EDMONTON, Alta., March 23, 2021 (GLOBE NEWSWIRE) – Servus Credit Union’s first quarter results for 2021 marked a good start to the year, with positive indications of the financial health of the organization and its members close to ‘a year after the first pandemic struck.
“Our financial results are slightly better than they were before the pandemic took hold in the second quarter of 2020,” said Garth Warner, president and CEO of Servus Credit Union. “We are seeing a number of positive results that put us in a good position to weather this storm and come out of the pandemic as strong as ever. Our results, in turn, reflect the financial health of our members and indicate that it is improving. Servus is committed to supporting our members while maintaining a strong financial position for the future and it is gratifying to see this work bear fruit.
Servus Credit Union key performance indicators (all figures compare Q1 2021 to Q1 2020):
- Net income (after dividends, patronage dividends and taxes) increased 1.6% to $ 24.2 million.
- The allowance for credit losses decreased 35.6% to $ 4.3 million.
- Assets grew 5.6% to $ 17.2 billion.
- Deposits increased 7.1% to $ 14.1 billion.
- Loans increased 1.9% to $ 14.9 billion.
- Retained earnings increased 4.9% to $ 978.5 million and capital greatly exceeds legal requirements.
“We have maintained the strong and stable foundation established by years of rigorous cost management and building capital reserves above legal requirements,” said Mr. Warner. “This position has allowed us to support our members and identify opportunities to improve the way we serve them during the crisis and beyond, while remaining true to our founding principles.
Mr. Warner highlighted several indicators of members’ financial health:
- Growth in deposits: Servus members improve their liquidity.
- Fewer credit deferrals on the books: Most members have resumed their regular payments.
- Decrease in Loan Loss Provisions: The decrease in write-offs from last year has resulted in a decrease in funds required to replenish funds set aside to cover potential loan losses.
- Higher transaction volumes: This indicates that members are saving and spending.
“We will be closely monitoring corporate and membership trends due to uncertainties in the economic environment,” explained Mr. Warner. “We must be prepared to act to help members if the situation worsens and we can continue to do so with our capital. Overall, we see the year off to a good start for our members and Servus. “
About Servus Credit Union Ltd.
At Servus Credit Union, we are building a better world, one member at a time. We’ve been shaping the financial health of Albertans for over 80 years with a full range of secure financial services. We help members manage their money wherever they are with over 100 branches in 59 communities; online, mobile and telephone banking services; and 1,900 toll-free ATMs across Canada. We reinvest our profits back into our members and the communities we serve. For more information, call 1.877.378.8728 or visit servus.ca.
For more information contact:
Manager, Media and Member Engagement
E-mail: [email protected]