Central 1’s first quarter 2019 delivers higher financial income
VANCOUVER, BC (May 23, 2019) — Central 1 Credit Union (Central 1) today announced its first quarter 2019 financial results, which saw higher financial income (up $23 million over 2018) and continued investments in strategic initiatives.
“Our number one priority is to enable our clients’ success through the products and services we provide,” said Mark Blucher, President and CEO of Central 1. “Our team is singularly focused on advancing our strategic priorities to transform Canada’s financial ecosystem.”
Central 1 continues to develop the Forge Digital Banking platform and in March, FirstOntario Credit Union launched their full public website built on Forge. Forge is a market-leading retail and business platform that gives Canadian financial institutions of all sizes the tools and capabilities to deliver a world-class digital platform.
In the quarter, Central 1 also delivered a number of leading digital solutions for clients across Canada, including the SecureKey Concierge™ and Request Money integration into Central 1’s small business online invoicing and payments products.
Subsequent to the quarter end, on April 1, 2019, Central 1 completed the sale of Credit Union Advantage Insurance Brokerage Ltd., a wholly owned subsidiary of Central 1, to Co-operators Financial Services Limited. The decision to transition Central 1’s insurance operation is part of the evolution to have more agile and streamlined service delivery.
Financial Results
Profit after tax was $25.1 million, down $15.9 million from the first quarter of 2018. 2018 results reflected one-time gains of $43.0 million associated with our equity investments. Excluding these 2018 gains, 2019 results were $27.1 million higher than last year.
First quarter results reflected a higher financial income, up $23.0 million from the same period last year. Better returns on securities combined with a change in asset mix contributed to a stronger interest margin during the first quarter. The decrease in yields and the narrowing of credit spreads in the market drove up the fair value of securities, resulting in higher net realized and unrealized gains.
Strategic initiatives in 2019, including those within Digital & Payment Services, continue and are consistent with Central 1’s strategic plan.
Central 1’s Management’s Discussion and Analysis and Financial Statements have been filed with SEDAR and posted at www.sedar.com and www.central1.com/investor-relations.
About Central 1 Credit Union
Central 1 Credit Union (‘Central 1’) cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $11.9 billion as of December 31, 2022, Central 1 provides critical services at scale to enable a thriving credit union system. We do this by collaborating with our clients, developing strategies, products, and services to support the financial well-being of their more than 5 million diverse customers in communities across Canada.
For more information, visit central1.com.
