Central 1 Credit Union

Central 1 Credit Union

April 19, 2010 09:30 ET

B.C. Credit Union Earnings Rise 6.2 Per Cent to Record $294 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 19, 2010) - B.C. credit unions collectively earned a record $294 million before dividends and taxes last year, topping the previous high mark of $277 million set in 2008 by 6.2 per cent.

Earnings growth resulted from improved operating efficiency, lower loan loss expense and higher income from subsidiaries. 

Total assets increased by 6.5 per cent to $48.4 billion at year-end.

"In the face of difficult economic conditions, B.C. credit unions continued to perform well, while operating prudently," said Don Rolfe, president and chief executive officer of Central 1 Credit Union, which serves as the central financial facility and trade association for the B.C. credit union system. "Credit unions met their members' growing demand for home mortgage loans, while attracting a strong increase in deposits."

Residential mortgage loans, which form two-thirds of the total loan portfolio, rose by 4.7 per cent to $26.6 billion as housing markets remained active. Loans to businesses declined slightly, slipping by 1.5 per cent to $10.1 billion.

In a recessionary economy, loan delinquency increased, but remained at manageable levels by historical standards, with loans in arrears by more than 90 days amounting to 0.74 per cent of total loan value at year-end, compared with 0.41 per cent in 2008. Loan losses fell by 16 per cent, however, to $54.2 million.

Deposit growth was robust as investors sought alternatives to the equity markets, and was boosted by unlimited deposit insurance coverage of all deposits and non-equity shares in B.C. credit unions, introduced late in 2008. Members' deposits stood at $42.8 billion at year-end, up 8.5 per cent from 2008.

Membership in B.C. credit unions rose by 1.1 per cent to 1.7 million at year-end. Members received a total of $38.5 million in dividends and patronage rebates.

As the system's central financial facility, Central 1 also had a record year, with net income of $99.9 million. Assets grew by 29 per cent to $11.1 billion. The year's strong results enabled Central 1 to pay an extraordinary dividend of 10 per cent to its member credit unions, on top of a regular dividend of two per cent.

About B.C. Credit Unions

B.C. has 45 independent credit unions, which collectively operate 368 branches and a network of 533 automated teller machines. Credit unions serve more than 140 communities throughout the province, including 42 that have no other financial institution. The credit union system employs more than 8,000 British Columbians.

Contact Information

  • Central 1 Credit Union
    Ian Smith
    Manager, External Communications
    604-730-6348 or 1-800-661-6813, ext. 6348