Central 1 Credit Union

Central 1 Credit Union

March 18, 2011 06:00 ET

Central 1 Credit Union Posts $50.1 Million in Net Income

VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwire - March 18, 2011) - Central 1 Credit Union posted net income of $50.1 million for the year ended December 31, 2010. The central financial facility and trade association for the B.C. and Ontario credit union systems announced its 2010 financial results today.

Net income was down from the extraordinary level of $99.9 million in 2009, but ahead of the $26.6 million posted in 2008, when the credit union centrals of B.C. and Ontario combined at mid-year.

"Against a backdrop of volatile financial markets and a challenging economic environment, Central 1 performed well last year," said Don Rolfe, president and chief executive officer. "In 2009, we were able to take advantage of highly unusual conditions in the financial markets and make conservative investments that produced very strong results, but we had no expectation of matching that exceptional performance in 2010."

Rolfe said gains on the sale of financial instruments and revenue from provision of services contributed to the positive results for 2010. Another factor was equity income from Central 1's investment at the end of 2009 in The CUMIS Group, a provider of insurance services to credit unions and their members.

Other highlights:

  • Total assets at year-end were $10.4 billion, compared with $11.1 billion in 2009 and $8.6 billion in 2008.
  • Return on average equity was 8.9 per cent, compared with 19.6 per cent in 2009 and 7.7 per cent in 2008.
  • Central 1 paid $9.6 million in dividends to its member shareholders.
  • After taxes and dividends, $42 million was transferred to retained earnings, which amounted to $304 million at year-end. Central 1 is very well capitalized, with a regulatory capital base of $615 million and a ratio of regulatory capital to risk-weighted assets of 36.8 per cent.

Central 1's 2010 Consolidated Financial Statements and Management's Discussion & Analysis have been filed with SEDAR at www.sedar.com.

Central 1

Central 1 provides liquidity management, payments, Internet banking and trade association services to member credit unions in B.C. and Ontario, and banking and transaction services to customers in the corporate and public sectors. For more information, visit www.central1.com.

Contact Information

  • Central 1 Credit Union- Media
    Art Chamberlain
    Media Relations Manager (Toronto)
    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
    Dirk Haack
    Associate Vice-President, Funding Services
    604.737.5007 or 1.800.661.6813, ext. 5007