Central 1 Credit Union

Central 1 Credit Union

March 04, 2014 09:00 ET

Central 1 Credit Union Posts $68.5 Million Profit for 2013

VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwired - March 4, 2014) - Central 1 Credit Union (Central 1) announced today it has posted a profit of $68.5 million for the year ended December 31, 2013, a decrease of 7.6 per cent from $74.1 million in 2012.

"Central 1 had another outstanding year financially following a particularly strong 2012," said Charles Milne, Central 1's Chief Investment Officer. "Returns on our investment portfolio benefitted again this year from narrowing credit spreads on provincial government, NHA mortgage-backed securities and highly rated corporate debt. Liquidity in the portfolio continues to improve from already strong levels as Central 1 moves towards OSFI's high-quality liquid asset framework."

In 2013, Central 1 reported net financial income of $88.7 million, down $2.8 million from the prior year. Interest margin was $33.3 million, a decrease of $6.6 million from 2012. This decline was partially offset by net changes in the fair value of financial instruments, which increased $3.8 million over last year for a gain of $55.4 million.

Key results for 2013 compared to 2012 include:

  • a profit of $20.1 million was recorded in the fourth quarter, compared to $13.5 million in the same period last year

  • total assets at year-end were $12.2 billion, compared to $14.2 billion in 2012

  • return on average equity was 8.2 per cent, compared to 9.6 per cent in 2012

  • dividends of $14.0 million were declared to member shareholders in 2013, compared to $11.9 million in 2012

Central 1 continues to be well capitalized, with a provincial regulatory capital base of $838.3 million (after deductions) and a ratio of regulatory capital to risk-weighted assets of 47.5 per cent.

B.C. and Ontario credit union systems

Assets of the B.C. system totalled $59.0 billion at the end of 2013, up $1.8 billion or 3.1 per cent from a year earlier. Asset growth was concentrated in personal mortgages, which increased 2.9 per cent to $34.1 billion, and commercial mortgages, which grew 6.2 per cent to $12.4 billion.

Assets of Central 1's member credit unions in Ontario were $33.0 billion at year-end, up 7.4 per cent from 2012. System deposits increased 6.6 percent to $28.0 billion, with deposit growth concentrated in term, demand and registered products.

Central 1's Financial Review 2013 has been filed with SEDAR and is online at http://www.central1.com/sites/default/files/12-31-2013%20C1%20MD%26A%20and%20Cons.%20Financial%20Statements.pdf.

About Central 1

Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Owned primarily by its member credit unions, 43 in B.C. and 90 in Ontario, Central 1 represents a consumer-oriented, full-service retail financial system that serves 3.2 million members and collectively holds $92.0 billion in assets.

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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