Central 1 Credit Union

Central 1 Credit Union

April 20, 2009 09:00 ET

Central 1 Credit Union: B.C. Credit Union System Posts Record Earnings in 2008

VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2009) - B.C. credit unions collectively earned a record $284 million before dividends and taxes last year, Central 1 Credit Union announced today.

That's an increase of 10.5 per cent from the $257 million posted in 2007, and tops the previous high mark of $265 million recorded in 2005.

Earnings reflected a strong gain in operating efficiency, which saw financial margin increase on the basis of robust asset growth. Total assets increased by 6.8 per cent to $45.5 billion, led by a $1.2 billion rise in cash and liquid investments.

"B.C. credit unions performed well in a year rocked by turbulence in global financial markets," said Don Rolfe, president and chief executive officer of Central 1, which serves as the central financial facility and trade association for the B.C. credit union system. "Despite tighter conditions in the marketplace, credit unions were able to meet members' demand for loans, whether for home mortgages or business purposes."

Residential mortgage loans, which form two-thirds of the total loan portfolio, rose by 1.8 per cent to $25.4 billion. Loans to businesses increased 10.3 per cent to nearly $10.3 billion.

Loan delinquency inched up slightly, but remained at very low levels by historical standards, with loans in arrears more than 90 days amounting to 0.41 per cent of total loan value, compared with the record low of 0.21 per cent seen in 2007.

The B.C. system's pooled liquidity and capital adequacy ratios remain well above
regulatory requirements. Retained earnings and equity shares, which are the main sources of capital for credit unions, increased by 9.2 per cent to nearly $2.5 billion.

The year saw the B.C. government introducing unlimited deposit insurance coverage of all deposits and non-equity shares in B.C. credit unions, as of October 22. Members' deposits stood at $38.9 billion at year-end, up 7.3 per cent from 2007.

Membership in B.C. credit unions rose by 3.2 per cent to 1.68 million at year-end. Members received a total of $41.8 million in dividends and patronage rebates.

B.C. has 47 independent credit unions, which collectively operate 373 branches and a network of 532 automated teller machines. Credit unions serve more than 140 communities throughout the province, including 41 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