CUMA Manager of the Year Award

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CUMA Manager of the Year Award

• Co-sponsored by

And the 2003 honour is awarded to Marty Komsa,
President CEO Windsor Family Savings Credit
Union
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Credit Union Leaders Speak Out!

• Andy Poprawa, President CEO
• Deposit Insurance
• Corporation of Ontario

3
Season of Change
Credit Union Managers Association September 17,
2003

• Deposit Insurance Corporation of Ontario

4
Overview

• How are we doing?
• Where are we going?

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How Are We Doing?

• Overall system condition is good
• Risk of failures has been declining
• Overall system performance stable
• Some credit unions/caisses populaires performing
  better than others

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Quick - System Condition at 2Q03
( ? ? from 2Q02)

• 269 institutions ? (16) from 285
• All except 3 met minimum (5) capital
  requirements
• Average size 78 M ?(17M) from 61 M
• System Assets 20.8 Billion ?(3.4B) from 17.4B
• System Capital 6.69 ? from 6.73
• Liquidity 21.3 ? from 17.5
• Commercial loans ? by 13

7
Quick System Performance ( ? ?
from 2Q02) at 2Q03

• Margins ? from 3.00 to 2.97
• Non-interest expenses ? from 3.33 to 3.22
• Non-interest income ? by .08
• Loan Costs ? from .16 to .12
• Gross Delinquency (gt 30 days) ? from 1.38 to
  1.01
• ROA ? from 29 bp to 36 bp

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Quick - DICO Financial

• DICO July 31, 2003 financial results
• No major failures during 2003
• No new insurance losses to date
• Recoveries of 5.5 million on past losses
• Gross operating expenses 14.4 below budget
• Reserve Fund of 56 million vs. target of 56
  million by year end

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Quick - DICO Operational

• On-Site Verifications (OSVs)
• 91 completed/in progress as at end of 3Q03
• Intervention Programs improvements since last
  conference update of 2002

Program 2003 ( of MIs) 2002 ( of MIs)
Watchlist 6 28
Pending Supervision 3 6
Supervision 5 13
Administration 0 1
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Distribution of Assets By Premium Category _at_ 2Q03
vs 2Q02
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Where Are We Going?

• OSVs
• CUCO Task Force recommendations
• Exit interviews final reports
• Materiality
• Appeals
• Commercial loan reviews
• Small Credit Union Initiative
• Dedicated staff
• On-site reviews
• Streamlined processes

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Where Are We Going?

• Standards (By Law 5) Review
• Expanded advisory committee
• Industry Chair
• Proposed standards circulated for comment in
  September
• Interest Rate Risk Regulation
• Capital Rules
• DICO Contingency Financing Investment Policy
• Research on consumer awareness

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Questions Dialogue
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Credit Union Leaders Speak Out!

• Joanne De Laurentiis, President CEO
• Credit Union Central of Canada

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National Report System Trends
2003 CUMA Conference
Joanne De Laurentiis September 15,
2003 Huntsville, Ontario
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National Report System Trends
Agenda

• Reducing Operating Costs
• Finessing the Regulatory Framework
• Supporting System Restructuring

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National Report System Trends
Reducing Operating Costs

• Debit Transaction Switching - Migration Project
  to new provider SwitchCo (joint venture of
  Celero Solutions and NYCE Network)

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National Report System Trends
Reducing Operating Costs (cont)

• Switching Migration Project
• Strategic Procurement Discount Program

(For more information about Strategic
Procurement, contact Donna Bailey at 416-232-3462)
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National Report System Trends
Reducing Operating Costs (cont)

• Switching Migration Project
• Strategic Procurement Discount Program
• National Connectivity

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National Report System Trends
Reducing Operating Costs (cont)

• Switching Migration Project
• Strategic Procurement Discount Program
• National Connectivity
• Common Point of Purchase (CPP)

(For more information about the CPP Alert system,
contact Lorraine Ogley at 416-232-3445 )
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National Report System Trends
Click to Add Heading
Reducing Operating Costs (cont) Common Point
of Purchase (CPP)

• Click to add slide copy

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National Report System Trends
Finessing Regulatory Framework

• Current
• Cost of credit disclosure
• Privacy and money laundering courses procedures
• Retail association definition
• BIS rules
• Future
• Preparing for Legislative Review 2006

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National Report System Trends
Finessing Regulatory Framework (cont)

• Legislative Review 2006
• Regulatory Harmonization
• Cost of credit disclosure rules
• Privacy legislation compliance

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National Report System Trends
Finessing Regulatory Framework (cont)

• Legislative Review 2006
• Regulatory Harmonization
• BIS Capital Adequacy Standards

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National Report System Trends
Supporting System Restructuring

• CUSOURCE
• Credential Group
• Credential Financial Inc.
• Ethical Funds Inc.

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National Report System Trends
Supporting System Restructuring

• CUSOURCE
• Credential Group
• Broader system
• OPCO
• Celero Solutions
• SwitchCo
• League Data/CGI
• Genesis

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National Report System Trends
Credit Union Central of Canada

• Check out our Web site, www.cucentral.ca
• Sign on for electronic news, publications
• Marketing materials
• Conferences

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THANK YOU QUESTIONS?
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Credit Union Leaders Speak Out!

• Cheryl Bryne, Executive Director
• Cu Source of Canada

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Cheryl Byrne September 17, 2003
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CUSOURCE Highlights

• Phase I operational September 15th
• Phase II operational January 2004
• CUIC Course sales continue to rise
• Ontario CUSOURCE classroom course selection
  available
• Pilot testing successful

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CUSOURCE Phase I

• 60 credit union job positions and technical
  competencies
• Learnings mapped, where available
• On-line registration
• CUSOURCE Live
• Informal Knowledge i.e. RMA Industry Analysis
  Tool
• Courses
• 90 NETG e-learning courses
• Harvard Mentor Manager courses
• CUIC courses
• Ontario classroom courses

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CUSOURCE Phase I

• Benefits
• Performance management tool
• Career pathing tool
• On-line registration, tracking and reporting
• E-learning opportunities
• CUIC Designations
• Medicine Hat College
• Athabasca University
• On-line branch meetings and product demos
• On-line networking and topic discussions

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Already registered? Enter your ID and Password
Entering www.cusource.ca on your favourite
browser presents the CUSOURCE home page
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CUSOURCE Dynamic Customization

• Signing in tells the system
• Who you are
• Your job position or whether you are a member
• Your C.U. and province
• Your CUSOURCE permissions
• Courses taken or in progress
• Areas of interest, subscriptions and favourites
• The CUSOURCE screens are then dynamically
  personalized just for you

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Your Name
Your C.U.
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Your Name
Your C.U.
My Profile allows you to update your name,
address, email etc. Make sure to keep this
information up to date so the system, management
and CUSOURCE can communicate with you click to
continue
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Details of your own Learning Plan
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Credit Unions Subscribers

• Credit unions may subscribe for 300/yer and
  gain access to many more features including
• Ability to manage their employees training
• A wide range of reporting
• 360º Evaluations
• The opportunity to be active participants in the
  sharing of knowledge

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Under each of the options to the right is an
explanation of the functionality
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CUSOURCE Phase IIJanuary 2004

• More e-learning available and mapped
• Commercial lender training modules
• All classroom training from Centrals
• Lending and Marketing Community of Practice
  Pilots
• CUIC exam registration on line
• Informal Knowledge Increasing

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CUSOURCE Classroom Courses Fall 2003

• Governance - 3 sessions
• Project Management
• Win-Win Negotiations

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CUSOURCE Ontario Representatives

• Kathy Clutterbuck, Sr. Mgr. Client Relations
• Joan Ellis, Sr. Mgr. CUIC
• Sharon Burkholder, CUSOURCE Rep
• Beth McElroy, Student Support Advisor
• Cheryl Byrne, Executive Director

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Thank You
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Credit Union Leaders Speak Out!

• Jonathan Guss, President CEO
• Credit Union Central of Ontario

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CUMA Welcomes DAVID Frum

• The Right Man The Surprise Presidency of George
  W Bush

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CUMA 2004

• Where Credit Union
• Managers Connect

Coming September, 2004 Sheraton on the
Falls Niagara Falls
We hope to see you there!
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CUMA

• Thank you for your participation Rise to
  the Challenges Lead Change and Overcome
  Adversitywith
• Commitment
• Laughter
• Integrity
• Heart
• Passion
• Go Safely!