Focused on the future. i Vancouver City Savings Credit Union 2000 Annual Report 1) Sean Ray 11) Douglas Ascencio 21) Diana Tijerino Missing from photo: Rita Gill 2) Tonya Frizzell 12) Sid Sawyer 22) Hardi Aujla Hussein Kamani Miriam Valois 3) Rita Westfal-MacDonald 13) Richard Tansley 23) Linda Lew Howard Cadinha Malcolm Phillips 4) Perry Lo 14) Bessie Porter 24) Ray Hama Dominic Yip Harvinder Badesha 5) John Meyer 15) Jonathan Zemliak 25) Sarah Russell Cora Blundell Julie Samchuck 6) Monique DeBray 16) Carol Roussel 26) Kiah Grant Vicki Morgan Hormus Karat 7) Kristine Crossley 17) Bea Salzborn 27) Christina Pughe Michael Sit Constantin Starck 8) Norman Mah 18) Darcy McCrorie 28) Lisa Paille Harvi Badesha 9) Alan Lee 19) Christine Humenuk 29) Danielle MacKay Pam Kelso 10) Maria Valencia 20) Anita Reddy Cover:Christine Humenuk Bev Johnson With an eye on our financial, social and environmental results, we plan to expand our horizons while aligning our business to our values. We have a newly energized plan for the next five years — within a framework that challenges us to continuously update our offerings, increase our efficiency, and engage our members and staff, while relentlessly focusing on improving the services we provide for members. We hope this report will convey the energized spirit that’s being felt at VanCity today. That’s why we invited our staff— the eyes and ears of VanCity—to help us showcase the VanCity Difference for the photos in this C ontents report. We gathered an eager group, Message from the Chair and CEO 2 armed them with cameras and some Statement of Values and Commitments 4 creative guidelines, and sent them out to Report on Operations 6 capture the faces of their members, their Social Audit Action Plans 14 Financial Review and co-workers and their workplace. After all, Consolidated Financial Highlights 16 more than anyone else, our staff are the Notes 25 Appendix 29 people who will help to make our goals a reality. As you’ll see,VanCity has a renewed feeling of excitement and a new sense of the purpose that has made us successful. We are focused on the future. An Eye on the Horizon & an Ear to the Ground $34.5 million, compared with $39.2 million in WITH NEW LEADERSHIP COMES NEW BUSINESS 1999. Net earnings for 2000 were $21 million STRATEGIES. BUT WE KNOW IT’S OUR MEMBERSHIP compared with $23.7 million in 1999. THAT’S MOST IMPORTANT TO US – WE’LL CONTINUE Growing our Business Increasingly, more members are realizing the TO PUT YOU FIRST. connection between their business with VanCity and the benefits to their neighbourhoods. Our The end of the millennium brought a new socially responsible investment management plan is to increase your satisfaction and expand beginning and a change in leadership to company that becomes VanCity’s sixth sub- our relationship with you. In addition, we will VanCity — leadership that brings fresh thinking sidiary company. build on our non-traditional lines of business. and enthusiasm. As the Chair and CEO of The combination of these three components The Benefit of Membership VanCity, we start 2001 with a commitment to will provide us with significant opportunities for weave together the themes that have been core VanCity members are its owners and sharehold- growth and give us the financial strength neces- to VanCity’s 55-year history and will be core to ers. As members of a democratic financial sary to create better products, improve service, its future: our values, our staff, our members, institution, you participate in the credit union and develop an even stronger presence in the and our communities. by voting in elections, attending the Annual communities where we work and live. While we press ourselves for innovation with General Meeting, running for positions on the How We Measure Up new products and technology, our success will Board of Directors, and sharing in VanCity’s be built on three key elements: living our values profits — $6.0 million to our members and our At VanCity, we know that accountability does in how we do business; creating a fiercely proud community in 2000. As well, VISA* cardholders not stop with a review of the books. People workforce where motivated, well-trained help us in selecting areas which you feel are these days are demanding more accountability employees feel they make a difference in the most deserving of VanCity EnviroFund™ grants. and transparency from their financial institu- work they do; and delivering an outstanding The feedback we receive from our members is tions. For those aware of the “big picture,” there service experience that will ultimately lead to invaluable, and we’ve come to rely on your is more than just one bottom line. member satisfaction and loyalty. input. This year, to make voting and participa- While some institutions focus solely on tion in the election of VanCity Directors easier, shareholder return, VanCity audits not only Living our Values we are sending a mail-in ballot to all eligible our financial performance, but our social and VanCity has a long and successful history in tak- members. This, we believe, will encourage more environmental performance as well. Through ing a values-based approach to operations. In a members to exercise their voting privilege. focus groups,interviews and surveys,we consult significant step last year, we captured who we Our aim is to build even further on the solid our members, staff, community partners and are and why we are in business in our corporate relationships we have developed with our others, inviting them to tell us how we are Statement of Values and Commitments. After members over the years.We want to create a con- “WE WANT TO CREATE A extensive consultation with members, staff, nection — an engagement with all of you — that and community representatives, a draft of the reinforces that you own and belong with VanCity. CONNECTION THAT REINFORCES three values and the core purpose was intro- The Figures for 2000 THAT YOU OWN AND BELONG duced at the 2000 Annual General Meeting. It was well received, and your feedback helped VanCity recorded its highest revenues ever WITH VANCITY.” to shape the final wording. Our Statement of last year, but experienced higher losses on loans Values and the accompanying commitments and narrowing profit margins due to a very doing in meeting our commitments to social can be found on page 4. One of our prime competitive business environment. We moni- and environmental responsibility, democratic business initiatives for the coming year will tored the situation throughout the year, and decision-making and outstanding member be to ensure that all of our business practices reduced expenses where possible, remaining service. Honest and constructive input is what and strategies are aligned with our stated careful not to affect the level of service provided we’re after; member satisfaction is our goal. values and commitments. to all of you. The product of this social audit process is our In keeping with these values, our goal is to At year-end, consolidated assets were $6.9 1998/99 Social Report, a frank and balanced become a leader in socially responsible invest- billion, a 7.5% increase from 1999. Consolidated account of the views of those groups to whom ing in Canada. Demonstrating this, we recently deposits grew in 2000 by $518 million or 9.1%. we are most accountable — our members, staff, acquired a majority share in Real Assets, a Consolidated earnings from operations were and community, among others. * VanCity, licensee of Mark. ™EnviroFund is a registered trademark of VanCity. 2 Access and Accessibility that every healthy and evolving organization disciplined yet flexible. Witness our business “Open your arms to change and embrace your must constantly adapt. That’s the nature of the loan approval process, which looks outside the values” is a phrase coined by our Senior business environment.The advantages we have criteria which traditionally limits loan approvals. Vice-President of Treasury and Credit Chris at VanCity are a clear understanding of our val- And we can still be efficient while treating our Dobrzanski. It speaks perfectly to our view that ues, the ability to think creatively, and the skills members as individuals. innovation can help enhance member access to manage flexibly.We’re determined to improve to services. It also speaks to one of our founding our profit-generating abilities in the coming “WE WANT OUR EMPLOYEES principles: financial access is a basic right. year, and we’ll continue working hard to find Through our peer lending, micro-credit pro- new ways to do it. At the same time, we know TO LOVE WHAT THEY DO AND grams, and accessibility strategy, we can who is really important to us — our members — remove barriers to financial services and and we will continue to put your interests ahead DO WHAT THEY LOVE.” support individuals to become self-reliant. of profits. By modernizing our organization, we can Great Employees — Changing the Face of Getting it Done meet our members’ needs, anytime, anywhere. Business With an eye on the horizon and an ear to the We have put together a team of mobile advisors On the road to becoming “legendary service ground, we will watch for what may lie ahead — who are available to work closely with our mem- providers,”our staff have been core to delivering obstacles and opportunities — while listening bers and see to their needs in short order – from value to our members. We want employees to to our members and staff. The social audit mortgages and retirement planning, to business be engaged — to love what they do and do what process, discussions about the Statement of loans and brokerage services.