Central 1 Credit Union

Central 1 Credit Union

March 19, 2010 08:00 ET

Central 1 Credit Union Posts 275 Per Cent Gain in Net Income

VANCOUVER, BRITISH COLUMBIA and MISSISSAUGA, ONTARIO--(Marketwire - March 19, 2010) - Central 1 Credit Union's net income jumped 275 per cent last year to $99.9 million from $26.6 million in 2008.

The central financial facility and trade association for the B.C. and Ontario credit union systems saw its assets rise 29.2 per cent to $11.1 billion at year-end from $8.6 billion in 2008. Asset gains reflected significant growth in the liquidity of Central 1's member credit unions.

Return on equity was 19.6 per cent, compared with 7.7 per cent in 2008.

"In the first full year of combined operation since the B.C. and Ontario credit union centrals merged in mid-2008, Central 1 performed very strongly," said Don Rolfe, president and chief executive officer. "These results were achieved in a climate of market volatility and difficult economic conditions, and I'm pleased the organization responded so well to those challenges."

In managing its conservative investment portfolio, Central 1 took advantage of opportunities arising from an unusual combination of events in the financial markets, including declining interest rates and shrinking credit spreads. This resulted in mark-to-market gains in its holdings of financial instruments, consisting primarily of government and high-grade corporate bonds.

The year's strong results enabled Central 1 to pay an extraordinary dividend of 10 per cent on top of regular dividends of two per cent.

After taxes and dividends, $74 million was transferred to retained earnings, which amounted to $262 million at year-end. Central 1 is very well capitalized, with total capital of $551 million and a ratio of regulatory capital to risk-weighted assets of 34.5 per cent.

Central 1's 2009 Consolidated Financial Statements and Management's Discussion and Analysis are available at www.sedar.com.

About Central 1 Credit Union

Effective June 30, 2008, Credit Union Central of British Columbia changed its name to Central 1 Credit Union (Central 1). On July 1, 2008, Central 1 purchased substantially all of the assets and assumed substantially all of the liabilities of Credit Union Central of Ontario Limited (CUCO). As of that date, Central 1 manages the liquidity reserves of member credit unions in both British Columbia and Ontario. The results of CUCO's operations have been included in the quarterly and annual Consolidated Financial Statements since that date.

Central 1 provides liquidity management, payments, Internet banking and trade association services to member credit unions in B.C. and Ontario, and provides banking and transaction services to corporate customers. 

Contact Information

  • Central 1 Credit Union - Media
    Art Chamberlain
    Media Relations Manager (Mississauga)
    905-282-8534 or 1-800-661-6813, ext. 8534
    Central 1 Credit Union - Media
    Ian Smith
    Manager, External Communications (Vancouver)
    604-730-6348 or 1-800-661-6813, ext. 6348
    Central 1 Credit Union - Investors
    Charles Milne
    Senior Vice-President, Treasury and Funding Services
    604-730-6307 or 1-800-661-6813, ext. 6307