CALGARY, Alberta, July 02, 2024 (GLOBE NEWSWIRE) -- Following several consecutive quarters of strong performance and growth, Servus Credit Union Ltd. (Servus) achieved significant asset growth in its second quarter of fiscal 2024, reaching $21.1 billion in total assets, up 10.5% from the same period last year. This quarter marks the final reporting period for Servus prior to the May 1, 2024 merger with connectFirst Credit Union (connectFirst), creating Connect First and Servus Credit Union Ltd. connectFirst results for the same pre-merger period are available on connectfirstcu.com.
The continued upward trend of Servus's second quarter financial results, covering the period of February 1 through April 30, 2024, reflects the organization's ongoing efforts to ensure strength, stability and resiliency despite the sector’s sustained economic headwinds.
"Servus's focus over the past two years has been on modernizing our cooperative, member-centric approach to banking," says Ian Burns, President and CEO of both the new Connect First and Servus Credit Union Ltd. and former Servus Credit Union Ltd. "Our future-focused approach has allowed us to thrive at a time when economic headwinds have impacted others in the financial sector. This, along with recent recognition as one of Canada's Best Managed Companies for the 21st consecutive year, is proof positive that our management approach and member-dedicated team are on a solid path forward."
Servus's year to date results as compared to prior year show:
- Assets grew 10.5% to $21.1 billion
- Loans grew 9.6% to $18.6 billion
- Deposits increased by 6.9% to $17.1 billion
- Retained earnings increased 5.4% to $1.2 billion
- Net income grew 41.5% to $39.2 million
- Provision for credit losses decreased 8.1% to $26.2 million
- Operating expenses are up 5.3% to $234.5 million
Year-over-year net income increased by $11.5 million primarily due to net interest income and other income growth. This increase is attributable to proactive hedging and pricing decisions, and is also driven by conscious strategic choices Servus has made in the pursuit of growth.
While Alberta has shown economic growth over the past quarter, inflation and elevated interest rates continue putting pressure on households and business finances. As a result, some Albertans are still struggling to meet their debt obligations which has created higher levels of delinquency and loan default across the province.
"As a now merged organization, our members are as important to us as ever. We look forward to delivering on the anticipated benefits of the merger, including the financial benefits, as expeditiously as possible," says Burns. "The merger of Servus and connectFirst credit unions marks the union of two industry leaders bringing unique strengths and capabilities. connectFirst was also recently recognized as one of Canada's Best Managed Companies. This is validation that our mission to build from the best of both companies will ultimately create one of the largest and strongest credit unions in the country, allowing us to bring the credit union way of banking to even more Albertans."
Servus's 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.
Servus and connectFirst are trade names of Connect First and Servus Credit Union Ltd. All rights reserved.
About Servus Credit Union Ltd.
Servus Credit Union has served Albertans for over 80 years with a full line of secure financial services. The financial institution has more than 100 branches in 61 communities throughout the province as well as options for online, mobile and telephone banking. 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.
About connectFirst Credit Union
connectFirst Credit Union, one of the largest and most successful credit unions in Canada, is a full-service financial institution with over $7 billion in assets under administration. connectFirst employs 750 Albertans who provide a wide range of financial products and advice in more than 40 communities across central and southern Alberta. It serves over 125,000 members through a community-focused approach to banking.
Media Contact
Servus Credit Union
media@servus.ca
(825) 402-0740
