(Edmonton, Alberta) – The benefits of member banking were highlighted in FY16 as Servus Credit Union released annual results with a bottom line that clearly put its member-owners first.
Despite a challenging Alberta economy and interest rates that remained at historic lows, the province's largest credit union paid $48.1 million to members through its annual Profit Share® program. Since 2008, the total paid to members though the program is over $368 million.
The annual results also showed the benefits of sound planning that balances protection of the company's financial stability with the credit union's desire to keep fees low and provide excellent service and value.
Last year Servus reported assets that increased to $14.8 billion from $14.3 billion the previous year, loan growth of $521.3 million and deposit growth of $60.4 million. Retained earnings were also strong at $697.9 million, up from $642.7 the previous year.
Despite challenges in the Alberta economy and continued pressure on interest rates, the credit union's income (before patronage allocation to members and taxes) was $124.0 million, down slightly from $129.5 million the previous year. The decline came primarily as a result of increased loan loss provisions that were well within Servus's risk tolerance, and that were tempered by a reduction of $5.6 million in operating expenses.
Servus did see significant growth in its Wealth division, where members increased their investment holdings with the credit union, generating income of $21.1 million, up from $18.8 million the previous year.
“Servus Credit Union has continued to invest in Alberta during our province's recent downturn, and in continual improvements to our member service. We have supported Alberta businesses as they've diversified, and Alberta families as they've got back on their feet,” said Garth Warner, Servus Credit Union's President and CEO. “Our results show that Alberta continues to be a great place to do business, and that we are ready to build on our current success as our economy starts to turn the corner.”
About Servus Credit Union Ltd.
Servus Credit Union is a member-owned financial institution serving members from more than 100 locations in 59 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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