Central 1 Credit Union

Central 1 Credit Union

August 27, 2009 06:00 ET

Central 1 Credit Union Posts Record Earnings of $53.2 Million in First Half

VANCOUVER, BRITISH COLUMBIA and MISSISSAUGA, ONTARIO--(Marketwire - Aug. 27, 2009) - Central 1 Credit Union (Central) recorded net income of $53.2 million in the first half of 2009, compared with $12.8 million in the same period last year.

First-half results were driven by strong gains in Central's investment portfolio during the second quarter, particularly in its holdings of federal, provincial and municipal government bonds. The portfolio saw a net mark-to-market increase of $28.9 million in the quarter and a gain of $8.5 million was realized through sales of securities.

"Central took advantage of unusual conditions in the bond markets to make some well-timed investments that resulted in substantial gains as markets moved toward normal over the course of the first half," said Don Rolfe, Central's president and chief executive officer. "This represents a very strong result achieved through investment in conservative financial instruments."

In other highlights for the first half:

- Central posted a return on equity of 23.0 per cent, compared with 9.8 per cent a year earlier.

- Assets increased by 73.7 per cent year-over-year, reaching $9.5 billion as at June 30, compared with $5.5 billion a year earlier, reflecting both the combination of the credit union centrals of British Columbia and Ontario on July 1 last year and significant growth in the liquidity of Central's member credit unions.

Central's First Quarter and Second Quarter 2009 Reports, including 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). On July 1, 2008, Central 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 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 Interim Consolidated Financial Statements since that date.

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

Contact Information

  • Central 1 Credit Union
    Art Chamberlain
    Media Relations Manager (Mississauga)
    905-282-8534 or 1-800-661-6813, ext. 8534