Central 1 Credit Union

Central 1 Credit Union

May 28, 2013 13:18 ET

Central 1 Credit Union Posts $20.0 Million Profit for First Quarter of 2013, Down from $31.0 Million in 2012

VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwired - May 28, 2013) - Central 1 Credit Union (Central 1) announced today it posted a profit of $20.0 million in the first quarter of 2013, compared to $31.0 million in the same period last year, a decrease of 35 per cent.

Central 1 recorded net financial income of $27.9 million during the first quarter, compared to $40.1 million in an exceptionally strong first quarter last year.

Central 1 realized gains of $5.6 million and had unrealized gains of $14.5 million in the first quarter, resulting in a net gain of $20.1 million, compared to net gains of $29.0 million for the previous year.

Interest margin for the quarter was $7.8 million, down from $11.1 million a year earlier. During the past year, average yields on both Central 1's assets and its liabilities have declined, reflecting the continuing low interest rate environment. Yields on Central 1's investment portfolio have declined more sharply than deposit yields, reflecting lower levels of risk within the securities portfolio.

Key first-quarter results, compared to the same period last year include:

  • Profit of $20.0 million, compared to $31.0 million
  • Return on equity of 9.9 per cent, compared to 16.7 per cent
  • Assets of $14.2 billion, down 2.1 per cent from $14.5 billion

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 13.8:1, an improvement from 14.4:1 at December 31, 2012. The percentage of regulatory capital to risk-weighted assets for provincial capital adequacy purposes was 39.9 per cent for the quarter, compared to 38.9 per cent at year end.

B.C. and Ontario credit union systems

Assets of the B.C. system totalled $57.4 billion at the end of the first quarter, up 5.9 per cent from $54.2 billion a year ago.

Asset growth for the Ontario system was strong with assets of Central 1's Ontario members totalling $31.3 billion for the quarter, up 13.8 per cent year-over-year. Approximately $1.9 billion of the increase in assets was attributable to the addition of two new Class "A" members in 2012.

Central 1's First Quarter 2013 Report has been filed with SEDAR and is posted on www.central1.com and www.sedar.com.

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 3.2 million members and holds $88.7 billion in assets and is owned primarily by its member credit unions, 44 in B.C. and 96 in Ontario.

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.

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