Edmonton-based ATB Financial reported net income of $45.8 million in the first quarter of its 2020 fiscal year, ended June 30, 2019, the bank announced on Thursday.
That figure was up 214.9% from the previous quarter, “driven by lower provision for loan losses,” but down 20.1% year-over-year due to an increase in loan losses as the bank’s clients “continue to be impacted by the weaker economy,” ATB said.
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Net loans declined by $0.5 billion over the quarter as Alberta’s economy continued to struggle, but were up 3.1% from a year ago as the bank saw “moderate growth” in commercial business and residential mortgage loans.
In its earnings report, ATB said, “As our net interest margin remains compressed, we’ve focused on growing our non-interest revenue, with wealth management, foreign-exchange, and capital markets revenue leading the way.”
Net income for ATB Wealth, the bank’s wealth management division, was just over $2 million, up $1.7 million from the previous quarter, due to higher assets under administration (approximately $20.7 billion, up from $20.6 billion) and a lower provision for loan losses. Net income for wealth was relatively flat compared to the $1.9 million reported a year ago.
ATB’s operating revenue increased by 3% from last quarter to “a new record” of $433.9 million, driven primarily by growth in non-interest income.