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2025 Annual Report

Progress, With Purpose

President_Doug Chair_Michelle-1

Message from the CEO

Dear Members,

As we reflect on 2025, it’s clear that this was another year defined by uncertainty across the Canadian financial landscape. Despite these challenges, DUCA continued to demonstrate its Member-focused commitment that has defined us for more than 70 years. Throughout the year we demonstrated progress, with purpose: remaining steadfast in our mission to help our Members do more, be more, and achieve more, strengthening our foundations and delivering financial care while continuing to grow sustainably. 

Overview

Despite challenging market conditions, DUCA closed the year with strong, purposeful progress. Our year-to-date pre-tax income was $13.6 million.  This compares to the prior year of $2.4 million. In a somewhat uncertain macroeconomic environment, DUCA – like other Credit Unions – remained focused on managing interest rate risk and applying disciplined tactics to optimize outcomes. This included taking a measured approach to loan volumes to protect profitability, while continuing to expand and diversify our revenue streams. 

Strategic Growth and Diversification

Throughout 2025, our business mix continued to evolve in healthy and intentional ways. Our focus continued to be on growing business lines that complement our core residential mortgage and commercial lending, as well as provide strong, predictable margins and returns on capital through economic cycles. 

Several key channels delivered solid business growth.  

Our Specialized Lending business, launched just five years ago in 2020, celebrated a major milestone by surpassing $500 million midway through 2025, ultimately finishing the year at $611 million, an outstanding accomplishment that reflects both demand and disciplined execution.  

Our Wealth division also exceeded expectations, with assets under management reaching $838 million, underscoring Members’ deepening trust in DUCA’s advisory capabilities. 

Our foreign exchange services business, offered under the Continental Currency Exchange brand, delivered an exceptionally strong year, supported by the launch of a new Wholesale Banknotes business that is increasing the overall contribution of this business line to DUCA’s revenues.   

We also introduced two important new growth channels: Dealer Auto Loans, launched in the fall and reaching $4 million in funded loans by year-end, and our new Commercial Leasing business, which closed the year with nearly $30 million in balances. 

At year end, DUCA held $7.3 billion in assets on balance sheet, plus $0.8 billion in Wealth Management Assets Under Administration (AUA), for total Assets Under Administration (AUM) of $8.1 billion, as well as $6.0 billion in deposits. DUCA continues to build the business in key growth areas while we continue to improve how we serve our Members. The strategic actions taken in 2025 strengthened the foundation to support ongoing sustainable growth and progress into the future.  

Our People   

Our people drive DUCA’s ability to deliver progress with purpose. Throughout 2025, we continued to build our culture by nurturing a supportive and inclusive workplace where collaboration, learning, and “Making What’s Possible Happen” remain priorities. Over the year, we strengthened everyday practices that deepen engagement and connection, such as enhancing feedback-to-action channels and leveraging insights from our Employee Experience Team to ensure that Employee perspectives help shape decision-making. We also expanded our training and development offerings to help teams become more confident with the systems that enable their best work, and we delivered learning experiences designed to further embed Our Values into our organization. These efforts ensure our Employees remain well positioned to support Members and contribute to DUCA’s long term success. 

Giving Back   

Through the DUCA Impact Lab (DIL), we continue to explore ways to create more equitable access to banking services for financially vulnerable individuals. In 2025, we were pleased to welcome Vancity (Vancouver City Savings Credit Union) and Coast Capital Savings Federal Credit Union to our growing group of partner credit unions with the DUCA Impact Lab Innovation Hub. They join Kindred, Your Neighbourhood Credit Union and of course, DUCA, in a shared commitment to building practical, accessible financial solutions for Canadians facing real financial pressures. 

With greater collaboration and pooled funding from an expanded partner network, we have been able to extend the reach of our signature initiative, the Escalator Loan program. This program provides fair, affordable alternatives to people trapped in high-cost and predatory lending cycles. By the end of 2025, the Escalator Loan program had refinanced nearly $1 million in predatory loans since its launch in 2018, offering a vital lifeline to more than 130 individuals seeking a sustainable path forward.  

Since its inception, the DIL has provided over $1.8 million in impact financing. This, combined with our philanthropic giving from DUCA since 2014, totals over $6.1 million cumulatively as of the year-end 2025.   

Looking Ahead 

As we move forward into 2026, we do so from a position of strength, clarity, and confidence. The decisions made in 2025 – where to focus, where to grow, and how to manage risk – have positioned DUCA well for the future. Our work ahead will continue to centre on sustainable growth, prudent risk management, and delivering even greater value to our Members. 

“Progress, with purpose” is what defines DUCA’s journey. With every advancement, we become a stronger, more resilient Credit Union that is even better equipped to meet the evolving needs of our Members and our Communities. 

To our Employees: your dedication and care for our Members made this year’s progress possible. To our Members: thank you for your continued trust and loyalty. And to our Board of Directors: your guidance and commitment remain invaluable. 

Together, with optimism and energy, we will continue to move forward – progressing with purpose toward a future where our Members and Communities can do more, be more, and achieve more. 

My best,

e signature

Doug Conick
President and CEO
DUCA Financial Services Credit Union Ltd.

 

Message from the Chair

Dear Members,

At DUCA, progress is measured by how we serve our Members and our Communities as well as the Credit Union’s strength, resilience and sustainability over the long term.  In 2025, in the face of some macro-economic and geo-political uncertainty, DUCA remained steadfast in its commitment to Members, Communities and its mighty purpose of helping those we serve do more, be more and achieve more. 

As your Board, our focus throughout the year was to provide strong oversight, ensure prudent risk management, as well as support and enable a long-term strategy that continues to deliver value to our Members. 

Throughout the year, the Board was encouraged to see DUCA’s continued progress in strengthening and diversifying its business, positioning the Credit Union for long-term stability and sustainable growth. Our Wealth Management business line exceeded expectations, with assets under administration reaching $838 million – growth that reflects the deepening trust Members place in DUCA to support their financial futures. 

We also observed continued expansion in Specialized Lending and Commercial capabilities. Specialized Lending grew to $611 million, while Business Banking reached $77 million, reinforcing DUCA’s ability to serve Members and Businesses across a broader range of financial needs. These areas remain key components of the Board’s focus on diversification and long-term value creation. 

In addition, the Board supported several new strategic initiatives designed to strengthen and expand DUCA’s revenue streams. Our Dealer Auto Loans channel delivered strong early results, generating $4 million loan volume in less than 3 months in its first year, while our Commercial Leasing business exceeded its inaugural targets, reaching $30 million. Our foreign exchange services, delivered under the Continental Currency Exchange banner, also delivered favourable performance following the launch of its wholesale banknote business, further evidence of DUCA’s successfully evolving diversified business model. These achievements reflect not only capable execution by DUCA’s leadership team, but also the Board’s continued focus on guiding long-term strategy, ensuring resilience, and supporting initiatives that strengthen DUCA’s ability to weather evolving economic conditions. 

In keeping with our cooperative principles, we were pleased to declare a dividend of 4.50% on Class B Series 1, Series 4, and Series 5 Investment Shares. We also distributed just over half a million in profit-sharing rewards through our Do More Profit Sharing Program.  The program continues to provide Members with valuable options – allowing them to use their profit-sharing to improve savings or loan rates, or redeem their rewards for cash.  Do More Profit Sharing reinforces our commitment to ensuring Members share in the success they help create. 

The Board remains focused on providing strong governance and oversight, ensuring DUCA continues to operate with prudence while investing in the capabilities and innovations that will support our future. Our progress reflects the dedication of our leadership team and Employees, whose efforts continue to strengthen DUCA’s position as a trusted and forward-looking financial institution. 

Looking ahead, the Board will continue to prioritize capital strength, prudent risk oversight, and long‑term strategic planning, ensuring DUCA remains well positioned to support Members through changing economic cycles. 

As I mark my first year as Board Chair, I would like to thank Tom Vandeloo for his exceptional leadership and service. His contributions have helped position DUCA for continued success. I am honoured to serve in this role and look forward to supporting DUCA’s ongoing progress. 

On behalf of the Board of Directors, I extend my sincere appreciation to our Members for your continued trust and partnership. Together, we are building a stronger, more resilient Credit Union—one that is making meaningful progress, with purpose. 

Warm regards,

Michelle Wassenaar

Michelle Wassenaar
Board Chair
DUCA Financial Services Credit Union Ltd.

Business Highlights

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Do More Profit Sharing

At DUCA, progress is shared. 

Profit-sharing has long been a defining part of our cooperative model, reflecting our belief that financial success should directly benefit the Members who help create it. Since 1999, DUCA has consistently returned a meaningful portion of after-tax profits to Members, reinforcing our commitment to building a fairer and more rewarding banking experience. 

The Do More Profit-Sharing Program continues to provide tangible value based on how Members engage with DUCA. Through this program, Members earn profit-share rewards tied to: 

  • Interest paid on mortgages and loans
  • Interest earned on GICs and deposit products
  • Wealth management investments
  • Dividends earned on Class B Investment Shares

These rewards can be used in meaningful ways, including:

  • A better (lower) fixed mortgage or loan interest rate
  • A better (higher) interest rate on a GIC or term product
  • A cash redemption deposited directly into a DUCA account

Profit-share rewards are allocated annually, based on overall Member engagement. 

In 2025, DUCA distributed $519,101 through the Do More Profit-Sharing Program, continuing our tradition of ensuring Members share in the Credit Union’s success. 

In addition, DUCA’s Board of Directors declared dividends of 4.50% on Class B Series 1, Series 4, and Series 5* Investment Shares for 2025. These dividends reflect DUCA’s continued financial strength and disciplined approach to capital management. 

To date, DUCA has distributed more than $138.6 million in dividends and profit-sharing – an enduring demonstration of our cooperative difference. 

As we continue to grow and diversify our business, profit-sharing remains central to our purpose. The more you bank with DUCA, the more you benefit, because progress is most meaningful when it is shared. 

*Dividends for Class B, Series 5 shares are paid on a pro rata basis based on time held during 2025.  

Growth and Diversification

Throughout 2025, DUCA’s continued focus on serving Members better, delivering financial care and diversifying revenue streams translated into measurable growth across several key areas. The following highlights reflect how targeted investments and disciplined balance sheet management supported continued progress across our business lines. 

Several areas of the business delivered particularly strong momentum during the year:  

Our Wealth Management business achieved significant momentum, with assets under management increasing 18.4% to reach $838 million. This growth reflects the continued expansion of our advisory capabilities and the confidence Members place in DUCA to support their long-term financial well-being. 

Specialized Lending also delivered exceptional performance, growing by $213 million to reach $611 million. This expansion reinforces DUCA’s strength in serving specialized markets and providing tailored financing solutions that complement our core lending portfolio. 

Business Banking continued its steady upward trajectory, growing to $77 million, as DUCA strengthened its ability to support entrepreneurs and businesses with flexible, relationship-driven financial solutions. 

At the same time, DUCA successfully launched new strategic initiatives aimed at broadening and diversifying our lending activities. Our Dealer Auto Loans program generated $4 million in its first year in less than 3 months, establishing a new consumer lending channel with strong growth potential. Our Commercial Leasing business also exceeded expectations, reaching $30 million in its inaugural year and expanding DUCA’s commercial financing capabilities. 

Beyond lending, our foreign currency exchange services business offered under the Continental Currency Exchange brand, continued to strengthen its contribution to DUCA’s revenue and earnings. Foreign exchange service revenue increased 12% year over year to $24.2 million, driven in part by the successful launch of its wholesale banknote business, which expands reach into new markets.  

Together, these results illustrate the continued evolution of DUCA’s business mix, with growing contributions from wealth, specialized lending, and new strategic channels that support long-term growth and allows DUCA to serve and to meet more needs of our Members. 

Strengthening and Streamlining Our Processes & Technology

At DUCA, progress with purpose means continually strengthening the technology and processes that support our Members and enable our long-term growth. In 2025, we made meaningful advancements across our digital platforms, operational processes, and data capabilities, enhancing our ability to deliver secure, seamless, and increasingly personalized banking experiences. 

Leveraging Data to Better Serve Our Members 

We continued expanding our enterprise data warehouse, improving automation, data quality, and reporting capabilities across the organization. New dashboards supporting Product, Commercial Banking, and Retail Banking Operations are enabling deeper insights as well as faster, more informed decision-making and improved Member service.  

These enhancements allow our teams to better understand Member needs, identify opportunities for proactive engagement, and strengthen regulatory reporting and operational oversight. 

Driving Operational Excellence Through Process Improvement 

In 2025, DUCA’s Centralized Operations team continued advancing a multi-year effort to streamline internal processes and improve operational efficiency across the organization.  Through process documentation, automation, and continuous improvement initiatives, the team has delivered measurable results that benefit both employees and Members.  

Since 2022, these initiatives have generated more than 6,300 cumulative hours in time savings, while improving over 155 internal processes that enhance employee experience and 132 processes focused on risk reduction and operational quality.  

Several initiatives also directly improved the Member experience, supporting nearly 30,000 Member touchpoints through streamlined processes and faster service delivery.  

In support of this work, DUCA also launched a Process Improvement Centre of Excellence, providing tools, frameworks, and support for teams across the organization to identify opportunities for automation, process redesign, and continuous improvement.  

Advancing Digital Lending Capabilities 

In 2025, we expanded our digital lending capabilities through a partnership with Defi and Dealertrack, enabling Members to access competitive auto financing directly through participating dealerships.  

We also enhanced our loan origination systems to support future digital lending capabilities and improve internal efficiency across lending workflows. 

At the same time, we began preparing for the implementation of a new digital platform that will further enhance the online and mobile banking experience, making it easier for Members to manage their finances anytime, anywhere. 

Protecting Member Information and Strengthening Cybersecurity 

Safeguarding Member data remains fundamental to maintaining trust. In 2025, we further strengthened our cybersecurity framework through enhanced monitoring, updated incident response protocols, and ongoing Employee training to address evolving threats.  

These proactive measures help ensure DUCA remains resilient and well-positioned to protect Member information.   

Engaging Our Employees

Throughout 2025, we continued to strengthen the systems and practices that ensure Employee inputs meaningfully shape the way we work.  

Strengthening Feedback to Action Channels  

A key focus this year was enhancing our feedback-to-action channels, allowing us to gather, track, and act on Employee insights in a systemic and transparent way – all in service of building a strong, supportive culture that keeps Our Values at the forefront. 

Feedback collected throughout the year, including an Employee Engagement Survey, guided several key priorities including strengthening our communications approach; expanding our role-specific and skill-building training and development; offering leadership effectiveness learning opportunities to our People Leaders and enhancing the coverage and flexibility of DUCA’s health benefits. 

Employee Experience Team 

Our Employee Experience Team (EET) continues to play an essential role in shaping DUCA’s culture and employee experience by providing valuable insights to the Executive Leadership Team. In 2025, we welcomed a new cohort of EET members and thanked outgoing members for their meaningful contributions. 

The EET helps interpret input gathered through our feedback-to-action channels and offers recommendations on initiatives that enhance the Employee experience. Last year, the team contributed to priorities such as identifying topics Employees most want to hear about through internal communications; providing input into upcoming Employee Engagement Survey questions; and helping define what a positive and meaningful Employee experience looks like at DUCA. 

The EET’s partnership continues to deepen our understanding of what matters to Employees, and ensures these perspectives remain central to organizational decision making. 

Training & Development  

In 2025, we continued building on DUCA’s Retail Onboarding Program, launched in 2024 by our Learning Team in partnership with Branch and Member Connect teams. Today, new retail Employees participate in a two-week, in person onboarding experience designed to equip them with the knowledge, skills, and confidence needed to effectively support our Members. 

Beyond onboarding, we have expanded and centralized our portfolio of training programs. A more systematic approach to identifying organizational learning needs now guides how we design and sequence training, ensuring Employees are set up to deliver exceptional service. 

Our Values remain the foundation of our culture. Last year, we introduced workshops to deepen understanding and application of Our Values across DUCA. These sessions, which are being delivered department by department, help Employees integrate these principles into their daily work and serve to further strengthen DUCA’s culture. 

Office Move  

In 2025, we announced plans to move our head office in 2026. Preparations are underway, and we are excited to offer Employees improved amenities including more spaces for collaboration and connection, proximity to major transit hubs, and better access to local shops and services. 

Hybrid Model  

We also announced that in 2026, head office Employees will transition to an updated hybrid work model. This evolution is in service of our high-touch, high-tech, high-trust service provider mission. Increasing in-person collaboration strengthens the high touch element of that mission. It fosters deeper connections, builds trust, reinforces Our Values, and creates a stronger sense of belonging across teams. The updated hybrid model also helps us operate as one united DUCA, aligning in office expectations across Member facing and non-Member facing roles while maintaining flexibility where possible. 

Being more present in the communities we serve also supports Our Purpose: helping people, businesses, and communities do more, be more, and achieve more. 

DUCA Impact Lab

Since 2018, the DUCA Impact Lab (DIL) has been a driving force in advancing fair, inclusive financial services in Canada. Through both the DUCA Impact Lab Social Finance Corp (SFC) – a non-profit founded by DUCA Financial Services Credit Union – and the registered charity DUCA Impact Lab, DUCA is committed to “Building Banking that Benefits All.” Together, these entities research, test, and scale innovative lending solutions designed to reduce financial vulnerability, expand equitable access to banking, and measure the social value created through more inclusive financial models. This ongoing work illustrates DUCA’s commitment to making purposeful progress – ensuring that growth, innovation, and Community impact advance together. To date, more than $1.8 million in impact financing has been delivered through this work. 

Expanding Our Foundation for Growth 

2025 marked a foundational year for the next major stage of the DIL’s work: the significant expansion of the Escalator Loan program. Efforts were focused on building the systems, tools, and infrastructure required to support a larger national loan portfolio. This included implementing a dedicated loan management system, launching an impact data platform, and streamlining the loan application process to improve speed and accessibility. 

A Growing Network of Partners 

In 2025, the DIL expanded its Innovation Hub with the addition of Vancity (Vancouver City Savings Credit Union) and Coast Capital Savings Federal Credit Union. Their involvement builds on the existing collaboration with Kindred Credit Union, Your Neighbourhood Credit Union, and DUCA, all united in advancing fair and accessible financial solutions for Canadians facing financial pressure. With two of the country’s largest credit unions joining the effort, the Innovation Hub now operates with wider national presence, deeper collective expertise, and a stronger platform to grow the program’s reach and impact.  

Escalator Loan Program: A Lifeline for Financially Vulnerable Canadians 

The Escalator Loan program continues to provide fair, affordable alternatives for individuals trapped in cycles of high-cost or predatory debt. In 2025, the program achieved its strongest lending year to date, refinancing over $226,000 in predatory loans. Since The Escalator Loan’s launch in 2019, the program has refinanced nearly $1 million of high cost debt, helping more than 130 individuals access a sustainable pathway out of financial hardship. 

By pooling funding and expertise across a growing network of credit union partners, the program has been able to reach more communities and deliver deeper, longer-lasting financial support. 

Environmental, Social & Governance (ESG) and DUCA’s Profits with a Purpose

In 2025, DUCA achieved one of its most significant ESG milestones to date: recertification as a B Corporation under B Lab’s updated and more rigorous Standards Framework. As the first Credit Union in Canada to earn B Corp certification back in 2015, maintaining this status under heightened requirements reinforces DUCA’s longstanding commitment to transparency, accountability, and social purpose in financial services.

Despite tougher criteria in the new standards, DUCA retained its strong B Impact Assessment score of 102.0 – well above the certification threshold of 80 and roughly double the global median of 50.9. This score reflects meaningful performance across all five measured impact areas: Governance, Workers, Community, Environment, and Customers.

A few examples of what contributes to this score include DUCA’s cooperative governance model; strong Employee wellbeing practices; Community initiatives such as the DUCA Impact Lab, which works to reduce financial vulnerability and provide alternatives to predatory lending; and responsible operational practices that keep DUCA’s environmental footprint low. Together, these actions demonstrate how our Credit Union consistently embeds purpose and positive impact into our business.

By meeting these strengthened standards, DUCA reaffirms its belief that financial success and Community impact are not competing priorities. They are the foundation of Profits with a Purpose – a model that supports sustainable growth, equitable financial access, and responsible business practices that create lasting value for Members and the Communities we serve.

DUCA Leadership Team

Executive Leadership Team
Board of Directors
View Director Compensation 2025

Financial Snapshot

    2021 2022 2023 2024 2025
Key Financial Results and Metrics ($ in thousands)
DUCA Net Income $25,702 $16,321 $17,331 $2,440 $10,632
ROE¹ 7.4% 4.4% 4.8% 0.7% 3.0%
Efficiency Ratio 67.9% 81.8% 79.2% 91.2% 82.1%
Leverage Ratio 6.8% 6.3% 5.8% 5.7% 6.0%
Risk Weighted Ratio 14.2% 13.0% 12.0% 12.0% 12.9%
Balance Sheet Performance ($ in millions)
Assets $5,522 $6,936 $7,672 $7,480 $7,249
Loans $4,848 $6,411 $6,929 $6,565 $6,231
Deposits $4,555 $5,596 $5,963 $6,236 $6,041
Securitization Debt $468 $436 $824 $771 $722
Regulatory Capital $374 $443 $447 $435 $438
Earnings Performance ($ in thousands)
Net Interest Income $84,294 $76,949 $53,516 $56,921 $72,464
Fee and other income $14,412 $28,143 $57,953 $39,441 $49,403
Provision (Recovery) of Credit Losses $37 $(927) $1,448 $5,808 $8,215
Operating Expenses $67,012 $85,974 $88,296 $87,879 $100,061
Pre-tax income before patronage $31,657 $20,045 $21,725 $2,675 $13,591

1 Computed using net income before patronage and other comprehensive income

Download Financial Statements PDF

Corporate Governance

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DUCA’s Approach to Governance

DUCA operates within the context of a robust legislative and regulatory framework.  Our corporate governance policies and practices are consistent with requirements of the Credit Unions and Caisses Populaires Act – 2020 (CUCPA-2020, the Act), related authority rules and guidance including (not limited to) the Sound Business and Financial Practices Rule, the Capital Adequacy Rule and Liquidity Adequacy Rule.  DUCA is regulated by the Financial Services Regulatory Authority of Ontario (FSRA) which oversees market conduct, administers and enforces authority rules of the Act, regulations and guidance, and administers deposit insurance through the Deposit Insurance Reserve Fund (DIRF) for deposits held at Ontario Credit Unions and Caisse Populaires up to prescribed limits.  Within this context, the Board of Directors (the Board) approach to corporate governance is informed by the following guiding principles: 

Values & purpose driven: The Board reinforces and champions the Credit Union’s organizational Values acting in a fashion that demonstrates trust, integrity and good governance. The Board’s governance and oversight ultimately supports the realization of DUCA’s purpose - to help Members and Communities Do More, Be More and Achieve More.  Values and purpose alignment enables the delivery of optimal and sustainable outcomes for Members, Employees, Communities and Stakeholders. 

Stewardship: We act in the best interests of our Members, the Credit Union and our stakeholders.  We do this by following sound business and governance practices in our policy and procedure frameworks and fostering an environment of integrity.  We exercise independent, sound, and unbiased judgement in our oversight and the constructive challenge, and support of management.   

Strategic clarity:  The Board ensures DUCA has a clear and focused strategy supported by business priorities, goals, initiatives, and the financial and human capital resources necessary to successfully achieve its vision and fulfill its purpose.  

Effective oversight: The Board ensures its effective oversight of the risk profile of the Credit Union relative to its risk appetite, through enterprise risk and compliance management frameworks, policies and procedures.  The Board also reviews and monitors DUCA’s enterprise-wide operational, business, and strategic risks and compliance status as well as its financial performance. Our oversight ensures DUCA operates within its risk appetite and in a fashion that results in an appropriate balance of return for risks.   

Improvement mindset: We are committed to continually improving governance and oversight principles, policies and practices.  An improvement mindset helps the Board serve the best interests of Members and all stakeholders in the context of evolving Member and Community needs as well as dynamic operational, technological, regulatory, competitive, and economic environments.   We enable improvements through regular evaluations of Board effectiveness, seeking third-party advice, and ongoing education and training of Directors of the Board. 

Overview of DUCA's Board of Director Committee Structure

Board of Directors

Audit Committee

Standing committee of the Board to which the Board had delegated responsibility for overseeing DUCA’s financial reporting, control environment, and compliance.

The role of the Committee is the oversee and assess the:

  1. Integrity of the financial reporting process and financial statements;
  2. Adequacy of the internal and external audit functions;
  3. Adequacy and effectiveness of the risk management process;
  4. Compliance with legal and regulatory requirements;
  5. External auditor’s qualifications and independence;
  6. Performance of the external auditors; and
  7. Performance of the internal audit function.

Nominations Committee

Standing committee of the Board to which the Board has delegated responsibility for overseeing the Director nomination and election process. The primary role of the Committee is to source, recruit, and oversee the election of Directors to the Board who meet the qualifications for the role and who will address any competency gaps identified in the Board Competency Matrix (as developed by the Governance Committee).

Governance Committee

Standing committee of the Board to which the Board had delegated responsibility for overseeing the quality and effectiveness of DUCA’s corporate governance. The primary role of the Committee is to ensure that the Board of Director provides for effective governance with respect to the Board composition, competency and oversight, as well as monitoring current, and evolving governance best practices.

Human Resources and Compensation Committee

Standing committee of the Board to which the Board has delegated responsibility for overseeing DUCA’s human resources policies. The role of the Committee is to oversee and assess the compensation of the CEO and members of the Executive Leadership Team and to manage the process of evaluating the CEO.

Risk Committee

Standing committee of the Board to which the Board has delegated responsibility for overseeing the effective operation of all risk-taking operations and risk management functions of the Credit Union and ensuring appropriate risk governance processes are executed effectively. The Committee shall review the risk activities of the Credit Union, the associated corporate policies and any significant emerging events and related action plans and shall recommend any improvements or changes to the Board as deemed necessary or desirable.

Board Transaction Committee

The primary role and objective of the Board Transaction Committee is to review and evaluate management proposals and recommendations regarding material merger/acquisition, joint venture, and strategic partnership transactions for recommendation to the Board.

The Board’s Approach to Diversity, Equity, and Inclusion

DUCA’s Board recognizes that diversity is important in ensuring its Directors possess the qualities, attributes, skills, education, and experience required to effectively steward and oversee the strategic direction and management of DUCA. The Board recognizes the benefits of diversity, equity, and inclusion toward attracting high-caliber Directors and maintaining a high functioning Board. Diversity, equity, and inclusion enables diversity of thought, as such the Board considers diversity as an important factor in the optimum composition of the Board and its Committees.  

Board Gender Diversity and Tenure

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Executive Team Diversity

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BIPOC: An acronym for Black, Indigenous, and People of Colour, used to collectively refer to individuals from diverse racial and ethnic communities.  

 

Number and Percentage of Women in Executive Officer Positions, 2025

Source: www.osler.com/wp-content/uploads/2025/10/Diversity-Disclosure-2025.pdf

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Number and Percentage

 of Women on Executive Teams by Sector, 2025

Source: www.osler.com/wp-content/uploads/2025/10/Diversity-Disclosure-2025.pdf

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BIPOC Representation on Executive Teams, 2025

Source: www.osler.com/wp-content/uploads/2025/10/Diversity-Disclosure-2025.pdf

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Environmental, Social and Governance (ESG)

DUCA’s purpose is to help People, Businesses and Communities Do More, Be More and Achieve More. Underpinning this purpose is the philosophy and belief that cooperative banking can be a powerful force for social good. This means our approach to ESG is informed by and integral to DUCA’s purpose and mission as a Credit Union. Our focus is also shaped by the priorities of the social and environmental landscape in which we operate including climate change, matters of diversity, equity and inclusion and the financial well-being of the Communities we serve. Going forward DUCA will progressively build on our ESG strengths through further refinement and amplification of goals, initiatives and measurements and a governance framework that continues to evolve and support DUCA’s environmental and social impact.  

Subsidiary Governance

The Board provides oversight to DUCA subsidiaries at an enterprise level in accordance with DUCA’s Enterprise Risk Management policy requirements for subsidiary governance which comply with the FSRA Sound Business and Financial Practices Rule.  DUCA’s subsidiary governance policy and framework enables the Board’s oversight through defined procedures and practices along with mechanisms for informing the Board of subsidiary level risks, compliance and governance matters as well as reporting on the subsidiary’s business and financial performance.

Remuneration of Directors

DUCA’s Board of Director remuneration is in accordance with its Member approved bylaws and Director Compensation and Expenses policy which adheres to FSRA’s Sound Business and Financial Practices Rule. The Board’s philosophy and approach to Director remuneration recognizes the importance of sound corporate governance as a key ingredient to corporate success. As such, it is important that DUCA’s remuneration for Directors is commensurate, fair and reasonable when compared to organizations of similar size, complexity and risk profile within the Credit Union sector. Accordingly, DUCA’s Board of Directors are remunerated at approximately the 50th percentile of Director remuneration for comparable organizations, with due consideration given to the required skills, education, experience, and commitment given DUCA’s nature, size, complexity, operations, and risk profile. The Governance Committee of the Board reviews Director remuneration at least every three years.

Components of Directors remuneration

CEO & Senior Management Remuneration

The Human Resources and Compensation Committee (HRCC) of the Board governs and oversees the remuneration programs of the CEO, senior management, and employees of the Credit Union. The Board and the HRCC ensure that remuneration programs of the Credit Union adhere to the fair and reasonable remuneration requirements codified in FSRA’s Sound Business and Financial Practices Rule. DUCA applies its remuneration philosophy and approach recognizing that it is our people that power DUCA’s ability to fulfill its purpose and achieve its corporate aspirations. On this basis, and within the context of its governance and regulatory frameworks, DUCA’s remuneration programs for the CEO, senior management and all employees of the Credit Union are in accordance with the following principles:

Equity, fairness, and alignment with DUCA’s purpose: DUCA’s employee remuneration is aimed at ensuring remuneration is commensurate, fair, and equitable for established roles within the organization as defined by job scope, complexity, job demands, required qualifications and skills, and organizational impact. We strive to appropriately pay for performance through the evaluation of person-by-person performance level against annually established objectives. We seek to ensure all employees are compensated in a fashion that aligns with DUCA’s business and social purpose and philosophy.

Market competitiveness: Employee remuneration is geared to attract and retain the talent necessary to enable DUCA’s ongoing strategic success and to support sustainable talent development and organization succession planning. Accordingly, DUCA’s employee remuneration takes into account market pay for similar or equivalent roles at comparable organizations taken from the Credit Union and financial services sectors.

Alignment to corporate goals and objectives: Remuneration frameworks are designed to support and encourage strong performance and commitment to the Credit Union and incentivize activity that achieves DUCA’s organizational goals, objectives and sound business and financial practices. Ultimately, this alignment enables delivering the best possible outcomes for Members and our stakeholders.

Base salary, fixed remuneration

Base salary: Consistent with DUCA’s remuneration philosophy and approach, base salary takes into consideration market factors including pay competitiveness as well as factors such as complexity, required qualifications and skills, demands of the role and organizational impact. Salary is reviewed annually and adjusted as appropriate, with a comprehensive market-based review performed at least every three years.

Variable, at-risk remuneration: DUCA’s variable compensation for the CEO and Senior Management comprises a short-term incentive plan (STIP) and long-term incentive plan (LTIP). Both plans are paid contingently upon the degree of achievement against Board approved business performance targets.

Short-term incentive plan (STIP): DUCA’s STIP links compensation to the achievement of annual performance objectives. The plan has two components:

  • Personal performance based on an evaluation of delivery against annually established performance objectives at the individual level.
  • Business performance, which is based on specific, board approved business performance targets linked to DUCA’s Annual Operating Plan (AOP).

The level of personal and business performance in a fiscal year relative to personal objectives and business performance targets determines the total amount of STIP paid. An illustration of the STIP payment formula for eligible employees is as follows: STIP = 1. bonus eligible earnings x 2. target bonus % based on job grade x 3. business performance result (ranging from a minimum of 0% to a maximum of 125%) x 4. personal performance result tied to achievement of individual objectives (ranging from a minimum of 0% to a maximum of 150%). The STIP is applicable to all eligible employees at DUCA. STIP payable for the CEO and oversight roles of Chief Risk Officer and Chief Financial Officer, is subject to an additional regulatory compliance factor which ranges from a min of 0% to a max of 100%.

The annually approved business performance target component of the STIP covers four dimensions of business performance: profitability, Member satisfaction, business diversification, and business growth.

Long-term incentive plan (LTIP): DUCA’s LTIP is established and approved by the Board annually and links compensation of the CEO and eligible members of senior management to the achievement of longer-term strategic objectives. LTIP is paid at the end of a three-year performance period contingent upon the achievement of three-year forward looking business performance outcomes relative to Board approved performance targets as per DUCA’s three-year strategic plan. The LTIP is based upon a target percentage of base salary for each of the CEO and eligible members of senior management determined by job grade. An illustration of the LTIP payment formula is as follows: LTIP payable at the end of a three-year performance cycle = 1. Base salary x 2. LTIP target award for a specific job grade x 3. Business performance outcomes relative to three-year forward looking business performance targets (ranging from a min of 0% to a max of 125%).

The annually approved, three-year forward looking LTIP business performance targets cover dimensions of business performance such as: return on risk weighted assets, assets under management (AUM), and capital ratio at the end of a performance cycle.

Proportion of CEO remuneration at-risk: The combination of CEO base salary, LTIP and STIP which are contingent upon meeting performance objectives, results in approximately 50% of the CEO’s total remuneration being “at-risk”.

Other Benefits

Retirement benefits: A defined contribution pension plan is available for all eligible employees at DUCA. The degree of employer contribution and/or employer matching is determined based on job grade and applicable base salary. DUCA contributes 10% of base salary towards the CEO’s retirement savings.

Benefits and perquisites: DUCA provides a market competitive benefits program to all eligible employees covering health, dental, disability, life and accidental death and dismemberment insurance as well as market competitive vacation leave, employee and family assistance and personal leaves. The CEO, eligible members of senior management and vice presidents of DUCA also have access to additional health benefits including an annual health assessment and year-round care for urgent medical attention. The CEO is provided an allowance for expenses such as vehicle and commutation costs.

Details of the annual remuneration for the CEO and top remunerated members of senior management are available in the disclosures included in DUCA’s annual audited financial statements.