Central 1 Credit Union posts a profit decrease of 35 per cent
VANCOUVER and TORONTO — Central 1 posted a profit of $20.0 million in the first quarter of 2013, compared to $31.0 million in the same period last year, a decrease of 35 per cent. Compared to $40.1 million in an exceptionally strong first quarter last year, they recorded net financial income of $27.9 million during the first quarter this year.
Central 1 realized gains of $5.6 million and had unrealized gains of $14.5 million in the first quarter, resulting in a net gain of $20.1 million, compared to net gains of $29.0 million for the previous year.
Interest margin for the quarter was $7.8 million, down from $11.1 million a year earlier. During the past year, average yields on both Central 1's assets and its liabilities have declined, reflecting the continuing low interest rate environment. Yields on Central 1's investment portfolio have declined more sharply than deposit yields, reflecting lower levels of risk within the securities portfolio.
Key first-quarter results, compared to the same period last year include:
- profit of $20.0 million, compared to $31.0 million
- return on equity of 9.9 per cent, compared to 16.7 per cent
- assets of $14.2 billion, down 2.1 per cent from $14.5 billion
Central 1's capital ratios remain strong and well within statutory limits. At the end of the quarter, Central 1's borrowing multiple for federal capital adequacy purposes was 13.8:1, an improvement from 14.4:1 at December 31, 2012. The percentage of regulatory capital to risk-weighted assets for provincial capital adequacy purposes was 39.9 per cent for the quarter, compared to 38.9 per cent at year end.