Central 1 Credit Union

Central 1 Credit Union

April 14, 2011 07:00 ET

B.C. Credit Union Earnings Jump Nearly 30 Per Cent to Record $380 Million, Central 1 Announces

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 14, 2011) - Earnings of B.C. credit unions rose 29.6 per cent last year to reach a record $380.4 million before taxes and dividends, Central 1 Credit Union announced today. This tops the previous record of $293.6 million posted in 2009.

Total assets at year-end amounted to $49.4 billion, a gain of 2.1 per cent or $1 billion.

"As the B.C. economy improved during the year, credit unions successfully met their members' demand for loans and other financial services," said Don Rolfe, Central 1's president and chief executive officer. "Credit unions saw steady loan growth in 2010, which they financed mainly through increased deposits by members."

Higher financial margin, largely due to loan growth of 6.1 per cent and favourable interest rate spreads, was a key factor driving the improvement in margins. Higher income from subsidiaries, such as insurance agencies, also boosted financial margin.

Asset growth was concentrated in residential mortgage loans, which rose $2.1 billion or 8.1 per cent to $28.7 billion. Home mortgage loans accounted for 69.2 per cent of the system's loan portfolio.

Loans to small and medium-sized businesses, representing 24.5 percent of the portfolio, were up by 3.4 per cent to $10.2 billion.

The total loan portfolio amounted to $41.5 billion at year-end.

Members' deposits reached $44.1 billion, up 4 per cent or $1.7 billion.

The 90-day loan delinquency rate rose slightly to 0.83 per cent of the total portfolio value at year-end, up from 0.74 per cent in 2009, remaining well within manageable levels by historical standards.

B.C. credit union membership stood at 1.72 million at year-end, for a net gain of 24,790 members from 2009. Members received a total of $42.6 million in dividends and patronage rebates.

Financial information in this release is preliminary and unaudited and is based on reports by B.C. credit unions to the Financial Institutions Commission of British Columbia (FICOM).

Central 1 also announced today the 2010 financial results of its member credit unions in Ontario, in a separate release available at http://www.central1.com.

About B.C. Credit Unions

B.C. has 45 independent credit unions, which collectively operate 370 branches and a network of 555 automated teller machines. Credit unions serve 140 communities throughout the province, including 42 that have no other financial institution. The credit union system employs more than 8,000 British Columbians.

About Central 1

Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Central 1 represents a consumer-oriented, full-service retail financial system that serves 2.9 million members and holds $70 billion in assets and is owned primarily by its member credit unions, 45 in B.C. and 119 in Ontario.

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

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