|By Marketwire .||
|March 19, 2013 03:38 PM EDT||
VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO -- (Marketwire) -- 03/19/13 -- Central 1 Credit Union (Central 1) announced its 2012 annual results today and has posted a profit of $74.4 million for the year ended December 31, 2012, an increase of 346 per cent from $16.7 million in 2011.
"The gains over last year were due largely to improved investment results and the reversal of unrealized losses from last year," said Don Rolfe, President and Chief Executive Officer of Central 1. "Overall, Central 1's risk profile was reduced and we did an excellent job of generating a strong return on our investment portfolio even though markets remained in turmoil throughout the year."
Central 1 continues to invest primarily in Government of Canada bonds, provincial government debt and senior Canadian bank debt.
In 2012, Central 1 reported net financial income of $91.5 million, up from $43.0 million in 2011. Total net gains on financial instruments amounted to $51.6 million compared to a net loss of $11.3 million in 2011. Interest margin was $39.9 million, down 26.7 per cent from $54.4 million in 2011.
Key results for 2012 compared to 2011 include: -- A profit of $13.7 million was recorded in the fourth quarter, compared to a profit of $15.4 million in the same period last year. -- Total assets at year-end were $14.2 billion, compared to $14.6 billion in 2011. -- Return on average equity was 9.6 per cent, compared to 2.7 per cent in 2011. -- Central 1 declared dividends of $11.9 million to member shareholders in 2012, compared to $10.0 million in 2011.
Central 1 continues to be very well-capitalized with a provincial regulatory capital base of $752.4 million (after deductions) and a ratio of regulatory capital to risk-weighted assets of 38.9 per cent.
B.C. and Ontario credit union systems
Assets of the B.C. system totalled $57.2 billion at the end of 2012, up $3.1 billion or 5.7 per cent from a year earlier. Asset growth was concentrated in personal mortgages, up 6.7 per cent to $33.1 billion, and commercial mortgages, up 13.7 per cent to $11.7 billion.
There was also growth in non-registered term deposits, up 11.6 per cent to $24.2 billion, non-registered demand deposits, up 3.0 per cent to $17.8 billion, and registered term deposits, up 4.3 per cent to $6.7 billion.
Asset growth for the Ontario system was strong with assets of Central 1's Ontario members totalling $30.8 billion at year-end, up 14.9 per cent year-over-year. The addition of two new credit unions as 'Class A' members - DUCA Financial Services Credit Union Ltd. and St. Stanislaus-St. Casimir's Polish Parishes Credit Union Ltd. - boosted system assets by approximately $1.7 billion.
Central 1's Financial Review 2012 (www.central1.com/sites/default/files/uploads/files/corporate_report/repo...) has been filed with SEDAR (www.sedar.com) and at www.central1.com.
About Central 1
Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Central 1 represents a consumer-oriented, full-service retail financial system that serves 3.2 million members and holds $86.2 billion in assets and is owned primarily by its member credit unions, 44 in B.C. and 97 today in Ontario.
With offices in Vancouver, Mississauga, and Toronto, Central 1 provides liquidity management, direct banking and payment service solutions as well as a wide range of trade services. For more information, visit www.central1.com.