Servus Hits $40B Milestone Amid Alberta's Economic Rebound

EDMONTON, Alberta – January 26, 2026 – Servus Credit Union has cemented its position as Canada's largest individual credit union, announcing it closed its 2025 fiscal year with over $40 billion in assets under management. The milestone, detailed in its latest financial report, reflects a year of disciplined strategy, a landmark merger, and targeted expansion that capitalized on Alberta's surprising economic resilience.

For the fiscal year ending October 31, 2025, Servus reported $40.1 billion in assets under management, a year-over-year increase of $2.5 billion. The achievement comes on the heels of the largest credit union merger in Canadian history and signals a robust growth trajectory despite what the institution's leadership described as a challenging economic climate.

"Despite economic challenges experienced across the province coupled with the uncertainty created by the evolving tariff situation, Servus delivered impressive financial results this year," said Ian Burns, President and CEO of Servus Credit Union. "Our performance is a testament to our member-centric approach and positions us to enter the new year with strength."

Navigating the Alberta Advantage

Servus's financial success is deeply intertwined with the economic landscape of its home province. While the press release noted "economic challenges," Alberta's economy demonstrated considerable strength throughout 2025. The province is forecast to lead Canada in real GDP growth, with projections hovering around 2.1%, driven by a revitalization in the energy sector and a booming construction industry.

Rapid population growth has fueled a surge in housing starts, reaching levels not seen in nearly two decades. This activity directly benefits financial institutions like Servus, whose member loans and leases grew by $1.2 billion to reach $26.0 billion. The growth spanned personal, commercial, and agricultural portfolios, indicating broad-based demand across the provincial economy.

However, this growth occurred against a backdrop of headwinds. Alberta continued to navigate global economic uncertainty and a regional unemployment rate that, while improving, remained elevated compared to national averages. Servus’s ability to expand its balance sheet by over $1.0 billion in this mixed environment highlights the effectiveness of its strategy and the underlying momentum in key sectors of the provincial economy.

The Merger That Forged a Giant

A pivotal driver of Servus's expanded scale was the historic amalgamation with connectFirst Credit Union, which officially closed on May 1, 2024. The merger created a financial titan in the cooperative space, combining the two entities into a single organization with over 500,000 members and nearly 140 branches across 80 Alberta communities.

The strategic rationale behind the merger was to achieve the scale necessary for significant investments in technology, enhance member services, and ensure long-term sustainability in an increasingly competitive financial sector. The integration of connectFirst's operations is a primary reason for the complexity of the fiscal 2025 financial statements.

The credit union reported $126.5 million in accounting adjustments and one-time items primarily related to the merger. These adjustments, which involve valuing the assets and liabilities of the combined entity at fair market value, make direct year-over-year income comparisons misleading. After accounting for these items, Servus reported a normalized income before income taxes and patronage of $235.3 million, a figure the institution presents as a clearer indicator of its ongoing operational performance.

A Blueprint for Diversified Growth

Beyond the scale achieved through its merger, Servus's growth was also fueled by strategic diversification into new and underserved markets. Two key initiatives stand out: the expansion of its commercial leasing portfolio and the pioneering launch of Halal-compliant mortgage products.

In June 2023, Servus acquired Stride Capital Corp., a Calgary-based equipment financing and leasing provider. This move allowed the credit union to significantly bolster its offerings for commercial members. The timing was opportune, aligning with a strong Canadian commercial leasing market that saw revenues climb to $18.1 billion in 2024, with Alberta being the largest contributor thanks to activity in construction and oil and gas.

Perhaps more innovative was the introduction of Servus Halal, a subsidiary offering the first provincially regulated Halal mortgage option in Canada. Developed in response to amendments in the Alberta Credit Union Act, the product adheres to Islamic finance principles by using a "cost-plus-profit" (Murabaha) structure that avoids interest. With Canada's growing Muslim population and a global Islamic finance industry valued at nearly $6 trillion, Servus has tapped into a significant market demand for Shariah-compliant financial products, positioning itself as a leader in inclusive financing.

The Cooperative Advantage in Action

Underpinning Servus's financial success is its cooperative structure, which distinguishes it from traditional shareholder-owned banks. The credit union's member-centric philosophy is most tangibly expressed through its Profit Share® program, which returns a portion of profits directly to members.

In 2025, Servus returned $83 million to its members in cash and dividends, bringing the total amount shared since 2009 to over $943 million. This direct financial return fosters member loyalty and reinforces the value proposition of banking with a cooperative. This member confidence is reflected in the deposit figures, which saw member deposits grow by $800 million to a total of $25.2 billion during the fiscal year.

This model of shared prosperity appears to create a virtuous cycle: strong financial performance enables generous profit sharing, which in turn deepens member confidence and engagement, driving further growth in loans and deposits. As Servus moves into its 2026 fiscal year, this member-first approach remains central to its identity and strategy.

"As we begin the 2026 fiscal year, we remain committed to supporting our members as we always have," Burns added. "This includes continuing to provide personalized, relationship-based banking that helps our members feel good about their money.”