(Edmonton, Alberta) – Servus Credit Union reported an increase in second quarter operating income (before patronage allocation and income taxes) of $13.8 million, or 53.1%, compared with the same quarter last year.
"At this pace we are on track to match the $48.1 million Servus paid back to members in 2016," stated Servus Credit Union President and Chief Executive Officer Garth Warner. "As a credit union all profits are returned to members in the form of improved member services, like digital banking and security, capital requirements that ensure the long term health of the organization for Albertans, and profit sharing."
Continued attention to expenses and a significant reduction in loan loss provisions put Servus in a strong position for the second quarter. Operating expenses were down $2.7 million or 3.5% from the same period last year. Loan loss provisions decreased by $4.2 million or 57.2%. Income taxes rose by 80.2% or $3.8 million as the final impacts of federal and provincial increases were phased in. On the revenue side of the ledger, other income increased by $6.3 million, most of this due to strong performance in wealth management and increased value of credit card assets.
Other key figures for the quarter compared to the same period last year included:
- Assets – up $389.3 million, or 2.7% to $15.0 billion
- Loans – up $360.7 million or 2.8% to $13.3 billion
- Deposits – up $80.6 million, or 0.7% to $12.2 billion
- Member equity – up $89.1 million, or 6.9% to $1.4 billion
"Albertans are responding positively to our approach, which focuses first on understanding their financial goals and offering tailored expert advice and solutions to achieve these," stated Mr. Warner. "They are finding at Servus the reputable, dependable financial partner who provides the services and products they require at a competitive price. Rewarding them for their business with a share of the profits is an added bonus none of our competition offers."
View detailed Q2 results on www.servus.ca.