Vancity announces 2020 financial results

Credit union will return $13.9M back to members and the community in 2021

Thursday, April 8, 2021, Unceded territories of Musqueam, Squamish and Tsleil-Waututh Nations/Vancouver B.C. – Vancity today announced its 2020 financial results, showing how the credit union remained strong throughout a year of uncertainty while also putting in place significant supports for its members and communities impacted by Covid-19. The credit union added $1.8 billion to its total assets and welcomed nearly seven thousand new members in 2020, bringing its total membership to over 550,000. Balance sheet assets grew to $24.9 billion, representing a 7.6 per cent increase on the previous year. Total assets plus assets under administration are now $30.5 billion, an eight per cent increase or $2.3 billion, over 2019.

To support its members and their communities through an incredibly challenging time, Vancity launched a number of relief programs to support those impacted by the economic fallout of the pandemic. These measures included the loan and mortgage deferrals, donations to the Vancouver and Victoria Foundations, specific programs to support women business owners, self-employed businesses owners, and those business owners who pivoted their business to adapt to the changing environment, as well as temporarily waiving fees and cutting credit card interest rates to zero per cent.

“2020 was one of the most challenging years in decades, with drastic impacts to economies all over the world,” said Christine Bergeron, Vancity President and CEO. “We entered the crisis in a position of strength following many years of sustained growth, enabling us to respond quickly to the pandemic. We put in place a wide range of supports for our members, colleagues and communities, and we transformed the way we operate as a business.”

The credit union started the year with one of its strongest quarterly performance results in recent years, but the economic impact of the pandemic was greatest in the second and third quarters, at the very time when its members and their communities needed support. Vancity understood the need and its responsibility to act, and despite the expected effect of Covid-19, the credit union closed the year with strong growth. Vancity grew its membership and total assets in 2020, with growth in business banking, net lending, and across its sustainable investment portfolio.

“Vancity is on solid financial ground going into 2021. Our capital reserves are strong, and the strategies we undertook last year to be efficient, accelerate growth, and strengthen our profitability are working, which means we’ll continue to provide strong results for our members and their communities,” continued Christine.

Every year, Vancity returns 30 per cent of net income back to community through its Shared Success program. Over the course of 2021, Vancity will distribute $13.9 million of its 2020 income for Shared Success contributions in the form of grants and donations to members and the broader community. Since 1994, Vancity has given more than $375 million back to members and their communities through Shared Success.

“Vancity offered unprecedented and unrivalled levels of support to our members and communities when it mattered the most. I look forward with confidence as our three-year business strategy is implemented and we continue to deliver financial, social and environmental impact for our members,” said Jan O’Brien, chair of Vancity’s board of directors.

To calculate how much profit Vancity generates with every dollar of members’ equity, the credit union uses a measurement called return on average member’s equity, or ROME. This measurement shows the returns or business results that Vancity generates after taxes and distributions to members and communities and in 2020, ROME was 3.2 per cent.

Vancity’s net results were positive overall, though lower than 2019 due to external factors beyond the credit union’s control. Income before distribution and tax in 2020 was $65.3 million.

Vancity posted particularly strong results in areas related to values-based assets, such as affordable housing and environmental sustainability. The credit union tracks its social and environmental impact performance by measuring Triple Bottom Line Assets under Administration (TBLAA). In 2020, Vancity’s TBLAA reached $8.9 billion of its total assets.

Vancity by the numbers

Item 2020 2019
Total assets $24.9 billion $23.2 billion
Total assets plus assets under administration $30.5 billion $28.2 billion
Total operating income $490.0 million $507.0 million
Total operating expenses $424.8 million $413.4 million
Net income from operations before distribution and tax $65.3 million $93.5 million
Net income attributable to members $46.3 million $61.0 million
Members’ equity $1.5 billion $1.4 billion
Return on members’ equity before Shared Success payout 4.10% 5.60%
Shared Success payout $13.9 million $18.3 million
Return on members’ equity after Shared Success 3.20% 4.50%

About Vancity

Vancity is a values-based financial co-operative serving the needs of its more than 550,000 member-owners and their communities, with offices and 54 branches located in Metro Vancouver, the Fraser Valley, Victoria, Squamish and Alert Bay, within the unceded territories of the Coast Salish and Kwakwaka’wakw people. With $30.5 billion in assets plus assets under administration, Vancity is Canada’s largest community credit union. Vancity uses its assets to help improve the financial well-being of its members while at the same time helping to develop healthy communities that are socially, economically and environmentally sustainable.

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For more information:

Media Relations | Vancity
mediarelations@vancity.com
T: 778-837-0394