One-time asset sale and solid performance from all business segments result in largest annual profit for the credit union, setting a record in Canadian credit union industry
Surrey, B.C.: Coast Capital Savings, Canada’s second largest credit union, had a solid year in 2013 with balanced financial performance despite a year of transformation and challenging external market conditions, as reported in its 2013 financial results announced today.
Coast Capital’s revenue was $425.6 million in 2013, compared to $323.3 million in the previous year. Its net income increased 108 per cent from $72.4 million to $150.6 million, primarily due to some unusual one-time items including the sale of its insurance subsidiary.
“Our results for 2013 come at the end of a year in which we re-focused our core business and successfully undertook some significant projects, including the implementation of a new banking system,” said Coast Capital Savings president and CEO Tracy Redies.
The credit union’s performance is also due in part to growth in commercial loans and its wealth management business. Commercial loans increased by 9.3 per cent, from $2.5 billion in 2012 to $2.7 billion, and total investment services assets under administration increased by 15.9 per cent to $2.3 billion from $2.0 billion.
“The measures taken by the credit union in recent years have resulted in a strong financial position as seen in improved regulatory capital, liquidity, profitability, and asset quality. Coast Capital Savings is now positioned for sustainable growth in the future,” said Don Coulter, Coast Capital’s chief financial officer.
Below are highlights of Coast Capital’s 2013 financial performance:
- Net interest income increased from $233.6 million to $240.7 million.
- Commercial loans, inclusive of commercial mortgages and equipment financing, grew from $2.5 billion in 2012 to $2.7 billion, an increase of 9.3 per cent.
- Total deposits increased from $11.2 billion in 2012 to $11.3 billion in 2013, an increase of 1.1 per cent. Retail and business deposits increased by $0.2 billion. Deposit growth enabled us to maintain stable core liquidity levels of 10.4 per cent at the end of the year.
- Total loans grew by 2.2 per cent from $10.8 billion at the end of 2012 to $11.0 billion.
- Total assets under administration increased by 1.7 per cent, to $14.8 billion from $14.6 billion in 2012.
- Residential mortgages remained steady at $8 billion with growth of 0.2 per cent.
- Retained earnings increased by 21.8 per cent, from $688.1 million in 2012 to $838.1 million.
Redies said Coast Capital’s community programs have also benefitted from the credit union’s financial performance in 2013.
“Guided by our promise to help build a richer future for youth, our strong financial results each year have allowed us to invest seven per cent of our pre-tax profits into the community every year and this translated into over $5 million for a wide range of organizations and causes in 2013,” Redies said.
“Canadians like what we’re doing,” said Redies. “Our membership rose to 512,000, the most members of any credit union in Canada. We had the highest net promoter score – a measurement of how likely customers would be to recommend us to friends or colleagues – of any financial institution in the province. In a recent survey our members told us we’re focusing on the right things, providing them with great products and services, and running their credit union the way they like.
“Consistently delivering solid financial results has allowed us to continue offering our signature Simple financial help® through products like our free chequing account, the You’re the Boss® mortgage and innovative Where You’re At Money Chat™, which are helping our members reach their financial goals,” Redies added.
Looking ahead to 2014, Coast Capital will continue to focus on deepening relationships with current members, giving them more reasons to bring their business to Coast Capital Savings where they will benefit from the credit union’s unrivalled products and services.
Coast Capital Savings is Canada’s second largest credit union, owned by its 512,000 members. It has 50 branches in the Metro Vancouver, Fraser Valley and Vancouver Island regions of British Columbia and has exciting plans to grow. Product innovations include Canada's first free chequing account from a full-service financial institution. Coast Capital offers one of Canada's 10 Most Admired Corporate Cultures™ and was named one of 2014’s BC Top Employers. It is a member of Canada's Best Managed Companies Platinum Club and an Imagine Canada Caring Company. To learn more, visit www.coastcapitalsavings.com.