Consolidated Balance Sheet 5 Yr Cmpd Anl Gr Rt 10 Yr Cmpd Anl Gr Rt
As at March 31
($ in thousands) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Assets
Cash 15.89% 1.47% $161,901.00 $179,424 $353,724 $91,567 $78,117 $77,454 $26,279 $101,281 $72,750 $120,061 $139,896
Interest-bearing deposits with financial institutions 2.85% 4.09% $1,123,779.00 675,576 2,516,489 1,928,230 1,017,497 976,671 927,244 956,727 579,607 752,269 752,519
Securities 8.31% 8.32% $2,058,878.00 1,158,900 1,228,305 1,253,518 1,684,821 1,381,444 932,511 854,997 578,850 807,793 926,180
Loans, net of allowance for credit losses 9.09% 9.16% $22,943,184.00 22,534,603 21,602,235 19,443,517 16,994,329 14,846,694 13,137,917 12,131,053 11,691,482 10,400,563 9,554,252
Other assets 24.66% 14.68% $1,100,321.00 880,515 813,390 626,321 519,954 365,552 357,281 261,752 261,306 273,124 279,685
Total assets 9.19% 8.92% $27,388,063.00 $25,429,018 $26,514,143 $23,343,153 $20,294,718 $17,647,815 $15,381,232 $14,305,810 $13,183,995 $12,353,810 $11,652,532
Liabilities and equity
Deposits 8.61% 8.19% $23,982,145.00 $22,579,167 $23,881,246 $21,175,716 $18,252,838 $15,870,308 $13,840,032 $13,035,120 $12,096,911 $11,425,210 $10,918,863
Securities sold under repurchase agreements $341,557.00 286,404
Other liabilities 17.58% 11.02% $802,209.00 770,324 530,796 425,987 346,255 356,933 325,207 262,313 250,731 306,385 282,118
Capital investment notes $230,972.00 224,994
Subordinated debentures -1.18% 14.48% $67,467.00 45,176 57,013 72,998 72,242 71,579 65,719 45,416 45,416 30,182 17,444
Equity 7.80% 16.29% $1,963,713.00 1,809,357 1,758,684 1,668,452 1,623,383 1,348,995 1,150,274 962,961 790,937 592,033 434,107
Total liabilities and equity 9.19% 8.92% $27,388,063.00 $25,429,018 $26,514,143 $23,343,153 $20,294,718 $17,647,815 $15,381,232 $14,305,810 $13,183,995 $12,353,810 $11,652,532
Consolidated Statement of Income
For the years ended March 31
($ in thousands) 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Interest income 5.93% 2.98% $1,086,667.00 $1,031,112 $1,194,987 $1,302,564 $1,078,282 $814,669 $699,883 $740,601 $697,524 $739,445 $809,826
Interest expense -0.25% -2.49% $347,965.00 356,424 547,642 643,154 506,477 352,418 301,137 343,317 333,364 373,862 447,857
Net interest income 9.83% 7.39% $738,712.00 674,688 647,345 659,410 571,805 462,251 398,746 397,284 364,160 365,583 361,969
Other income 10.06% 10.93% $251,278.00 220,783 259,682 185,995 179,661 155,621 139,308 116,272 107,442 101,209 89,075
Operating revenue before the undernoted 9.89% 8.18% $989,990.00 895,471 907,027 845,405 751,466 617,872 538,054 513,556 471,602 466,792 451,044
Recovery (provision for loss) on ABCP 537†† $28,800.00 537 -224,816 -253,133
Total operating revenue 10.52% 8.49% $1,018,790.00 896,008 682,211 592,272 751,466 617,872 538,054 513,556 471,602 466,792 451,044
Provision for (recovery of ) credit losses 110.53% 3.10% $28,452.00 58,947 42,712 12,906 -5,211 688 -14,594 15,859 -43,211 21,095 20,969
Non-interest expenses 11.85% 10.55% $732,524.00 671,516 633,087 549,381 482,289 418,463 365,335 325,673 315,909 287,771 268,606
Net income before payment in lieu of tax†††† 5.34% 4.79% $257,814.00 165,545 6,412 29,985 274,388 198,721 187,313 172,024 198,904 157,926 161,469
Payment in lieu of tax $59,298.00 38,075
Net income -0.02% 2.09% $198,516.00 $127,470 $6,412 $29,985 $274,388 $198,721 $187,313 $172,024 $198,904 $157,926 $161,469
Adjusted Net Income (removing ABCP benefit or loss) -3.11% 0.50% $169,716.00 $126,933.00 $231,228.00 $283,118.00 $274,388.00 $198,721.00 $187,313.00 $172,024.00 $198,904.00 $157,926.00 $161,469.00
Adjusted Net Income (fully taxable AND taxed) 2.09% 3.16% $169,716.00 $126,933.00 $178,046 $218,001 $211,279 $153,015 $144,231 $132,458 $153,156 $121,603 $124,331
Operating Cash Flow -15.28% -10.32% $72,163.00 $98,272.00 $64,707.00 -$44,343.00 -$42,153.00 $165,325.00 $45,956.00 $51,196.00 $138,625.00 $227,746.00 $214,555.00 $165,167.00 $126,217.00 $56,726.00
In Purchase of premises, equipment, software, and other intangibles -1.12% 1.16% -$30,233.00 -$55,140.00 -$39,164.00 -$23,472.00 -$20,424.00 -$31,983.00 -$16,309.00 -$15,607.00 -$26,768.00 -$17,897.00 -$26,946.00 -$23,486.00 -$15,002.00 -$9,453.00
Free Cash Flow -20.66% -13.92% $41,930.00 $43,132.00 $25,543.00 -$67,815.00 -$62,577.00 $133,342.00 $29,647.00 $35,589.00 $111,857.00 $209,849.00 $187,609.00 $141,681.00 $111,215.00 $47,273.00
Effective Tax Rate derived from 'Pmt In Lieu of Tax' 23.00% 23.00% 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23 0.23
Payment in lieu of tax calculated for earlier years $1,474.76 $6,896.55 $63,109.24 $45,705.83 $43,081.99 $39,565.52 $45,747.92 $36,322.98 $37,137.87
Adjusted Free Cash Flow, giving effect to tax in earlier years -13.71% -12.00% $41,930.00 $43,132.00 $24,068.24 -$74,711.55 -$125,686.24 $87,636.17 -$13,434.99 -$3,976.52 $66,109.08 $173,526.02 $150,471.13
Adjusted Operating Cash Flow, giving effect to tax in earlier years -9.61% -8.60% $72,163.00 $98,272.00 $63,232.24 -$51,239.55 -$105,262.24 $119,619.17 $2,874.01 $11,630.48 $92,877.08 $191,423.02 $177,417.13
Adjusted Free Cash Flow II, removing ABCP 537 losses or recoveries -31.59% -21.64% $13,130.00 $42,595.00 $248,884.24 $178,421.45 -$125,686.24 $87,636.17 -$13,434.99 -$3,976.52 $66,109.08 $173,526.02 $150,471.13
Adjusted Operating Cash Flow II, removing ABCP 537 losses or recoveries -18.37% -13.14% $43,363.00 $97,735.00 $288,048.24 $201,893.45 -$105,262.24 $119,619.17 $2,874.01 $11,630.48 $92,877.08 $191,423.02 $177,417.13
††††††††
Adjusted Free Cash Flow II as Projected Using Average %age of Opg Revenue:Please see lines 60-63, below $120,481.06 $108,978.16 $110,384.52 $102,885.17 $91,452.86 $75,194.57 $65,480.78 $62,499.39 $57,393.62 $56,808.24 $54,891.72
Adjusted Free Cash Flow II as Projected Using Avg Proportion of Equity:Please see lines 68-71, below $95,387.09 $95,387.09 $95,387.09 $95,387.09 $95,387.09 $95,387.09 $95,387.09 $95,387.09 $95,387.09 $95,387.09 $95,387.09
Average of the above two calculations $107,934.08 $102,182.63 $102,885.81 $99,136.13 $93,419.98 $85,290.83 $80,433.94 $78,943.24 $76,390.36 $76,097.67 $75,139.41
Check:As proportion of Pre-tax Net Income 0.418650947 0.617249864 16.04582146 3.306190798 0.340466702 0.429198884 0.429409253 0.458908299 0.384056407 0.481856495 0.465348822
Average of the checked calculation 4.145675953 2.125196175
Ratios 5 YR Average 10 YR Average
Max of 2007-11 Min of 2007-11 Max of 2002-11 Min of 2002-11
Free Cash Flow Divided by Total Operating Revenue -0.0142 0.0956 0.0412 0.0481 0.0374 -0.1145 -0.0833 0.2158 0.0551 0.0693 0.237 0.4496 0.416 0.0481 -0.1145 0.4496 -0.1145
Free Cash Flow Divided by Net Income Before Payment in Lieu of Tax 0.3834 0.2900 0.1626 0.2605 3.9836 -2.2616 -0.2281 0.6710 0.1583 0.2069 0.562 1.329 1.162 3.9836 -2.2616 3.9836 -2.2616
Free Cash Flow as a Proportion of Equity -0.0039 0.2741 0.0214 0.0238 0.0145 -0.0406 -0.0385 0.0988 0.0258 0.0370 0.141 0.354 0.432 0.0238 -0.0406 0.3545 -0.0406
Free Cash Flow Divided by Liabilities and Equity -0.0004 0.0337 0.0015 0.0017 0.0010 -0.0029 -0.0031 0.0076 0.0019 0.0025 0.008 0.017 0.016 0.0017 -0.0031 0.0170 -0.0031
Adjusted Free Cash Flow II Divided by Operating Revenue 0.1118 0.0608 0.0129 0.0475 0.3648 0.3012 -0.1673 0.1418 -0.0250 -0.0077 0.1402 0.3717 0.3336 0.3648 -0.1673 0.3717 -0.1673
Removing highest and lowest figures in calculating average 0.1206 0.1228
Mean of Averages (Simple Average) of the 5 year and 10 year averages 0.1217 <==TO BE USED TO CALCULATE FCF
Check:Most recent, i.e. 5 yr avg divided by mean of avgs 0.9906 <==VERY stable
Adjusted Free Cash Flow II Divided by Net Income Before Payment in Lieu of Tax 8.9232 2.3787 0.0509 0.2573 38.8154 5.9504 -0.4581 0.4410 -0.0717 -0.0231 0.3324 1.0988 0.9319 38.8154 -0.4581 38.8154 -0.4581
Removing highest and lowest figures in calculating average 1.5646 1.0045
Simple Average of the 5 year and 10 year averages 1.2846
Check:Most recent, i.e. 5 yr avg divided by mean of avgs 1.2180
Adjusted Free Cash Flow II as a Proportion of Equity 0.0403 2.3510 0.0067 0.0235 0.1415 0.1069 -0.0774 0.0650 -0.0117 -0.0041 0.0836 0.2931 0.3466 0.1415 -0.0774 0.2931 -0.0774
Removing highest and lowest figures in calculating average 0.0457 0.0514
Mean of Averages (Simple Average) of the 5 year and 10 year averages 0.0486 <==TO BE USED TO CALCULATE FCF
Check:Most recent, i.e. 5 yr avg divided by mean of avgs 0.9413 <==VERY stable
Adjusted Free Cash Flow II Divided by Liabilities and Equity 0.0026 0.0331 0.0005 0.0017 0.0094 0.0076 -0.0062 0.0050 -0.0009 -0.0003 0.0050 0.0140 0.0129 0.0094 -0.0062 0.0140 -0.0062
Removing highest and lowest figures in calculating average 0.0033 0.0047
Simple Average of the 5 year and 10 year averages 0.0040
Check:Most recent, i.e. 5 yr avg divided by mean of avgs 0.8190
Purchase of premises, equipment, software, and other intangibles/Non-Interest Expenses -0.0541 0.7459 -4.13% -8.21% -6.19% -4.27% -4.23% -7.64% -4.46% -4.79% -8.47% -6.22% -10.03% -0.0413 -0.0821 -0.0413 -0.0847
Operating Cash Flow/Operating Revenue 0.0291 0.0531 7.29% 10.97% 7.13% -5.25% -5.61% 26.76% 8.54% 9.97% 29.39% 48.79% 47.57% 0.1097 -0.0561 0.4879 -0.0561
Operating Cash Flow/Shareholders Equity 0.0151 0.1455 3.67% 5.43% 3.68% -2.66% -2.60% 12.26% 4.00% 5.32% 17.53% 38.47% 49.42% 0.0543 -0.0266 0.3847 -0.0266
Free Cash Flow/Shareholders Equity -0.0039 0.1098 2.14% 2.38% 1.45% -4.06% -3.85% 9.88% 2.58% 3.70% 14.14% 35.45% 43.22% 0.0238 -0.0406 0.3545 -0.0406
Operating Cash Flow/Net Income 1.9187 0.7048 36.35% 77.09% 1009.15% -147.88% -15.36% 83.19% 24.53% 29.76% 69.69% 144.21% 132.88% 10.0915 -1.4788 10.0915 -1.4788
Free Cash Flow/Net Income 0.4087 0.9350 21.12% 33.84% 398.36% -226.16% -22.81% 67.10% 15.83% 20.69% 56.24% 132.88% 116.19% 3.9836 -2.2616 3.9836 -2.2616
Credit Losses/Operating Revenue 0.0300 0.2858 2.87% 6.58% 4.71% 1.53% -0.69% 0.11% -2.71% 3.09% -9.16% 4.52% 4.65% 0.0658 -0.0069 0.0658 -0.0916
Return on Equity 0.0767 0.1511 10.52% 7.15% 0.37% 1.82% 18.46% 15.90% 17.73% 19.62% 28.76% 30.78%
Return on Assets 0.0057 0.0803 0.75% 0.49% 0.03% 0.14% 1.45% 1.20% 1.26% 1.25% 1.56% 1.32%
DISCOUNTED FREE CASH FLOW (DFCF) INTRINSIC OR FAIR VALUE
Growth Rate: 0 0 0 0 0 1% 1% 1% 1% 1% 2% 2% 2% 2% 2% 3% 3% 3% 3% 3% 4% 4% 4% 4% 4% 5% 5% 5% 5% 5%
Required Rate of Return: 7% 8% 9% 10% 11% 7% 8% 9% 10% 11% 7% 8% 9% 10% 11% 7% 8% 9% 10% 11% 7% 8% 9% 10% 11% 7% 8% 9% 10% 11%
Adjusted Free Cash Flow II Projection using Mean of Averages for Proportion of Revenue:'A' $132,246.58 Intrinsic or Fair Market Value: $1,889,237 $1,653,082 $1,469,406 $1,322,466 $1,202,242 $2,226,151 $1,908,129 $1,669,613 $1,484,100 $1,335,690 $2,697,830 $2,248,192 $1,927,022 $1,686,144 $1,498,795 $3,405,349 $2,724,279 $2,270,233 $1,945,914 $1,702,675 $4,584,548 $3,438,411 $2,750,729 $2,292,274 $1,964,806 $6,942,945 $4,628,630 $3,471,473 $2,777,178 $2,314,315
Adjusted Free Cash Flow II Projection using Mean of Averages for Proportion of Equity:'B' $95,387.09 Intrinsic or Fair Market Value: $1,362,673 $1,192,339 $1,059,857 $953,871 $867,155 $1,605,683 $1,376,299 $1,204,262 $1,070,455 $963,410 $1,945,897 $1,621,581 $1,389,926 $1,216,185 $1,081,054 $2,456,218 $1,964,974 $1,637,478 $1,403,553 $1,228,109 $3,306,753 $2,480,064 $1,984,052 $1,653,376 $1,417,180 $5,007,822 $3,338,548 $2,503,911 $2,003,129 $1,669,274
Average of the Preceding Two Estimates 'A' & 'B'; 'C' $113,816.84 Intrinsic or Fair Market Value: $1,625,955 $1,422,710 $1,264,632 $1,138,168 $1,034,699 $1,915,917 $1,642,214 $1,436,938 $1,277,278 $1,149,550 $2,321,863 $1,934,886 $1,658,474 $1,451,165 $1,289,924 $2,930,784 $2,344,627 $1,953,856 $1,674,733 $1,465,392 $3,945,650 $2,959,238 $2,367,390 $1,972,825 $1,690,993 $5,975,384 $3,983,589 $2,987,692 $2,390,154 $1,991,795
Net Income Fully Taxed and Removing ABCP Recoveries or Losses:'D' $169,716.00 Intrinsic or Fair Market Value: $2,424,514 $2,121,450 $1,885,733 $1,697,160 $1,542,873 $2,856,886 $2,448,759 $2,142,665 $1,904,591 $1,714,132 $3,462,206 $2,885,172 $2,473,005 $2,163,879 $1,923,448 $4,370,187 $3,496,150 $2,913,458 $2,497,250 $2,185,094 $5,883,488 $4,412,616 $3,530,093 $2,941,744 $2,521,495 $8,910,090 $5,940,060 $4,455,045 $3,564,036 $2,970,030
Actual Adjusted Free Cash Flow II:'E' $43,363.00 Intrinsic or Fair Market Value: $619,471 $542,038 $481,811 $433,630 $394,209 $729,944 $625,666 $547,458 $486,629 $437,966 $884,605 $737,171 $631,861 $552,878 $491,447 $1,116,597 $893,278 $744,398 $638,056 $558,299 $1,503,251 $1,127,438 $901,950 $751,625 $644,250 $2,276,558 $1,517,705 $1,138,279 $910,623 $758,853
Average of the Preceding Two Estimates, 'D' & 'E':'F' $106,539.50 Intrinsic or Fair Market Value: $1,521,993 $1,331,744 $1,183,772 $1,065,395 $968,541 $1,793,415 $1,537,213 $1,345,061 $1,195,610 $1,076,049 $2,173,406 $1,811,172 $1,552,433 $1,358,379 $1,207,448 $2,743,392 $2,194,714 $1,828,928 $1,567,653 $1,371,696 $3,693,369 $2,770,027 $2,216,022 $1,846,685 $1,582,873 $5,593,324 $3,728,883 $2,796,662 $2,237,330 $1,864,441
Dividend Payout Using Adjusted Net Income, 'D', and average payout of Canadian Western Bank, Laurentian Bank:DIVIDEND DISCOUNT MODEL (DDM): 'G' $49,217.64 Intrinsic or Fair Market Value: $703,109 $615,221 $546,863 $492,176 $447,433 $828,497 $710,140 $621,373 $552,331 $497,098 $1,004,040 $836,700 $717,171 $627,525 $557,800 $1,267,354 $1,013,883 $844,903 $724,202 $633,677 $1,706,212 $1,279,659 $1,023,727 $853,106 $731,234 $2,583,926 $1,722,617 $1,291,963 $1,033,570 $861,309
Variation of DIVIDEND DISCOUNT MODEL (DDM), using figure immediately above, 'G', averaged with the average of Adjusted Free Cash Flow projections, 'C':'H' $81,517.24   Intrinsic or Fair Market Value: $1,164,532 $1,018,965 $905,747 $815,172 $741,066 $1,372,207 $1,176,177 $1,029,155 $914,805 $823,324 $1,662,952 $1,385,793 $1,187,823 $1,039,345 $923,862 $2,099,069 $1,679,255 $1,399,379 $1,199,468 $1,049,534 $2,825,931 $2,119,448 $1,695,559 $1,412,965 $1,211,113 $4,279,655 $2,853,103 $2,139,827 $1,711,862 $1,426,552
Payment in Lieu of Tax
Pursuant to the ATB Act, the Government of Alberta has the ability to assess a charge to ATB as prescribed by the ATB Regulation. The ATB
Regulation defines the charge to be an amount equal to 23% of ATB ís consolidated net income as reported in its audited annual financial
statements. As at March 31, 2010, ATB accrued a total of $38,075 (2009: nil) for payment in lieu of tax.
T his amount must be settled before July 1, 2010, by ATB issuing a subordinated debenture to the Government of Alberta. The payment in
lieu of tax will continue to be settled by issuing subordinated debentures until ATB ís Tier 2 notional capital is eliminated. (Refer to note 7.)
Growth Rate: 2.00% 2.00% 2.00% 3.00% 3.00% 3.00% 4.00% 4.00% 4.00%
Required Rate of Return: 8.00% 9.00% 10.00% 8.00% 9.00% 10.00% 8.00% 9.00% 10.00%
Adjusted Free Cash Flow II Projection using Mean of Averages for Proportion of Revenue:'A' $132,246.58 Intrinsic or Fair Market Value: $2,248,192 $1,927,022 $1,686,144 $2,724,279 $2,270,233 $1,945,914 $3,438,411 $2,750,729 $2,292,274
Adjusted Free Cash Flow II Projection using Mean of Averages for Proportion of Equity:'B' $95,387.09 Intrinsic or Fair Market Value: $1,621,581 $1,389,926 $1,216,185 $1,964,974 $1,637,478 $1,403,553 $2,480,064 $1,984,052 $1,653,376
Average of the Preceding Two Estimates 'A' & 'B'; 'C' $113,816.84 Intrinsic or Fair Market Value: $1,934,886 $1,658,474 $1,451,165 $2,344,627 $1,953,856 $1,674,733 $2,959,238 $2,367,390 $1,972,825
Net Income Fully Taxed and Removing ABCP Recoveries or Losses FOR COMPARISON ONLY, NOT TRUE DFCF:'D' $169,716.00 Intrinsic or Fair Market Value: $2,885,172 $2,473,005 $2,163,879 $3,496,150 $2,913,458 $2,497,250 $4,412,616 $3,530,093 $2,941,744
Actual Adjusted Free Cash Flow II:'E' $43,363.00 Intrinsic or Fair Market Value: $737,171 $631,861 $552,878 $893,278 $744,398 $638,056 $1,127,438 $901,950 $751,625
Average of the Preceding Two Estimates, 'D' & 'E':'F' $106,539.50 Intrinsic or Fair Market Value: $1,811,172 $1,552,433 $1,358,379 $2,194,714 $1,828,928 $1,567,653 $2,770,027 $2,216,022 $1,846,685
Dividend Payout Using Adjusted Net Income, 'D', and average payout of Canadian Western Bank, Laurentian Bank:DIVIDEND DISCOUNT MODEL (DDM): 'G' $49,217.64 Intrinsic or Fair Market Value: $836,700 $717,171 $627,525 $1,013,883 $844,903 $724,202 $1,279,659 $1,023,727 $853,106
Variation of DIVIDEND DISCOUNT MODEL (DDM), using figure immediately above, 'G', averaged with the average of Adjusted Free Cash Flow projections, 'C':'H' $81,517.24 Intrinsic or Fair Market Value: $1,385,793 $1,187,823 $1,039,345 $1,679,255 $1,399,379 $1,199,468 $2,119,448 $1,695,559 $1,412,965