To run a successful credit union, you need to do more than offer exceptional products and services. You must focus on the needs of your member-owners—every day. It’s a challenging proposition in today’s marketplace. I’m pleased to report that Envision Credit Union more than met this challenge in 2004.

Thanks to our hard-working staff and management, we set many performance records in 2004. Our financial results and key measures of member-owner satisfaction and employee engagement all improved markedly. The Board is very happy with this performance, particularly considering the intensely competitive marketplace in which our credit union operates.

Evolving as a dedicated team

One reason we’ve shown steady improvement is the decision to merge the First Heritage Savings and Delta credit unions. Over the past four years, we have forged a single, robust organization that I believe is financially and operationally stronger than ever. The merger process has established a more-effective credit union and a credit union culture that is uniquely ours—the Envision way.

Our evolution as a committed team is essential and timely. We face stiff competition that has challenged our profit margins. And this requires us to reduce our expenses without diminishing our service levels and to further improve what we already do so well: deliver exceptional and innovative financial services and products to our member-owners.

Expanding our business

Continued increases in retained earnings, a principal measure of financial stability, have given us the opportunity to consider options to expand our business. One such option is the Pathways Project.

In December 2004, the boards of Alberta-based First Calgary Savings and of Envision unanimously approved a first-of-its-kind inter-provincial partnership. Member-owners of both organizations will benefit from this exciting initiative in financial and non-financial ways. I expect to see benefits flow from more-diversified operations, from expanded geographic access to another credit union’s resources and from economies of scale that will improve financial performance.

In addition, the Envision Board of Directors has approved a strategy to extend our reach into communities neighbouring those where we now operate beginning in 2005. Opening new branches positions us ever closer to where our members live and work, enabling us to continue to deliver service excellence.

Focusing on continuous improvement

The Board’s commitment to building the best credit union in Canada demands that we continuously improve and evolve. In 2005, we will focus on two areas: governance and risk management.

In 2004, our Board chose to conduct a formal governance review to ensure that we follow best practices, even though our governance practices already are considered good. We retained an industry expert to conduct an independent review and to recommend areas of improvement. Following board approval, we will begin to implement those recommendations in 2005.

No entity operates in a risk-free environment. But at Envision we are forever looking to better identify and diminish the risks we face. In 2004, we adopted new risk management standards to heighten management and board oversight of our risk management practices.

Thanking a special friend

Peter Podovinikoff retired from Envision in 2004 after serving the last three years as President and, since May 2004, as a Special Advisor to the Board. In recognition of his selfless and unflagging efforts toward our growth, the Board conferred on Peter the title President Emeritus. This is the least that we could do to honour Peter’s tremendous contributions to our organization.

Peter is a founding member of and was a driving force within Envision. He helped to build our organization in countless ways. His defining contribution, though, was the establishment of the Envision Credit Union Charitable Foundation. Peter, thanks a million. You’ve left a lasting legacy to Envision and to the communities it serves. Read Peter’s comments on page 53.

Looking ahead: our mission remains unchanged

Our strong financial performance enables us to invest in community initiatives, producing invaluable dividends within and beyond our organization in the process. The Board plans to raise Envision’s level of community investment to maintain a balance between Envision’s profitability and its responsibility to the communities it serves.

Our mission—to deliver exceptional and innovative financial products and services—requires enormous financial resources. We also need considerable capital to meet rising regulatory requirements. The Board has a plan to address our needs for capital, and I’m pleased to report that we are well ahead of the plan’s goals.

Nevertheless, the Board continues to monitor Envision’s operations and finances to ensure that member-owner needs are met, today and in the future. Therein is our biggest challenge: remaining operationally sound while satisfying the evolving demands of our member-owners. I am ever confident in our ability to continue to meet this challenge in the years ahead.

On behalf of the Board, I thank our management team and staff for their outstanding contributions to our organization in 2004. I also thank our member-owners for their ongoing loyalty and support.

 

Terry Enns
Board Chair