During 2003, all subsidiaries and departments contributed to Envision’s exceptional growth and profitability. It was also a year when we invested significant resources in banking and information systems to upgrade our operating infrastructure. Our achievements and the improvements will help support our long-term growth.

That said, we will face challenges in maintaining our growth and in continuing to build meaningful relationships with our members. I am pleased to report, however, that our organization has the financial and human resources needed to take advantage of these opportunities.

Exceptional asset growth, sustained profitability

In 2003, an improving economic environment and low interest rates created a strong market for Envision’s primary business: providing financing for homes and other large-asset purchases. We took full advantage of favourable market conditions to generate excellent growth and exceed our profitability targets.

Envision posted its third straight year of profitability since the merger in 2001 with net income of $9.52 million. Although net income in 2003 declined $898,000, or 8.6%, compared with 2002, the change was anticipated. It resulted primarily from the sale of Envision Financial’s credit card operations and other non-core assets in 2002 and from reduced financial margins due to lower interest rates in 2003. All subsidiary companies performed very well in 2003. Each posted gains in profitability compared with a year earlier.

Our balance sheet continued to strengthen during 2003. Total assets at the end of the year were $1.99 billion, a 10.9% increase over 2002. The majority of this increase came from growth in our residential mortgage portfolio in 2003, which increased 21.9% compared with 2002 results.

Perhaps the biggest challenge we face in maintaining profitable operations is controlling our cost structure, particularly administration and overhead. Accordingly, our focus is on improving our administrative efficiency while continuing to deliver high levels of service to members.

Building for tomorrow

One reason for our financial success in 2003 is the steps we took to upgrade our banking information systems.

Three separate systems were combined into one, a process that was completed in spring 2003. Our new system is more secure and efficient and, most importantly, enables us to continue to offer new and innovative financial products and services.

The conversion process was a learning experience for our employees and, unfortunately, for some of our members. I acknowledge the willingness of members to endure the inconveniences they may have experienced.

In spite of these difficulties, key member satisfaction ratings improved or stayed the same during the year. A full 90% of our credit union members and 96% of our insurance customers believe we meet or exceed their expectations, compared with 89% and 96%, respectively, in 2002. These ratings are a credit to our staff, which worked hard to communicate changes to our members during the conversion process.

In August, Envision opened its new Willoughby Community Branch in Langley, combining two branches to provide expanded services in a convenient location. The new, energy-smart branch building draws power from 100% green sources. It effectively avoids emissions equivalent to 60 cars on the road for one year and saves enough energy to power 60 households for the same period.

Investing in people pays off

Envision’s strong earnings and high member satisfaction numbers speak volumes about the quality of its people. Our employees continue to be our biggest asset.

We have been successful in building a team of dedicated employees by investing in individuals’ well-being and by providing a balanced workplace. As a result, we have established an environment where our employees understand and are connected to our goals.

The payback to members is improved service from motivated employees. Each of our employees has the ability, drive and commitment to deliver quality products and personalized services with integrity.

High levels of employee engagement are the key reason Envision was ranked among Canada’s 50 best employers by the Globe and Mail’s Report on Business. This marks the second year in a row we have been so recognized. We also improved our ranking to 23rd place from 47th in 2002. Among the notable reasons given were Envision U, our corporate university; our full-time staff concierge; and our profit-sharing program.

Being considered among the best of the best is an achievement that I am intensely proud of, particularly as it comes in a year when we went through significant change.

Being the best we can be

Although we enjoy considerable financial success and serve a growing number of members, we cannot be complacent.

We need to continue to attract new members and to deepen our relationship with existing members. We will do that by offering a full range of integrated financial products and services in wealth management, insurance, business banking and more.

Our members and potential members are more knowledgeable than ever and look beyond price when deciding to remain with or to move to a financial institution. They look for a relationship where people understand and care. And they are prepared to hold their financial institution accountable for how it operates in their community.

I believe that Envision’s values match up very well with what people want today. Our vision is to grow and to prosper by being the best we can be—for members and employees and financially. And to do well by doing good.

We are not there yet. But I believe that we are on the right track, with the strategy, culture and commitment needed to serve our members’ needs and to succeed.

Gordon Huston
Chief Executive Officer