VANCOUVER, B.C. – 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.
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.
About Central 1
Central 1 is a preferred partner for financial, digital banking and payment products and services – fuelling the success of businesses across Canada. With $16.9 billion in assets, we leverage our scale, strength and expertise to power progress for more than 250 credit unions and other financial institutions, enhancing the financial well-being of more than 5 million customers from coast to coast.
For more information, visit www.central1.com.
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 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 and regulatory considerations. 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 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.
Central 1 Credit Union
Chief Investment Officer
Central 1 Credit Union
T 905-282-8588 or 1 800.661.6813 ext. 8588