The B.C credit union system, which includes 47 independent credit unions across the province, reported record profits in 2008, according to Central 1 Credit Union.
Net earnings before dividends and taxes rose 10% to $284 million, up from $257 million in 2007. Results top the previous earnings record of $265 million posted in 2005.
Overall earnings reflected a strong gain in operating efficiency, which increased financial margins based on strong growth in assets. Total assets increased by 6.8% to $45.5 billion. That rise led by a $1.2 billion increase in cash and liquid investments.
Don Rolfe, Central 1's president and CEO, said, "Despite tighter conditions in the marketplace, credit unions were able to meet members' demand for loans, whether for home mortgages or business purposes."
Residential mortgage loans, which make up two-thirds of the credit union system's loan portfolio, rose by 1.8% to $25.4 billion. Business loans increased 10.3% to nearly $10.3 billion.
Membership in B.C. credit unions also rose 3.2% to 1.68 million by year's end and received $41.8 million in dividends and patronage rebates.