Servus Credit Union is reporting a 40 per cent jump in operating income for 2012, with strong loan and deposit growth contributing to the gain.
The financial institution announced in November that it would be distributing $45.8 million to members through its profit-sharing program, but did not release detailed results from its 2012 fiscal year, ended Oct. 31.
It did so on Monday, including confirmation that the profit-sharing figure was actually $46.1 million — up from $44.3 million in 2011 and $43 million in 2010.
Servus, which is headquartered in Edmonton and was formed by the 2008 merger of Red Deer-based Community Savings, Edmonton’s Servus Credit Union and Common Wealth Credit Union of Lloydminster, said in a release that its operating income before profit-sharing and taxes last year was $107.9 million, up from $76.8 million the previous year. Its net income was $63.2 million, up 60 per cent from $39.5 million.
The credit union’s loan portfolio grew 7.2 per cent to $10.7 billion from $10 billion, and its deposit base climbed 8.3 per cent to $11.1 billion from $10.2 billion.
Total assets increased by 8.3 per cent to $12.2 billion from $11.3 billion, the first time they’d surpassed the $12-billion mark.
Total members’ equity increased 9.5 per cent to $976 million from $891 million.
In addition to asset growth, Servus attributed its 2012 income gains to an increase in the income it received from Credit Union Central of Alberta, lower loan allowance costs, and a rise in operating costs that was less than the rate of asset growth.
“2012 was a tremendous year for Servus Credit Union,” said Garth Warner, Servus’s president and CEO.
“We achieved excellent financial results while managing significant change and delivering exceptional service to our members across the province.”
Other 2012 highlights included the opening of four new branches — including one at Red Deer’s Clearview Market Square — and relocating two others. It also acquired the Medicine Hat Civic Employees Credit Union.
Servus’s annual general meeting will take place March 11 in Edmonton. That meeting can be viewed online through the credit union’s website.