Central 1 Credit Union Posts $14.8 Million Profit in Q2 2015

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 21, 2015) - Central 1 Credit Union (Central 1) announced today it posted a profit of $14.8 million for the quarter ended June 30, 2015, compared to $14.7 million for the same period in 2014.

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

• Total assets were $14.1 billion, compared to $13.1 billion.
  
  
• Return on average equity of 6.3 per cent, compared to 6.6 per cent.
  
  
• Net financial income of $13.2 million, compared to $19.2 million.
  
  
• Other income of $37.1 million, compared to $32.2 million.
  
  
• Operating expenses of $33.0 million, compared to $33.6 million.
  
  

Central 1 reported realized gains of $1.3 million and unrealized gains of $7.5 million, resulting in a net gain of $8.8 million during the quarter, compared to a net gain of $12.3 million in the second quarter of 2014.

Other income was $37.1 million. The increase over the same period last year was driven by stronger payments and direct banking service income together with increased income of $2.9 million from investees.

As at June 30, 2015 Central 1's ratio of regulatory capital to risk-weighted assets for provincial capital adequacy purposes was 49.3 per cent. Central 1's borrowing multiple for federal capital adequacy purposes was 13.1:1.

B.C. and Ontario credit union systems

Assets of the B.C. system totalled $64.3 billion at the end of the second quarter, up from $60.5 billion. The B.C. system earned $71.1 million before taxes in the second quarter, down from $73.5 million in the second quarter of 2014. Deposits were $56.8 billion, up 6.2 per cent from $53.5 billion while loans increased by 5.2 per cent to $54.4 billion, led by personal and commercial mortgages.

The B.C. system's regulatory risk-weighted capital ratio was 14.9 per cent at the end of June, a slight decrease from 15.0 per cent a year ago.

Assets of the Ontario system totalled $38.1 billion at the end of the second quarter, up $3.6 billion or 10.5 per cent from a year earlier. The Ontario system earned $42.7 million before taxes in the second quarter, an increase from $41.0 million in the second quarter of 2014. Deposits were $31.2 billion, up 8.0 per cent from $28.9 billion while loans increased by 10.4 per cent to $32.9 billion.

The Ontario system's regulatory risk-weighted capital ratio was 12.5 per cent at the end of June, down from 13.1 per cent a year earlier.

Central 1's Second 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 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 82 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 $102 billion in assets. For more information, visit www.central1.com.