Despite the continuing weak economy in northwestern BC, Northern Savings Credit Union had a much better year than expected in 2002, chief executive Mike Tarr says.
"The credit union I think is on a better footing than it has been for a number of years," Mr. Tarr told members at the annual meeting Thursday (April 3) in Queen Charlotte. "We have a future, a long future ahead of us, and 15 years ago we couldn't say that."
Lower interest rates meant the credit union received less financial income on loans last year - $12.8-million compared to $14-million the year before. However, it also paid out less on deposits ($7.2-million in 2002 compared to $8.6-million in 2001), and made slightly more money from insurance and service fees ($4.2-million in 2002 and $4.1-million in 2001).
The bottom line was net earnings of $451,000 last year, compared to $938,000 the year before. The difference is almost entirely due to the credit union's decision to pay off early retirement expenses for seven employees all at once, Mr. Tarr said, instead of spreading these payments over several years.
"Essentially we had the same year in 2002 we had in 2001," he said. "The income stream is stable, even in the kind of economy we are in."