Servus marks second quarter with continued strong performance ahead of historic merger
02 Julio 2024 - 9:56AM
Following several consecutive quarters of strong performance and
growth, Servus Credit Union Ltd. (Servus) achieved significant
asset growth in its second quarter of fiscal 2024, reaching $21.1
billion in total assets, up 10.5% from the same period last year.
This quarter marks the final reporting period for Servus prior to
the May 1, 2024 merger with connectFirst Credit Union
(connectFirst), creating Connect First and Servus Credit Union Ltd.
connectFirst results for the same pre-merger period are available
on connectfirstcu.com.
The continued upward trend of Servus's second quarter financial
results, covering the period of February 1 through April 30, 2024,
reflects the organization's ongoing efforts to ensure strength,
stability and resiliency despite the sector’s sustained economic
headwinds.
"Servus's focus over the past two years has been on modernizing
our cooperative, member-centric approach to banking," says Ian
Burns, President and CEO of both the new Connect First and Servus
Credit Union Ltd. and former Servus Credit Union Ltd. "Our
future-focused approach has allowed us to thrive at a time when
economic headwinds have impacted others in the financial sector.
This, along with recent recognition as one of Canada's Best Managed
Companies for the 21st consecutive year, is proof positive that our
management approach and member-dedicated team are on a solid path
forward."
Servus's year to date results as compared to prior year
show:
- Assets grew 10.5% to $21.1 billion
- Loans grew 9.6% to $18.6 billion
- Deposits increased by 6.9% to $17.1 billion
- Retained earnings increased 5.4% to $1.2 billion
- Net income grew 41.5% to $39.2 million
- Provision for credit losses decreased 8.1% to $26.2
million
- Operating expenses are up 5.3% to $234.5 million
Year-over-year net income increased by $11.5 million primarily
due to net interest income and other income growth. This increase
is attributable to proactive hedging and pricing decisions, and is
also driven by conscious strategic choices Servus has made in the
pursuit of growth.
While Alberta has shown economic growth over the past quarter,
inflation and elevated interest rates continue putting pressure on
households and business finances. As a result, some Albertans are
still struggling to meet their debt obligations which has created
higher levels of delinquency and loan default across the
province.
"As a now merged organization, our members are as important to
us as ever. We look forward to delivering on the anticipated
benefits of the merger, including the financial benefits, as
expeditiously as possible," says Burns. "The merger of Servus and
connectFirst credit unions marks the union of two industry leaders
bringing unique strengths and capabilities. connectFirst was also
recently recognized as one of Canada's Best Managed Companies. This
is validation that our mission to build from the best of both
companies will ultimately create one of the largest and strongest
credit unions in the country, allowing us to bring the credit union
way of banking to even more Albertans."
Servus's performance in fiscal year 2023 enabled Servus to share
a record level of more than $68.1 million in Profit Share® with
members. Since starting the program in 2009, Servus has returned
more than $760 million to Albertans.
Servus and connectFirst are trade names of Connect First and
Servus Credit Union Ltd. All rights reserved.
About Servus Credit Union Ltd.Servus Credit
Union has served Albertans for over 80 years with a full line of
secure financial services. The financial institution has more than
100 branches in 61 communities throughout the province as well as
options for online, mobile and telephone banking. Servus's noble
purpose is to help members reimagine their financial fitness so
that they feel good about their money. For more information about
Servus, call 1.877.378.8728 or visit servus.ca.
About connectFirst Credit UnionconnectFirst
Credit Union, one of the largest and most successful credit unions
in Canada, is a full-service financial institution with over $7
billion in assets under administration. connectFirst employs 750
Albertans who provide a wide range of financial products and advice
in more than 40 communities across central and southern Alberta. It
serves over 125,000 members through a community-focused approach to
banking.
Media ContactServus Credit
Unionmedia@servus.ca(825) 402-0740