VANCOUVER, B.C.—Central 1 Credit Union (Central 1) announced today it posted a profit of $53.6 million for the year ended December 31, 2014, down $14.9 million or 21.7 per cent from 2013.
“Central 1 continues to perform well in a challenging slow growth, low interest rate environment and I believe our organization is well positioned for the future,” said Don Wright, President and CEO of Central 1. “Based on our strong performance, we have returned $22.5 million in dividends to our member credit unions and continue to improve the services we provide to them.”
Key results for 2014, compared to 2013:
- Total assets at year-end were $13.1 billion, an increase of $0.9 billion or 7.4 per cent from 2013.
- Return on average equity was 5.9 per cent, compared to 8.2 per cent in 2013. This reflects lower earnings in 2014 and a higher capital base.
- Other income increased 3.3 per cent to $119.7 million, reflecting higher levels of income across most business lines.
- Operating expenses increased 2.1 per cent from the previous year to $129.5 million.
- Dividends of $22.5 million were declared to member shareholders in 2014, compared to $14.0 million in 2013.
Central 1 has sufficient capital to meet regulatory requirements with a provincial regulatory capital base of $946.8 million (after deductions) and a ratio of regulatory capital to risk-weighted assets of 60.6 per cent. At the end of 2014, Central 1’s borrowing multiple for federal capital adequacy purposes was 12.4:1.
B.C. and Ontario credit union systems
Assets of the B.C. system totalled $61.5 billion at the end of 2014, up $2.5 billion or 4.3 per cent from a year earlier.
System deposits totalled $54.4 billion at the end of 2014, up 4.8 per cent from 2013. Commercial mortgages grew 6.3 per cent to $13.2 billion, while residential mortgages were up 1.7 per cent to $34.7 billion.
Asset growth for the Ontario system was strong, with assets of Central 1’s Ontario member credit unions totalling $36.2 billion at year-end, up 9.5 per cent year-over-year. The addition of Ontario Civil Service Credit Union to Central 1’s Ontario membership added $150 million to aggregate year-end assets, accounting for 0.5 per cent of asset growth.
System deposits totalled $30 billion at the end of 2014, up 7.3 per cent from 2013. Commercial mortgages grew 11.7 per cent to $8.9 billion, while residential mortgages were up 10.0 per cent to $16.4 billion.