Manitoba Credit Unions Continue to Lead the Province in Market Share

WINNIPEG, Manitoba (March 23, 2016) — With interest rates at historic lows and competition at all-time highs, Manitoba credit unions continue to perform well, according to 2015 system results released by Credit Union Central of Manitoba (CUCM).

“Despite being in an extremely competitive industry, and considering that they depend on margin (the split between deposit and loan rates) for income to a greater extent than their competitors, in this historically low interest rate environment, Manitoba credit unions are doing exceptionally well,” said Garth Manness, President & CEO of Credit Union Central of Manitoba (CUCM).

As of the end of 2015, the province’s 34 credit unions had combined assets of nearly $26 billion. Over the past decade, assets have increased by more than $15 billion, with loans, deposits, equity, and other financial measures keeping pace.

Credit unions are far and above their nearest competitors when it comes to market share. Forty-three point six per cent of Manitoba consumers and 47 per cent of Manitoba businesses are credit union members. Even more impressive, 34.8 per cent of all consumers and 46 per cent of all small- and medium-sized businesses (SMEs) consider a credit union to be their primary financial institution. Nationally, credit union market share is highest in Manitoba — with the exception of Quebec’s caisse populaire system — and Manitoba’s share has increased by more than any provincial system that held at least a 10 per cent share in 1985.

And Manitoba consumer and SME members love their credit unions. Forty-four point four per cent of members are “very satisfied” with their credit union (34.9 per cent of bank customers are “very satisfied” with their bank). Credit unions also score highly when it comes to key factors such as trust, rates and fees and how focused they are on member needs. Among SMEs, 58.1 per cent say they are “very satisfied” with their credit union (41.6 per cent for banks).

“Beyond what they provide to their consumer and SME members, credit unions continue to play important, sometimes vital, roles in the communities in which they operate,” Manness said. “In 62 Manitoba communities, for example, a credit union is the only financial institution with a presence.”

In addition to currently having over $21.6 billion out on loan, generating activity in the economy (with 53 per cent of the commercial loan market and 37.8 per cent of the residential mortgage market), over the past five years, Manitoba credit unions have spent an average of $25.8 million each year on new buildings and facility improvements. With 3,300 employees and a total payroll of $132 million, credit unions provide skilled, well-paying jobs to Manitobans in communities throughout the province.

Credit unions shared $20.8 million in profits with members last year in the form of patronage allocations and dividends. That’s an important point of distinction between credit unions and other financial institutions: rather than sending those profits out of province, credit unions return them to members —through profit sharing and through exceptional rates and low fees — so they can use them as they see fit, right here in Manitoba.

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Manitoba Credit Union 2015 (Dec 31) Results at a Glance

Members
2015: 610,831
2014: 604,528
Change: 1.04%

Deposits
2015: $23.93 billion
2014: $22.40 billion
Change: 6.84%

Loans
2015: $21.61 billion
2014: $20.78 billion
Change: 4.00%

Assets
2015: $25.91 billion
2014: $24.14 billion
Change: 7.35%

Profitability
2015: $115.8 million
2014: $127.2 million
Change: -8.96%

Equity
2015: $1.62 billion
2014: $1.51 billion
Change: 7.28%

Equity as a percentage of assets
2015: 6.24%
2014: 6.28%

Credit Unions
2015: 34
2014: 36
Change: – 2

​Branches
2015: 186
2014: 189
– 3

Number of communities where a CU is the only FI
2015: 62
2014: 67
Change: – 5


About Credit Union Central of Manitoba (CUCM)
CUCM is the trade association and service provider for the province’s 34 autonomous credit unions and is governed by Manitoba’s Credit Unions and Caisses Populaires Act and the federal Cooperative Credit Associations Act. CUCM manages liquidity reserves, monitors credit granting procedures and provides trade services in areas such as corporate governance, government relations, representation and advocacy. CUCM also provides payment and settlement systems, banking, treasury, human resources, research, communications, marketing, planning, lending, product/service R & D, business consulting and legal services to credit unions. Manitoba credit unions jointly own CUCM and representatives from nine provincial districts sit on its board of directors. CUCM is financed through assessments and fee income derived through its operations.