Loan volumes and membership growth

Vancouver, BC - February 16, 2006 – Vancity is reporting earnings for 2005 driven by high loan volumes and growth in its membership that once again exceeded the population growth of the Lower Mainland.

Consolidated earnings from operations were $79.8 million and net earnings were $47.1 million. These were both down from $93.6 million and $57.2 million respectively in 2004. This can be attributed to a one-time accounting change affecting the financial services industry which provided $18.8 million of additional operating income in 2004. Without this, the 2005 earnings were higher than the 2004 results. Total assets reached $11.8 billion, up from $10.5 billion in 2004.

Vancity’s financial performance was fueled by impressive loan volumes that grew by $1.1 billion due to continuing low interest rates, a strong residential housing market, and a robust small business sector. A healthy economy helped keep loan write-offs to a historic low.

Membership growth was another success story, with Vancity welcoming more than 43,000 members, up from 24,000 the previous year. The majority came from organic growth with one third attributed to the Village and Squamish credit unions joining Vancity.

“This has been another remarkable year for us,” says Vancity CEO Dave Mowat. “Our employees have worked hard and it shows. Our strong earnings have enabled us to invest in initiatives that position us for future growth while ensuring we continue to offer great service to our members today.”

Based on Vancity’s performance, $14.9 million will be shared with members and the communities.

“When Vancity does well, we all do well,” says Vancity Board Chair Elain Duvall. “We’re thrilled to share $8.6 million with our members through patronage rebates and member share dividends, as well as $6.3 million with community groups through our granting programs.”

Vancity is Canada’s largest credit union, with $11.8 billion in assets, more than 330,000 members, and 47 branches throughout Greater Vancouver, the Fraser Valley and Victoria. Vancity owns Citizens Bank of Canada, serving members across the country by telephone, ATM, and the Internet. Both Vancity and Citizens Bank are guided by a commitment to corporate social responsibility, and to improve the quality of life in the communities where we live and work.