Central 1 Credit Union Reports Second Quarter Profit of $14.7 Million

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 25, 2014) - Central 1 Credit Union (Central 1) announced today it posted a second quarter profit of $14.7 million for the period ended June 30, 2014, down from $19.1 million recorded in the same period last year.

During the quarter, Central 1 had realized losses of $21.3 million and unrealized gains of $33.6 million on financial instruments, resulting in a net gain of $12.3 million, compared to a net gain of $17.9 million the previous year.

Interest margin for the quarter was $6.8 million, down from $7.8 million during the three months ended June 30, 2013. The overall liquidity of Central 1's investment holdings has improved over the past year as Central 1 transitions the holdings to meet OSFI's Liquidity Adequacy Requirements. This transition has resulted in Central 1 holding a larger proportion of government-issued securities than it held a year ago.

Second quarter highlights compared to the same period last year:

• Net financial income was $19.2 million, compared to $25.7 million in 2013.
  
  
• Return on equity was 6.6 per cent, compared to 9.1 per cent.
  
  
• Assets at the end of the quarter were $13.1 billion, essentially unchanged.
  
  
• Other income was $31.2 million, an increase of $2.6 million over the same period last year.
  
  

Central 1's capital ratios remain strong and well within statutory limits. At the end of the quarter, Central 1's borrowing multiple for federal capital adequacy purposes was 10.5:1, while its percentage of regulatory capital to risk-weighted assets for provincial capital adequacy purposes was at 57.4 per cent.

B.C. and Ontario credit union systems

At the end of the second quarter, assets of the B.C. system were $60.5 billion, up 4.0 per cent from $58.2 billion a year ago.

Aggregate net loans increased by 4.2 per cent year-over-year to reach $51.7 billion. Deposits increased 3.6 per cent to $53.5 billion. Asset growth was mainly in personal and commercial mortgages, which grew by 2.7 per cent and 5.9 per cent, respectively. Deposit growth was mainly in non-registered demand deposits, which increased 6.5 per cent.

Assets of the Ontario credit unions that are members of Central 1 were $34.5 billion, up 8.0 per cent from $31.3 billion. Asset growth was mainly in residential mortgages, up by 12.7 per cent from a year ago, and in commercial mortgages and loans, which increased 10.9 per cent.

Central 1's Second Quarter 2014 Report has been filed with SEDAR and is posted on www.sedar.com and on www.central1.com at www.central1.com/sites/default/files/uploads/files/corporate_report/report_file/Jun%2030%202014%20Report%20to%20Members%20V9%20CLEAN.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 88 in Ontario, Central 1 represents a consumer-oriented, full-service retail financial system that serves 3.3 million members and collectively holds more than $95 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.