1. 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

2. Credit Union Leaders Speak Out!
Andy Poprawa, President & CEO
Deposit Insurance
Corporation of Ontario

3. Deposit Insurance Corporation of Ontario
“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?

5. 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

6. 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 (> 30 days)  from 1.38% to 1.01%
ROA  from 29 bp to 36 bp

8. DICO July 31, 2003 financial results
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

9. 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
Watchlist 6 28
Pending Supervision 3
Supervision 5 13
Administration 1

10. Distribution of Assets By Premium Category @ 2Q03 vs 2Q02

11. Where Are We Going? OSVs Small Credit Union Initiative
CUCO Task Force recommendations
Exit interviews & final reports
Materiality
Appeals
Commercial loan reviews
Small Credit Union Initiative
Dedicated staff
On-site reviews
Streamlined processes

12. 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

13. Questions & Dialogue