VANCOUVER -- Vancity experiences a drop in profits in 2007 in part due to a $13.9 million write-down of non- bank asset-backed commercial paper owned by the credit union's subsidiary, Citizens Bank of Canada, which held $77 million of the investments.
According to the Vancouver Sun, profits at Vancity continue to fall, dropping 37% in 2007, and down 50% from record profits reached in 2004.
Despite the poor earnings record, assets at Vancity reached record levels of $14.1 billion, up 14.8% from the $12.3 billion held in 2006, the publication reported. Membership also increased from 355,000 to almost 388,000, maintaining Vancity's position as British Columbia's, and Canada's, largest credit union.
Some of Vancity's growth comes from a merger with Van Tel-Safeway Credit Union, which brought in 14,000 new members and as much as $350 million in assets.