UPDATE - Central 1 reports first quarter financial results

VANCOUVER, British Columbia, May 26, 2023 (GLOBE NEWSWIRE) -- Central 1 Credit Union (‘Central 1’ or ‘the organization’) reported a profit of $1.3 million for the first quarter (Q1) ended March 31, 2023, up $36.7 million from the same quarter one year prior.

Q1 2023 results compared to Q1 2022:

  • Profit of $1.3 million, compared to a loss of $35.4 million in Q1 2022
  • Net financial income of $6.4 million, compared to a net financial expense of $49.3 million in Q1 2022
  • Return on average equity1 of 0.2 per cent, compared to negative return on average equity1 of 4.7 per cent in Q1 2022

In Q1 2022, credit spreads increased to reflect the economic uncertainty around rising inflation and the Russia – Ukraine conflict. This resulted in Q1 2022 reporting a larger fair value loss on our fixed income investments than in Q1 2023.

“While markets have been volatile, our capital base remains healthy and our business lines performed well in the first quarter. Still, inflation remains above target levels and we have yet to see the impacts of higher interest rates fully work their way through the system. We will continue to work with our credit union members and clients to support their ongoing success through the economic cycle,” said Sheila Vokey, President and CEO of Central 1.

Core Business Financial Performance


Treasury’s first quarter profit was $4.1 million, up $41.6 million from the first quarter of 2022.

During the quarter, we saw stable and consistent results from non-financial income and fee-for-service based business despite inverted yield curves and widened credit spreads reducing the fair market value of Central 1’s financial instruments. Non-financial income, including mortgage servicing, commercial lending and asset management, improved marginally year-over-year.

With mortgage markets slowing due to higher interest rates, credit unions experienced higher liquidity than the preceding quarter which translated into holding more deposits with Central 1.

Payments & Digital Banking Platforms and Experiences (DBPX)

Payments & DBPX reported a loss of $4.4 million in the first quarter of 2023 compared to the $0.5 million profit reported in the same quarter last year.

Higher spend partially offset by increased transaction volume in payment products contributed to a higher loss in the first quarter. Investments in strategic initiatives, which included the Payments Modernization program and digital banking initiatives, were consistent with Central 1’s strategic priorities.

This was partially offset by increased transaction volume in payments products which contributed to a higher non-financial income, excluding strategic initiatives.

For more information

Central 1’s third quarter Management’s Discussion and Analysis 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 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $11.8 billion as of December 31, 2022, Central 1 provides critical services at scale to enable a thriving credit union system. We do this by collaborating with our clients, 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 of future events. These include, without limitation, statements relating to our financial performance objectives, vision and strategic goals, the economic, market and regulatory review and outlook for the Canadian economy and the provincial economies in which our member credit unions operate and the impacts of the COVID-19 pandemic, as well as statements that 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, 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 from the impact of the COVID-19 pandemic, geopolitical uncertainty, information technology and cyber risks, environmental and social risk (including climate change), digital disruption and innovation, reputation risk, competitive risk, privacy, data and third-party related risks, risks related to business and operations, 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.


Tricia Weagant
VP, Communications & Marketing
Central 1
T 613.806.5168

Brent Clode
Chief Investment Officer
Central 1
T 905.282.8588 or 1.800.661.6813 ext. 8588

1This is a non-GAAP financial ratio. Refer to the "Non-GAAP and Other Financial Measures" section of Central 1 Credit Union’s Management’s Discussion & Analysis for the first quarter of 2023, available on www.sedar.com, for more information.