Year in Review Vuosikatsaus

Transkriptio

1 Finnish Credit Union Limited 191 Eglinton Avenue East Toronto, ON M4P 1K1 Telephone: Toll Free: (RAHA) Fax: Telephone Banking: or Website: Year in Review Vuosikatsaus Cert no. SA-FM-COC-1230 Hours of Operation Monday 9:30 am 4 pm Tuesday 9:30 am 4 pm Wednesday 9:30 am 4 pm Thursday 9:30 am 8 pm Friday 9:30 am 6 pm

2 Osuuspankki Meidän pankki As you read this Annual Report, you will realize that we provide all of our members personal and personalized service, in an approachable, down-to-earth Finnish fashion. Report of the Board and General Manager Johtokunnan ja toimitusjohtajan raportti The Directors and management continue to be well satisfied with our performance in 2007, following an outstanding With the ongoing support and effort of our dedicated and experienced staff, we made significant strides in our lending activity, managed the rental operation back to a normal situation and recorded income increases of almost 17% from As Osuuspankki begins to celebrate its 50th anniversary in 2008, a planning committee of staff and directors was formed and began to meet to coordinate those activities. Johtokunta ja pankin johto ovat hyvin tyytyväisiä vuoden 2007 tulokseen erinomaisen edellisen vuoden jälkeen. Työlleen omistautuneen ja kokeneen henkilökunnan tuen ja ponnistusten ansiosta lainatoimintamme parani huomattavasti, vuokratoimintamme palautui normaalille tasolle ja tulomme lisääntyivät lähes 17 prosenttia vuoteen 2006 verrattuna. Vuonna 2008 Osuuspankki viettää 50-vuotisjuhlaansa, jota varten on perustettu henkilö- ja johtokunnan jäsenistä koostuva suunnittelutoimikunta koordinoimaan juhlavuoden tapahtumia. Our mission in the past and for the future has been to provide a full range of flexible and affordable financial services. This past year, we added a number of additional services and we were also able to support our Finnish community in different ways. We hope you see the value in being a member of Osuuspankki. We certainly value each and every member we have. We look forward to working with you in continuing to serve your family with all their financial needs. John Majanlahti Chair, Board of Directors On the financial side, loan demand continued at an extremely strong level, with a further 8% increase or $1.7 million over Since 2001, the loans and mortgages portfolio has increased from about $16.5 million to $24.0 million in As referenced in last year s report, to meet this demand for cash Osuuspankki has been reducing our lower-yielding securities investments, and in 2006 had to borrow a further $1.5 million from the credit union system. The pace of continuing loan demand in 2007 required more capital which was initially supplied by increasing the borrowing from credit union central to $2.5 million. These borrowings were replaced in the fall of 2007 with lower costing member deposits, following a very successful campaign which attracted over $4 million of new deposits. Osuuspankki is now liquid enough to meet on-going loan activity and to provide a cushion for about $2.5 million of previously approved, but unused lines of credit to our members. Talouspuolella lainojen kysyntä jatkui voimakkaana ja lisääntyi kahdeksan prosenttia eli 1,7 miljoonaa dollaria vuoteen 2006 verrattuna. Vuosien 2001 ja 2007 välisenä aikana laina- ja asuntolainaportfoliomme on lisääntynyt noin 16,5 miljoonasta dollarista 24 miljoonaan dollariin. Kuten viime vuoden raportissa mainittiin, Osuuspankki on vähentänyt vähätuottoisia sijoituksiaan ja vuonna 2006 joutui lainaamaan lisäksi 1,5 miljoonaa dollaria credit union systeemistä. Lainojen kysynnän jatkuminen vuonna 2007 vaati lisäpääomaa, jonka vuoksi laina keskuspankilta lisääntyi aluksi 2,5 miljoonaan dollariin. Syksyllä 2007 kyseiset lainat korvattiin jäsenten talletuksilla menestyksekkään kampanjan tuotua meille uusia talletuksia yli 4 miljoonan dollarin arvosta. Tällä hetkellä Osuuspankin likviditeetti on riittävä ja pystymme turvaamaan lainatoiminnan jatkumisen ja meillä on katetta 2,5 miljoonan dollarin arvosta aiemmin hyväksyttyihin luottotileihin. Antero Elo General Manager Osuuspankki: more than a credit union, a community 3 1

3 Osuuspankki Board meeting Työlleen omistautuneen ja kokeneen henkilökunnan tuen ja ponnistusten ansiosta lainatoimintamme parani huomattavasti, vuokratoimintamme palautui normaalille tasolle ja tulomme lisääntyivät lähes 17 prosenttia vuoteen 2006 verrattuna. The credit union had an excellent year operationally. Net income for 2007, after taxes and dividends was $120,000, compared to $103,000 in This income gain was accomplished in spite of increased expenditures for staffing (partly to support the higher loan activity), advertising, marketing and further ongoing building maintenance. The profitability of the credit union benefits the members directly. For the seventh year in a row the Directors are pleased to declare a dividend to its members, which in the aggregate totaled about $42,000. As last year, the members should note that the dividend has again been split into two parts - a general 20% dividend to each qualifying member on their shares, plus a 6% bonus interest on interest paid in 2007 on most term and demand deposits. We forecast a more challenging year for The Canadian economic outlook is somewhat cloudy, and there is a risk of a slow down, especially given the problems in the United States. In the past the credit union has performed reasonably well in a low interest rate environment, and we expect this to continue, although we feel that margins and hence profits will be lower. A high priority for the General Manager and his staff will be to manage the financial spread between the cost of deposits and the interest rate returns from loans and mortgages, even if this means cutting back on our lending activity. In marketing, our main focus remains to identify and reach new members within the Finnish community. We are at the tail end of the lengthy process to review and rewrite all our member literature with a coordinated and consistent theme throughout, in both content and appearance. Members should see the results of this work Vuosi 2007 oli toiminnallisesti erinomainen. Nettotulo verojen ja osinkojen jälkeen oli dollaria, vuonna 2006 summa oli dollaria. Nettotulo lisääntyi huolimatta henkilöstökulujen, mainonnan ja markkinoinnin kasvusta ja edelleen jatkuvista rakennuksen ylläpitokustannuksista. Henkilöstökulujen kasvu oli osittain seurausta vilkkaasta lainatoiminnasta. Osuuspankin kannattavuus hyödyttää suoraan jäseniämme. Jo seitsemäntenä vuonna peräkkäin johtokunta voi ilmoittaa jäsenille maksettavista osingoista, jotka kokonaisuudessaan olivat noin dollaria. Samoin kuin edellisenä vuonna, osingot on jaettu kahteen osaan: yleinen 20 prosentin osinko jokaisesta jäsenosuudesta ja lisäksi kuuden prosentin bonuskorko vuonna 2007 maksetuista käteis- ja määräaikaistalletusten koroista. Oletamme vuoden 2008 olevan edellistä haasteellisempi. Kanadan talousnäkymät ovat hieman epävarmat ja etenkin Yhdysvaltojen ongelmien takia voi talous hidastua. Osuuspankki on menestynyt kohtuullisen hyvin alhaisen korkotason vallitessa ja uskomme tämän jatkuvan, vaikkakin marginaalit ja sen seurauksena tuotot tulevat todennäköisesti alenemaan. Toimitusjohtajan ja henkilökunnan tärkeä tehtävä tulee olemaan talletuskorkokulujen ja lainojen korkotuottojen taloudellinen tasapainottaminen lainatoiminnan vähentämisen kustannuksellakin. Markkinoinnissa keskitymme edelleen uusien jäsenten tavoittamiseen suomalaisessa yhteisössä. Jäsenmateriaalimme sisällön ja ulkonäön uudistaminen ja yhdenmukaistaminen on ollut pitkä prosessi, joka on vihdoin loppusuoralla. Tulosten pitäisi olla jäsentemme in early 2008 in our printed materials. The next strategic challenge is to begin to update our web presence into a more meaningful communications package with our current and potential members. The addition of a Marketing Manager and the marketing campaigns undertaken so far, are preliminary, but have proven to be very positive. A Business Breakfast Club, hosted by Osuuspankki, was formed to encourage Finnish Canadian entrepreneurs to meet on a regular basis and exchange business leads and ideas. In conjunction with the Canada Finland Chamber of Commerce, we initiated the annual recognition of the Finnish Canadian Entrepreneur of the Year. We see these as very important avenues for the credit union to be visible as a small business friendly proactive financial institution. We will continue to refine and expand these types of programs in During the year various events were held to promote the credit union to young members and to different demographic groups. For example, for students we continued to promote post-secondary education by granting scholarships and offering hassle-free student loans. In 2007 we also started a Kids Day with fun, food and games for our younger members. Having a marketing manager able to plan and execute such activities is very important to foster the perception of Osuuspankki as a dynamic, friendly progressive financial institution. In early 2007, the Credit Unions and Caisses Populaires Act and its regulations were amended by the government. All credit unions were separated into classes. Class 1 credit unions are smaller ones and offer no commercial loans. We immediately applied and were granted status as a Class 2 credit union. While this enables us to provide a nähtävillä vuoden 2008 alkupuolella. Seuraava strateginen haasteemme on internetsivustomme uudistaminen niin, että se olisi tarkoituksenmukaisempi viestintäväline sekä nykyisille että potentiaalisille jäsenillemme. Markkinointipäällikön viran lisääminen ja markkinointikampanjat ovat olleet lupaavia tähän mennessä. Osuuspankin isännöimä Business Breakfast Club perustettiin, jotta kanadansuomalaisilla yrittäjillä olisi mahdollisuus tavata säännöllisesti, vaihtaa ideoita ja verkottua. Yhdessä Kanada-Suomi-kauppakamarin kanssa aloitimme myös vuosittaisen kanadansuomalaisen yrittäjäpalkinnon myöntämisen. Nämä ovat mielestämme tärkeitä keinoja tuoda esiin Osuuspankin roolia pienyrityksille sopivana rahalaitoksena. Tulemme laajentamaan vastaavanlaisia ohjelmia vuoden 2008 aikana. Osuuspankkia tehtiin tunnetuksi nuorille jäsenille ja muille väestöryhmille vuoden aikana erilaisten tapahtumien avulla. Jatkoimme edelleen opiskelijastipendien ja opintolainojen markkinointia opiskelijoille. Vuonna 2007 järjestimme myös ensi kertaa Hippokisat hauskoine kilpailuineen ja tarjoiluineen Osuuspankin nuorimmille jäsenille. Markkinointipäälliköllä on tärkeä tehtävä suunnitella ja järjestää vastaavanlaisia tapahtumia, jotka samalla edistävät Osuuspankin imagoa dynaamisena, edistyksellisenä ja ystävällisenä rahalaitoksena. Vuoden 2007 alussa hallitus muutti Credit Unions and Caisses Populaires Actin ohjesääntöjä, ja kaikki credit unionit jaettiin eri luokkiin. 1. luokan credit unionit ovat pieniä, eivätkä tarjoa yrityslainoja. Osuuspankille annettiin With the ongoing support and effort of our dedicated and experienced staff, we made significant strides in our lending activity, managed the rental operation back to a normal situation and recorded income increases of almost 17% from

4 much broader range of services, it comes with more demanding requirements. Although the amendments to Act and regulations will likely not have any significant effect on our operations, they require do require that we make some changes in our by-laws. A committee has been struck to review and make recommendations regarding necessary amendments. These amendments will be presented to the membership at an appropriate time. hakemuksen perusteella 2. luokan status. Tämä mahdollistaa monipuolisten palvelujen tarjoamisen, mutta asettaa meille myös enemmän vaatimuksia. Ohjesääntömuutokset eivät todennäköisesti vaikuta toimintaamme merkittävästi, mutta joudumme kuitenkin tekemään joitakin muutoksia sääntöihimme. Toimikunta tarkastaa ne ja tekee tarvittavat muutosehdotukset, jotka tullaan esittämään jäsenillemme sopivana ajankohtana Board of Directors Johtokunta Osuuspankki is subject to a number of external audits and regulatory reviews. In 2007 we were examined by CUMIS and the Deposit Insurance Corporation of Ontario (DICO). These reviews indicate that we are well managed and have appropriate risk management procedures in place. Recommendations from these audits are reviewed by management and the board. We are also working on items previously identified in our risk management matrix to reduce their impact. We wish to express our thanks to the individuals who volunteer their time and talents to serve on the Board of Directors and other committees. We particularly want to thank Maija Nappi who will be leaving the Board after many years of valued contribution to the credit union. Osuuspankin toimintaa valvotaan ulkoisten tilintarkastusten ja muiden lakisääteisten tarkastusten avulla. Vuonna 2007 CUMIS ja Ontarion talletusvakuusyhtiö DICO suorittivat tarkastukset, joiden mukaan riskienhallinta ja muu toimintamme on hyvin järjestettyä. Pankin johto ja johtokunta käyvät läpi näiden tarkastusten suosittelemat muutosehdotukset. Tarkastamme myös muut aiemmin tunnistetut seikat riskienhallinnassamme ja pyrimme vähentämään niiden vaikutusta. Haluamme kiittää henkilöitä, jotka ovat käyttäneet aikaansa ja taitojaan toimiessaan Osuuspankin johtokunnassa ja muissa toimikunnissa. Haluamme erityisesti kiittää Maija Näppiä, joka jättää tehtävänsä johtokunnassa monen vuoden arvokkaan työpanoksensa jälkeen. John Majanlahti Chair of the Board / Puheenjohtaja Risk Management Committee / Riskienhallintatoimikunta Gala Committee / Gaalatoimikunta Karen Kelar Vice-Chair of the Board / Varapuheenjohtaja Marketing Committee / Markkinointitoimikunta Gala Committee / Gaalatoimikunta Maija Näppi Audit Committee / Tilintarkastustoimikunta Executive Committee / Työvaliokunta Eric Nakkila Audit Committee / Tilintarkastustoimikunta Marketing Committee / Markkinointitoimikunta The success of Osuuspankki would not be possible without the hard work of our staff. Beyond their efforts at the credit union most of our staff actively participate in the broader Finnish community. We are indeed fortunate to have such dedicated staff. We extend to all of them our thanks. Osuuspankin menestys ei olisi mahdollista ilman henkilökunnan työpanosta. Työnsä lisäksi suurin osa henkilökunnastamme toimii myös aktiivisesti osana laajempaa suomalaisyhteisöä. Henkilökuntamme on työlleen omistautunutta ja haluamme kiittää heitä jokaista. April, 2008 Huhtikuussa 2008 John Majanlahti Chair, Board of Director / Johtokunnan puheenjohtaja Antero Elo General Manager / Toimitusjohtaja Petri Hasanen Audit Committee / Tilintarkastustoimikunta Executive Committee / Työvaliokinta Marketing Committee / Markkinointitoimikunta Marja-Liisa Konttinen Risk Management Committee / Riskienhallintatoimikunta Executive Committee / Työvaliokunta Marketing Committee / Markkinointitoimikunta Human Resources Committee / Henkilöstötoimikunta Gala Committee / Gaalatoimikunta Markus Räty Marketing Committee / Markkinointitoimikunta Human Resources Committee / Henkilöstötoimikunta Investment Advisory Committee / Sijoitustoimikunta Gala Committee / Gaalatoimikunta 4 5

5 2007 Financial Matters Osuuspankki is very healthy financially as 2007 was again a very successful year. The following is a summary of our assets and liabilities at the end of December Included in the numbers below are the dividends that were distributed to our members. A total of $42,000 was distributed as we shared those profits which were not needed to remain compliant with credit union regulations. Loans & Mortgages Fiscal year 2007 was another active year for loans and mortgages. The following is the report from our loan officers. Lainavirkailijamme ilmoittivat luottojen jakautumisen tilivuonna 2007 seuraavasti. Assets Current Assets $ 5,434,054 Investments 2,462,432 Loans Receivable 24,043,419 Capital and other assets 1,509,915 Total assets $ 33,539,555 Liabilities Current Liabilities $ 499,846 Members Deposits 30,812,129 Other Liabilities 6,100 Members Equity 2,221,480 Liabilities and Equity $ 33,539,555 We believe in a low fee environment. Contrary to most of the big banks, the operations of Osuuspankki are financed mainly by the financial margin, that is, the difference between what we charge for loans and what we pay in interest on deposits. What s the source of our income? Interest - loans and mortgages $ 1,548,099 Interest from investments 188,957 Other income 103,294 Where does the money go? Financial Expenses (e.g. interest, dividends) $ 1,840,350 $ 847,174 Salaries, fees, benefits 452,951 Administrative Office Expenses 88,281 Advertising and Promotion 77,456 Others (data processing, bonding, professional fees) 144,289 Depreciation and amortization 47,603 Income taxes 26,600 $ 1,719,854 Purpose Number Amount Tarkoitus Automotive purchase 14 $ 149,550 Auton osto Automotive repair 1 1,500 Auton korjaus Household expenses 15 81,616 Kotitalouskulut Vacation 5 26,100 Loma/Matka Investment 4 40,433 Investoinnit Consolidation ,065 Lainojen yhdistely Education 5 21,865 Opiskelu Lines of Credit/Authorized overdrafts ,500 Luottotilit Personal Equity Lines of Credit 14 1,364,355 Luottotilit, kiinteistöön sidotut 1st Mortgages 22 2,921,696 Kiinnelainat 1 2nd Mortgages 1 40,000 Kiinnelainat 2 Commercial Lines of Credit 7 80,000 Yritysten Iuottotilit Commercial Lines of Credit, secured 14 1,588,844 Yritysten taatut luottotilit Commercial Loans 2 60,960 Yrityslainat Other 7 $ 226,500 Muut lainat Loans processed 151 $ 6,958,984 Hyväksytyt lainat 6 7

6 Officers Toimihenkilöt Airi Office and Administration Manager Liisa Marketing Manager Bawani Financial Officer Student Services Account Services CONVENIENT, HELPFUL and AFFORDABLE. That is how many of our students describe our services. We offer our FREE Student account to members who are full-time high school or post-secondary students, regardless of age. By presenting a student card or enrolment form to us, you ll qualify for all financial services free of charge! Do you want to access your account with an ATM card, internet banking, telephone banking or at the branch? Whatever method you choose, you will not be charged for using your Student account. The Marja Karlsson Memorial Scholarship is granted to a student entering their second or subsequent year of post-secondary studies at a college or university. This year s $3,000 scholarship was awarded to: Peter Phua The Osuuspankki Scholarships are granted to students demonstrating a combination of academic achievement, financial need and community involvement. This year s $1,000 scholarships were awarded to: Evi Länsimäki, John Kaye and Nicole Vankoughnett Student Loans Scholarships Every year, Osuuspankki grants scholarships exclusively to our student members. All it requires is an application and the student s transcripts. You can even complete that online. It can t get more convenient than that! Special Osuuspankki student loans are available for full-time post-secondary students offering a simpler application process than government and chartered bank student loans. To cut down on stress, you make interestonly payments while you re a full-time student. Ulla Katri Arja General Manager Antero Elo with scholarship recipients John Kaye, Peter Phua and Evi Länsimäki The Hanne Maria Maijala Memorial Scholarship is granted for post-secondary studies in music or the arts. This year s $1,000 scholarship was awarded to: Lija Karklins Loan Officer Loan Clerk Member Service Representative. Students are our future! We can help make your life easier with smart money management. Jani Raija Salla Member Service Representative Member Service Representative Member Service Representative 8 9

7 Business Services Osuuspankki Business Club Business Accounts In 2007, Osuuspankki introduced the new Business Plus account for our business members. This is the first business package account we ve offered geared towards a business which issues more than 30 payments per month. It adds value to Osuuspankki business members by helping them save on operational costs. We are confident that new and existing business clients will see the cost savings they will have each year, when they choose the Business Plus. Osuuspankki Business Club Another first which we launched in 2007 was the introduction of our Osuuspankki Business Club. Osuuspankki is helping our members grow their businesses by introducing them to new business contacts in our Finnish community. The usual format is a breakfast meeting with a short presentation by a speaker after which members have the chance to network with other business people. Just call the credit union to find out when the next meeting is, or check the Community Events calendar on our website. We will be happy to add you to our ing list in order to keep you informed of when the meetings will be taking place. Osuuspankki Finnish-Canadian Entrepreneur of the Year Award In June 2007, Osuuspankki was proud to announce that the first Osuuspankki Finnish- Canadian Entrepreneur of the Year Award was presented by the Canada-Finland Chamber of Commerce to Tapani Nousiainen. This annual award is given to a nominee in recognition of their achievements in the business community and their contributions to the Finnish community in Canada. We feel that it is important to recognize the efforts of the Finnish business community and look forward to the presentation of the award in Suomi-Koti Senior & Child Services Children On September 9th we had our first annual Hippokisat celebration for our Hippo Club members. The celebration was at Osuuspankki s parking lot with many fun activities. We had everything from a jumping castle, face painting, a clown, competitions with medals, a surprise gift for every child and of course snacks. This was our way of helping our younger members connect to Osuuspankki. Henri and Hanna Hippo send out a quarterly newsletter to children between the ages of 4 and 11. To belong to the Hippo Club and receive the Hippo Tales just open an account for your child, grandchild, niece, nephew or someone you care about. Are you aware that children have special investment privileges at Osuuspankki? We only require a minimum of $100 for a higher interest earning term deposit. We are also able to set up RESPs to help save for your child s or grandchild s education. Seniors At Osuuspankki, we share the traditional Finnish values of practicality and a positive outlook. Those qualities are especially important when it comes to money. As a gift from us, when you turn the age of 60 your account automatically has no services charges on your transactions. We provide banking services at Suomi-Koti twice a week. We give you all the respect and attention you ve earned. Finnish-Canadian Entrepreneur of the Year: Tapani Nousiainen Kid s Day Finnish-Canadian Entrepreneur of the Year Award 10 11

8 Our Finnish Community $100 winner Mark Unlik Have you noticed that we have a Community Events section on our website? If you contact us with your organization s event happenings, we can post it on our website to give your group more exposure. FinnPower The annual Finnpower event was held in April and once again Osuuspankki was a sponsor and had a table there. We held two contests at this event with the following promotions: Ten draws of $100 (2 given out each hour) A flat-screen television These were open draws for everyone who attended the Finnpower event and visited our table. The draw for the television also included ballots which could be filled out at Osuuspankki for the following week. The winner of the flat-screen television was Paul Valanne. Account Services The Finnish community has many non-profit and charity organizations who trust Osuuspankki for their financial transactions. To show our appreciation we have added a special account just for these organizations. The Community account has a minimal monthly fee of $3.95 and allows the organization to process its first 15 debit transactions for free. This is another way that we are helping our charity and non-profit organization members use their money to help others first. Sponsored group: Toronto Floorball League Sponsored group: Äiti-lapsikerho Sponsorship Recipients Osuuspankki has been a great supporter of Finnish organizations, churches and charities. Among our sponsorship recipients this year were: Grassroots Floorball Inc. CMV Canadian Music Week Suomi-Koti Finnish Grand Festival CFFEF Jani & Kristina Autio FinnPower Toronto Finlandia Lions Club Äiti-lapsikerho Toronton Suomen Kielen Koulu Laestadian Lutheran Church Finnish Consulate (nuit blanche) Our Electronic Services Flat-screen television winner Paul Valanne Online & Telephone Banking Bill Payment Services Transaction Alert Credit Union Member Card & ATMs Credit Union MasterCard Sponsored group: Laestadian Lutheran Church 12 13