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ATB Financial says tough economic conditions are to blame for a substantial drop in income this spring.

The company unveiled its first-quarter results Friday, showing net earnings of $25 million for the three months ending June 30. That’s down 62 per cent from the same quarter a year ago.

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“Even though we’re in a recession, we are seeing more optimism in the marketplace,” Dave Mowat, ATB’s president and CEO, said in a news release. “But it’s still a very tough time for Albertans and their businesses. There are a lot of folks suffering from the effects of low commodity prices. We’ll need energy prices to improve for a sustained recovery to happen.”

The company said it collected income before provisions of $126 million in the quarter, which was up from $112 million the year before. But loan-loss provisions reached $93.5 million this spring, which led to ATB’s reduced net earnings.

While the loan-loss total was significantly less than the $190.8 million posted in the January to March quarter, it was significantly higher than the $57.5 million in provisions recorded a year ago.