Servus Credit Union’s first quarter results for 2021 signaled a strong start to the fiscal year, with positive indications of financial fitness of the organization and its members nearly a year after the pandemic first struck.
“Our financial results are slightly higher than where we were before the pandemic took hold in the second quarter of 2020,” said Garth Warner, President & CEO of Servus Credit Union. “We are seeing a number of positive results that put us in good position to weather this storm and emerge from the pandemic as strong as ever. Our results, in turn, reflect the financial fitness of our members and indicate it is improving. Servus was committed to supporting our members while maintaining a strong financial position for the future and it is rewarding to see that work paying off.”
Key Servus Credit Union performance indicators (all figures compare Q1 2021 to Q1 2020):
- Net income (after dividends, patronage and taxes) rose by 1.6% to $24.2 million.
- Provision for credit losses decreased 35.6% to $4.3 million.
- Assets grew 5.6% to $17.2 billion.
- Deposits increased by 7.1% to $14.1 billion.
- Loans expanded by 1.9% to $14.9 billion.
- Retained earnings were boosted by 4.9% to $978.5 million and capital is well over the legislated requirement.
“We’ve maintained the strong and stable foundation established by years of careful cost management and building capital reserves above legislated requirements,” stated Mr. Warner. “This position has allowed us to support our members and identify opportunities to enhance how we serve them through the crisis and beyond, all while staying true to our founding principles.”
Mr. Warner pointed out several indicators of member financial fitness:
- Deposit growth: Servus members are improving their cash positions.
- Fewer credit deferrals on the books: Most members have resumed regular payments.
- Lower loan loss provisions: Lower write offs over the last year have resulted in less funds needed to replenish the funds set aside to cover potential loan losses.
- Higher transaction volumes: This indicates that members are both saving and spending.
“We will be monitoring corporate and member trends closely because of uncertainties in the economic environment,” explained Mr. Warner. “We need to be prepared to act to assist members if the situation worsens and we can continue to do so because of our capital strength. Overall, we see the year off to a strong start for our members and Servus.”
About Servus Credit Union Ltd.
At Servus Credit Union we’re building a better world, one member at a time. We’ve been shaping the financial fitness of Albertans for more than 80 years with a full line of secure financial services. We help members manage their money wherever they are through more than 100 branches in 59 communities; online, mobile and telephone banking; and 1900 no-fee ATMs across Canada. We re-invest our profits in our members and the communities we serve. For more information, call 1.877.378.8728 or visit servus.ca.