For the year ended March 31 2020 2019
Operating results ($ in thousands)
Net interest income 1,194,189 1,191,800
Other income 532,629 490,839
Operating revenue 1,726,818 1,682,639
Provision for loan losses 385,980 338,145
Non-interest expenses 1,208,255 1,164,170
Net income before payment in lieu of tax 132,583 180,324
Payment in lieu of tax 30,675 41,629
Net income 101,908 138,695
Income before provision for loan losses 1
Operating revenue 1,726,818 1,682,639
Less: non-interest expenses (1,208,255) (1,164,170)
Income before provision for loan losses 518,563 518,469
Financial position ($ in thousands)
Net loans 46,982,168 47,005,724
Total assets 55,801,456 54,344,151
Total risk-weighted assets 38,803,887 37,441,480
Total deposits 35,373,367 35,921,949
Equity 4,081,109 3,644,117
Key performance measures (%)
Return on average assets 0.19 0.26
Return on average risk-weighted assets 0.28 0.38
Operating revenue growth 2.6 6.3
Other income to operating revenue 30.8 29.2
Operating expense growth 3.8 3.8
Efficiency ratio 70.0 69.2
Net interest margin 2.28 2.28
Loan losses to average loans 0.83 0.73
Net loan change (0.05) 6.6
Total asset growth 2.7 4.7
Total deposit change (1.5) 9.9
Change in assets under administration (2.2) 8.8
Tier 1 capital ratio 2 9.7 9.8
Total capital ratio 2 15.1 15.0
Other information
ATB Wealth's assets under administration
($ in thousands)		 19,855,943 20,311,402
Branches 173 174
Agencies 141 143
Total customers 776,985 768,955
Team members 3 5,383 5,378
(1) A non-GAAP (generally accepted accounting principles) measure.
(2) Calculated in accordance with the Alberta Superintendent of Financial Institutions (ASFI) capital requirements guidelines.
(3) Reported as full-time equivalents (FTEs).

Net loans

($ in billions)

2020
$47.0
2019
$47.0
2018
$44.1
2017
$40.8
2016
$40.4

Deposits

($ in billions)

2020
$35.4
2019
$35.9
2018
$32.7
2017
$33.9
2016
$30.9

Income before provision for loan losses 1

($ in millions)

2020
$518.6
2019
$518.5
2018
$461.2
2017
$430.8
2016
$453.4

(1) 2016 results exclude income earned on ABCP.

Net income

($ in millions)

2020
$101.9
2019
$138.7
2018
$274.6
2017
$150.8
2016
$108.1

Net interest margin

2020
2.28%
2019
2.28%
2018
2.33%
2017
2.35%
2016
2.53%

Efficiency ratio

2020
70.0%
2019
69.2%
2018
70.9%
2017
70.8%
2016
65.4%

Revenue earned by area of expertise

AltaCorp Capital Inc. 1% Strategic service units 5% ATB Wealth 14% Business and Agriculture 20% Corporate Financial Services 25% Everyday Financial Services 35%

Operating revenue

($ in millions)

2020
$1,727
2019
$1,683
2018
$1,583
2017
$1,475
2016
$1,527

Assets under administration

($ in millions)

2020
$19,856
2019
$20,311
2018
$18,669
2017
$16,725
2016
$14,651
Chief Financial Officer Dan Hugo

One of the main reasons I joined ATB is because I believe that ATB is big enough to matter, yet small enough to care. This unique mix creates an opportunity to accomplish some amazing things in Alberta. Making today better than yesterday and tomorrow better than today has always been a core part of my being, and really aligns with how ATB serves its customers and the entire province. It’s an approach that’s never been more needed than it is right now.

The first 11 months of the past year were business as usual, delivering solid revenues given the soft Albertan economic backdrop. We focused on balance sheet optimization and expense rationalization to deliver more than $500 million in net income before provision.

This last month of the year shifted dramatically from business as usual as the trifecta of the COVID-19 pandemic, economic recession, and plummeting oil prices shifted our focus to making sure our team members and fellow Albertans are safe and that Alberta businesses are supported.

There’s also no doubt that this unprecedented crisis will impact our results, and that we and the entire financial services industry will experience significant increases in credit losses going forward. While we work towards mitigating these losses, our priority will continue to be supporting our customers.

I believe that any crisis creates an opportunity to find out exactly what you’re capable of and how much you can accomplish. Things that might have seemed impossible a month before COVID-19 got done with amazing efficiency, and I am so proud to be part of the amazing ATB team.

Although we’re still navigating our way through this, I truly believe there are more opportunities than challenges ahead, in part because challenges force you to ask what’s truly important—in business and in life. Right now our focus is on being here for our team members and our fellow Albertans. But as we forge ahead, I think this will be a launching pad that propels our 10-year strategy forward, faster.

Even though our journey into 2021 may be slightly different than we thought, I think companies and people will come out stronger on the other end. When you look at the major events society has faced over the past century, you can see that pattern. The First World War and Spanish Flu ran into each other, but soon after we enjoyed the prosperity and creativity of the Roaring ’20s. The next big thing was the Great Depression, and that prompted immense social change. Then there was World War II, which led to what many people consider the greatest generation ever. Out of every one of those major events, the world became stronger. I think that will happen again. When we look back in 5 or 10 years, we will see this as a catalyst that actually drove us to a better place.

For more on our financial strategy, see the MD&A.


Dan Hugo
Chief Financial Officer