Central 1 Credit Union Posts Third Quarter Profit of $10.6 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 28, 2014) - Central 1 Credit Union (Central 1) announced today it posted a third quarter profit of $10.6 million for the period ended September 30, 2014, up from $8.6 million recorded in the same period last year.

During the quarter, Central 1 recorded realized gains of $9.9 million and unrealized losses of $2.7 million, resulting in a net gain of $7.2 million, compared to a net gain of $6.0 million the previous year.

Interest margin for the quarter was $7.9 million, up from $7.3 million in the same period last year. The overall liquidity of Central 1's investment holdings has improved over the past year as Central 1 transitions its holdings to voluntarily meet OSFI's Liquidity Adequacy Requirements. This transition has resulted in Central 1 holding a larger proportion of government-issued securities than it held a year ago.

Third quarter highlights, compared to the same period last year, include:

• Net financial income was $15.2 million, compared to $13.3 million.
• Return on equity was 4.6 per cent, compared to 4.0 per cent.
• Assets at the end of the quarter were $12.9 billion, up from $12.4 billion.
• Other income was $28.0 million, an increase of $2.3 million.

Central 1's capital ratios remain strong and well within statutory limits. At the end of the quarter, Central 1's borrowing multiple for federal capital adequacy purposes was 10.5:1, while its percentage of regulatory capital to risk-weighted assets for provincial capital adequacy purposes was at 71.0 per cent.

B.C. and Ontario credit union systems

At the end of the third quarter, assets of the B.C. system were $61.0 billion, up from $58.6 billion a year ago.

Aggregate net loans increased 3.9 per cent year-over-year to reach $52.3 billion. Deposits increased 4.7 per cent to $54.5 billion. Asset growth was mainly in personal and commercial mortgages, which grew 2.2 per cent and 6.9 per cent, respectively.

Assets of the Ontario credit unions that are members of Central 1 were $35.2 billion, up from $32.4 billion last year. Asset growth was mainly in residential mortgages, which grew 11.7 per cent from a year ago, and in commercial mortgages and loans, which increased 9.0 per cent.

Central 1's Third Quarter 2014 Report has been filed with SEDAR and is posted on www.sedar.com and on www.central1.com.

About Central 1

Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Owned primarily by its member credit unions, 43 in B.C. and 86 in Ontario, Central 1 represents a consumer-oriented, full-service retail financial system that serves 3.3 million members and collectively holds more than $97 billion in assets.

With offices in Vancouver, Mississauga and Toronto, Central 1 provides liquidity management, direct banking and payment service solutions as well as a wide range of trade services. For more information, visit www.central1.com.