2018 Annual Report

Board Chair's Message

“In 2018, Coast Capital, Canada’s largest credit union by membership, became the first credit union in British Columbia to be incorporated federally and only the second in Canada. Now, our long-term goal of providing members with Coast Capital solutions no matter where they live in the country is on its way to become a reality.”

Bob's Signature Bob Armstrong Chair, Board of Directors Read more

CEO's Message

“2018 was a transformation year for Coast Capital as we expanded our services for our members and our reach in Canada while remaining steadfastly committed to our cooperative roots. And, as always, we remained true to our members’ financial well-being and purpose:
Together, we help empower you to achieve what’s important in your life.

Calvin's Signature Calvin MacInnis President and Chief Executive Officer Read more

About Coast Capital Savings

Coast Capital Savings Federal Credit Union (or Coast Capital, as our friends like to call us) is Canada’s largest credit union by membership. We are a co-operative company owned by the 572,000 members who bank with us, and in 2018 we became the first credit union in British Columbia to receive approval to be a federal credit union. We offer banking and investment services through our 52 branches in the Metro Vancouver, Fraser Valley, Okanagan and Vancouver Island regions of British Columbia.

Our 1,800 employees are dedicated to improving the financial well-being of our members and their communities. We are known as one of B.C.’s Top Employers, and one of Canada’s Best Managed Companies. As an Imagine Canada Caring Company, we make our communities stronger, and in 2018 invested $5.9 million in local programs, partnerships and events with the goal of empowering young Canadians.

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2018 Performance Against Targets

Loan balance after allowance for credit losses

Total loans

Target15.6 billionActual16.1 billion

Return on average equity

Net income expressed as a percentage of average equity


Deposit balance

Total deposits

Target15.9 billionActual16.4 billion

Net income

All revenue less expenses and taxes

Target56.2 millionActual82.1 million

Non-interest expenses

All costs that are not interest-related, with the exception of provisions for credit losses and income taxes


Return on average assets

Net income expressed as a percentage of average assets


Operating efficiency

Coast Capital’s cost to earn $1, equal to all non-interest expenses divided by the sum of net interest income and other income


Financial Highlights at a Glance

Loan balance

Billions of dollars


Deposit balance

Billions of dollars


Members’ equity

Millions of dollars

We exist to help empower members to achieve what’s important in their lives.
In 2018, we welcomed 17,000 new members to the Coast Capital family.

Net interest income

As a percentage of average assets

Non-interest expenses

As a percentage of average assets


Net income

Millions of dollars


Net income

As a percentage of average assets


Net income

As a percentage of average equity
We are on a mission to financially empower Canadians from coast to coast.

Operating efficiency

In per cent



  • Actuarial gains (or losses) on defined benefit plans

    Gains (or losses) resulting from differences between the assumptions used to value defined benefit pension plans and what actually occurred and the effects of changes in the assumptions.

  • Allowance for credit losses

    Allowances provided at a level that management considers adequate to absorb all expected credit-related losses from its loan and debt securities portfolios. The allowance is estimated considering future macroeconomic scenarios for performing assets and net realizable value for non-performing assets.

  • Amortized cost

    Amount at which a financial instrument is measured at initial recognition, minus principal payments, plus or minus cumulative amortization of any difference between the initial amount recognized and the maturity amount, minus any reduction for impairment.

  • Assets under administration

    Total assets plus financial assets that are managed by a third party on behalf of members and clients. The credit union provides administrative services such as placing trades on behalf of members and clients.

  • Carrying value

    Amount at which an asset or liability is recognized on the Consolidated Balance Sheet.

  • Cash flow hedges

    Derivatives used to hedge exposure to variability in cash flows that are attributable to a particular risk associated with a recognized asset or liability that could affect profit or loss.

  • Central 1 Credit Union (“Central 1”)

    The financial facility and trade association for the B.C. and Ontario credit union systems. Owned and funded by the credit unions, Central 1 provides services for over 250 financial institutions across Canada.

  • Common Equity Tier 1 (“CET 1”) Ratio

    A component of capital,as defined by OSFI, which is primarily comprised of member’s equity (class B shares, retained earnings and accumulated other comprehensive income) less deductions for goodwill, intangible assets, and other items as prescribed by OSFI, divided by risk-weighted assets

  • Credit risk

    Risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation.

  • Deferred tax assets

    Amounts of income taxes payable or recoverable in future periods as a result of temporary differences between the carrying amount of an asset or liability in the financial statements and its carrying amount for tax purposes.

  • Derivative financial instruments

    Financial contracts whose value is derived from interest rates, foreign exchange rates, or other financial indices.

  • Effective interest rate

    Rate that exactly discounts estimated future cash payments or receipts through the expected life of a financial instrument to the net carrying amount of the financial instrument.

  • Effective portion of cash flow hedges

    Degree to which a fair value hedge is effective in achieving offsetting changes in fair value attributable to the hedged risk.

  • Fair value

    The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Adjusting to fair value is referred to as “mark-to-market”.

  • Fair value hedges

    Derivatives used to hedge exposure to changes in fair value that are attributable to a particular risk associated with a recognized asset or liability that could affect profit or loss.

  • Financial assets at fair value through other comprehensive income (FVOCIL)

    Designated equity instruments and debt instruments that meet the criteria that are measured at fair value with fair value adjustments recorded in othercomprehensive income within equity.

  • Financial assets or liabilities at fair value through profit or loss (FVTPL)

    Non-derivative financial instruments that are acquired principally for the purpose of selling in the near term or for which there is evidence of a recent actual pattern of short-term profit-taking. Financial instruments may also be designated as FVTPL when the designation eliminates or significantly reduces measurement or recognition inconsistencies that would otherwise arise from measuring financial assets, or from recognizing gains and losses on them, on different bases.

  • Financial Institutions Commission of British Columbia (FICOM)

    Regulatory agency of the provincial Ministry of Finance responsible for regulating B.C. credit unions under the Financial Institutions Act and the Credit Union Incorporation Act.

  • Forward contracts

    Contracts that oblige one party to the contract to buy and the other party to sell an asset for a fixed priced at a future date.

  • Hedging

    Risk management strategy used to manage exposures to interest rate fluctuations, foreign currency risk, and other market factors as part of its asset/liability management program.

  • Impairment

    Harm that occurs when objective evidence is identified suggesting that a portion or all of an asset’s carrying value is not expected to be recovered.

  • Leverage ratio

    A regulatory metric that measures the financial health of a financial institution, as defined by OSFI, and which reflects Tier 1 capital divided by the sum of on-balance sheet and specified off-balance sheet exposures, net of specified adjustments.

  • Liquidity coverage ratio

    A regulatory metric, as defined by OSFI, that reflects the proportion of highly liquid assets held to ensure a financial institution’s ongoing ability to meet its short term obligations.

  • Net interest income

    Difference between revenues generated by interest-bearing assets, primarily loans, and the cost of servicing interest-bearing liabilities, primarily deposits.

  • Net interest margin

    Net interest income expressed as a percentage of average total assets.

  • Non-interest expenses

    Operating expenses incurred by a financial institution that are not related to deposit costs or financing expenses.

  • Notional amount

    Amount on which cash flows for derivative financial instruments are based.

  • Office of the Superintendent of Financial Institutions (OSFI)

    Independent agency of the Government of Canada that supervises and regulates federally regulated financial institutions, trust and loan companies, as well as private pensionplans subject to federal oversight.

  • Operating efficiency

    Ratio that shows the organization’s efficiency by comparing non-interest expenses to revenues, which for a financial institution is comprised of net interest income, fees and commission and other income.

  • Options

    Contracts in which one party grants the other party the future right to buy or to sell an exchange rate, interest rate, financial instrument or commodity at a predetermined price at or by a specified future date.

  • Other comprehensive income (OCI)

    Fair value adjustments of financial instruments that in accordance with International Financial Reporting Standards are not recognized in the Consolidated Statement of Income but affect Members’ Equity directly.

  • Provision for credit losses

    Amount added to or subtracted from the allowance for credit losses in a reporting period to bring it to a level that management considers adequate to absorb all credit-related losses in its loan portfolio.

  • Provisions

    Liabilities of uncertain timing or amount that are unrelated to credit issues.

  • Return on average assets

    Indicator used to assess the profitability of the organization and to evaluate how efficiently it is utilizing its assets in comparison to peers in the same industry. The ratio is calculated by taking net income and dividing by average total assets.

  • Return on average equity

    Indicator used to assess the profitability of the organization by evaluating how much profit it generates with the funds retained in the organization by members. The ratio is calculated by taking net income and dividing by average total equity.

  • Risk-weighted assets

    Total assets adjusted by applying regulatory predetermined risk-weight factors ranging from 0 per cent to 200 per cent to on- and off-balance sheet exposures. The risk-weight factors are regulated by FICOM.

  • Securitization

    Arrangement where loans are sold to unrelated third parties to raise liquidity or fund additional mortgage growth.

  • Swaps

    Contracts that involve the exchange of fixed and/or floating interest rate payment obligations and/or currencies for a specified period of time.

  • Tier 1 capital

    The most permanent and subordinated forms of capital, as defined by OSFI, consisting of Common Equity Tier 1 (CET 1) capital and Additional Tier 1 (AT 1) capital. Coast has no AT 1 capital issued at December 31, 2018. As a result, Tier 1 capital comprises CET 1 capital.

  • Tier 2 capital

    Supplementary capital instruments, as defined by OSFI, consisting of subordinated debentures and collective allowances.

  • Total capital

    Comprises both Tier 1 (primary) and Tier 2 (secondary) capital, as defined by OSFI.

  • Trailer fee revenues

    Revenues earned from mutual fund managers for selling their fund(s) and providing advice to investors. The fee is applied to the market value of the assets held by investors.