VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwire - Aug. 29, 2012) - Central 1 Credit Union (Central 1) posted a profit of $4.0 million for the three months ended June 30, 2012, down from $9.7 million in the same quarter in 2011, it announced today.
For the first six months of 2012, Central 1 had a profit of $35 million, up from $28 million a year ago. Interest margin for the six-month period decreased to $21.3 million from $27.4 million last year, reflecting lower yields.
Financial markets remained volatile during the quarter as investor appetite for risk waned due to continuing concerns about Europe and disappointing economic data pointing to a global economic slowdown.
Central 1 had realized gains of $22.3 million and unrealized losses of $27.1 million in the second quarter, resulting in a net loss of $4.8 million, compared to net gains of $2.6 million in the same period last year. Interest margin for the quarter was $10.1 million, down from $14.6 million in the second quarter of 2011.
Highlights, compared to the second quarter in 2011, include:
- Profit was $4.0 million, down from $9.7 million.
- Return on equity of 2.1%, down from 6.3%.
- Assets of $14.6 billion, down 2.7% from $15.0 billion.
- Operating expenses decreased by $3.1 million to $27.6 million.
Central 1's capital ratios remain well within statutory limits. Its borrowing multiple for federal capital adequacy purposes was 14.7:1, while the percentage of regulatory risk capital to risk-weighted assets for provincial capital adequacy purposes was 35.4 per cent.
Central 1's Second Quarter 2012 Report has been filed with SEDAR at www.sedar.com.
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 $83.7 billion in assets and is owned primarily by its member credit unions: 45 in B.C. and 104 in Ontario.
With offices in Vancouver, Mississauga, and Toronto, Central 1 provides a wide range of services such as liquidity management, direct banking, and payment service solutions. For more information, visit www.central1.com.