ATB Financial, the largest Alberta-based financial institution, reported a 12.8% increase in its net income, up to $195 million for the year ending March 31, 2012.
The bank’s net loans rose by 6.2% to $26.7 billion, balanced with growth of 6.1% in personal and business deposits to $22.3 billion.
Its provisions for credit losses decreased by 62%—falling to $23.3 million—and reflected the strength of the Alberta economy. ATB recovered $64.7 million on asset-backed commercial paper due to decreased investment risk and improved value.
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“The bank’s posted solid results despite having to implement a new banking system this past year,” says Dave Mowat, ATB Financial president and CEO.
He adds, “The challenge we now face is to make sure we harness every possible benefit of the new system.”
Within its year-end results, ATB expensed a $58.3 million payment in lieu of tax to the provincial government, along with an additional $26.7 million in deposit guarantee fees.