Central 1 Reports Fourth Quarter and 2021 Results


VANCOUVER, British Columbia, Feb. 24 11, 2022 (GLOBE NEWSWIRE) — Central 1 Credit Union (“Central 1” or the “Organization”) reported earnings from continuing operations of $45.4 million for the year ended December 31, 2021, an increase of $19.1 million in profit from continuing operations compared to 2020.

In 2021, Central 1 continued to focus on exploring innovation and opportunities for growth and evolution of the credit union system. The organization presented its corporate strategy for 2021-2023 and provided essential business functions, while taking steps to strengthen the foundations that will enable the organization to achieve its goal, now and in the future.

“Despite continued uncertainty due to the global pandemic, Central 1 delivered strong earnings and remained committed to providing a variety of products and services to our customers,” said Sheila Vokey, President and CEO of Central 1. Our scale, commitment and expertise remain the source of our competitive advantage, we know that working together is key to the continued success of our credit union system.”

Treasury
For 2021, Treasury reported earnings of $52.6 million, driven by continued strong results across all Treasury business lines. Integrating ESG factors into our investment activities continues to be an important and growing part of Central 1’s investment framework. In 2021, 12.3% of Central 1’s investment portfolio was comprised of green securities , social or sustainable, which greatly exceeds our 5% commitment to the United Nations Principles for Responsible Investment.

Digital and payment services
Within Digital, Central 1 continued to evaluate and adapt its products with customers and members in mind. Digital transformation was a priority with a number of initiatives underway, including a new content management system and 2.0 iterations of the Forge Digital Banking Platform offerings for Forge Retail and Small Business. The team remains committed to operational efficiency and implementations.

Within payments, Central 1 made progress in implementing its payments modernization strategy, designed to position the credit union system and the financial services industry for growth and innovation. The launches included the first phase of Interac e-Transfer® for Business, Lynx Release I and Central 1’s Enterprise Fraud Management (“EFM”) solution. A strategic partnership with financial services technology provider Fiserv was also established and compliance was achieved with a new SWIFT’s global mandate.

Consolidated financial results 2021 compared to 2020

  • Annual profit for 2021 of $45.4 million, compared to annual profit of $26.3 million (excluding discontinued operations) in 2020.
  • Assets of $13.4 billion, down 4.3% from $14.0 billion (excluding discontinued operations).

Consolidated results from continuing operations for Central 1 in 2021 reflect a $19.1 million increase in earnings compared to 2020. Investments in strategic initiatives1 continued at a lower level than expected and remained aligned with Central 1’s priorities and strategic plans, resulting in lower expenses of $24.3 million compared to 2020. Central 1 also recorded a gain fair value of $11.5 million in its investment in Concentra Bank. Excluding one-time income of C$5.5 million related to the liquidation distribution of a prior investment in the US Central Federal Credit Union (US Central), non-financial income remained relatively flat from year to year. year-over-year, while non-financial expenditures decreased by $12.8 million. from 2020 when an expense related to intangible assets has been recognised.

The separation of the mandatory cash pool in 2021 resulted in an increase in the tax rate, resulting in a $23.9 million increase in income tax expense. Net finance income decreased by $6.3 million year-over-year due to lower realized gains from less favorable movements in credit spreads and interest rates.

The combined impact of these moves led to strong financial results.

Statement of financial position
Total assets as of December 31, 2021 were $13.4 billion, a decrease of $635 million (excluding discontinued operations) from December 31, 2020, when credit union liquidity was near its peak and has since started to decline from high levels in light of improving economic conditions.

Central 1’s 2021 MD&A and Financial Statements have been filed on SEDAR and posted on www.sedar.com and 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 $13.4 billion as of December 31, 2021, 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 these forward-looking statements include economic risks, regulatory risks, risks and uncertainty related to the impact of the pandemic. of COVID-19 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

John Ngo
Communications Director
Central 1
T 403 615 8678
E [email protected]

Investors

Brent Clode
Director of Central Investments 1
T 905 282 8588 or 1 800 661 6813 ext. 8588
E [email protected]


1 Investments in strategic initiatives are additional financial measures and represent the net expenditures Central 1 incurred during the reporting period to develop and deliver solutions to support the growth of the credit union system.

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