EDMONTON, Alberta, Sept. 28, 2023 (GLOBE NEWSWIRE) -- Servus Credit Union Ltd. (Servus) continued its growth trajectory in its third quarter of 2023, reaching $19.8 billion in assets – up $1.6 billion (9.2%) from the same period last year. This growth supports Servus's continued strategic focus on and investment in enhanced member experience.
Year-to-date net interest income continued to trend positively with an increase of 7.6% over the prior year due to strong deposit and loan growth. While year-over-year operating expenses were higher due to continued investment in technology, products, services and growth-driving initiatives, operating expenses were reduced this quarter compared to the second quarter of 2023.
"Since 2022, we've been positioning Servus for the future by reimagining how Servus can best support members' financial fitness," said Ian Burns, Servus's President and Chief Executive Officer. "Our investment in operational improvements and long-term growth reflect our deep commitment to our members and their banking experience. Those investments have resulted in growth to almost $20 billion in total assets, putting Servus on a growth trajectory we've planned for in our long-term strategy."
Servus's year to date results as compared to July 31, 2022 show:
- Assets grew 9.2% to $19.8 billion
- Deposits increased by 8.8% to $16.5 billion
- Loans grew 10.5% to $17.8 billion
- Retained earnings increased 4.2% to $1.2 billion
- Net income declined 23.5% to $45.8 million
This year's financial results continue to be influenced by the first quarter's increase in the credit loss provision, despite the expense returning to normal levels in the second and third quarters.
While the province's economic outlook continues to improve, Alberta households continue to feel the pinch of higher borrowing costs, which have caused mortgage stress and payment struggles. Alberta's population has grown by 4.5% this year, compared to the national average of 3.1%, which has caused an increase in consumer spending for housing. While the pacing of interest rate increases is expected to slow down, the full impact of these federal interest rate hikes will only materialize as loans mature and renew.
"Economic conditions in Alberta have continued to put a strain on some households provincially, but members have us as their financial partner through it all," said Burns. "We know the challenges that can come from trying to stretch income and are here to help members feel good about their money through thick and thin."
Servus's commitment to financial fitness extends to the Servus Profit Share® program, where Servus shares its profits annually with members. In 2022, Servus shared a record-setting payout of over $60 million.
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 59 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 they feel good about their money. For more information about Servus, call 1.877.378.8728 or visit servus.ca.
For more information contact:
Email: media@servus.ca
Telephone: 825.402.0740
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