ATB Financial also reported increased earnings
in the third quarter, with net income of $46.7 million for the period ending
December 31, 2001, compared to $41.4 million for the same period last year.
The third quarter results increased ATB’s equity to $565.8 million as at
December 31, 2001.
“ATB has established a strong track record for sustained earnings and
increased marketshare over the past five years,” said Bob Normand, President
and CEO of ATB Financial. “We are committed to being Albertans’ first choice
for financial services.”
– Total assets of $12.4 billion is an increase of 7.76 percent over last
– Total loans at $10.3 billion is an increase of 6.85 percent over last
– Total deposits of $11.4 billion is an increase of 6.14 percent over
– Net interest income of $92.6 million is up slightly by 0.18 percent
from $92.4 million for the same quarter last year.
– Non-interest expenses of $70.8 million is an increase of 5.46 percent
from $67.1 million for the same quarter last year.
– ATB’s efficiency ratio, non-interest expenses as a percentage of
operating revenues, is 58.74 percent compared to 57.81 percent for the
same nine-month period last year.
– The allowance for credit losses, including specific and general loan
loss allowance, exceeds gross impaired loans by $86.6 million. Net
impaired loans represent a negative 0.83 percent of total loans at
December 31, 2001, compared to a negative 0.58 percent at
December 31, 2000.
New Visual Identity
On January 21, 2002, a new corporate identity was launched for Alberta
Treasury Branches, now known as ATB Financial. The new corporate identifier
retains “ATB”, which is the acronym of our legal name, and adds “Financial” to
better describe what we do: we provide a broad range of financial services to
Albertans. As our legal name remains Alberta Treasury Branches, no changes are
required to customer accounts, or contracts and agreements with customers and
suppliers. Signage will be gradually replaced on all branches, starting with
large urban centers, followed by mid-size urban markets and rural communities.
Products and Services
A Cooperation and Services Agreement was signed with Rabobank
International, the international corporate and investment banking arm of the
Dutch-based Rabobank Group, to provide financial services to each others’
customers. The alliance will focus on opportunities in the value-added
agri-industry and forestry sectors, providing a global reach to ATB’s
customers doing business outside of Alberta. The agreement also provides an
opportunity for joint lending and a referral service for Rabobank agricultural
customers who are relocating to Alberta.
The personal Internet banking platform was upgraded in December 2001. The
new platform provides improved speed and enhanced functionality including
online bill registration, postdated bill payments, postdated transfers,
MasterCard balance information, and downloading capability of information into
money management software applications like Quicken. ATB Online personal
customers using the bill payment feature between December 12, 2001 and
July 31, 2002, will have their name entered into a draw. The first prize is a
2002 Chevy Avalanche 1500 4×4 and the second prize, an ATB Alberta Gold
MasterCard with a $5,000 credit balance.
Two new MasterCard products were launched to support Alberta 4-H. For
every dollar charged to the Alberta Gold 4-H MasterCard and the Alberta
Agri-Business MasterCard, one percent will be donated to the 4-H Millennium
Fund, administered by the 4-H Foundation of Alberta, to enhance the quality of
4-H programs throughout the province.
A new equity linked GIC was launched in October 2001. The Tri-Sector GIC
provides growth from a selected group of 15 pharmaceutical, technology and
telecommunications, and financial companies in Canada and the US. The demand
for this product has been very positive and it will also be available during
the RSP season.
The 30-month mortgage, reintroduced in September 2001, has been very
popular with renewing and new mortgage customers. With current market
conditions the Lower than Prime mortgage has also attracted mortgage customers
wanting to take advantage of the low interest rate environment.
Recent economic indicators in North America continue to be mixed. US
industrial production continues to fall, albeit at a slower pace, while
consumer confidence shows signs of improvement. However, unemployment levels
continue to rise in both Canada and the US. The effect of interest rate
declines that began over a year ago are now being felt and most economic
observers believe the American economy will begin to gain momentum by the
second half of 2002.
Alberta has seen its unemployment rate rise over the past quarter, with
weaknesses appearing in the accommodation, construction, trades, and
transportation sectors. Due to continued high in-migration, low mortgage
rates, and very low rental vacancies, Alberta has experienced record housing
re-sales and the highest level of new housing starts in a decade.
The economic outlook is one of continuing uncertainty. Drought conditions
in southern Alberta pose a serious challenge to agricultural producers and
their communities. Conventional oil and gas drilling is slowing as a result of
a one-third drop in cash flow to the energy industry. Investment in the
province is expected to decline due to reduced drilling activity and the
deferral of certain provincial government capital projects. However,
investment levels will continue to remain high in historical terms. With the
strategic importance of the oil sands, expansion of mining and refining
capacity continue to proceed.
ATB supported all 11 Alberta United Way Associations in a province-wide
fundraising effort. Through employee contributions, special events and a
corporate donation, over $194,000 was raised to support United Way campaigns
in Alberta communities.
Amolak Grewal was appointed Chief Operating Officer, effective
November 26, 2001. Amolak is responsible for the retail, independent business,
agri-industry, commercial banking and wealth management lines of business.
This includes the operation and performance of the Marketing, Sales, and
Electronic Banking and Central Services business units. Other appointments
include Ken Casey, Senior Vice-President Electronic Banking and Central
Services; and Harry Todd, Vice-President Credit.
Annual Public Meeting
The ATB Financial Annual Public Meeting will take place on Tuesday,
June 25, 2002, at 3:00 p.m. (MST) at the Westin Hotel (10135 – 100th Street)
in Edmonton, Alberta. To pre-register, please call (780) 408-7309.
ATB Financial, an Alberta-based financial institution, was established in
1938. Today, ATB serves 240 communities through a network of 144 branches, 132
agencies, a Customer Contact Centre, 222 automated banking machines and
electronic banking services. For further information on ATB Financial, visit