Le Lézard
Classified in: Business
Subject: EARNINGS

New products, services and strong financials mark Central 1 Q2 2018


VANCOUVER, British Columbia, Aug. 24, 2018 (GLOBE NEWSWIRE) -- Asset growth and improved return on average equity highlight Central 1 Credit Union's (Central 1) performance in its second quarter 2018 financial results, announced today.

During the quarter ended June 30, Central 1 continued to move forward with several strategic, client and member-focused initiatives, and invested attention and time into building on its current three-year strategic plan, A Bold Way Forward, emphasizing Central 1's scale and expertise as a source of competitive advantage for Canadian credit unions.

"Working in partnership with our members and clients, we've made important advances in priority programs like the UX Platform, providing support around Payments Modernization, and implementing innovative customer-facing products in foreign exchange and small business payroll," said Mark Blucher, President and CEO.  

Central 1's second quarter profit, as expected by Management, was buoyed by a gain of $37.8 million from the formation of Aviso Wealth Inc. (Aviso) and was partially offset by net investments of $7.9 million in strategic initiatives, including the UX Platform. 

Second quarter highlights compared to the same period last year:

Profit before tax from continuing operations of $14.2 million, was down $2.5 million from the same period last year, primarily due to lower income from equity investees. This was partially offset by higher net financial income which increased $0.6 million compared to the second quarter of 2017.

Interest margin increased $6.2 million largely due to balance sheet growth and higher interest rates. The increase in interest margin was partially offset by higher net realized and unrealized losses due to rising interest rates and wider credit spreads.

Recent Central 1 highlights include:

B.C. and Ontario credit union systems

The network of B.C. credit unions, which are supported by Central 1, reported net operating income for the second quarter of 2018 of $102.0 million, compared to $94.3 million in the second quarter of 2017. Net interest income increased $27.3 million over the same period last year, driven by growth in personal and commercial mortgages. Non-interest expenses increased $16.4 million year-over-year, led by increases in salaries and benefits and professional services. Non-interest income decreased $3.1 million year-over-year, led by lower loan and lease fees and trading gains on financial instruments. Total assets increased 9.0 per cent year-over-year to $81.1 billion at the end of the second quarter in 2018.  

Also supported by Central 1, the Ontario credit union system reported net operating income of $63.6 million in the second quarter of 2018, up $15.9 million or 33.3 per cent from the same period in 2017. Growth in residential mortgages and commercial loans combined with a wider net interest margin led to $31.4 million increase in net interest income. This was partially offset by higher non-interest expense primarily due to increased salaries and benefits. Combined assets of the Ontario system at the end of June 2018 rose 11.2 per cent year-over-year to reach $52.5 billion.

About Central 1

Central 1 is a preferred partner for financial, digital banking and payment products and services ? fueling the success of businesses across Canada. With $19.4 billion in assets, we leverage our scale, strength and expertise to power progress for more than 300 credit unions and other financial institutions, enhancing the financial well-being of more than 3.4 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.

Contacts

Media:
Nicole Adams
Director, Member & External Communications
Central 1 Credit Union
T 604.754.6581 or 1.800.661.6813 ext. 6581
E [email protected]

Investors:
Brent Clode
Chief Investment Officer
Central 1 Credit Union
905-282-8588 or 1 800.661.6813 ext. 8588
E [email protected]


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