Alberta Treasury Branches reported
improved first quarter earnings with net income of $41.0 million for the
period ending June 30, 2001, compared to $38.6 million reported for the same
period last year. This quarter’s results increased ATB’s equity to $475.1
million, as at June 30, 2001.
“ATB has reached yet another milestone, surpassing $12 billion in assets
during its first quarter,” said Paul G. Haggis, President and CEO of ATB. “The
success of the organization over the past five years is clearly attributable
to our dedicated staff and loyal customers. ATB continues to have a bright
future in servicing the financial needs of Albertans.”
– Net interest income of $92.6 million is an increase of 6.18% from
$87.2 million for the same quarter last year.
– Non-interest expenses of $68.8 million is an increase of 5.88% from
$65.0 million for the same quarter last year.
– ATB’s efficiency ratio, non-interest expenses as a percentage of
operating revenues, is 59.37% compared to 59.26% for the same
three-month period last year.
– The allowance for credit losses, including specific and general loan
loss allowance, exceed gross impaired loans by $67.5 million. Net
impaired loans represent a negative 0.69% of total loans at June 30,
2001, compared to a negative 0.62% at June 30, 2000.
– Total assets of $12.1 billion is an increase of 11.04% over last year.
– Total loans at $9.7 billion is an increase of 5.60% over last year.
– Customer deposits of $11.3 billion is an increase of 9.24% over last
Products and Services
An agreement was reached with Bank of America to provide international
banking services to ATB clients who conduct business regularly in the United
States and abroad. These services include: US dollar chequing accounts as well
as US dollar and other currently drafts and wires. In addition, Bank of
America will provide ATB with US dollar, Pound Sterling and Euro corespondent
banking services. By leveraging Bank of America’s capabilities and global
reach, we are able to streamline our international banking services through
one provider. Even more important, our customers have access to the breadth of
international banking capabilities they require when dealing south of the
border and abroad.
A five-year agreement was entered into with Can-Act Payment Services (a
wholly-owned subsidiary of BCE Emergis Inc.) for on-line tax filing and
remittance services for ATB business customers. This service allows ATB Online
business banking customers to file federal and provincial taxes around the
clock, seven days a week, with the choice of scheduled remittances for future
processing. ATB customers can now improve their business processes by
electronically filing and paying their federal and provincial corporate income
taxes, employee source deductions and federal GST through this service.
The ATB AgriBusinessCard MasterCard(R) now provides Alberta farmers with
instant access to as much as $100,000 credit. The previous credit limit on
this popular financial product was $50,000. The AgriBusinessCard is designed
especially for Alberta farm businesses. It can be used to replace an operating
loan, as a low-cost credit card, or to cover purchases of products and
services required for the operation of a farm or agribusiness.
The interest rate is based on the prime rate and is set according to the
unique circumstances of each operation. A low minimum monthly payment can
accommodate those customers that carry a balance, making it the ideal
replacement for an operating loan. This unique product provides the financial
flexibility that today’s agricultural operations require.
ATB continues to show solid growth in retail investment products. This
has been achieved through targeted products that meet the specific needs of
our customers while providing quality returns with limited risk at a time when
market volatility is front and center. Through a range of GIC and
equity-linked products, ATB’s investment products provide a combination of
security, choice, and value that is second to none.
A 30-month mortgage promotion was introduced, and proved to be a popular
choice among customers. A new product package designed for the first-time
homebuyer was also added. The First Home Package allows customers to begin
their retirement investing as ATB contributes up to $2,500 to their RSPs.
These two great options, along with our regular line-up of mortgage products
(Cashback, Lower than Prime, Best of Both, and Half Your Rate), clearly
demonstrate that ATB has the Best Mortgage Options in Alberta.
ATB’s investment in the branch network continues with five new branches
under construction and eight newly constructed branches recently opening in
Cold Lake Tri-City Mall, Calgary Chinook, Calgary Crowfoot, Edmonton
Millwoods, Edmonton Oliver Village, Edmonton Rabbit Hill, Fort Saskatchewan
and Red Deer Bower Place Mall. In addition, renovations were completed at the
Banff, Beaverlodge, Calgary Brentwood, Fort MacLeod, Innisfail and First Red
Deer Place branches.
In April 2001, changes were made in the organizational structure to
ensure a better allocation of resources and alignment to our business plan
objectives. Larry Kaumeyer moved to Sales as Vice-President Direct Sales.
Included in his responsibilities are the Customer Contact Centre, Card Sales,
Conditional Sales, the Virtual Staff Branch, Mortgage Development and the
Investment Specialists. Sheldon Dyck moved to Sales as Vice-President Business
and Retail Sales, Urban. Sheldon is responsible for business and retail
banking in the Calgary and Edmonton markets. Ken Casey also moved to the Sales
group as Vice-President Branch Operations. He is responsible for branch
policy, support and performance, corporate services, facilities and
On the Credit side, three new appointments were made: Gord Mooney,
Vice-President Credit; Cathy Lane, Vice-President Credit Policy and Enterprise
Risk Management; and Shelly Miciak, Vice-President Credit Risk and Portfolio
Management. In addition, Erv Krawchuk was appointed Acting Vice-President
The 2nd Annual Teddy for a Toonie fundraising campaign took place at all
ATB branches and agencies throughout the province from April 16 to May 12,
2001. Customers and staff donated $2 to enter a draw for a Gund(R) teddy bear
at each ATB location. More than $135,000 was raised for the Alberta Children’s
Hospital Foundation and the Children’s Health Foundation. Both foundations are
non-profit organizations that provide funds for specialized medical services
to children throughout Alberta.
In June, the Parliament of Canada passed Bill C-8, an Act establishing
the new Financial Consumers Agency and amending federal financial sector laws,
including the Bank Act. We expect the new law will be proclaimed later this
year. While that Act does not apply to ATB, we believe this new legislation
will accelerate the changes to Canada’s financial services sector, as
medium-sized banks and insurers may be takeover candidates. The sector has
also witnessed a number of portfolio transactions where financial institutions
sell branches and assets to competitors. The legislation will enable banks to
establish holding companies that may allow ownership interests to be sold in
certain subsidiaries or joint ventures to be created with foreign players or
direct competitors. To the extent that transactions require divestiture of
assets, ATB believes it is positioned to play a role in obtaining new business
or being on the shopping list of customers affected by branch closure or
portfolio sales. Additional changes will facilitate Canadian financial
institutions’ entry into the e-commerce arena.