Coast Capital Savings Credit Union

Coast Capital Savings Credit Union

February 24, 2005 09:00 ET

Strong 2004 Results Position Coast Capital Savings for Breakout Year



FEBRUARY 24, 2005 - 09:00 ET

Strong 2004 Results Position Coast Capital Savings for
Breakout Year

SURREY, BRITISH COLUMBIA--(CCNMatthews - Feb. 24, 2005) - Coast Capital
Savings entered what the credit union says will be a breakout year for
the financial institution on a strong fiscal note, with a 12 per cent
increase in assets from $6.4 billion in 2003 to $7.2 billion at the
close of 2004.

Year-end financial results released today show Coast Capital Savings'
total assets under administration grew 12.8 per cent from $7.5 billion
in 2003 to $8.4 billion in 2004. Total loans grew by 6.1 per cent from
$5.7 billion to $6 billion and total deposits climbed by 14 per cent
from $6 billion to $6.8 billion.

"Our 2004 financial performance shows Coast Capital Savings is on a
steady course of growth and increased competitiveness," said Coast
Capital Savings president and CEO Lloyd Craig. "Overall, it provides a
solid foundation for continued growth in the current fiscal year, which
we expect to be a breakout year for Coast Capital Savings, through a
number of industry-leading initiatives like our revolutionary new Free
Chequing, Free Debit and More account."

Coast Capital Savings' net interest income rose by 3.6 per cent from
$160.9 million in 2003 to $166.7 million in 2004. Members' equity also
grew by 17 per cent, increasing from $237.3 million in 2003 to $278.5

While net income increased from $37.5 million to $44.8 million,
operating results for 2004 benefited from a one-time boost of $12.3
million as a result of an industry-wide adjustment in accounting policy
for mortgage prepayment income. Return on assets rose to 0.68 per cent
in 2004 from 0.60 per cent in 2003, with return on equity climbing from
17.38 per cent to 17.68 per cent.

In 2004, the credit union invested $2.8 million or 5 per cent of its
pre-tax income in a range of corporate giving initiatives, compared to
$2.1 million or 4.8 per cent of pre-tax income in 2003.

Other highlights in 2004 include:

- Three former Coast Capital Savings insurance offices on Vancouver
Island were converted to full-service branches

- Coast Capital Savings was recognized for the fifth time among Canada's
50 Best Managed Companies

- Coast Capital Savings was the recipient of the 2004 Imagine award for
being the best corporate citizen in Canada's financial services industry

"Our successes in 2004 have been the result of a lot of hard work and
dedication from our staff and a commitment to provide the best services
and products to our members," Craig added. "But we have even more
ambitious goals for 2005 and I'm confident we have the resources and a
great strategy to make it happen."

Coast Capital Savings is Canada's second largest credit union with $7.2
billion in assets, 300,000 members and 44 branches across the Lower
Mainland, Fraser Valley and Vancouver Island.


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