For the year ended March 31 2021 2020
Operating results ($ in thousands)
Net interest income 1,178,567 1,194,189
Other income 599,380 532,629
Operating revenue 1,777,947 1,726,818
Provision for loan losses 271,085 385,980
Non-interest expenses 1,233,453 1,208,255
Net income before payment in lieu of tax 273,409 132,583
Payment in lieu of tax 62,884 30,675
Net income 210,525 101,908
Income before provision for loan losses (1)
Operating revenue 1,777,947 1,726,818
Less: non-interest expenses (1,233,453) (1,208,255)
Income before provision for loan losses 544,494 518,563
Financial position ($ in thousands)
Net loans 44,597,222 47,046,234
Total assets 55,755,035 55,865,522
Total risk-weighted assets (1) (2) 36,487,057 38,803,887
Total deposits 37,758,388 35,373,367
Equity 4,074,923 4,081,109
Key performance measures (%)
Return on average assets 0.38 0.19
Return on average risk-weighted assets (2) 0.58 0.28
Operating revenue growth 3.0 2.6
Other income to operating revenue 33.7 30.8
Operating expense growth 2.1 3.8
Efficiency ratio 69.4 70.0
Net interest margin 2.23 2.28
Loan losses to average loans 0.60 0.83
Net loan change (5.2) 0.09
Total asset growth (0.20) 2.8
Total deposit change 6.7 (1.5)
Change in assets under administration 25.3 (2.2)
Tier 1 capital ratio (2) 10.9 9.7
Total capital ratio (2) 16.2 15.1
Other information
ATB Wealth's assets under administration
($ in thousands)		 24,880,721 19,855,943
Branches 162 173
Agencies 120 141
Total clients (3) 803,736 810,071
Team members (4) 5,044 5,345
(1) Refer to the glossary for a definition of our key performance measures.
(2) Effective April 1, 2020, the methodology to calculate risk-weighted assets has been revised, resulting in a lower amount compared to prior-period results. Comparative results were not restated for the change.
(3) Reported as total customers.
(3) Reported as full-time equivalents (FTEs).

Net loans

($ in billions)

2021
$44.6
2020
$47.0
2019
$47.1
2018
$44.1
2017
$40.8

Deposits

($ in billions)

2021
$37.8
2020
$35.4
2019
$35.9
2018
$32.7
2017
$33.9

Income before provision for loan losses

($ in millions)

2021
$544.5
2020
$518.6
2019
$518.5
2018
$461.2
2017
$430.8

Net income

($ in millions)

2021
$210.5
2020
$101.9
2019
$138.7
2018
$274.6
2017
$150.8

Net interest margin

2021
2.23%
2020
2.28%
2019
2.28%
2018
2.33%
2017
2.35%

Efficiency ratio

2021
69.4%
2020
70.0%
2019
69.2%
2018
70.9%
2017
70.8%

Revenue earned by area of expertise

3% Strategic service units 15% ATB Wealth 49% ATB Business 34% Everyday Financial Services

Operating revenue

($ in millions)

2021
$1,778
2020
$1,727
2019
$1,683
2018
$1,583
2017
$1,475

Assets under administration

($ in millions)

2021
$24,881
2020
$19,856
2019
$20,311
2018
$18,669
2017
$16,725
Chief Financial Officer Dan Hugo

The past year affected us all in so many ways and has left an indelible imprint on society and history. In a year like no other, we faced a barrage of health and mental challenges that were exacerbated by the oil price collapse in the earlier part of the year. ATB continued to play a pivotal role in the well-being of Alberta, and I am exceptionally proud of all the contributions of our ATB team members. Although the COVID-19 pandemic has presented many challenges, it has also created opportunities for ATB to achieve milestones and accelerate the progress of some of our initiatives on our Path to 2030.

ATB is an Alberta-based financial institution with a long history of supporting Albertans and Alberta businesses. This has never been more true than during the past year. During the height of the initial lockdowns, we implemented a number of relief and deferral programs to help our clients navigate uncertainty. In addition, we originated more than $1 billion, or 21,000 loans, under CEBA and the Business Credit Availability Program (BCAP) to provide much-needed liquidity to Alberta businesses during this stressful period. Our branches remained accessible and we introduced a number of additional precautions to ensure the health and safety of our clients and team members.

In a year that tested our mettle on so many levels, ATB rose to the challenge and established a new high watermark for total revenue of nearly $1.8 billion. A highlight underlying the revenue growth was the increase in other income that is a strong proof point and leading indicator of the potential underlying our new strategic plan. The growth in revenue was achieved with prudent expense management, and our efficiency ratio improved to 69.4%. Although there still remains substantial uncertainty about the trajectory and velocity of the recovery of the economy, we have seen more positive economic trends, and our loan loss provision is $115 million lower than the prior year. This resulted in a net income of $211 million, an increase of more than $100 million year over year. As a testament to ATB’s financial strength and resilience, we also improved our capital and liquidity position and optimized and repriced most of our balance sheet.

As we look into the future, a high level of uncertainty persists as the race between the spread of new COVID-19 variants and the speed of the rollout of vaccines continues to ebb and flow. We expect that once the vaccine rollout reaches a critical mass, Alberta’s economy will start reopening later this summer. The “K-shaped” economic recovery will present different opportunities and challenges for Albertans, depending on which side of the K they reside. While we will experience challenges in an uneven reopening and recovery process, ATB will be there to serve Albertans every step of the way, just like we have since 1938.

Dan Hugo
Chief Financial Officer