Vancity posts strong financial results for 2017
Canada’s largest community credit union to share a record $27.5 million with members and communities
February 28, 2018, Coast Salish Territory/Vancouver, B.C. — Vancity had a strong year in 2017, with operating income of $530.6 million, a 17.8-per-cent increase on the previous year. Vancity assets reached $21.7 billion, a 2.5-per-cent increase over 2016, bringing Vancity’s total assets plus assets under administration to $26.4 billion. Membership of the values-based financial institution also increased during the year to 525,506.
“In a time of unprecedented social and economic change, many people are looking for an alternative to business-as-usual,” says Tamara Vrooman, Vancity president and CEO. “Vancity provides a different way of delivering financial services that is more deeply connected to the overall well-being of our members and the needs of the community. Once again, our values-based banking model has delivered strong financial returns.”
Vancity’s net income before distribution and tax was $146.6 million in 2017. The result was due in large part to the one-time boost in income from the sale to Bosa Development of Dockside Green, a mixed-use residential and commercial real estate development in Victoria, and one of the most innovative green developments in North America. But even without the sale, which saw Vancity realize a gain of $33.5 million and that took effect on December 15, 2017, Vancity’s net income showed a healthy increase.
Vancity shares its profits with members and local communities. Every year, the credit union makes a contribution of 30 per cent of net income through the Vancity Shared Success Program. Over the course of 2018, Vancity will allocate a record $27.5 million to members and the communities where they live and work.
The return on members’ equity (ROME) measures how much profit Vancity generates with every dollar of members’ equity. It’s calculated after taking into account taxes and the Shared Success Program. In 2017, ROME was 7.6 per cent, ahead of a target of 5.4 per cent. Before the distribution to members and communities, ROME was at 9.3 per cent. Both the Shared Success allocation and ROME were significantly enhanced in 2017 by the one-time increase in income from the sale of Dockside Green.
“The continued strength of our credit union is a testament to the faith our members put in us and to the employees who serve them,” says Anita Braha, chair of Vancity’s board of directors. “Being a co-operative, democratically controlled financial institution makes us more accountable to members and means that we are better placed to meet the needs of our members and communities.”
Vancity’s Triple Bottom Line Assets under Administration measure tracks its performance in addressing key societal challenges, showing how much of the credit union’s capital is specifically allocated towards building healthy communities. In 2017, $6.1 billion, or 23.2 per cent, of Vancity assets met this criteria.
In 2017, Vancity’s Member Services Centre received a Highest Customer Service – Banking Industry award from Service Quality Measurement (SQM). The Georgia Straight ranked Vancity as the best local employer, the most environmentally responsible local company and the hippest bank or credit union. Vancity was also first on Corporate Knights’ 2017 list of Canada’s Best 50 Corporate Citizens.
Vancity by the numbers
| Item | 2017 | 2016 |
|---|---|---|
| Total assets | $21.7 billion | $21.1 billion |
| Total assets plus assets under administration | $26.4 billion | $25.6 billion |
| Total operating income | $531 million | $450 million |
| Total operating expenses | $384 million | $354 million |
| Net income from operations before distribution and tax | $147 million | $96 million |
| Net income attributable to members | $91.8 million | $61.7 million |
| Members’ equity | $1.2 billion | $1.1 billion |
| Return on members’ equity before Shared Success payout | 9.3% | 6.8% |
| Shared Success payout | $27.5 million | $18.5 million |
| Return on members’ equity after Shared Success | 7.6% | 5.5% |
About Vancity
Vancity is a values-based financial co-operative serving the needs of its more than 525,000 member-owners and their communities in the Coast Salish and Kwakwaka’wakw territories, with 59 branches in Metro Vancouver, the Fraser Valley, Victoria, Squamish and Alert Bay. With $26.4 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:
Brent Shearer | Vancity
T: 778-837-0394
mediarelations@vancity.com