EDMONTON, Alberta, March 21, 2023 (GLOBE NEWSWIRE) -- Servus Credit Union Ltd. (Servus) started its fiscal year with significant growth, surpassing $18.7 billion in assets, while continuing to invest in strategic priorities to enable future growth and support members during challenging economic conditions.
First quarter financial results for the year starting November 1, 2022 saw assets increase due to growth in loans and investments. While margin increased, net income dropped substantively due to higher provisions for credit losses and continued investment into modernization efforts to ensure Servus has the services, technology and people necessary to meet changing consumer demand.
"For Servus, our members' financial fitness is what drives us," said Ian Burns, Servus's President and Chief Executive Officer. "In 2022, Servus embarked on a journey to reimagine how we can best support our members' changing financial needs now and into the future. Our results show our members continue to support our bold approach and commitment to their financial well-being, even as they continue to navigate the current unpredictable economic environment."
Servus's first quarter year-over-year results show:
- Assets grew 7.6% to $18.7 billion
- Deposits increased by 7.9% to $15.6 billion
- Loans grew 7.3% to $16.6 billion
- Retained earnings increased 3.7% to $1.1 billion
- Net income dropped 71.4% to $8.2 million
The decrease in net income is primarily due to a substantial increase in the provision for credit losses in the first quarter. This is a contrast to a net recovery in Q1 last year as a result of our members' strong financial fitness post pandemic. Over the past year, Alberta has experienced positive growth including a steady increase in business activity, low unemployment rates, strong commodity prices and rising provincial revenues. However, rising prices and record high interest rates owing to Bank of Canada rate hikes throughout 2022 have put a squeeze on Alberta households and businesses, resulting in a cooling of retail and real estate activity. Accordingly, provision for credit losses has increased substantially to $26.0 million in the first quarter largely due to one real estate loan. Excluding the provision for credit losses, income before patronage and income taxes would be up slightly compared to prior year.
"We want to help members feel good about their money, regardless of what is happening in the world," said Burns. "Albertans are working to balance rising prices and interest rates with the realities of day-to-day life. Our Servus team is committed to being a trusted and reliable partner to our members as they work through these challenges. We hope to support even more Albertans into the future."
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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