(Edmonton, AB) – Servus Credit Union reported net income of $55.1 million, a 41.9% increase over 2020 for the six months ended April 30, 2021.
Servus's second quarter results illustrate how Albertans' financial behaviours have evolved 14 months into the COVID-19 pandemic. Savings remain elevated due to lower discretionary spending, loan loss provisions have decreased, and loan activity has increased due to low interest rates. Servus's financial fitness remained strong, as it has throughout the pandemic.
Key Servus Credit Union performance indicators:
Figures compare Q2 2021 to Q2 2020
- Assets grew 2.6% to $17.3 billion.
- Deposits increased by 5.2% to $14.2 billion.
- Loans expanded by 2.6% to $15.1 billion.
- Retained earnings were boosted by 6.5% to $1 billion and capital is well over the legislated requirement.
Figures compare three months ended April 30, 2021 to April 30, 2020
- Net income (after patronage and taxes) for the quarter rose by 106.3% to $30.8 million primarily due to a decrease in credit losses.
- A recovery of provision for credit losses of $8.8 million was recorded for the quarter as compared to a provision for credit losses of $19.9 million for the same period in 2020.
“Servus's financial results in the second quarter of this year — and throughout the pandemic — show how well the credit union has been and continues to be poised to weather challenging times. At this time, we are well positioned for the opportunities that recovery will bring," said Ian Burns, President and CEO for Servus Credit Union. Mr. Burns became Servus’s President and CEO on April 29, 2021, taking over from Garth Warner who retired at the end of May.
"It's promising to see where we sit today as we look to what Servus's future holds. I'm honoured to be in a position to lead our credit union into its next chapter."
Servus gives back to help Albertans feel good again
In its second quarter of 2021, Servus gave more than $235,000 to 55 community organizations to help Albertans recover and manage through the economic and public health challenges of the past year. Since the beginning of the 2021 fiscal year, Servus has put a total of $660,000 toward this movement aimed at getting Albertans back to feeling good again.
Most notably in Q2, Servus supported the following organizations:
- In March, Servus contributed $20,000 to Edmonton's Africa Centre to sustain its food bank, which provides culturally specific hampers to families. An additional $8,940 was raised in a related fundraising drive Servus challenged community members to contribute to.
- In April, Servus matched community donations for Big Brothers Big Sisters of Red Deer up to $20,000 in their fundraising campaign supporting their child mentoring program. The campaign raised a total of $41,000 including Servus's donation.
- After three successful seasons sponsoring Calgary's WinSport to offer discounted ski and snowboard lift tickets, Servus sponsored discount tube park tickets on Friday evenings for the 2020/21 season that Calgarians could safely enjoy despite pandemic concerns and restrictions.
"As a financial institution built by community members and focused on providing value to our member-owners, giving back to our communities to help them feel good is integral to who we are," said Mr. Burns.
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 over 80 years with a full line of secure financial services. We help members manage their money wherever they are through more than 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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