ATB Financial posts net income of $88.7 million in Q3

ATB Financial recorded net income of $88.7 million in its third quarter ending Dec. 31, 2024, down more than 15% from the second quarter, and about 6.7% lower than the comparable period of 2023.

The Edmonton-based bank, a Crown corporation of Alberta, attributed the decline to higher non-interest expenses and loan-loss provisions that outstripped a 9.4% rise in revenues from a year earlier to $566.7 million.

Revenue growth was fuelled by a 5.5% year-over-year increase in net loans, which reached $53.6 billion. Total deposits also rose 8.3% year over year to $43.5 billion.

ATB’s wealth management business saw total total assets under administration rise to $36.6 billion, up 22% quarter over quarter, and up 34% from the same quarter of 2023.

It said its acquisition of Manitoba-based BCV Asset Management Inc., completed last November, added more than $5.8 billion to its assets under management to its ATB Wealth division.

Net income for ATB Wealth came to $2.7 million for the quarter, up from $2.0 million the previous quarter and compared to a loss of $2.0 million in the third quarter of 2023.

Wealth management clients increased to 832,440 from 822,549 in Q2 and 811,365 in the same quarter a year ago.

Its wealth management team grew to 5,410 members, compared with 5,281 in the previous quarter and 5,327 a year earlier.

Loan-loss provisions increased to $53.5 million, compared to $18.9 million in the previous quarter, and $29.5 in the year-earlier quarter. ATB attributed the rise to new impairments and an increase in provisions for Stage 3 loans.

Source: INVESTMENTEXECUTIVE