Vancity beats 2018 income expectations
Canada’s largest community credit union’s assets increase by more than $1 billion
March 07, 2019, Coast Salish Territory/Vancouver, B.C. – Vancity’s values-based banking model continues to generate strong financial returns. The co-operative financial institution’s assets of $22.9 billion in 2018, represent a 5.7-per-cent increase, or $1.2 billion, over the previous year. Total assets plus assets under administration are now $27.4 billion, a 3.7-per-cent increase, or $1 billion, over 2017.
“In the past year at Vancity, our role has been to help our members, our employees and our communities navigate through some uncertain times,” says Tamara Vrooman, Vancity president and CEO. “We’ve again made good money for our members in ways that seek to improve the overall health and resilience of communities. Our results and the benefits we generate for our members don’t decline as a result of this values-based approach, they get better.”
Vancity’s income before distribution and tax was above forecasts at $116.5 million in 2018. This was lower than the previous year’s total of $146.6 million. However, a significant part of the 2017 figure was due to the one-time gain realized from the sale of Dockside Green, a mixed-use development in Victoria. Without the gain from the sale of Dockside Green, Vancity’s 2018 net income would be $22.2 million above the previous year.
To calculate how much profit Vancity generates with every dollar of members’ equity, the credit union uses a measurement called return on average members’ equity, or ROME. This measurement shows the returns or business results that Vancity generates after taxes and distributions to members and communities. In 2018, ROME was 6.3 per cent, ahead of a target of 5.6 per cent.
Each year, Vancity gives back 30 per cent of net income to members and communities through its Shared Success program. Before taking this distribution to members and communities into account, ROME in 2018 was 7.9 per cent. Vancity will allocate $24.2 million of its 2018 income for Shared Success contributions to members and communities over the course of 2019.
“Our members continue to rely on us and we’re proud of our ability to make a real difference in their lives,” says Anita Braha, chair of Vancity’s board of directors. “What’s great about Vancity is that we meet our members’ needs while also making a positive impact in the communities where we operate.”
Triple Bottom Line Assets under Administration (TBLAA) is the primary measure of Vancity’s progress in this area. The credit union is continually seeking to increase the percentage of assets that meet this criteria and in 2018, Vancity grew its TBLAA assets to 25.1 per cent from 23.2 per cent the previous year.
In 2018, Vancity’s Member Services Centre received a Highest Customer Service – Banking Industry award from Service Quality Measurement (SQM). The Georgia Straight ranked Vancity as the best local employer and the best financial institution. Vancity also received the National Credit Union Innovation Award for the Vancity Fair & FastTM Loan online.
Vancity by the numbers
| Item | 2018 | 2017 |
|---|---|---|
| Total assets | $22.9 billion | $21.7 billion |
| Total assets plus assets under administration | $27.4 billion | $26.4 billion |
| Total operating income | $527 million | $531 million |
| Total operating expenses | $411 million | $384 million |
| Net income from operations before distribution and tax | $116 million | $147 million |
| Net income attributable to members | $80.6 million | $91.8 million |
| Members’ equity | $1.3 billion | $1.2 billion |
| Return on members’ equity before Shared Success payout | 7.9% | 9.3% |
| Shared Success payout | $24.2 million | $27.5 million |
| Return on members’ equity after Shared Success | 6.3% | 7.6% |
About Vancity
Vancity is a values-based financial co-operative serving the needs of its more than 534,000 member-owners and their communities in the unceded territories of the Coast Salish and Kwakwaka’wakw people, with 59 branches in Metro Vancouver, the Fraser Valley, Victoria, Squamish and Alert Bay. With $27.4 billion in assets plus assets under administration, Vancity is Canada’s largest community credit union. Vancity uses its assets to help improve the financial well-being of its members while at the same time helping to develop healthy communities that are socially, economically and environmentally sustainable.
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For more information:
Brent Shearer | Vancity
T: 778-837-0394
mediarelations@vancity.com