New corporate strategy puts action to purpose
TORONTO, April 21, 2023 /CNW/ - Meridian, Ontario's largest and Canada's second largest credit union, reported strong financial results for 2022 with asset growth of 8%, earnings of $183 million and a return on equity of 12.3% at Meridian's 18th Annual General Meeting held on Thursday, April 20th.
"I am extremely proud of these strong results and our capacity to steer through challenging headwinds with equilibrium," said Jay-Ann Gilfoy, President & CEO, Meridian. "Meridian continues to demonstrate its commitment and focus on creating opportunities and innovative solutions that support and benefit Members and customers, employees and the communities we serve."
"We are fortunate to operate in Canada, one of the most stable financial systems in the world. Our Members can rest assured knowing their money is safe and secure with us," said Jay-Ann.
Along with key financial, Board and corporate highlights, plans for the organization's new transformative corporate strategy, Meridian for Good, were unveiled for Members.
"Meridian for Good drives purpose to help Members achieve their best life and deliver on our vision 'to be recognized as an inclusive, transparent, and people-focused financial partner,'" said Jay-Ann. "We're building on our momentum to do more 'good' in the future."
Notable highlights from 2022:
- Total relationship growth was 7% or $2.9 billion with strong growth in Commercial Lending. Total relationships, which includes both loans and deposits and wealth, surpassed $43 billion in 2022
- Total assets under management, which includes both our on-balance sheet assets as well as our wealth portfolio, grew by 6% to $30 billion
- Balance sheet assets grew by 8% to $26 billion, an increase of $2.0 billion over 2021
- Loans to Members grew by $1.5 billion in 2022, or 8% to $20.9 billion
- Meridian OneCap had just under $1 billion in originations
- Consolidated after-tax earnings in 2022 were $183 million, with Return on Equity of 12.3%
- Meridian's net Membership base increased by 12,000, about 4,000 more new Members than the prior year
"The key to the health of any financial institution is the strength of its balance sheet," said Tara Daniel, Chief Financial and Strategy Officer, Meridian. "Two key indicators of financial soundness are the strength of its capital base and liquidity levels. Meridian's Total Supervisory Capital Ratio remains strong, healthy, and well in excess of the regulatory requirement. In addition, the newly introduced Tier 1 Capital Ratio is 9.5%, well above the regulatory minimum."
2022 Board and Governance Updates
The Board's oversight of risk management continues to be a priority to meet the expectations of Meridian's Members, customers, and regulators. The Board unanimously passed a resolution to approve amendments to By-Law No.1, addressing new regulatory requirements. The amendments were presented to the Membership for confirmation.
2022 was another exceptional year for Meridian's Board, as it worked through onboarding a new CEO and two new Board members. It completed the development of a new three-year plan, oversaw the progress of a new Environmental, Social and Governance (ESG) policy, and increased its focus on Diversity, Equity, Inclusion, Belonging and Reconciliation (DEIBR).
"In 2022, we solidified our leadership and strategy, and now we've pivoted to oversight of that strategy," said Karen Farbridge, Chair, Meridian. "I want to thank my Board colleagues for their steady direction and insights. I also thank Jay-Ann, the leadership team and all employees for their passion and dedication."
There were four positions to be filled on the Board in 2023. The successful candidates recommended by the Board's Nominating Committee were acclaimed to their positions, including Jacqueline Beaurivage, Lawrence Doran, and Hari Panday. The Board welcomes one new Director, Upkar Arora.
Upkar is CEO of Rally Assets Inc., an impact investment management and advisory firm. Rally is a purpose-driven organization, and an award-winning B Corporation, committed to using business as a force for good.
Departing Director Mike Valente was thanked for his service.
Karen Farbridge continues in her role as Board Chair, fulfilling the second of her two-year term.
The following Directors were appointed as Committee Chairs until the next Annual General Meeting:
- Audit & Finance: Bruce West
- Governance: Suanne Nielsen
- Human Resources: Jackie Beaurivage
- Nominating: Lianne Hannaway
- Risk: Hari Panday
Corporate and brand highlights
- Meridian launched its inaugural 2021 ESG report "Value Created and Shared"
- Meridian was named one of the Achievers 50 Most Engaged Workplaces in North America in 2022
- Meridian became Ontario's largest Certified Living Wage Employer, an actionable step to help improve the overall well-being of their employees and communities
- The 2022 Big Impact Awards for Small Business generated more than 1300 submissions from small businesses demonstrating a positive impact on environmental and social causes to win $65,000 in prizes
- In 2022, Meridian invested $3.4 million in local communities through programs such as: Good Neighbour Program, My Commitment to Communities Employee Program and Sean Jackson Scholarship
- Meridian was the proud official sponsor of the Volunteer Program at the Niagara 2022 Canada Summer Games. Just under 100 Meridian employees volunteered a total of 2,284 hours during the Games
About Meridian
We acknowledge the land on which we operate is the traditional territory of many nations including the Mississaugas of the Credit, the Anishinaabe, the Chippewa, the Haudenosaunee and the Wendat peoples and now home to many diverse First Nations, Inuit, and Métis. We also acknowledge that Toronto is covered by Treaty 13 with the Mississaugas of the Credit.
Meridian is Ontario's largest credit union, and second largest in Canada, with more than 75 years of banking history. We deliver a full range of financial products and services to more than 370,000 Members through a network of 89 branches and access to business banking services at 15 locations, a Member Contact Centre and online/mobile services. Meridian also has two operating subsidiaries: Meridian OneCap Credit Corp ("MOCC"), a leading national supplier of customized commercial equipment leasing solutions; and motusbank, a national digital bank. Meridian Credit Union Limited has over $30 billion in assets under management (March 31, 2023). For more information, please visit: meridiancu.ca, follow us on Twitter @MeridianCU or visit us on Facebook.
SOURCE Meridian Credit Union
Teresa Pagnutti, Public Relations, Meridian, [email protected], 416-275-3816; Jacob Del Zotto, Corporate Communications, Meridian, [email protected], 647-242-8877
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