Feb 2: Vancity Assets Grow 8% to $6.4 Billion

Vancouver, February 2, 2000 - Vancouver City Savings Credit Union released its consolidated financial statement today for the year ending December 31, 1999. Earnings from operations were $39.2 million compared with $39.3 million the previous year. Net earnings after dividends and taxes were $23.7 million compared with $24.1 million in 1998.

"Despite a very competitive environment, Vancity has been able to uphold its core values of members-first service and community involvement," says Vice-President of Finance Kathy Stevenson. "Total payments to members in relationship dividends were $5.1 million over the year. A further $1.7 million was shared with community organizations."

Consolidated assets, meanwhile, grew to $6.4 billion, up 8.2% from $5.9 billion a year ago.

The competitive market was most keenly felt by the credit union operations, exclusive of other business entities such as Citizens Bank. Unconsolidated earnings from operations were $34.9 million, down from the $39.6 million posted in 1998. Unconsolidated net earnings were $21.4 million, also down from $23.2 million in 1998. Citizens Bank contributed to the overall 1999 performance with operating earnings of $4.3 million, exceeding expectations.

"It costs more to earn a dollar today than it did a year ago," says Coro Strandberg, the chair of Vancity's board of directors. "The competitive environment has lowered interest rate spreads. However, through cost-reduction and revenue-enhancing strategies, we were able to rise to the challenge to mitigate the effects of a tougher market."

"These continuing challenges underscore our need to find new ways of doing business so that we can remain financially sound while focusing on social and environmental values," says Vancity's interim CEO Tazeem Nathoo. "We are determined to increase our competitive advantage in the marketplace and lay a solid foundation for revenue growth."

Vancity is Canada's largest credit union with 39 branches in the Greater Vancouver/Fraser Valley area and Victoria, over $6.4 billion in assets and 260,000 members. Vancity owns Citizens Bank of Canada serving members across the country by telephone, ATM and on the Internet. Both Vancity and Citizens Bank of Canada have a commitment to corporate social responsibility.