Envision’s credit union operations recorded another profitable year, exceeding all of our financial targets. Operating income was $11.96 million, compared with a budget of $10.40 million.
We also enjoyed strong growth in loan portfolios, which increased 8.8% to $2.1 billion. What’s more, deposits increased, rising 8.2% to $1.77 billion.
In spring 2003, our information technology team completed the conversion of our banking system. This was the final step in a monumental task begun in 2001 that changed every piece of technology that our employees use to provide member services. Adding to an already comprehensive list of products and services, the most recent improvements provide
• full access to member accounts through any branch
• on-line, inter-member transfer and future-dated bill payments
• instant MemberCards® at any branch
• cheque imaging for convenient viewing
• statement and passbook options on chequing accounts
Low interest rates during 2003 resulted in a very active year for residential mortgage loans. Nearly 800 new members were introduced to Envision’s services through its mortgage brokerage centre, representing 26.0% of the new residential mortgage business that we originated in 2003.
The credit union also had a busy year serving locally owned and operated businesses. In 2003, commercial loans increased nearly 5% to $517.2 million from $493.9 million the year before (includes sold loans under administration). Many of our relationships involve borrowings in excess of $1 million; however, more than 600 of our business customers have loans with us of less than $25,000.
Envision has a long history of providing assistance to small business members in a wide range of industries. Today, Envision serves the needs of over 2,100 commercial loan clients.
Envision Insurance Services Ltd. enjoys record year
Envision Insurance Services, which offers a complete range of personal, farm and commercial insurance products and services, also had a record year in 2003. And for the third consecutive year, this wholly owned subsidiary’s operating efficiencies increased and its business grew.
In 2003, the subsidiary contributed $1.2 million in earnings from operations to help support Envision’s capital spending and growth objectives.
These financial achievements are particularly gratifying considering the year’s difficult insurance markets. Numerous natural disasters and other world events caused insurance premiums to rise sharply, creating some of the most tumultuous markets in 30 years.
Envision Insurance Services meets the needs of approximately 46% of Envision Financial’s members.
Envision Investment Services Ltd. assets continue to grow
Envision Investment Services offers a wide range of financial planning services. Those services help members achieve their investment, retirement, education and retirement goals.
During much of 2003, adverse financial market conditions caused considerable uncertainty about investment and savings strategies. Our financial planners responded by encouraging members to stay the course with a long-term, financial planning approach to protecting their assets.
With the introduction of Credential® Funds in 2003, our Credential Securities Inc. Investment Advisors were able to provide better services and made investment choices easier for members. With a lower minimum contribution of $2,500, new investors can take advantage of more sophisticated investment products. Investments in these asset-allocation mutual funds* are automatically adjusted to conditions in the financial markets. This helps members to keep their investment portfolios more closely aligned with their investment objectives.
CU DealerLink Ltd. network expands in British Columbia
CU DealerLink is an Envision subsidiary that supports the efforts of Envision and other BC credit unions in the auto financing market. The subsidiary lets credit union members, already well known to be extremely loyal, arrange auto financing directly with their credit union rather than through traditional banks or auto dealer channels. CU DealerLink is also a good introduction of credit union services to non-members.
In 2003, CU DealerLink provided more than $45 million in auto financing services. This represents an increase of 150.0% over 2002. And that represents good news for Envision, which enjoys strong margins on this business by earning income on every CU DealerLink loan.
This significant growth in 2003 is due to the expansion of CU DealerLink services to 335 auto dealers throughout all but northern British Columbia. In addition, the number of credit unions participating in CU DealerLink increased to 23 from 11.
CU DealerLink also helped to increase credit union awareness in the province. In 2003, approximately 65% of auto financing was to individuals previously unassociated with credit unions, up from 35% in 2002.
Envision U trains tomorrow’s leaders
Envision U is a unique, proprietary corporate university offering Envision Financial’s employees a powerful training and development platform. Well-trained, knowledgeable employees are critical to our success in maintaining high levels of service, and that’s a competitive advantage that we strive to maintain over other financial services firms.
In 2003, Envision U launched a Fast-Track Degree Program through the University College of the Fraser Valley. The first of its kind in Canada, the program recognizes the value of work experience, which enabled 30 Envision staff to enter the program at a third-year university level. Students completing the undergraduate program will receive a bachelor’s degree in business administration.
This and other Envision U programs furnish opportunities for our staff to become leaders in our organization. As well, they provide Envision with well-trained, educated employees to replace experienced staff members who retire.
Our educational programs were recognized abroad in 2003 when Envision U received two Corporate University Best In Class™ (CUBIC) awards. We placed second in the Best Overall Corporate University and in the Best Use of Technology categories. The CUBIC awards are an international competition established to honour, recognize and promote corporate universities that are leading training organizations.