Vancity hits a new high in 2011
Cost control and revenue growth drive bottom line, chief executive says
Vancity achieved its best ever financial results in 2011, with a fourth consecutive year of increased net earnings from operations — a 5.2- percent increase over 2010.
Vancity reported its best- ever financial results in 2011, with net earnings from operations at $ 91 million, up 5.2 per cent over 2010 net earnings, financial statements released Monday show.
“We’re really pleased with the results, not only because it allows us to contribute a historic amount back to the community, but also because it shows that our model is performing not only in terms of what we do for the community, but what it does for our bottom line as well,” said Tamara Vrooman, president and CEO of Vancity.
Members of the credit union and community organizations will get $ 27 million in Shared Success earnings, Vancity said. This represents nearly 30 per cent of the credit union’s profits. Total net earnings from operations were $ 131 million before distribution and tax and total operating income was $ 411 million.
Vrooman says the credit union’s positive bottom line is due to two factors — growth and controlling expenses.
“First, our members have been bringing more of their business to us, right across the board, from the wealth management side right to the small business side,” Vrooman said. “Second, we’ve been able to keep our costs in check while still being able to distribute a significant amount back to the community and still maintain our status as one of the best employers in the country.
Virginia Weiler, chairwoman of Vancity’s board of directors, said people who bank with Vancity are supporting their communities at the same time as doing their banking.
“There are no trade- offs,” Weiler said in a news release. “The concept is simple and this year translates to millions of dollars in support for initiatives like local organic food production, affordable housing and financial literacy.”
Vancity had 479,528 members as of Dec. 31, 2011, a number that has been relatively stable, but that the credit union will be actively trying to increase in the next few years.
“We want to start now growing our membership base,” Vrooman said. “We see more and more young people being attracted to what we’re talking about because we support the environment and the community.”
In the next year, members can expect Vancity to open branches that are more like community hubs, and to see the credit union get involved in finding and creating affordable housing opportunities in Vancouver, Vrooman said.
Vancity has more than $ 800 million in retained earnings and its total assets grew by 8.6 per cent to $ 16.1 billion, bringing total assets under administration to $ 18.5 billion. Loans grew by $ 753 million to $ 13 billion, while deposits increased by $ 673 million to $ 13 billion.
Vancity hosts the 2012 Global Alliance for Banking on Values conference in Vancouver Thursday to Saturday.
“We’re very excited to be included as part of the world’s leading sustainable banking community, which is showing over and over again that when you put the needs of people and community first, profitability follows,” Vrooman said.