(Edmonton, Alberta) – In a year that saw the credit union celebrate its 77th year in Alberta, Servus Credit Union’s year end results demonstrated the company’s deep understanding of the province’s economy. Despite lagging commodity prices and Canada’s challenging interest rate environment, Servus reported strong income, a very solid position in the market, and a near record Profit Share payment to its members.
The credit union ended 2015 with income (before patronage and taxes) of $129.5 million, up 10.6% ($12.4 million) from the previous year, and also paid $47.9 million in Profit Share to its members. Along with the company’s work to increase capital, strategic cost reductions allowed Servus to realize these strong results during an unpredictable year.
Servus Credit Union President and CEO Garth Warner was pleased the credit union was able to achieve these positive results and cost reductions without resorting to staff layoffs. “Like many Albertans we had to dig in and work hard this year,” said Warner, “but we’ve learned over the years how to prepare and properly plan for challenging times like these, so our credit union remains strong and stable and well prepared for 2016 and beyond.”
The credit union is especially proud of how it was able to make a real difference in Alberta communities last year. “Beyond our Profit Share payments, we were also able to provide over $2 million in community support across Alberta,” Warner said. “Right now, going into what we expect to be a challenging 2016 for many Albertans, the kind of tailored, expert advice we offer our members will also be a great help for many in our communities who might be facing challenges this year that they may otherwise be unprepared for.
View the 2015 Management’s Discussion and Analysis - Consolidated Financial Statements on www.servus.ca.
About Servus Credit Union Ltd.
Servus Credit Union is a member-owned financial institution serving members from more than 100 locations in 62 communities. The credit union’s vision of building a better world - one member at a time -inspires their commitment to provide sound, advice-based financial products and services; help members achieve personal satisfaction, enjoy financial stability and a good quality of life; and improve the communities where its members live and work. For more information, call toll-free 187SERVUSCU / 1.877.378.8728 or visit servus.ca.
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Fiscal 2015 Highlights
- Servus paid $47.9 million in Profit Share to members, bringing the total to over $320 million since 2008.
- Opened a new Windermere branch in Edmonton and relocated a Grande Prairie branch into a new building in the ‘South 40’ complex.
Ensuring financial sustainability
- Income before patronage and taxes increased 10.6% ($12.4 million) to $129.5 million
- Member equity of $1.3 billion, up $111.7 million (9.8%)
- Deposits of $12.2 billion, down $336.7 million (2.7%)
- Total assets of $14.3 billion, up $231.4 million (1.6%)
- Total loans of $12.7 billion, up $234.9 million (1.9%)
- Operating expenses of $306.6 million, down $0.9 million (0.3%)
- Received the first ever Alberta Global Co-operator Award - the highest honour the Co-operative Development Foundation of Canada and the Canadian Co-operative Association jointly bestow on an organization
- Venture 250 recognition as one of Alberta’s highest grossing companies
- Recognized as a member of Canada’s 50 Best Managed Platinum Club for the fifth year in a row
- Received 2015 Co-operative Innovation Award from the Alberta Community & Co-operative Association for engaging young leaders in the credit union movement
Investing in Alberta
- Contributed over $2 million to Alberta communities, agencies and projects. 60% of funding is decided at the local level.
- Donated $100,000 to Medicine Hat’s new arena and event centre, the Canalta Centre
- Provided $138,000 for the Junior Achievement Dollars with Sense program that teaches junior high students how to make smart financial decisions
- Gave $20,000 to Sylvan Lake to help them rebuild their arena and curling rink
- Offered $30,000 in scholarships to 15 post-secondary students as part of our millennial program