In a year marked by a global financial crisis, First Nations Bank of Canada posted excellent results by avoiding the difficulties in the financial markets and through continuing to focus on serving the Aboriginal economy.

The Saskatoon, Sask.-based bank reported strong earnings for the fiscal year ended Oct. 31, 2008 of $1.69 million. Low loan losses and the control of non-interest expenses to levels comparable to the prior year made a strong contribution to the bank’s income performance.

Total deposits for fiscal 2008 grew to $199.7 million, an increase of $50.5 million or 33.8% over prior year, the bank said. The record growth in deposits strengthened liquidity and pushed total assets to a record high of $253.2 million.

Return on equity for the year was 6.2% and is on target with the bank’s strategic directive of growing its branch network and expanding its loan and deposit volumes, the bank said.

“The bank had a very good year in a financial market that was characterized by margin compression and lower yields,” says Arden Buskell, president and chief operating officer. “The bank had no exposure to the North American subprime lending market or to asset-backed commercial paper. The strengthening of the bank’s cash holdings, positions us very well for continued growth and expansion in fiscal 2009.”

Shortly after year end the Bank opened its second branch in Saskatchewan — and sixth branch in total — at Flying Dust First Nation.

First Nations Bank of Canada is a domestic, federally chartered bank with branches in Saskatchewan, Yukon, Manitoba, Ontario, and Quebec. It offers a full range of personal and business banking services with a primary focus on Aboriginal customers.

IE