EDMONTON, Alberta, March 27, 2024 (GLOBE NEWSWIRE) -- Servus Credit Union Ltd. (Servus) continued its strong growth trend with assets reaching $20.6 billion, up $1.8 billion (9.8%), compared to the first quarter of 2023. Coupled with a 182.0% increase in net earnings to $23.1 million, Servus is off to a solid start to the fiscal year.
First quarter financial results, covering the period of November 1, 2023 to January 31, 2024, are trending positive for Servus. The strong balance sheet growth and reduction in loan loss provisions resulted in a healthy bump to net income and retained earnings.
"Since 2022, we have been positioning Servus for the future, ensuring the organization is strong, stable and resilient," said Ian Burns, Servus's President and Chief Executive Officer. "This is paying off as our credit union thrives despite continued headwinds in the financial sector. Our investment into modernization and our member-centric approach continue to be keys to our success, illustrated by this month’s launch of new online and mobile banking platforms."
Servus's first quarter results, compared to the first quarter of fiscal year 2023, show:
- Assets grew 9.8% to $20.6 billion
- Loans grew 10.9% to $18.4 billion
- Deposits increased 7.7% to $16.7 billion
- Retained earnings increased 5.8% to $1.2 billion
- Net income grew 182.0% to $23.1 million
- Provision for credit losses decreased by $16.9 million
Year-over-year, net income surged by $23.1 million (182.0% increase) primarily due to a $16.9 million decrease in provision for credit losses and consistently strong margins despite the elevated rate environment. The improvement in loss provisions is due to one large real estate provision in the prior year.
Higher interest rates continue to put pressure on household and business finances, resulting in Albertans struggling to meet their obligations. However, Servus members have reported feeling more optimistic about their finances than other Albertans a testament to Servus’s approach to financial advice. A November 2023 survey commissioned by Servus shows that its members feel 7.9% more confident than the average Albertan that they will be better off financially a year from now.
"Servus is a financial cooperative," said Burns. "Our members are owners and shareholders of our organization. That means we're extremely focused on providing members with the same, if not better, value and service as other financial institutions, particularly when it comes to financial advice. Our member-centric approach means that members thrive when Servus thrives."
Servus's strong 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.
About Servus Credit Union Ltd.
Servus Credit Union provides a full line of secure financial services with more than 100 branches in 59 communities throughout Alberta. With more than 400,000 members, Servus offers online, mobile and telephone banking. Founded more than 80 years ago, 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.
For more information contact:
Email: media@servus.ca
Telephone: 587.437.7332
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