February 14

Vancity revenues drive solid earnings

Investments pave the way for future growth

Vancouver, BC, February 14, 2007 – Vancity is reporting higher revenue than the previous year and while investments in infrastructure kept earnings flat, the credit union exceeded the milestone of a half a billion dollars in retained earnings.

For 2006, consolidated earnings from operations were $72.0 million and net earnings were $45.3 million. These were both down from $79.8 million and $47.1 million respectively in 2005. Total assets reached $12.3 billion, up from $11.8 billion in 2005.

Vancity CEO Dave Mowat says he’s pleased with the credit union’s performance.

"Market conditions and interest rates haven’t given us the same kind of lift as we’ve seen in recent years, but we still are enjoying significant growth and success in our business," he says. "Revenue and loan volumes were up. Our Business Banking and Commercial Mortgage teams had their best years ever. Our Visa credit card and gift card business achieved significant growth and we welcomed more than 28,000 new members to the credit union."

Even with additional investments and costs associated with merger integration, Vancity reached an important milestone–exceeding the half-billion dollar mark in retained earnings.

"Our expenditures reflect an investment in our future. This ensures we can continue to deliver outstanding service to our members as we grow." Mowat says.

Vancity will also continue its tradition of investing in members and the communities through its Shared Success program. Based on 2006 earnings, close to $14 million will be shared with members through dividends and patronage rebates, and grants to community groups.

"Last year, Vancity celebrated its 60th anniversary," says Vancity Board Chair Elain Duvall. "We look forward to another 60 years–and then some–of giving back to employees, members and our community."

Vancity is Canada’s largest credit union, with $12.3 billion in assets, more than 354,000 members, and 50 branches throughout Greater Vancouver, the Fraser Valley, Victoria and Squamish. 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.