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 increasing market yields in the Canadian fixed income market,” said Sheila Vokey, Central 1 President & CEO. “While global economic challenges continue to push market yields higher in Canada, our financial results will reflect the impact of the resulting unrealized loss associated with our Treasury Securities Portfolio. It is important to note that our lines of business continue to show solid non-financial earnings grounded in our core operations. Our capital base remains healthy and supports our ability to manage through the current economic cycle.”
Q2 2022 Consolidated Results 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 a net financial income of $10.3 million
Assets of $13.6 billion, up 3.0 per cent from $13.2 billion
Treasury reported a loss of $17.8 million in the second quarter of 2022, compared to a profit of $8.4 million from the same quarter last year. The increase in market yields during the quarter in reaction to the economic uncertainty around inflationary pressure and the Russia–Ukraine conflict resulted in a decrease of $36.5 million in the mark-to-market value of financial instruments. Treasury continued to report a strong interest margin, up $3.2 million from the same period in 2021. Members continued to draw down their deposits at Central 1 to fund their loan growth, which resulted in a gradual decline of $1.0 billion in Treasury’s deposits from June 30, 2021.
Payments & Digital Banking Platforms and Experiences
Payments & Digital Banking Platforms and Experiences (DBPX) reported 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 driven by increase in investments in strategic initiatives which included the Payments Modernization and Forge 2.0 initiatives and are consistent with Central 1’s strategic priorities.
Central 1’s second 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 $13.6 billion as of June 30, 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.
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