(Edmonton, AB) – Servus Credit Union Ltd. (Servus) continues to show strong financial growth in the third quarter of its fiscal year, despite market volatility and while continuing to position the organization for the future.
Here are the Q3 numbers, compared to the same period in 2021:
- Assets increased by 4.8% to $18.2 billion
- Deposits increased by 5.8% to $15.1 billion
- Loans increased by 5.9% to $16.1 billion
- Retained earnings increased 6.2% to $1.1 billion
- Net income dropped by 34.8% to $59.9 million
- Provision for credit losses increased from a recovery of $13.3 million to a charge of $5.0 million
Servus surpassed $18B in assets in mid-Q3, thanks in part to a more assertive loan growth approach. Members’ financial fitness is benefiting from attractive deposit pricing in Q3. The credit union achieved $1 billion in asset growth since mid-2020, while supporting members through the impacts of the COVID-19 pandemic and undertaking significant organizational change.
"Achieving this milestone at this time in history is a testament to the trust that our members have in Servus, and the unwavering commitment our employees and our credit union have to members’ financial well-being," said Servus President and Chief Executive Officer Ian Burns. "As we continue reimagining financial fitness, Servus remains steadfast in our focus on building a credit union that will grow and thrive for years to come."
Net income is down nearly 35% due in part to an increase of approximately 16% in transformation-related costs. The credit union has made critical changes to ensure that the organization has the people and technology to meet changing consumer demands. This work resulted in a one-time spike in costs this quarter.
"We've worked hard to strike the right balance between delivering the products, services and expert advice our members expect from us and making significant changes to how we work so we can thrive in the increasingly complex, dynamic and demanding financial services market," Servus's president and CEO added.
Provision for credit losses increased to a charge of $5.0 million, compared to a recovery of $13.3 million in the same period last year. This shift comes as a result of revised economic forecasts based on a rising interest rate environment, inflation, and falling unemployment levels across the province. While rising prices have boosted provincial revenues, wage increases trail behind. In staying committed to reimagining financial fitness, Servus remains deeply loyal to its members as they manage their commitments under changing economic tides.
About Servus Credit Union Ltd.
Servus Credit Union is ranked #1 in Canada on Forbes' list of World's Best Banks in 2022. At Servus Credit Union, we've been shaping the financial fitness of Albertans for over 80 years with a full line of secure financial services. With 100 branches in 59 communities, online, mobile and telephone banking, and 1,900 no-fee ATMs across Canada – you can comfortably bank with us the way you want. We are proud to re-invest our profits in our members and the communities we serve. With Servus Credit Union, you can feel good about your money.
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