Central 1 Reports Second Quarter 2022 Financial Results

0

VANCOUVER, British Columbia, Aug. 26, 2022 (GLOBE NEWSWIRE) — Central 1 Credit Union (“Central 1” or the “Organization”) reported a loss of $26.2 million for the second quarter (Q2) ended June 30, 2022.

“Central 1’s second quarter results reflect the impact of higher yields in the Canadian fixed income market,” said Sheila Vokey, President and CEO of Central 1. markets continue to push market returns higher in Canada, our financial results will reflect the impact of the resulting unrealized loss associated with our Treasury securities portfolio. Importantly, our lines of business continue to post strong non-financial earnings rooted in our core businesses. Our capital base remains healthy and supports our ability to manage the current economic cycle. »

Consolidated results for Q2 2022 compared to Q2 2021:

  • Loss of $26.2 million, compared to a profit of $3.5 million
  • Interest margin of $19.3 million, up $3.2 million from $16.1 million
  • Net financial expense of $25.3 million, compared to net financial income of $10.3 million
  • Assets of $13.6 billion, up 3.0% from $13.2 billion

Treasury

The Treasury reported a loss of $17.8 million in the second quarter of 2022, compared to a profit of $8.4 million in the same quarter last year. The increase in market returns during the quarter in response to economic uncertainty surrounding inflationary pressures and the Russian-Ukrainian conflict resulted in a $36.5 million decline in the market value of financial instruments. Treasury continued to post a strong interest margin, up $3.2 million from the same period in 2021. Members continued to draw on their deposits at Central 1 to fund the growth of their loans, which led to a gradual decline of $1.0 billion in Treasury deposits from June 30. , 2021.

Payment and digital banking platforms and experiences

Digital Banking and Payments Platforms and Experiences (DBPX) posted a loss of $6.5 million in the second quarter of 2022, compared to a loss of $1.3 million in the second quarter of 2021, largely due to increased investment in strategic initiatives which included Modernization and Forge 2.0 payments and are aligned with Central 1’s strategic priorities.

Central 1’s second quarter MD&A and financial statements have been filed on Central 1’s SEDAR profile at www.sedar.com and are also available at www.central1.com/investor-relations .

About Central 1

Central 1 empowers credit unions and other financial institutions that provide banking choice to Canadians. With assets of $13.6 billion as of June 30, 2022, Central 1 provides essential services at scale to enable a thriving credit union system. We do this by collaborating with our customers, 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 www.central1.com.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements based on assumptions, uncertainties and management’s best estimates regarding future events. These include, but are not limited to, statements relating to our financial performance objectives, our vision and strategic objectives, the economic, market and regulatory review and outlook for the Canadian economy and provincial economies in which our member credit unions operate and the impacts of COVID-19. 19 pandemic, as well as statements containing the words “may”, “will”, “intends” and “plans” and other similar words and expressions. Forward-looking statements are based on the opinions and estimates of management as of 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 of Central 1 when 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 (including legislative and regulatory developments), risks and uncertainty related to the impact of the COVID-19 pandemic, geopolitical risks uncertainty, information technology and cyber risks, environmental and social risks (including climate change), digital disruption and innovation, reputational risk, competitive risk , privacy, data and third party risks, business and transaction risks, and other risks detailed from time to time in Central 1’s periodic reports filed with securities regulatory authorities. In view of these risks, readers are 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 law.

contacts

Media
Julie Breuer
Vice President, Stakeholder Relations and Communications
Central 1
Such. 604.714.6733
E jbrew@central1.com

Investors
Brent Clode
Investment Director
Central 1
T 905.282.8588 or 1.800.661.6813 ext. 8588
Email [email protected]

Share.

About Author

Comments are closed.