ENP Newswire - 01 July 2014
Release date- 30062014 - In the second quarter of fiscal year 2014, Servus Credit Union Ltd. reported assets of $13.5 billion and operating income of $25.6 million (before Profit Share allocation and income taxes).
'We have had healthy, steady growth with our loans and deposits and we are well on our way to meet our targets for the year,' says said Garth Warner, President & Chief Executive Officer of Servus Credit Union. 'Our income remains solid while the market continues to experience pressures because of the low rate environment.'
Warner says the loan growth ($896.1 million) and deposit growth ($1,067.8 million) over the same period last year shows that Servus members enjoy the unique Profit Share benefit for their business with their credit union.
Wealth management revenues have grown by 21.9% over last year and almost 30% in the past two years. He adds that this growth indicates that members have increased confidence with how Servus manages their investments.
Moving into the final two quarters of the year, Warner says that Albertans will continue to benefit from a strong economy and a low cost of borrowing, and that loan yields will continue to be under pressure from the low rates.
Key financial indicators in the 2014 second quarter (February 1, 2014 to April 30, 2014) were:
Loans - up $90.1 million
Deposits - up $34.0 million
Assets - up $95.6 million
Total equity - up $19.2 million
Operating income (before patronage and income taxes) - $25.6 million
Operating income is down $7.7 million from the same period last year. The decline is a result of lower income from our investments in associates ($2.9 million) and variance in our loan loss provisions ($4.0 million) which showed a recovery in provisions at this time last year. Net of these items, operating income was 2.6% lower than last year largely due to lower interest margin which is a result of the low interest rate environment.
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.
For more information contact:
Manager Public Relations
Servus Credit Union
As at and for the Three Months Ending April 30, 2014 As at and for the Three Months Ending April 30, 2013 As at and for the Six Months Ending April 30, 2014 As at and for the Six Months Ending April 30, 2013 As at and for the Twelve Months Ending October 31, 2013 (fiscal year-end)
Income (before patronage allocation & taxes)
Second quarter highlights
Servus Credit Union maintained its status among a select group of Canadian businesses as a member of Canada's 50 Best Managed Platinum Club for the fourth year in a row.
Servus held its Annual General Meeting on March 12, 2014 in Lloydminster. During the AGM and members elected the following four members to the Board of Directors: Jonathon Holt of Edmonton, Simon Neigum of Medicine Hat, Penny Reeves of St. Albert and Alison Starke of Lloydminster. Full results are available at servus.ca.
Servus Credit Union was recognized as credit union of the year on April 10 at the Alberta Central 2014 AGM & Conference. More information available on servus.ca.