Message from Chief Financial Officer
“Time flies over us, but leaves its shadow behind.”
These words, written by American novelist Nathaniel Hawthorne more than a century ago, came to mind as I reflected on the past two years and the deep shadows that were left in the wake of a global pandemic. ATB remained a bright light, chasing away the shadows during these challenging and unprecedented times, leaving me both humbled and proud to be part of this wonderful organization.
We finished FY2022 optimistically as we started to see a recovery from the impacts brought about by the COVID-19 pandemic. Although the pandemic has affected us all in many ways and continues to make its mark across the world, ATB has shown resilience and adaptability through COVID waves and changing restrictions, being there for our clients every step of the way. As we navigate through the ever-changing global landscape, ATB will continue to play a pivotal role in the province by supporting our clients and communities, making today better than yesterday and tomorrow better than today.
“As we navigate through the ever-changing global landscape, ATB will continue to play a pivotal role in the province by supporting our clients and communities, making today better than yesterday and tomorrow better than today.”
Supporting Albertans and Alberta businesses, ATB was able to deliver record net income of $586 million during FY2022. Including payment in lieu of taxes and deposit guarantee fee, ATB contributed more than $820 million to the Government of Alberta. This year continues the trend of outstanding growth that we have seen since becoming a Crown corporation in 1997. In fact, looking back over the last 25 years, ATB was able to grow net income before provision at a compound annual growth rate of 8%—almost four times the GDP—during that same period.
This year, we were able to achieve record total revenue of over $1.9 billion, with growth being well-diversified between net interest income and other income. Contributing to this was an increase in other income, which validates our efforts to diversify our revenue streams. With revenue growth, we have seen an increase in expenses; however, our efficiency ratio is still comparable to last year—a testament to our ongoing efforts around expense management.
Our loan loss provision, which benefited from the economic outlook improving as well as the positive shift in credit worthiness of our clients, decreased nearly
$475 million from the prior year. Some uncertainty does, however, remain about the lasting impacts of the pandemic, increasing inflation and the invasion of Ukraine by Russia.
Today’s challenges and uncertainties present opportunities for us to address in the coming years. Increasing oil prices have led to incentives being offered within the oil and gas industry to invest in environmentally sound technologies. There is also a growing technology sector as Alberta is attracting more technology investors to the province. With Alberta’s borders opening, there is increased positivity and optimism for travel and tourism. As we forge ahead, ATB looks to be more than just Alberta’s bank of choice, driving innovation and transforming experiences to make it possible for all Albertans.