VANCOUVER, BRITISH COLUMBIA--(Marketwire -03/05/12)- Vancity's 2011 results again validate the credit union's vision of redefining wealth. Vancity's earnings from operations were $131 million and the credit union achieved a record, and fourth consecutive year of increased net earnings from operations with $91 million (up 5.2 per cent.) These earnings in turn produced an all-time record $27 million in Shared Success, which will be distributed to members through dividends and to communities through grants and community investment initiatives. Total assets grew by 8.6 per cent to $16.1 billion, bringing total assets under administration to $18.5 billion.
"That fact that members can meet their financial goals and at the same time help develop a vibrant community is the heart of sustainable banking and the Vancity "Good Money™" philosophy," says Tamara Vrooman, President and CEO of Vancity. "Vancity's results are driven by broad-based, sustainable growth - and represent an 11.3 per cent return on average equity."
Vancity is investing, providing loans and innovative financing to enterprises that have an impact on local economic, social and environmental well-being. We continue to provide competitive business and personal financial services while finding a local solution to what are global economic concerns. Member loans continue to be funded by member deposits, providing the access to capital that is key to economic growth.
"Our model of banking is values-based, and is grounded in the local economy. We are using credit and collaboration to serve our members," says Vrooman. "When you put the needs of members and the communities we serve first, profit follows."
Virginia Weiler, Chair of the Vancity Board of Directors says, "When people choose to bank with us on a daily basis, they are actually supporting their communities at the same time. There are no trade-offs. 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."
In 2011, global events generated unprecedented conversation about the economy and the call for change in the traditional banking sector. The 2011 results are especially significant, given the need to move beyond the global banking meltdown to a future that values community health and sustainability. As a member of the Global Alliance for Banking on Values (GABV) Vancity is hosting the 2012 GABV conference in Vancouver, March 8-10.
Vancity by the numbers in 2011
-- Net earnings from operations before distribution and tax - $131 million
-- Net earnings from operations - $91 million
-- Total operating income - $411 million
-- Member's equity - $835 million
-- Total assets $16.1 billion
-- Total assets under administration - $18.5 billion
-- Loans grew by $753 million to $13 billion
-- Deposits increased by $673 million to $13 billion
-- Vancity's membership count as of December 31, 2011 was 479,528
Vancity measures results on a triple-bottom-line basis and will publish an integrated annual report in May 2012. The report will include new measures of the social and environmental impact Vancity has had on the community.
New membership count methodology
To align Vancity with other credit unions, our Board of Directors has approved a change in the way in which Vancity counts our membership. The new approach says a full member is an individual who resides in British Columbia and holds a minimum of $5 in membership equity shares with Vancity, regardless of voting eligibility (i.e., all Vancity shareholders). The inclusion of joint members is consistent with Vancity's intent to recognize all members, and is aligned with the process by which voting privileges are extended to the same members. Including all joint account holders is a transparent way of representing Vancity's true membership size.
At Vancity we make you good money by putting money to good. Vancity's vision of redefining wealth incorporates personal and community well-being. Vancity has distributed $221 million to members through dividends and to communities through grants and community investment initiatives since 1994. We are a member of the Global Alliance for Banking on Values - a network of the world's leading sustainable banks sharing the commitment to achieving triple-bottom-line impact through responsible banking practices. A Living Wage employer, Vancity is Canada's largest community credit union, with $16.1 billion in assets, more than 479,528 members and 59 branches throughout Metro Vancouver, the Fraser Valley, Victoria and Squamish. More information about Vancity is available at vancity.com.
(i)Please see financial chart and details on IFRS accounting rules in attached backgrounder.
Backgrounder - Vancity's 2011 Results
For all reporting periods up to and including the year ended December 31, 2010, Vancity prepared its consolidated financial statements in accordance with Canadian Generally Accepted Accounting Principles. As a result of a change in reporting standards, effective January 1, 2010, Vancity prepared its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), and presented December 31, 2010 balance sheet and income statement to comply with the new standards.
To view the Financial Highlights, please click on the following link: http://media3.marketwire.com/docs/VancityFin.pdf
Global Alliance for Banking on Values 2012 Conference
The Global Alliance for Banking on Values (GABV), an independent network of 14 of the world's leading values-based banks, will showcase the growing worldwide sustainable banking movement in Vancouver, March 8-10, at its annual conference hosted by GABV member Vancity Credit Union.
Although each GABV bank is unique, they share a commitment to using money to benefit people and the environment. They make business decisions, first, by identifying a human need, and then by determining how to fulfill that need on a sustainable basis.
GABV members delivered on a commitment made at the Clinton Global Initiative in New York to raise $250 million in new capital over three years, exceeding this target in just one year. Their stated goal is to touch a billion lives with sustainable banking by 2020.
Media Relations Consultant