PowerPoint Presentation · •We resolved the Altius lease to further reduce ongoing operating...
Transcript of PowerPoint Presentation · •We resolved the Altius lease to further reduce ongoing operating...
• I am extremely proud of the way our Shell Employees’ Credit Union has responded to the challenges that faced us this past year.
• Together we have made some tough decisions to provide the best value to our members and to ensure our credit union is well positioned for the future.
Taking Control of Normal Operating Costs
Delivering Higher Returns
Dealing With Tough Situations
• We resolved the Altius lease to further reduce ongoing operating costs
• We supported Fort McMurray members with a donation and special loan program
– Donation of $ 5,987 to Red Cross relief efforts
– 3 month interest-free loan program issued 24 loans totaling $ 725,000
Providing Value to Members
• Focused loan and deposit drives
• Proactive member engagements
• New mobile banking capabilities
– being rolled out in 2017
• Participation in system collaboration initiatives
– Objective is to lower costs and improve efficiency
• Reorganized to improve marketing skills, member service and regulatory compliance
• Continued expansion of Wealth Management
• Member Assets increased by 1.0%
• Member Deposits increased by 0.7%
• Loans decreased by 0.2%
• Membership decreased by 0.2%
Growth Summary
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What’s the Bottom Line?
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Thank You!
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
(Excluding unusual and unbudgeted significant costs)
(After unusual and unbudgeted significant costs)
2012 2013 2014 2015 2016
Dollar Value $216,928 $213,989 $208,369 $161,154 $180,046
Dividend Rate 5.00% 4.00% 4.00% 3.00% 3.25%
-1.0%
1.0%
3.0%
5.0%
$0
$50,000
$100,000
$150,000
$200,000
$250,000
Dividends Paid
2011 2012 2013 2014 2015 20162011-2015Average
Net Writeoffs $18.36 -$14.48 $29.53 $97.88 -$10.72 $205.82 $24.11
-$50.00
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
Writeoffs - Net of Recoveries (Thousands)
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CONFIDENTIAL
SHELL EMPLOYEES’ CREDIT
UNION LIMITED
Financial Statements
October 31, 2016
Presented on: March 8, 2017
Presented by: Douglas G. Kroetsch, CPA, CA
CONFIDENTIAL
To the Members of Shell Employees’ Credit Union Limited
We have audited the accompanying financial statements of Shell Employees’ Credit Union Limited, which comprise the statement of financial position as at October 31,
2016 and the statements of income and comprehensive income, changes in members’ equity and cash flows for the year ended October 31, 2016, and a summary of
significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards, and for
such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
Auditors’ Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted
auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the
auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements present fairly, in all material respects, the financial position of Shell Employees’ Credit Union Limited as at October 31, 2016 and its
financial performance and its cash flows for the year ended October 31, 2016 in accordance with International Financial Reporting Standards.
Edmonton, Alberta
January 25, 2017 Chartered Professional Accountants
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AUDITORS’ REPORT
CONFIDENTIAL
October 31, 2016 October 31, 2015 Percentage
Change
Assets
Cash and cash equivalents $ 1,226,163 $ 872,147 40.6%
Investments 48,694,995 45,790,460 6.3%
Loans to members 221,513,877 222,017,299 (0.2)%
Derivative financial assets 151,100 98,167 53.9%
Other assets 363,741 286,171 27.1%
Income taxes receivable --- 103,585 ---
Deferred income taxes 143,159 --- ---
Property and equipment 549,259 666,367 (17.6)%
Intangible assets 169,262 174,181 (2.8)%
$ 272,811,556 $ 270,008,377 1.0%
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Statement of Financial Position
October 31, 2016
CONFIDENTIAL
October 31, 2016 October 31, 2015 Percentage
Change
Liabilities
Member deposits $ 255,725,311 $ 253,880,857 0.7%
Accounts payable and accrued
liabilities
893,011 291,575 206.3%
Derivative financial liabilities 151,100 98,167 53.9%
Income taxes payable 42,358 --- ---
Deferred income tax liability --- 19,889 ---
$ 256,811,780 $ 254,290,488 1.0%
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Statement of Financial Position
October 31, 2016
CONFIDENTIAL
October 31, 2016 October 31, 2015 Percentage
Change
Members’ Equity
Dividends distributable $ 180,046 $ 161,154 11.7%
Common shares 5,664,849 5,474,481 3.5%
Retained earnings 10,154,881 10,082,254 0.7%
$ 15,999,776 $ 15,717,889 1.8%
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Statement of Financial Position
October 31, 2016
CONFIDENTIAL
2016 2015 Percentage Change
Financial Income
Interest on member loans $ 7,215,352 $ 7,434,845 (3.0)%
Investment 878,787 824,447 6.6%
8,094,139 8,259,292 (2.0)%
Financial Expenses
Interest on member deposits 4,011,827 4,547,433 (11.8)%
Interest on borrowings 17,154 33,522 (48.8)%
4,028,981 4,580,955 (12.0)%
Financial margin before provision for loan impairment 4,065,158 3,678,337 10.5%
Provision for loan impairment 261,552 55,881 368.1%
Financial Margin 3,803,606 3,622,456 5.0%
Other income 568,407 544,414 4.4%
Net operating income 4,372,013 4,166,870 4.9%
Operating expenses 4,107,544 3,613,148 13.7%
Income before income taxes 264,469 553,722 (52.2)%
Income tax expense 58,968 68,981 (14.5)%
$ 205,501 $ 484,741 (57.6)%
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Statement on Income and Comprehensive Income
For the Year Ended October 31, 2016
CONFIDENTIAL
2016 2015 Percentage
Change
Personnel $ 1,785,362 $ 1,806,565 (1.2)%
Security 432,206 432,618 (0.1)%
Organizational 102,761 114,846 (10.5)%
Occupancy 983,531 490,680 100.4%
General business 803,684 768,439 4.6%
$ 4,107,544 $ 3,613,148 13.7%
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Schedule of Operating Expenses
For the Year Ended October 31, 2016
CONFIDENTIAL
6. Investments
Credit Union Central of Alberta Ltd.
October 31, 2016 October 31, 2015
Shares $ 2,942,010 $ 2,942,010
Term deposits 22,800,000 27,000,000
Mortgage pools 4,832,248 4,479,937
Term deposits 17,890,000 11,200,000
Accrued interest 230,737 168,513
$ 48,694,995 $ 45,790,460
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Notes to the Financial Statements
October 31, 2016
CONFIDENTIAL
8. Loans to members
2016 2015
Gross Amount Allowance Net Carrying
Value
Net Carrying
Value
Consumer $ 14,569,217 $ 162,561 $ 14,406,656 $ 14,155,343
Residential
mortgages
165,035,699 30,154 165,005,545 170,000,280
Commercial 10,328,088 --- 10,328,088 5,030,776
Line of credit 31,541,674 --- 31,541,674 32,656,471
$ 221,474,678 $ 192,715 $ 221,281,963 $ 221,842,870
Accrued interest 231,914 --- 231,914 174,429
$ 221,706,592 $ 192,715 $ 221,513,877 $ 222,017,299
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Notes to the Financial Statements
October 31, 2016
CONFIDENTIAL
8. Loans to members (Continued)
October 31, 2016 October 31, 2015
Balance, beginning of year $ 135,929 $ 69,330
Charge for loan impairment 261,552 55,881
397,481 125,211
Accounts written off (204,766) 10,718
Balance, end of year $ 192,715 $ 135,929
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Notes to the Financial Statements
October 31, 2016
CONFIDENTIAL
13. Member deposits
October 31, 2016 October 31, 2015
Demand $ 53,035,766 $ 56,741,361
Term 121,297,625 115,915,099
Registered Retirement Savings Plan 46,724,838 48,134,348
Registered Retirement Income Fund 20,069,938 19,300,270
Tax-Free Savings Account 9,422,692 8,455,142
Registered Educational Savings Plan 3,292,388 3,414,294
253,843,247 251,960,514
Accrued Interest 1,882,064 1,920,343
$ 255,725,311 $ 253,880,857
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SHELL EMPLOYEES’ CREDIT UNION SHELL EMPLOYEES’ CREDIT UNION LIMITED
Notes to the Financial Statements
October 31, 2016
CONFIDENTIAL
This report is confidential and is intended solely for the use of the Audit Committee in discharging its responsibilities with
respect to the financial statements, and should not be used for any other purposes. No responsibility for loss or damages, if
any, to any third party is accepted as this report has not been prepared for, and is not intended for, any other purposes. This
report is a by-product of the audit and is therefore a derivative communication, and would not necessarily identify all matters
that may be of interest to the Audit Committee in fulfilling its responsibilities. This report should not be distributed to others
outside the Credit Union without our prior written consent.