
News Release: November 10, 2006 ATB Financial Announces Record Second Quarter Results Edmonton, Alberta - ATB Financial reported second quarter earnings of $93.9 million for the period ending September 30, 2006, up $39.5 million since the same time last year. Of the year-over-year increase, $24.3 million is attributed to a refinement in the methodology for establishing the level of general loan loss allowance, which resulted in a one-time reduction in the allowance this quarter. "Following up on a strong first quarter with an outstanding second quarter is a testament to the strong Alberta economy, a full range of products and services to meet our customer needs, and a fully committed team of associates," says Bob Normand, President and CEO. "Even if we did not include the $24.3 million reserve release, it would still be a record second quarter result with $69.6 million net income." Highlights of ATB Financial's first-quarter results: (for the complete Second Quarter financial results (p/e September 30, 2006), please click here.) )Current results compared to the second quarter of fiscal year 2005-2006:
Operational Highlights Personal and Business Financial Services - This line of business (LOB) continues to see strong growth across the board. Loan growth in the second quarter was $360.9 million compared to $340.5 million during the first quarter this year. Deposit growth continues to be extremely strong at $606.4 million for the second quarter. ATB MasterCard was the recipient of the MasterCard International Product Innovation Award for our Gold Agricultural Reward Business Card and our Gold Rewards Business Card. Products - The second quarter featured a continuation of our first-quarter campaign aimed at younger customers to introduce them to our retail deposits. Initial results of this promotion are positive. Simply by opening up an account and setting up a monthly deposit or three recurring monthly payments, customers are eligible for a stylish cellular phone. Branch Network - ATB continued the expansion of its branch network with the September 5th opening of our 152nd branch at Calgary Creekside. The relocation of the Okotoks branch also occurred in September, as did the completion of a major renovation of the St. Albert Tudor Glen branch. Construction on the new Edmonton Grange Branch commenced in September. Also in the same month, construction began on the planned relocations of both the Killam and Stettler branches. ATB Investor Services - For this quarter, ATB Investor Services (ATBIS) saw strong growth in assets under management and administration of $359.2 million. ATBIS second quarter results were up 35.84 per cent from the same quarter last year in spite of industry sales being down by 36.99 per cent (according to Investment Funds Institute of Canada) compared to last September. Year over year, ATBIS has grown its assets under management and administration by $1.1 billion or 60.03 per cent versus industry growth of 10.06 per cent. Corporate Financial Services - Thanks to growth in all sub-lines of business (Energy, Commercial, Food & Forestry), total loans for the Corporate Financial Services (CFS) line of business reached $3.0 billion during the second quarter. In this quarter, loans increased by $341.5 million or 12.99 per cent and $851.7 million or 40.19 per cent from one year ago. Notwithstanding this growth, CFS has maintained both portfolio quality and profitability. ATB in the Community ATB Financial has a long history of supporting Alberta communities where we do business. Our associates share this commitment and actively volunteer in the community events sponsored by ATB. This past summer, ATB sponsored the ATB Financial Go-Kart Track at the Grand Prix in Edmonton, chuckwagon driver Chad Harden at the Calgary Stampede, the Grande Prairie Street Performers Festival and CentreFest in Red Deer. We also had a committed team of associates who were involved as volunteers with the Calgary Habitat for Humanity project. ATB also supported many events and activities throughout Alberta including: Alberta Summer Games, North Peace Stampede, Sangudo Rodeo, Town of Hinton 50th Anniversary, Alberta Seniors Games in Cold Lake, Magrath Triathlon, Rocky Mountain House Air Show, Killam 100th Anniversary, Myrnam Rodeo,Taber Cornfest, and Nanton Annual Rubber Duck Race. ATB is a supporter of STARS Air Ambulance - a cause that contributes to the well being of all Albertans. Our sixth annual fundraising campaign was held at 16 branch locations in central and southern Alberta. Our associates organized numerous special events and activities in their communities to raise money for the organization. With the $73,000 in proceeds raised from this year's campaign, ATB, through the generosity of our customers, has now donated more than $550,000 to STARS. Second Quarter - Economic Review & Outlook The Alberta economy continues to expand rapidly as oil and gas investment, residential investment, and public sector infrastructure spending competes with a very tight labour pool. The ATB Financial Business Sentiments Index™ (BSI) stood at 163.1 for the fourth quarter of 2006, its highest level ever, signalling continued robust growth in 2007. While oil and natural gas prices have receded over the course of the year, nominal prices remain high and according to the BSI, the oil patch remains very bullish. With unemployment under four per cent for most of the past year, businesses are being forced to re-assess their recruitment strategies. In-migration levels, last seen in the boom of the late 1970s, are providing a pool of employees, but housing has become a limiting factor in a number of communities. Two-thirds of construction sector respondents to the BSI survey identified the labour shortage as a constraint to meeting demand. As employers struggle with the shortage of labour, opportunities arise for more efficient use of capital or outsourcing activity to other jurisdictions. Although Alberta's inflation rate is well above the Bank of Canada's upper band of three per cent, absent a major decline in oil and gas prices, ATB foresees continuing strong growth in 2007.
About ATB Financial ATB Financial is a leading full-service financial institution based in Edmonton, Alberta, Canada. ATB serves over 600,000 Albertans in 245 communities through 153 branches and 135 agencies, as well as a customer contact centre in Calgary, Alberta. Services are also available through automated banking machines and online banking. A wide range of wealth management products and services are provided under the banner of ATB Investor Services. For further information on ATB Financial, including the complete Second Quarter Report (p/e September 30, 2006) and other reporting periods, visit www.atb.com. - 30 - For further information please contact: Brian Countryman |
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