Coast Capital Savings Credit Union

Coast Capital Savings Credit Union

February 28, 2008 12:13 ET

Media Release: Coast Capital Savings Announces Record Results for 2007

SURREY, BRITISH COLUMBIA--(Marketwire - Feb. 28, 2008) - Coast Capital Savings announced net income of $58.6 million for the year ended December 31, 2007, an increase of 10.4 per cent from $53.1 million a year ago, while total assets under administration grew by 9.4 per cent to $11.9 billion over the same period.

Lloyd Craig, Coast Capital Savings' president and CEO, said the credit union had a record year in 2007 by offering innovative and competitive products that appeal to consumers.

"In what was a challenging year for many financial institutions, Coast Capital Savings' financial performance in 2007 was strong," Craig said. "We were able to maintain a competitive edge in the market, thanks to products such as Free Chequing, No Worry Mortgages, our Haggle-free approach to business, and the successful launch of two innovative business accounts. These value propositions fuelled strong customer growth."

Coast Capital Savings' performance by the numbers

The following are key financial highlights for 2007 versus 2006:

- Total loans increased from $7.7 billion to $8.4 billion

- Total deposits grew by 7.8 per cent to $9.0 billion

- Net interest income was $212.4 million, compared to $197.2 million

- Non interest expenses grew by 3.7 per cent to $204.0 million, from $196.6 million

- A corporate investment of $20.0 million in asset-backed commercial paper, representing 0.2 per cent of total assets, was written down by $2.4 million and charged to other income

- Operating efficiency improved to 72.2 per cent versus 73.5 per cent

- Return on equity was 14.9 per cent

- Return on average assets remained unchanged at 0.65 per cent

- Community contributions increased from $4.5 million to $5.0 million.

Coast Capital Savings had net customer growth of 20,000 last year, driven by its flagship Free Chequing, Free Debit and More Account, which was introduced in 2005. The credit union also saw impressive growth in business customers with the introduction in May 2007 of its Deposit-for-Free Business Account and a first in Canada, unlimited business banking transactions for $20 a month, through its One Small Fee the Rest is Free Business Account.

"Coast Capital Savings will continue to focus in 2008 on differentiating itself in a competitive banking industry through products that help customers simplify their financial lives, while investing in new branches and in its communities," Craig said.

"We have a vision to be the ultimate choice for consumers when it comes to financial products and services in Canada. Our strong financial results in 2007 give us a solid foundation to continue to offer our customers the innovative solutions they have come to expect from us."

Coast Capital Savings is Canada's second largest credit union with total assets under administration of $11.9 billion, 380,000 members and 49 branches in the Metro Vancouver and Vancouver Island regions of British Columbia. Product innovations from Coast Capital Savings include Canada's first free chequing account from a full-service financial institution and the first business account in the country to offer unlimited transactions for a flat fee. The credit union is one of Canada's 50 Best Managed Companies and is designated a Caring Company by Imagine Canada.

Attachment - At a glance: Coast Capital Savings financial highlights, 2003-2007 please click on the following link:

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