Higher expenses trim Servus Q3 earnings

Servus Credit Union’s earnings for the third quarter of 2012 were down 20 per cent from the same period last year. But nine months into its current fiscal year, the member-owned financial institution had still exceeded its performance for all of 2011.

Servus Credit Union’s earnings for the third quarter of 2012 were down 20 per cent from the same period last year. But nine months into its current fiscal year, the member-owned financial institution had still exceeded its performance for all of 2011.

Servus reported on Friday that its income, before patronage allocations and income taxes, for the three months ended July 31 was $21.7 million. That compares with $27.1 million for the same quarter in 2011.

The lower earnings reflected higher operating expenses — particularly in the area of personnel — with operating expenses totalling $78.4 million, up 17 per cent from $67.2 million for the same quarter in 2011.

Servus president and CEO Garth Warner attributed the higher expenses to costs associated with staff, branches and technology.

Servus opened its new branch in Clearview Market Square during the quarter, and completed work on a branch in each of Calgary and Edmonton.

Warner pointed to the credit union’s loan performance as a positive for the quarter.

“Exceptional loan growth in Q3 offset income challenges posed by continued low rates,” he said in a news release.

During the first nine months of its 2012 fiscal year, which started Nov. 1, Servus’s income before patronage allocations and income taxes was $79.7 million, up nearly seven per cent from $74.7 million for the same period in 2011. The figure is also more than the $76.6 million earned for all of last year.

Operating expenses during the first three quarters of 2012 totalled $214.4 million, a 6.5 per cent increase from the $201.4 million incurred to July 31, 2011.

Member loans reached $10.4 billion during the third quarter, up seven per cent from $9.7 billion a year earlier. Deposits were up to $10.7 billion, a five per cent improvement over $10.2 billion, and Servus’s assets hit $11.8 billion, more than five per cent higher than the $11.2 billion of a year ago.

Members’ equity in the credit union was $950.9 million, up 7.5 per cent from $884 million after three quarters last year.

Headquartered in Edmonton, Servus operates at more than 100 locations in 62 Alberta communities. It has nearly 390,000 members.

Just Posted

One strong wind leaves years of replanting work for Red Deer parks staff

High visibility boulevards already replanted, neighbourhood work starts next year

Red Deer-area indigenous filmmakers invited to apply for $20,000 grant

Storyhive launches Indigenous Storyteller Edition

Restaurant closed after compliance team patrol

Public Safety Compliance Team checked eight bars and restaurants on Oct. 19

Red Deerians await local cannabis stores

So far 31 stores in Alberta awarded licence to operate

Rimbey RCMP seek missing man with health concerns

Has anyone seen Bill Harris of Ponka County?

WATCH: Make-A-Wish grants Star Wars loving teen’s wish

The Make-A-Wish Foundation granted Anakin Suerink’s wish in Red Deer Saturday afternoon

Local Sports: Rudy Soffo valuable to Kings on the court

When Rudy Soffo first saw the RDC basketball Kings roster he was… Continue reading

Except for 1 kick, Saints, Ravens are evenly matched

BALTIMORE — In a matchup between the league’s highest-scoring offence and top-ranked… Continue reading

Julia Louis-Dreyfus gets a top award for comedy

WASHINGTON — After a 35-year acting career and with two iconic television… Continue reading

Ricky Skaggs, Dottie West enter Country Music Hall of Fame

NASHVILLE — Bluegrass and country star Ricky Skaggs, singer Dottie West and… Continue reading

AP Exclusive: Stephen Hawking’s wheelchair, thesis for sale

LONDON — Stephen Hawking was a cosmic visionary, a figure of inspiration… Continue reading

Canada deemed U.S. a safe country for asylum seekers after internal review

OTTAWA — Canadian immigration officials have determined that the United States remains… Continue reading

Bombardier sues Mitsubishi over alleged theft of aircraft trade secrets

MONTREAL — Bombardier is suing Mitsubishi Aircraft in the United States over… Continue reading

Three strong earthquakes reported in Pacific Ocean off Vancouver Island

Three relatively strong earthquakes were recorded Sunday night in the Pacific Ocean… Continue reading

Most Read