(Edmonton, Alberta) – Servus Credit Union continued to invest the gains from careful cost management and income growth into new and better services for its members, including digital banking, a new branch and new savings products. Q1 2018 financial figures reflect the credit union's investment, with higher expenses and essentially flat income compared to Q1 2017.
"Part of our overall plan for 2018 is to continue to invest more to offer members greater value," said Servus President and CEO Garth Warner. "We are building on the expense management lessons of the recent downturn and taking advantage of the momentum of Alberta's economic recovery to introduce new services and products that will help shape the financial fitness of members. The more we earn, the more we invest for members or pay to them direct as Profit Share."
For the first quarter of fiscal 2018, operating expenses were 6.5% higher than the same period in FY 2017. The increase was expected due increased investments in new services. Apple Pay was introduced in Q1 and there are plans to deliver more digital banking services throughout 2018. Servus introduced a number of new GICs and two new high yield US$ plans to help Albertans save. A new high tech branch was also opened in Calgary in February 2018.
Income before patronage allocation and income taxes was $36.8 million, 6.0% lower than for Q1 FY2017. The patronage allocation for Q1 was 13.0% higher. Other key figures included (compared to Q1 FY2017:
- Total assets increased to $15.5 billion, up 3.9%
- Member loans were $13.7 billion, up 2.8%
- Deposits increased to $12.4 billion, up 2.9%
- Loan loss provisions were $3.7 million lower than last year
- Retained earnings increased $21.2 million over October 31, 2017, or 2.8%
View detailed Q1 results on www.servus.ca.
About Servus Credit Union Ltd.
Servus Credit Union is a member-owned financial institution serving members from more than 100 locations in 59 communities. Servus aspires to build a better world - one member at a time – by shaping member financial fitness to help Albertans feel in control, be financially resilient and pursue opportunities. For more information, call toll-free 1.877.378.8728 or visit servus.ca.
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