Central 1 Credit Union

Central 1 Credit Union

November 22, 2011 12:00 ET

Central 1 Credit Union Reports Profit of $1.3 Million for First Nine Months of 2011

VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO--(Marketwire - Nov. 22, 2011) - Central 1 Credit Union (Central 1) has reported profit of $1.3 million in the first nine months of 2011, compared with $25.4 million in the same period last year.

The year-to-date decline in profit reflects a highly volatile third quarter in financial markets, which resulted in a decline in the fair value of financial instruments held by Central 1. On a year-to-date basis, improved performance in both non-financial income and operating expense was outstripped by a $ 31.7 million decrease in realized gains and unrealized losses on financial instruments from the prior year.

"Market turbulence was pronounced throughout the third quarter, reflecting the intensification of the European sovereign debt crisis," said Don Rolfe, Central 1's president and chief executive officer. "While this resulted in a temporary decrease in the fair value of financial instruments held by Central 1, the overall credit quality of the investment portfolio remains high. The majority of Central 1's investments are in Canadian government debt and senior bank debt, most of which we expect to hold to maturity."

Rolfe noted that Central 1 does not hold any European sovereign debt.

For the first nine months:

  • Central 1's return on equity was 0.3 per cent, compared with 5.9 per cent a year earlier.
  • Assets grew by 10.5 per cent year-over-year, standing at $14.7 billion as at September 30, compared with $13.3 billion a year earlier.

Central 1's regulatory capital remained well within requirements, with a ratio of regulatory capital to risk-weighted assets of 31.2 per cent and a borrowing multiple of 17.0 to 1, as of September 30.

Effective January 1, 2011, Central 1 adopted International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. Previously, Central 1 had prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP). Information for 2010 previously reported under GAAP has been restated according to IFRS for comparative purposes.

Central 1's Third Quarter 2011 Report, including Management's Discussion and Analysis, has been filed with SEDAR at www.sedar.com and is also available at www.central1.com/financials/quarterlyreport.html.

About Central 1

Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems, providing liquidity management, payments, Internet banking and trade association services to member credit unions, 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 (Toronto) - Media
    Art Chamberlain
    Media Relations Manager
    905-282-8534 or 1-800-661-6813, ext. 8534

    Central 1 Credit Union (Vancouver) - Media
    Ian Smith
    External Communications Manager
    604-730-6348 or 1-800-661-6813, ext. 6348

    Central 1 Credit Union - Investors
    Charles Milne
    Chief Investment Officer
    604-730-6307 or 1-800-661-6813, ext. 6307