When I look back on 2016, I am proud of our credit union's measured, thoughtful approach to banking. It was absolutely essential in preparing us for and succeeding in a very challenging year.

The state of the economy was top of mind for many of our members last year, and was a key consideration as we planned new ways to support them. Servus worked hard to manage costs, which helped us deliver another Profit Share^® of over $48 million to our members while also investing in services like mobile banking improvements.

Even with lower economic growth across the province, Servus's financial results showed how our prudent financial management paid off:

• Loans grew by $521.3 million (4.1%)
• Overall assets increased by $536.4 million (3.8%) to $14.8 billion

The credit union's income before tax and patronage remained strong and dropped only 4.2%, or $5.5 million, over last year. While we knew loan losses would rise over 2015, they were lower than expected, increasing by $15.9 million over last year to $31.5 million. This demonstrates the value Servus brought to our members by helping them anticipate and manage through tough times.

Despite the challenges Servus faced as a result of a slower economy in 2016, they paled in comparison to the loss many of our members and employees faced during the wildfires in Fort McMurray.

When the news first came out about the tragedy unfolding in that region, we immediately started offering members and employees financial support. We extended overdraft coverage, deferred loan payments and helped those affected navigate other complex financial implications of the terrible situation. Our employees rallied to house, feed and comfort people throughout the ordeal. I was proud to see how our entire organization again jumped to offer support to those that needed it, just as we have done every time one of our communities has suffered an unimaginable event.

Fort McMurray and the surrounding communities still have a long recovery in front of them. Servus will be there every step of the way.

I'm also proud of the work Servus did with the Government of Alberta to update the Alberta Credit Union Act. The changes will strengthen the legislation in ways that will help sustain all Alberta credit unions to better serve Albertans in 2017 and beyond.

We strengthened our branch network by opening a new Edmonton branch in the Harvest Pointe neighbourhood. The branch received a very strong, positive response and enables us to continue offering members expert advice to enhance their financial wellbeing.

When we look down the road, we know today's challenges won't go away quickly. In response, we will keep growing our capital position, which will help us continue to deliver good value to our members and to weather low interest rates.

Servus is well prepared to meet the challenges of the next years head on and I'm confident that together, we will continue to help improve the financial well-being of members and Alberta communities.

Garth Warner
President & CEO

Return to Our performance in 2016