Financial results for a transitional year
As part of its Annual Congress, which is taking place in Moncton this weekend, the Caisses populaires acadiennes will present its financial statements as well as those of its subsidiaries for the fiscal year ending December 31, 2015.
The stagnant economy and requirements of the merged caisse initiative certainly impacted our financial results for 2015. It was therefore a difficult year on the business side of things. As predicted, our balance sheets absorbed the merging fees. The consecutive key rate reductions that increased pressure on our revenues, the collapse of oil prices which weakened the Canadian economy and the ageing population were also key factors. All these issues diminished our growth expectations and contributed to weaken our profitability. Many of these trends, which were anticipated, led to the transformation of our current structure.
The assets of the Caisses populaires acadiennes and its subsidiaries increased by $146 million in 2015, a 4.1% increase when compared to 2014, to reach $3.7 billion. The most important Acadian financial institution reported $12.1 million in surplus earnings before other items. In 2015, the Acadia Life subsidiary made $10.1 million in operating income before dividends. Also, the loan portfolio to the business and personal sectors increased by $74.2 million. The savings sector had a positive impact on our results, since member deposits have increased by 5% for a total of almost $141.6 million as of December 31, 2015.
In 2015, the bridging project once more mobilized all resources to set up the new structure. “We knew that the merged caisse would not be the end of an era, but the beginning of a daring process to keep up with the market and remain relevant for future generations. This unifying project will allow us to serve our current and future members, while taking into account our experience to facilitate the development of a francophone financial cooperative that is more intergenerational than ever. We are absorbing the fees resulting from these changes this year, but we are still convinced that the winning conditions we have gathered through the merger will be evident in 2017, and this is still our objective”, said Camille H. Thériault, President and CEO.
Positive changes for our members
An important part of the bridging project and of business development lies in the province-wide access to the 51 business locations that we have given to our 155,000 members at the beginning of 2016. We honoured a promise by recognizing our members in all business locations, no matter their original caisse. In the aftermath of this transformation, changes were implemented, in particular to business hours, in order to offer more accessible consulting services.
“In the past year, we rallied to develop a plan that will guide us and give us the means to complete this great project which will cross an important milestone in 2016. By being the first credit cooperative to ask to join the federal regulatory framework, we hope to get the financial means to transform the image of Acadie like no other institution in the province”, stated Camille H. Thériault, CEO.
Generosity and recognition for the community
As usual, the institution’s social commitment balance sheet stood out with almost $2.3 million in donations, sponsorships and scholarships, thus confirming that the institution has a great economic and social impact on the Acadian and francophone communities of New Brunswick. Even with a decrease in caisse dividend sharing, the financial performance of the institution in 2015 still allowed us to distribute $2.5 million to members and communities.
We also took advantage of this past year to introduce another important segment of our transformation: a never-seen cooperative model. “The training of our new regional and community cooperative committees has already started and in the fall of 2016, these committees will be put in place. We must not forget that this model is meant to inject life into member participation and to protect governance, principles and cooperative values, which represent key elements of the bridging collectively project”, concluded Camille H. Thériault.
New identity to be unveiled after the caisse’ Congress
As announced to the media last January, a press conference during which we will unveil the new identity will follow the caisses’ Congress. This unveiling will be held in front of the media, marking the end of a long process that started in July 2015. This process will end when our delegates meet for the Annual General Meeting. This press conference will be held at the Moncton Delta Beauséjour on Monday, April 25, at 1 p.m., Shediac BC Room.
About the Caisses populaires acadiennes
The Caisses populaires acadiennest was founded in 1936. It is the largest French Acadian financial institution in New Brunswick. With total assets of $3.7 billion, this network is represented by 51 business locations in New Brunswick. Close to 1,000 employees and 200 elected officials represent the organisation’s vital forces. For more information, go to http://www.acadie.com.
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For more information:
Mario Griffin
Communications and Public Relations Advisor
Telephone: 506 726-4785
Cellular: 506 724-0078
Fax: 506 726-8220