ATB Financial ends fiscal year with solid operating income offset by impact of economic downturn
New fiscal year focuses on supporting Alberta’s recovery
By ATB Financial 28 May 2020 4 min read
Edmonton—Alberta’s largest homegrown financial institution ended the fiscal year with higher revenues, increasing 2.6% over the previous year to $1.7 billion.
ATB Financial’s solid operating income for the fiscal year ending March 31, 2020 was offset by increased provisions for loan losses, an increase of 14.1% from FY19. This reflects a provincial economy that was beginning to rebuild before being hit by the effects of the COVID-19 pandemic, concurrent market volatility and oil price shocks in the final month of FY20. ATB reached $519 million in income before provisions for the year, slightly higher than FY19.
“From the devastating effects of the pandemic to the crash in oil prices, our province is facing challenges we never could have imagined just a few months ago,” said Curtis Stange, President and CEO of ATB Financial. “Just as ATB was established during the Great Depression to help Albertans recover, rebuild and cultivate prosperity, we will continue to persevere with Albertans and Alberta businesses through these difficult times.”
This past fiscal year, ATB supported close to 777,000 customers, up 8,000 from last year, and provided more than $16 billion in new and renewed lending. ATB’s investment management arm, ATB Wealth, helped more Albertans manage their investments with assets under administration of close to $20 billion—a solid result given market volatility, especially during the final month of the fiscal year.
From the start of the crisis, ATB focused its energy on helping Albertans and Alberta businesses navigate through these uncertain times, including providing credit relief to customers within 24 hours of Alberta declaring a public health emergency. Additional funding was also directed to United Way agencies across the province to help provide on-the-ground emergency support to those in need.
“We understand Alberta because Alberta is our home,” said Stange. “Together, we have made it through tough times. We will do it again because we are resilient. ATB will continue to be an industry leader that Albertans can count on as we move toward economic recovery.”
Highlights of the year include:
- Just one day after the Province declared a public health emergency, ATB deployed a relief package for customers which included deferred mortgages, loans and credit card payments keeping approximately $240 million in Albertans’ pockets during this difficult time.
- Rapidly, ATB was able to transition into a new operating model for its branch and agency locations to prioritize health and safety of customers and team members, and also moved the majority of its operations and corporate teams to home-based workplaces.
- ATB reached a milestone of $10 million in donations to support children’s hospitals in Alberta, and raised a record $5.8 million through ATB Cares for Alberta-based charities this year.
- ATB was proud to be named the #1 place to work in the country by Great Place to Work® Canada — the first year ATB has been recognized as the top workplace in the nation and the only financial institution to make the top 20.
- ATB captured the biggest share of the small business market in the province, with nearly one quarter of Alberta businesses choosing to bank with ATB.
- ATB closed the acquisition of all outstanding Class B shares of AltaCorp Capital making it a wholly-owned subsidiary. This broadens ATB’s service offering and provides customers with holistic corporate and capital markets advice and solutions.
- ATB acquired Grow Technologies Inc. so customers will have access to an easy-to-use and time-saving digital platform that will significantly improve their banking experience.
- ATB was the first financial institution in Canada to offer mortgage support for factory built homes and residential outbuildings, changing national mortgage insurance policies across Canada.
- ATB’s second Build Her Business crowdfunding campaign encouraged 32 women entrepreneurs to start and grow their business raising close to $100,000 for participants.
- ATB committed $250,000 to support agriculture technology, an important pillar of Alberta’s economic viability, through Olds College’s Smart Farm program.
- ATB began updating its automated banking machines (ABM) with visually-impaired accessible models. All branches will be updated by December 31, 2022.
ATB will hold its Annual Public Meeting via livestream this afternoon (at 3 p.m. MST). Live coverage will include an address from ATB’s President and CEO Curtis Stange, Board Chair Joan Hertz, QC., and Chief Financial Officer Dan Hugo. Albertans will be able to listen to the meeting and ask questions following the presentations.
See ATB’s 2020 annual report.
About ATB Financial
With $55.8 billion in assets, ATB Financial is an Alberta-built financial institution that is a catalyst for economic growth in our province. We got started in 1938 to help Albertans through tough economic times and are still the only financial institution in more than 100 Alberta communities. ATB’s more than 5,000 team members love to deliver exceptional experiences to nearly 777,000 customers in our 175 branches, 139 agencies, 24-hour Client Care Centre, four entrepreneur centres, or through our digital banking options. Everything we do is focused on how we can serve Albertans—from providing expert advice and supporting entrepreneurs to helping Albertans buy a home and grow their wealth.
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