Central 1 Credit Union Posts $20.5 Million Profit for Second Quarter of 2013, Up From $4.0 Million in 2012

VANCOUVER, BC (August 29, 2013) — Central 1 Credit Union (Central 1) announced today it posted a profit of $20.5 million in the second quarter of 2013, compared to $4.0 million in the same period last year.

For the first six months of 2013, Central 1 reported a profit of $40.5 million, up from $35.0 million a year ago.

It was an exceptionally strong second quarter with Central 1 recording net financial income of $27.4 million, compared to $5.4 million a year earlier.

Central 1 realized gains of $19.4 million and had unrealized gains of $0.2 million in the second quarter resulting in a net gain of $19.6 million, compared to a net loss of $4.8 million during the same period last year.

Interest margin decreased from $10.1 million in the second quarter of last year to $7.8 million this quarter. 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 second quarter results, compared to the same period last year, include:

--  Profit for the period of $20.5 million, up from $4.0 million
--  Return on equity of 9.8 per cent, compared to 2.1 per cent
--  Assets of $13.0 billion, down 11 per cent from $14.6 billion reflecting
    lower yields on securities and the reinvestment of assets designated to
    offset obligations under the Canada Mortgage Bond program.
--  Operating expenses increased by $4.1 million; largely based on the
    implementation of enhanced liquidity and funding risk management
    processes and increased costs to provide services to Central 1's
    members. This was in turn offset by increased revenue in a number of
    member services, particularly within technology and payments processing.

Central 1’s capital ratios remain strong and well within statutory limits. At the end of the quarter, Central 1’s borrowing multiple was 13.2:1, 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 41.7 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 $58.2 billion at the end of the second quarter, up 4.9 per cent from $55.5 billion a year ago. Assets of Central 1’s Ontario members totalled $31.8 billion at the end of the second quarter, up 8.1 per cent from $29.4 billion a year ago. Central 1’s Second Quarter 2013 Report has been filed with SEDAR and is posted on and

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 serves 3.2 million members and holds $93.6 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

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