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Central 1 reports 2021 third quarter financial results

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VANCOUVER, B.C., November 26, 2021 – Central 1 Credit Union (‘Central 1’ or ‘the organization’) reported a profit from continuing operations of $41.0 million for the first nine months of 2021, an increase in profit of $18.2 million for the first nine months of 2021, compared to the same period last year. For the third quarter (Q3) ended September 30, 2021, profit was $12.8 million compared to a profit of $20.2 million in the same period in 2020.

“Treasury continues to be a key driver in Central 1’s financials as we introduce innovative solutions and support our clients who deliver banking choice to Canadians,” said Sheila Vokey, Interim President and CEO. “We remain committed to our strategic plan and are well-positioned to continue our momentum as we close out the remainder of 2021.”

Central 1’s Treasury business was a strong contributor to the organization’s earnings, and continues to provide a stable source of short-term market funding to support its members and clients. Along with 16 other key participants, Payments Canada, and the Bank of Canada, Central 1 also launched Lynx Release 1, Canada’s new high-value payments system. The changes to technology and operations were implemented after more than a year of preparation and provides the basis for Canada’s shift to real-time payments.

The organization, in collaboration with two implementation partners, successfully launched the first phase of Interac e-Transfer® for Business, which will enable the receipt of real-time, account number routed and data-rich transactions. In addition, the first aspects of Forge 2.0 were successfully delivered to market, including an enhanced user interface and design for the Forge 2.0 Retail Online Banking, Mobile App and Small Business offerings.

Q3 2021 Consolidated Results Compared to Q3 2020:

  • Profit of $12.8 million, compared to profit of $20.2 million (excluding discontinued operations) in 2020.
  • Assets of $13.2 billion, down 7.0 per cent from $14.2 billion (excluding discontinued operations) in 2020.

Profit from continuing operations for the third quarter of 2021 was $7.4 million lower compared to the same quarter last year. This variance is primarily due to a $12.6 million decrease in net financial income offset by the liquidation distribution from a prior investment in U.S. Central Federal Credit Union (US Central), which resulted in a one-time income of CA$5.5 million (US$4.4 million) received during the quarter. Excluding the one-time income received from US Central, non-financial income and non-financial expense remained relatively stable. Investments in strategic initiatives continued at a planned lower level and remained consistent with Central 1’s strategic priorities and plans, resulting in a $5.4 million lower spend compared to the same period last year.

Year-to-date consolidated financial results
Profit from continuing operations for the first nine months of 2021 increased by $18.2 million compared to the same period last year, mainly driven by a $9.8 million increase in net financial income and a $20.9 million decrease in strategic initiatives spend. Year-to-date interest margin improved by $2.9 million compared to the same period last year as credit union members continue to hold elevated levels of liquidity in the form of deposits with Central 1, which peaked in early 2021. Net realized and unrealized gains also improved by $1.6 million compared to the same period last year mainly due to continued favourable movements in credit spreads.

Statement of financial position
Excluding the assets from discontinued operations, total assets as at September 30, 2021 decreased $0.8 billion and $1.0 billion from December 31, 2020 and September 30, 2020, respectively, when credit union liquidity was near its peak. This translated into additional deposits placed with Central 1 and has since reduced with improving economic conditions.

Treasury profit was $50.7 million for the first nine months of 2021, up $4.9 million compared to the same period last year, mainly driven by higher net financial income. Treasury had a steady quarter with a modest increase in both credit union lending and commercial lending. During the same period, deposits marginally declined as members continue to use excess liquidity to fund new loan growth, driven by the robust housing market in both B.C. and Ontario.

Payments & Digital Banking Platforms and Experiences
Payments & Digital Banking Platforms and Experiences (DBPX), experienced a loss of $8.4 million for the first nine months of 2021, compared to a loss of $20.9 million during the same period last year. The increase in Interac® e-Transfer volumes contributed to the smaller loss, reflecting the ongoing increase in usage of electronic payments. Investments in strategic initiatives continued as planned, consistent with Central 1’s strategies and plans, leading to a lower spend year-over-year.

Central 1’s third quarter Management’s Discussion and Analysis and Financial Statements have been filed with SEDAR and posted at and

About Central 1
Central 1 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $13.2 billion as at September 30, 2021, 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

Caution Regarding Forward Looking Statements
This press release contains forward-looking statements based on assumptions, uncertainties, and management’s best estimates of future events. These include, without limitation, statements relating to our financial performance objectives, vision, and strategic goals, the economic, market and regulatory review and outlook for the Canadian economy and the provincial economies in which our member credit unions operate and the impacts of the COVID-19 pandemic, as well as statements that contain the words “may,” “will,” “intends” and “anticipates” and other similar words and expressions. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made. Actual results may differ materially from those currently anticipated. Securityholders are cautioned that such forward-looking statements involve risks and uncertainties. Certain important assumptions by Central 1 in making forward-looking statements include, but are not limited to, competitive conditions, economic conditions, regulatory considerations, and the impacts of the COVID-19 pandemic. Important risk factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include economic risks, regulatory risks, risks and uncertainty from the impact of the COVID-19 pandemic and other risks detailed from time to time in Central 1’s periodic reports filed with securities regulators. Given these risks, the reader is cautioned not to place undue reliance on forward-looking statements. Central 1 undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable laws.

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Julie Breuer
Vice President, Stakeholder Relations & Communications
Central 1
T 604 714 6733 or 1 800 661 6813 ext. 6733

Brent Clode
Chief Investment Officer Central 1
T 905 282 8588 or 1 800 661 6813 ext. 8588