SOURCE: Vancity Credit Union

Vancity Credit Union

March 03, 2016 08:30 ET

Vancity Posts Strong 2015 Results and Boosts Membership

More Than 29,000 New Members Joined Vancity in 2015 and Assets Reached $19.8 Billion

VANCOUVER, BC--(Marketwired - March 03, 2016) -  Vancity continued its strong rate of growth in 2015, as the values-based financial co-operative added $1.2 billion to its consolidated balance sheet and welcomed 29,276 new members.

Assets reached $19.8 billion in 2015, which is a 6.8-per-cent increase over 2014. Total assets plus assets under administration are now $23.9 billion, a 6.7-per-cent increase, or $1.5 billion, over 2014. The credit union's net new membership also increased by 10,728 and the total number of Vancity members as of December 31, 2015, was 519,736. This growth in membership, combined with the greater financial footprint, will allow Vancity to further enhance the impact it has in the community.

Vancity's net income in 2015 was higher than expected at $65.1 million. This was due in part to strong growth in the credit union's volume of business, increased lending to small businesses (a key strategic priority) and the sale of part of Vancity's commercial loan portfolio, which generated a one-time gain of $12.6 million. Demand for residential mortgages also remained high, supported by historically low interest rates.

As part of its vision to redefine wealth and build healthy communities that are financially, socially and environmentally sustainable, Vancity allocates 30 per cent of its net income each year to members and community partners. This figure reached $19.5 million in 2015, up from $16.4 million the previous year. The funds will be allocated over the course of 2016.

Vancity measures its performance not just in terms of financial success, but also in terms of the positive impact it has in the communities where its members live and work. One key measure is the percentage of Vancity loans that have a direct positive impact on the community -- 49.1 per cent in 2015 versus 49.7 per cent in 2014. Another is how much profit Vancity generates with every unit of member equity. The return on members' equity (ROME) before the distribution of Shared Success was 7.8 per cent in 2015. After the 30-per-cent Shared Success payout, ROME was 6.2 per cent.

In 2015, Vancity was recognized as one of Canada's Top 100 Employers, one of the Top 50 Socially Responsible Corporations 2015 (Maclean's) and one of the Best 50 Corporate Citizens in Canada 2015 (Corporate Knights).

Quotes

"Vancity's 2015 results show that our credit union has had another solid year -- member numbers are increasing and our balance sheet continues to grow. Our success is based on the unique relationship we have with our members and with the real economy of goods and services that impact their daily lives."
- Tamara Vrooman, president and CEO of Vancity

"With our unique, values-based banking model, Vancity aims to change the way people think about wealth. We're proud that our strong performance in 2015 allowed us to direct more of our members' deposits back into the local communities where they live and work."
- Jan O'Brien, chair of Vancity's board of directors

Vancity by the numbers

Item   2015   2014
Total assets   $19.8 billion   $18.6 billion
Total assets plus assets under administration   $23.9 billion   $22.4 billion
Total operating income   $435 million   $412 million
Total operating expenses   $343 million   $333 million
Net income before distribution and tax   $92 million   $79 million
Net income attributable to members   $65.1 million   $54.6 million
Members' equity   $1.1 billion   $1.0 billion
Average Return on members' equity before Shared Success payout   7.8%   7.0%
Shared Success payout   $19.5 million   $16.4 million
Average Return on members' equity after Shared Success   6.2%   5.5%

About Vancity

Vancity is a values-based financial co-operative serving the needs of its more than 519,000 member-owners and their communities through 59 branches in Metro Vancouver, the Fraser Valley, Victoria, Squamish and Alert Bay. As Canada's largest community credit union, Vancity uses its $19.8 billion in 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.

Tweet us @vancity and connect with us on Facebook.com/Vancity.

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