SOURCE: Servus Credit Union

Servus Credit Union

July 04, 2016 13:00 ET

Servus Credit Union Shows Continued Stability in Q2

EDMONTON, AB--(Marketwired - July 04, 2016) - Strong wealth management income and loan portfolio growth are among the highlights of Servus Credit Union's second quarter results, along with income (before patronage and taxes) of $63.9 million that is up $2.8 million in the first six months of FY2016 compared to the prior year's six month period. Aggressive cost reduction measures that lowered total expenses by over $5 million from the prior year's six months were one of the most significant factors impacting Servus's profits.

The credit union attributes their continuing stability to sound planning and the nature of credit unions that allow for longer-term planning than other financial institutions, but the effects of low resource prices are starting to show as well. The results showed provision for loan losses of $13.0 million in the first six months of FY2016, up from $6.3 million in the same period in 2015.

"With 77 years of history in Alberta we have the experience and expertise to carefully prepare for the cycles in Alberta's economy," says Garth Warner, President and CEO of Servus Credit Union. "Our credit union values also serve us very well in times like these. That's why our significant cost reductions do not include any staff layoffs, and why when other financial institutions are backing out of Alberta we're aggressively looking to find new members who we can support and help to get through these challenging times."

In line with its credit union values Servus is also continuing with its community investment programs. This includes a $100,000 donation to the Red Cross to help Fort McMurray residents affected by the devastating wildfires, along with significant relief measures designed to assist members and Servus employees in the area.

Key financial indicators in the 2016 second quarter were:

  • Total assets of $14.6 billion, up $325.7 million (2.3%) from the previous six months
  • Deposits of $12.1 billion, down $83.3 million (.7%) from the previous six months
  • Total loans of $12.9 billion, up $243.0 million (1.9%) from the previous six months
  • Total equity of $1.3 billion, up $38.4 million (3.1%) from the previous six months
  • Total operating expenses of $147.4 million, down $5.2 million (3.4%) from the previous six months
  • Net Income of $35.7 million, consistent with results from the previous six months.

View detailed Q2 results on www.servus.ca.

About Servus Credit Union Ltd.
Servus Credit Union is a member-owned financial institution serving members from more than 100 locations in 60 communities. The credit union's vision of building a better world -- one member at a time -- inspires their commitment to provide sound, advice-based financial products and services; help members achieve personal satisfaction, enjoy financial stability and a good quality of life; and improve the communities where its members live and work. For more information, call toll-free 187SERVUSCU / 1.877.378.8728 or visit servus.ca.

Contact Information

  • For more information contact:

    Brian Mulawka

    Manager, Social Media and Public Relations
    Servus Credit Union
    T: 780.638.8866
    C: 780.819.8570
    Email: Brian.Mulawka@servus.ca