Central 1 Credit Union Posts $12.7 Million Profit in Q3 2015

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 19, 2015) - Central 1 Credit Union (Central 1) announced today it posted a profit of $12.7 million for the quarter ended September 30, 2015, compared to $10.6 million for the same period in 2014.

Third quarter highlights, compared to the same period last year, include:

• Total assets were $14.6 billion, compared to $12.9 billion.
• Return on average equity of 5.3 per cent, compared to 4.6 per cent.
• Net financial income of $6.9 million, compared to $15.2 million.
• Other income of $40.2 million, compared to $28.0 million.
• Operating expenses of $32.6 million, compared to $30.5 million.

Net financial income declined compared to the same period last year largely due to lower market yields that support interest margin and a decrease in realized gains on the disposal of financial investments.

Other income increased, reflective of increased payment volumes, higher usage of Central 1's MemberDirect® platform, and increased overall credit union demand for treasury-related services. Excluding a one-time event that resulted in income of $7.5 million, other income increased $4.7 million.

As at September, 2015 Central 1's ratio of regulatory capital to risk-weighted assets for provincial capital adequacy purposes was 46.3 per cent. Central 1's borrowing multiple for federal capital adequacy purposes was 13.5:1.

B.C. and Ontario credit union systems

Assets of the B.C. system totalled $65.7 billion at the end of the third quarter, compared to $61.0 billion. The B.C. system's net operating income was $85.5 million, up from $75.1 million in the third quarter of 2014, reflective of growing loans balances. Deposits increased 6.4 per cent to $57.9 billion, while loans increased by 5.5 per cent year-over-year to reach $55.2 billion.

The B.C. system's regulatory risk-weighted capital ratio was 14.8 per cent at the end of September, a slight decrease from 14.9 per cent a year ago.

Assets of the Ontario system totaled $39.0 billion at the end of the third quarter, up 1.8 per cent from a year earlier. The Ontario system earned $41.7 million before taxes in the third quarter, an increase of $7.6 million over the third quarter of 2014, driven by loan fee income. Non-interest income increased $11.2 million over the same period last year, while operating expenses decreased $2.7 million.

The Ontario system's regulatory capital as a percentage of risk-weighted assets was 12.8 per cent at the end of September, a slight decrease from 13.0 per cent a year ago.

Central 1's Third Quarter Report 2015 has been filed with SEDAR and is posted on www.sedar.com and on www.central1.com.

About Central 1

With offices in Vancouver, Mississauga and Toronto, Central 1 holds on balance sheet approximately $14.6 billion in assets. We provide wholesale financial products, trust services, payment processing solutions and direct banking services to more than 300 credit unions and institutional clients from coast to coast.

In addition, Central 1 is the primary liquidity manager, payments provider and trade association for our 42 member credit unions in B.C. and 80 Ontario member credit unions. Our members represent a consumer-oriented, full-service retail financial system that collectively serves 3.2 million members and holds more than $104.7 billion in assets. For more information, visit www.central1.com.