ATB Financial’s move to acquire Cormark Securities is more than just another banking transaction—it’s a clear declaration that energy remains fundamental to Alberta’s economic vision, even as the world navigates an uncertain transition path.
The $107 million deal announced yesterday positions the provincial Crown corporation to strengthen its investment banking capabilities while doubling down on its commitment to traditional energy producers that have faced increasing scrutiny from national financial institutions.
“We’re deepening our commitment to the energy sector at a time when many banks are stepping back,” Curtis Stange, ATB Financial’s CEO, told me in an interview. “There’s this perception that supporting traditional energy means ignoring the energy transition. That’s a false choice. We can do both.”
The acquisition comes after several major Canadian banks have reduced their exposure to oil and gas in response to environmental pressures and shifting investment mandates. Just last quarter, RBC and TD collectively reduced their oil and gas loan portfolios by approximately $2.8 billion, according to their quarterly filings.
This backdrop makes ATB’s move particularly noteworthy. By acquiring Cormark, which has built a strong reputation in energy investment banking, ATB gains specialized expertise in both traditional fossil fuels and emerging clean technology—exactly the combination needed to navigate Alberta’s complex energy future.
Scott Davidson, Cormark’s CEO who will continue leading the firm after the acquisition closes, emphasized this point: “We’ve built our reputation on understanding the full spectrum of energy development. That means supporting conventional producers while also having the expertise to help them evolve.”
The timing isn’t accidental. Energy stocks have outperformed the broader market over the past 18 months, with the S&P/TSX Capped Energy Index posting a 27% return while the S&P/TSX Composite gained just 11%. This performance contradicts predictions that fossil fuel investments would collapse under ESG pressures.
What’s particularly interesting about this deal is how it reflects Alberta’s pragmatic approach to energy transition. Rather than abandoning its traditional economic engine, the province is using its financial institution to ensure capital continues flowing to responsible energy development.
“Capital starvation isn’t an effective climate strategy,” noted Jackie Forrest, Executive Director at the ARC Energy Research Institute. “The companies producing energy today will need to be the ones investing in tomorrow’s solutions, whether that’s carbon capture, hydrogen, or other technologies.”
The Cormark acquisition particularly strengthens ATB’s ability to serve mid-market energy companies—those with market capitalizations between $100 million and $2 billion—that have found it increasingly difficult to access capital and advisory services as larger banks focus on either major players or exit the sector entirely.
For everyday Albertans, the implications go beyond banking. The energy sector directly and indirectly supports approximately 187,000 jobs in the province, according to recent Statistics Canada data. Ensuring these companies maintain access to financial services has implications for provincial employment, tax revenue, and economic stability.
However, the move isn’t without risks. The acquisition represents ATB’s largest investment in capital markets capabilities to date, coming at a time when global energy markets face significant transition uncertainties. The International Energy Agency projects oil demand will peak before 2030, though estimates vary widely on timing and impacts.
“This is a calculated bet that energy transition will be measured in decades, not years,” said Adam Legge, President of the Business Council of Alberta. “ATB is positioning itself to be the financial partner that understands both where the industry is today and where it needs to go.”
The acquisition also raises questions about ATB’s mandate as a Crown corporation. Founded during the Great Depression to serve rural Albertans when other banks wouldn’t, ATB has evolved significantly while maintaining its public ownership structure. This latest move further blurs the line between public institution and commercial bank.
Alberta’s Finance Minister has defended the acquisition, noting that ATB operates at arm’s length from government despite its public ownership. “This is a business decision that makes strategic sense,” the minister stated in a press release. “ATB continues to fulfill its mandate by ensuring critical sectors of our economy have access to the financial services they need.”
Once completed, the deal will make ATB one of Canada’s most energy-focused financial institutions at precisely the moment when much of the financial world is reconsidering its relationship with fossil fuels. This contrarian approach could either prove visionary or problematic depending on how energy markets evolve.
What’s certain is that ATB is betting on a middle path—supporting traditional energy while building capabilities to finance the transition. In a province where energy represents approximately 27% of GDP, according to the provincial government, that balanced approach may be exactly what’s needed.
As one Calgary-based energy executive who asked not to be named put it: “We don’t need cheerleaders or critics. We need financial partners who understand the complexity of what we’re trying to do—maintain current operations while investing in new technologies and approaches.”
The transaction is expected to close in the fourth quarter, subject to regulatory approvals.
