SURREY, BC, March 8, 2012 /CNW/ - Coast Capital Savings, Canada's second largest credit union, had a solid year in 2011 with total assets increasing by nearly 12 per cent to $11.8 billion, new member growth of more than 20,000, and net income of $62.0 million, according to the credit union's 2011 financial results released today.
The 2011 figures compare to total assets of $10.5 billion and net income of $70 million the previous year. The results show total loans grew by 15.6 per cent from $8.5 billion at the end of 2010 to $9.8 billion as at December 31, 2011. Coast Capital also experienced the highest growth in residential mortgages on record, with an 18.3 per cent jump from the 2010 figure of $6.3 billion to $7.4 billion in 2011, largely fueled by the popularity of its You're the Boss Mortgage.
Coast Capital's president and CEO Tracy Redies described the credit union's overall financial results as positive, given the volatile global capital markets which resulted in a prolonged historically low interest rate environment.
"Very low interest rates continued in 2011 and this led to a compression of margins that have affected most financial institutions across the country, including Coast Capital Savings," Redies said. "While we grew our loan portfolio by over $1.3 billion, the overall lower rate environment means these loans were less profitable than in past years. That led to lower net interest income than in 2010."
Don Coulter, Coast Capital's chief financial officer, said that despite external economic challenges, Coast Capital's financial position remains very strong.
"Coast Capital continues to be very well capitalized with a capital ratio of 13 per cent, which is well above regulatory requirements," Coulter said. "We also have high levels of liquidity generated through large growth in new depositors. Our growth in membership was really strong this year as well, which bodes well for our long-term profitability."
Redies said the credit union's financial performance last year enabled it to support various community programs in 2011, noting that the organization's success is closely linked to helping its members and the community.
"Every year we invest seven per cent of our pre-tax profits into the community and this translated into nearly $5 million for a wide range of organizations and causes in 2011," Redies said. "We also helped more than 5,300 British Columbians purchase homes through our flexible and innovative mortgage product, the You're the Boss Mortgage."
Redies added that Coast Capital is proud to consistently post solid financial results while continuing to offer its signature free chequing account, saving each of its customers the $150 to $200 per year that Statistics Canada reports most Canadians pay in banking fees.
"In difficult financial times it's more important than ever to give our customers products and services that provide simple financial help," Redies said. "What could be more simple or helpful than eliminating fees with a free chequing account?"
Below are highlights of Coast Capital's 2011 financial performance:
- Retained earnings increased by 11.3 per cent, from $555.8 million in 2010 to $616.6 million in 2011
- Total assets under administration grew by 10.6 per cent, from $12.3 billion in 2010 to $13.6 billion in 2011
- Revenue was $311.4 million in 2011, compared to $321.6 million the previous year, a reflection of margin compression affecting the financial services industry in 2011
- Total deposits increased from $9.7 billion in 2010 to $10.3 billion in 2011, a jump of 6.1 per cent
- Commercial loans, comprised of commercial mortgages and equipment financing, grew from $1.9 billion the previous year to $2.1 billion in 2011
- Total revenue from investment services increased by 13.3 per cent from $16.1 to $18.3 million
- Coast Capital members opened more than 25,000 of the credit union's signature free chequing account last year
- Coast Capital opened its first branch in North Vancouver, at 845 Marine Drive, expanding its network to a total of 51 branches across the Lower Mainland, Fraser Valley and Vancouver Island. The North Vancouver branch is the first to feature the credit union's signature aperio 2.0 model, incorporating open-concept design, iPad technology and space to profile and support local community causes.
Redies said looking ahead at 2012, Coast Capital will continue to focus on deepening relationships with current members, helping them better manage, save, grow and protect their money through the credit union's recently introduced Where You're at Money Chat.
"With the downturn in the global economy, we can expect the financial services landscape to remain challenging this year, but we believe we have a distinct value proposition and competitive advantage in our products, our service approach and our people," Redies said. "We will continue to draw fully on these strengths to meet the needs of our members and achieve ongoing financial growth."
Coast Capital Savings Credit Union is Canada's second largest credit union with total assets under administration of $13.5 billion, 475,000 members and 51 branches in the Metro Vancouver, Fraser Valley, and Vancouver Island regions of British Columbia. Product innovations include Canada's first free chequing account from a full-service financial institution and the country's most flexible mortgage product, the You're the Boss Mortgage, which was named 2010 Mortgage of the Year by canadianmortgagetrends.com. Coast Capital offers one of Canada's 10 Most Admired Corporate Cultures™. 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.
Note to editors/reporters: Effective January 1, 2010, Coast Capital Savings transitioned to International Finance Reporting Standards (IFRS). The 2011 financial results reflect this change and comparative numbers for 2010 have also been adjusted to meet IFRS.
For further information:
Divine Agodzo, Manager, Media Relations, Coast Capital Savings
E-mail: [email protected]