VANCOUVER, BRITISH COLUMBIA and TORONTO, ONTARIO — (Marketwire) — 03/20/12 — Central 1 Credit Union posted a profit of $16.7 million for the year ended December 31, 2011, down from $43.6 million in 2010. The central financial facility and trade association for the B.C. and Ontario credit union systems announced its 2011 results today.
Market volatility which had resulted in mark-to-market losses on the fair value of financial instruments held by Central 1 improved in the fourth quarter. Credit spreads on provincial and corporate debt narrowed, resulting in stronger earnings than had been reported earlier in the year.
“Our core business remains strong and profitable,” said Don Rolfe, President and Chief Executive Officer. “The market turbulence resulted in a decrease in the fair value of some financial instruments we hold but the quality of our investment portfolio remains high. The majority of Central 1-s investments are in Canadian government debt and senior bank debt, most of which we expect to hold to maturity.”
Central 1 does not hold any European sovereign debt.
Highlights:
Effective January 1, 2011, Central 1 adopted International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. Previously, Central 1 had prepared its financial statements in accordance with Canadian Generally Accepted Accounting Principles (GAAP). Information for 2010 previously reported under GAAP has been restated according to IFRS for comparative purposes.
Central 1-s Consolidated Financial Statements and Management-s Discussion and Analysis, have been filed with SEDAR at .
Central 1
Central 1 is the central financial facility and trade association for the B.C. and Ontario credit union systems. Central 1 represents a consumer-oriented, full-service retail financial system that serves 2.9 million members and holds $80 billion in assets and is owned primarily by its member credit unions, 45 in B.C. and 113 in Ontario.
With offices in Vancouver, Mississauga, and Toronto, Central 1 provides a wide range of services such as liquidity management, direct banking, and payment service solutions. For more information, visit .
Contacts:
Central 1 Credit Union
Art Chamberlain
Media Relations Manager
905-282-8534 or 1-800-661-6813, ext. 8534
Central 1 Credit Union
Charles Milne
Chief Investment Officer
604-730-6307 or 1-800-661-6813, ext. 6307