Supporting Alberta’s economic recovery: ATB Financial releases first-quarter results
By ATB Financial 13 August 2020 4 min read
Edmonton—ATB Financial’s first-quarter results demonstrate its financial strength while supporting customers during Alberta’s triple impact event of COVID-19, the concurrent oil price shock and resulting market volatility.
In the quarter ending June 30, 2020, ATB supported Albertans and their businesses with new and renewed loans of more than $5.3 billion. ATB’s relief programs also helped customers weather the uncertainty by deferring payments for loans, mortgages and credit card payments. Through careful management, ATB’s investment management arm, ATB Wealth, helped more Albertans grow their investments with assets under administration of $21.7 billion, rising from $20.7 billion for the same quarter last year and recovering most of the value lost from the initial fallout of the pandemic.
“We recognize the significant challenges facing many Albertans and their businesses during these times, and as Alberta’s bank, we will continue to play an active role as our economy moves from responding to this crisis into recovery mode and thriving,” said Curtis Stange, President and CEO of ATB Financial. “We are in a new frontier in this province—uncharted territory with both unique challenges and opportunities. It’s not going to be business as usual moving forward, but Albertans were built to face challenges and ATB was built to help our customers through them.”
In the first quarter, ATB delivered solid operating revenue of $424.6 million and continued its focus on expense management. ATB's results were not immune to the shuttering of the economy and recorded a provision for loan losses of $245.3 million resulting in a net loss of $114.2 million for the quarter. With assets of $55.1 billion ATB continues to be in a strong financial position, both in terms of liquidity and capital.
“A crisis brings home an organization’s purpose like at no other time. With the triple impact event hitting Alberta, we quickly rallied around our customers and team members, reimagined our relief programs and formed new partnerships to help make it possible for Albertans during these uncertain times,” said Stange. “We also focused our efforts to those most in need with our donations and fundraising directed to on-the-ground emergency support across the province.”
Other highlights include:
Through its recent acquisition of Grow Technologies and further development of AI capabilities, ATB was able to quickly automate the Canada Emergency Business Account application process so customers could apply directly from ATB.com. ATB also implemented Canada Revenue Agency direct deposit so customers could receive relief payments at record speed. ATB.com became a hub for information on customers’ finances with stories on what to do if facing a layoff during pandemic, considerations for Canada Emergency Response Benefit and banking online securely.
In mid-May, ATB began fully reopening select locations with customer and team member safety precautions in place. By July, more than 70% of ATB locations were fully open and many other locations open by appointment.
ATB introduced ATB Capital Markets—a highly specialized team of experts who create more opportunity for investment in Alberta by helping businesses harness the potential of our rapidly changing economic landscape.
ATB launched Visa Debit, providing Albertans with a new and simple way to pay for online and international purchases with funds directly from their bank account, providing increased convenience, choice and accessibility.
Brightside by ATB, our newly built and uniquely branded banking app for Albertans, introduced the Brightside Spend Card to help people take control of their spending and saving and be able to send and receive money instantly using INTERAC e-Transfer®.
This quarter was also shaped by a meaningful social awakening, with the Black Lives Matter movement in the U.S. spurring necessary awareness on the state of diversity and inclusion at ATB. In addition to working to create a psychologically safe and inclusive workplace for all team members to be able to do their best work, ATB donated to seven organizations that support Black, Indigenous and People of Colour in Alberta.
Having previously donated $250,000 to nine United Way agencies across the province, ATB team members raised an additional $173,000 to help provide on-the-ground support for Alberta communities in need. With the help of Albertans, ATB also increased its ATB Cares program raising $400,000 within five days of launching the program.
To uplift Albertans and customers, with special emphasis on essential workers, ATB activated #ATBGoodnessGrows to surprise and delight as many people as possible, including free lunches to truckers, coffee to first responders and discounts on food from local restaurants for front-line health-care workers as a way of giving back to those keeping Alberta safe during the pandemic.
About ATB Financial
With $55.1 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 just over 773,000 customers in our 173 branches, 137 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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