Central 1 Credit Union

Central 1 Credit Union

November 25, 2013 13:01 ET

Central 1 Credit Union Posts $7.8 Million Profit for Third Quarter of 2013, Down from $25.6 Million in 2012

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 25, 2013) - Central 1 Credit Union (Central 1) announced today it posted a profit of $7.8 million in the third quarter of 2013, compared to $25.6 million in the same period last year.

For the first nine months of 2013, Central 1 reported a profit of $48.3 million, down from $60.6 million in 2012, a year in which Central 1's results were higher than average.

In the third quarter, Central 1 recorded net financial income of $12.4 million, compared to $30.3 million a year earlier.

Central 1 realized losses of $4.5 million on disposal of financial instruments and recorded unrealized gains of $9.6 million on financial instruments in the third quarter, resulting in a net gain of $5.1 million, compared to a net gain of $20.9 million during the same period last year.

Interest margin decreased to $7.3 million from $9.5 million in the third quarter of last year. During the past year, average yields on both Central 1's assets and its liabilities have declined, reflecting the prevailing low interest rate environment. Yields on Central 1's investment portfolio have declined more sharply than deposit yields, reflecting Central 1's lower levels of risk within the securities portfolio.

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

  • Profit for the period of $7.8 million, down from $25.6 million

  • Return on equity of 3.7 per cent, compared to 13.0 per cent

  • Assets of $12.2 billion, down 15.3 per cent from $14.4 billion

Central 1's capital ratios remain strong and well within regulatory limits. At the end of the quarter, Central 1's borrowing multiple was 12.6:1, 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 43.9 per cent for the quarter, compared to 38.9 per cent at December 31, 2012.

B.C. and Ontario credit union systems

Assets of the B.C. system totalled $58.6 billion, up 4.4 per cent from $56.1 billion a year ago.

Assets of Central 1's Ontario members totalled $32.4 billion, up 7.6 per cent from $30.1 billion a year ago.

Central 1's Third 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 collectively serves 3.2 million members and holds $91 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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