ATB Financial has posted first quarter income before provisions of $126 million, compared to $112 million during the same period last year.
When loan loss provisions are factored in, ATB’s net income for the quarter, that ended June 30, 2016, stood at $25 million. That’s down 62% from the same quarter a year ago.
ATB reported loan loss provisions of $93.5 million for the first quarter, up from $57.5 million in the same quarter last year. However, the provisions are significantly lower than the $190.8 million in provisions made in the quarter that ended March 31, 2016.
“We are seeing more optimism in the marketplace, but it’s still a very tough time for Albertans and their businesses,” says Dave Mowat, ATB’s President & CEO. “There are a lot of folks suffering from the effects of low commodity prices. We’ll need energy prices to improve for a sustained recovery to happen.”
ATB’s non-interest expenses were $254.3 million, just over $2 million lower than the previous quarter. Mowat expects expenses to increase as ATB continues to invest in innovation.
The details
Overall, the bank says it authorized 3,132 loans to small and mid-sized Alberta businesses, which is 171 more than the loans approved in the first quarter a year ago. The total value of the business loans approved in the first quarter was $754 million, an increase of $23.8 million compared to the same quarter a year ago.
ATB’s total loans outstanding to small and mid-sized businesses now stands at $7.3 billion, representing year-over-year growth of $632.2 million.
One highlight of the quarter was the performance of ATB Investor Services, which reported a net income of $8.1 million, up from $6.9 million in the same quarter a year ago.
Also in the first quarter, the wildfires in Fort McMurray triggered ATB’s disaster relief program, which featured emergency overdraft protection, increased credit limits and loan payment deferrals for ATB customers.