Feb 17: Vancity Credit Union reports another successful year

Close to $18 million to be shared with members and the community

Vancouver, February 17, 2005 – Vancity Credit Union is reporting today its fourth consecutive year of high profits.

2004 consolidated earnings from operations were $93.6 million, up from $78.0 million in 2003. These results included a one-time $18.8 million boost due to an accounting policy change affecting the financial services industry. Net earnings increased to $57.2 million from $44.5 million in 2003. Total assets hit $10.5 billion, up from $9.0 billion in 2003.

The continuing success was driven by a growing economy, low interest rates and a continuing strong residential housing market that pushed loan volumes to historic levels. Lower loan write offs also helped the credit union maintain its strong margins. One of its biggest success stories was membership growth with 24,000 members joining the organization, marking a 10 per cent increase over the previous year.

“We are proud of these results and even prouder of what they will allow us to do, which is share over 30 per cent or $17.9 million with ourmembers and the community groups in this region,” says Vancity Board of Directors Chair Elain Duvall.

The highest amount ever, $10.5 million, will go to Vancity members through patronage rebates and member share dividends as part of the credit union’s Shared Success program, while $7.4 million will be distributed to non-profit organizations through Vancity’s various grants, including theannual $1-million Vancity Award.

2004 was a year of firsts. Last November, Vancity became the first retail credit union in North America to be publicly rated by Dominion Bond Rating Service, raising $200 million in 24 hours with its first issuance of commercial paper. The rating has strengthened Vancity’s industry position in terms of greater capital markets access and status as an eligible investment grade offering for institutional or corporate investors.

Vancity was also chosen as the best place to work in Canada as part of Maclean’s Magazine’s annual top100 employers list. The list is unranked and it was the first time that Maclean’s selected one organization for the top spot.

Vancity is Canada’s largest credit union, with $10.5 billion in assets, more than 300,000 members, and 42 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.