Letter from Tom Vandeloo, Board Chair and Doug Conick, President & CEO: 2018 Financial Statements
Dear DUCA Members,
We are pleased to announce the release of our audited financial statements for the year ended December 31, 2018 and the declaration of dividends.
Growing and diversifying our business profitably is an important strategic goal for DUCA. This involves investing in people and processes, and in our product and service offering to deliver the best financial care possible for our Members. In 2018, we continued to invest in growing your Credit Union and the investments have helped to return strong results.
Here are a few important highlights:
Strong financial results
During the February 2019 meeting of the Board, your Board of Directors approved DUCA's audited financial statements for the year ended December 31, 2018. We reported comprehensive income for the year of $11.00 million and income before tax and patronage returns (IBT&P) of $16.12 million. This compares to $12.97 million and $18.30 million of comprehensive income and IBT&P respectively in 2017. The results for the year reflect the combined impact of targeted spending to support growth and an increase in top-line revenue arising from an increase in DUCA’s loan portfolio.
Fuelled by growth
Total assets increased by 22% to $3.4 billion driven primarily by an increase in loan balances of 20% over the prior year, and deposits reached $2.6 billion – a 26% increase. These growth rates compare very favourably to results posted by Credit Unions and Caisse Populaires across Canada.
In addition, in 2018, DUCA grew its Membership by more than 6,000 – a 10% increase in total DUCA Members.
The strong results for fiscal 2018 are only made possible by your support, and on behalf of the Board and all Employees we thank you for your support and for being Members of DUCA.
DUCA’s Financial Statements are now posted here for your review.
Declaration of dividends
The Board of Directors is pleased to declare a dividend of 3.50% on Class B shares. This is an increase of 50 basis points over the rate paid last year, reflecting the strong performance of DUCA and higher interest rates during 2018. Payment of the dividends was made on March 1, 2019 based on a Member's Class B share balance as of December 31, 2018.
Class A shares dividend of 2.00% was paid on March 1, 2019. Class A shares are accumulated by our Members based on the amount of interest earned or paid during the year.
We are also pleased and proud to report that over DUCA's history and including the current year's declaration, a total of $74 million of patronage and Class A dividends have been returned to our Members.
Our path forward is clear. We will continue to make investments focused on improving the financial care we deliver to our Members through no fee banking options, great rates, and personalized service delivered with care. And, we will build on our growth momentum as we continue the passionate pursuit of helping people and businesses “Do More, Be More, and Achieve More!”
Tom Vandeloo, Chair of the Board of Directors Doug Conick, President and CEO