(Edmonton, Alberta) – Servus Credit Union reported net income (after dividends, patronage and taxes) of $22.7 million for the second quarter of the fiscal year, up 7.1% from the second quarter of FY2018.
"Careful expense management, significantly lower loan loss provisions and credit card revenue were key to our financial performance in the second quarter," said Garth Warner, President and CEO of Servus Credit Union. "We will see an increase in expenses in the second half of the year as member service and infrastructure investments come on line. Margin income is under some pressure, but overall we are on track for a solid financial year and more Servus Profit Share® Rewards for members."
"Servus's financial fitness is a reflection of the financial fitness of our members," continued Mr. Warner. "Our results suggest member financial fitness is improving, especially in savings and debt management. Strong deposit growth indicates members are saving more, while lower loan loss provisions speak to how well our members are managing their debts."
Servus's Big Share contest was held during the first and second quarters of FY2019, encouraging members to save and offering the chance to win $1 million. In June Servus gave $1 million to member Andrew Buchner, who earned entries just by banking with Servus and receiving Profit Share Rewards. A second Big Share contest is planned for 2020, with another prize of $1 million for saving with Servus and earning Profit Share Rewards.
Key performance indicators (all figures compare Q2 2019 to Q2 2018)
- Assets grew 3.0% to $16.4 billion
- Net income (after dividends, patronage and taxes) rose by 7.1% to $22.7 million
- Deposits increased by 3.6% to $13.0 billion
- Loans expanded by 3.7% to $14.5 billion
- Retained earnings were boosted by 8.8% to $877 million and our capital is well over the legislated requirement.
About Servus Credit Union Ltd.
At Servus Credit Union we're building a better world, one member at a time. We've been shaping the financial fitness of Albertans for 80 years with a full line of secure financial services. We help members manage their money wherever they are through 100 branches in 59 communities; online, mobile and telephone banking; and 1900 no-fee ATMs across Canada. We re-invest our profits in our members and the communities we serve.
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