Vancity Achieves Best Financial Results in its 64-Year History in 2010

Credit union will return a record $23.5M to members and their communities

Vancouver, March 8, 2011 – Vancity has achieved the best financial results in the credit union’s history, and its third consecutive year of increased earnings. In a year when the recovery in financial markets was impacted by the recession, modest growth and uncertainty in the real estate market, Vancity performed well in many areas in 2010 including loan growth, return on equity, and return on assets and revenue growth.

But more than being good money managers, Vancity spent 2010 focusing on what matters most—supporting our members and the local communities in which they live and work. One of the highlights is the work of Vancity’s Community Investment division, which achieved $213 million in what is called “impact lending” in 2010, surpassing its target by 2½ times. These loans all met a specific set of criteria for supporting social and environmental benefits.

“We believe that extending credit to projects that benefit people, the community and the environment is the most powerful way that a credit union can make an impact in the communities it serves,” said Tamara Vrooman, president and CEO, Vancity.

Vancity by the numbers in 2010:

• Net income: $77 million, increase of 44% compared to 2009
• Earnings from operations: $126 million, 60% increase over 2009 and more than double since 2007
• Revenue: $424 million, 11% higher than 2009
• Return on average assets: 0.53%, above average of 0.43% over the past 10 years
• Return on average equity: 10.6%, higher than the average of 9.3% over the past 10 years

Revenues rose due to a healthy volume of business and favorable market conditions, while expenses fell in 2010 because of divestitures made in 2009. More than $1 billion in assets came off the books that year but in 2010, Vancity added this back and more, including $780 million in new loans to end 2010 with assets of $14.45 billion, a level greater than in 2009.

Vancity also shares an equivalent of 30 per cent of its net profits with members and the community. This means that this year’s unprecedented results will return a record $23.5 million to members and communities, up from $15.2 million in 2009. Of the total, $10.9 million will go directly to members through dividend and patronage payments. This year’s dividend to members is a healthy six per cent, which every member receives on the value of their shares. And, another $12.5 million will go to grants and other community investments, including community programs managed by Vancity.

“Throughout 2010, community groups that serve our most vulnerable citizens were telling us they wouldn’t feel the full impact of the economic downturn until early 2011. This year’s contribution enables us to support our members and our communities, just when they need it most,” Vrooman said.

“Our results and our focus this year support our vision of redefining wealth,” said Patrice Pratt, Chair of the Vancity Board of Directors. “Since 1994, Vancity has distributed over $170.5 million to members through dividends and to communities through grants and we are delighted to add another $23.5 million for a total of $194 million. When members join us, they’re building their own wealth while also strengthening their local economies, which helps all of us.”

Vancity measures its results on a triple bottom line basis and will publish an integrated annual and accountability report in May. The organization remains carbon neutral and met its goal of keeping greenhouse gas emissions to 6,000 tonnes or less in 2010.

About Vancity
You’re part of something greater when you do business with Vancity.  We’re committed to making a positive impact on the quality of life where we live and work and beyond. Since 1994, we have invested over $194 million of our profits back to members and into the communities we serve. Vancity is a member of the Global Alliance for Banking on Values – a network of the world’s leading sustainable banks sharing the commitment to achieving triple bottom line impact through responsible banking practices. Vancity is Canada’s largest credit union, with $14.5 billion in assets, more than 417,000 members and 59 branches throughout Metro Vancouver, the Fraser Valley, Victoria and Squamish. More information about Vancity is available at www.vancity.com.