Vancity profits up nearly 50 per cent
Vancity profits up nearly 50 per cent
Increased earnings drive up community contributions by 80 per cent
Vancouver, BC, February 12, 2009 - Vancity is crediting a renewed emphasis on its co-operative, local roots for solid performance despite a tumultuous year for the financial sector.
For 2008, consolidated earnings from operations grew 49 per cent, from $50.6 million in 20071 to $75.6 million in 2008. Net earnings of $46.8 million represented a 43 per cent increase over 2007's $32.8 million. Total assets reached $14.5 billion, up from $14.1 billion the previous year.
Highlights include one of the credit union's strongest years ever for deposit gathering, thanks to the success of the Jumpstart® High Interest Savings Account. Retail deposit growth of $574 million helped to maintain members' access to credit, while also building financial self-sufficiency; a percentage of all Jumpstart® revenues go to the Future Foundations Program, which offers financial literacy education for low-income individuals and families.
We lend in our local communities, which we know and understand well, says CEO Tamara Vrooman. Our lending practices are responsive to local conditions & our members' money is across the street, not across the border.
Vancity's financial success is good news for members and communities alike. The credit union is pleased to continue its longstanding tradition of giving back 30 per cent of net profits through the Shared Success program. Based on 2008 earnings, close to $15.3 million will be shared: with members, in the form of dividends and relationship bonuses and rebates; and with communities, in the form of grants, sponsorships and partnerships.
"During this time of economic uncertainty, we're doing what we do best & putting our members and communities first and managing our business prudently",says Patrice Pratt, chair of Vancity’s Board of Directors. "We are partners in our members' financial futures, and we will continue to show up in ways that are meaningful to them."
"We responded quickly to the sudden downturn that began in 2007 and our results reflect that", says Vrooman. "We know our members and communities may face equally significant challenges in 2009 and we're here ready, willing and able to help."
Media enquiries:
Stephanie Thatcher
Public Affairs & Corporate Communications, Vancity
Phone: 778-837-0394
Email: mediarelations@vancity.com
About Vancouver City Savings Credit Union
Vancity is Canada's largest credit union, with $14.5 billion in assets, more than 400,000 members, and 61 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 improving the quality of life in the communities where we live and work.
Jumpstart® is a registered trade-mark of Vancouver City Savings Credit Union
1 Consolidated 2007 earnings from operations and net earnings have been restated. We previously reported the following: