/EINPresswire.com/ -- VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/26/16 -- -Central 1 Credit Union (Central 1) announced its results today for the quarter ended June 30, 2016, with a growth in assets, interest margin and profits across a number of business lines.

"We see the strength of the credit union system continuing to grow, which has reflected in a good performance for Central 1's business lines during the quarter," said Don Wright, President and CEO of Central 1. "There has been a growth in deposits and digital banking, which benefits not only our members, but their communities."

The future of the Canadian credit union network's second tier was a strong focus at Central 1 during the second quarter. As the credit union network continues to adapt to a changing external environment, Central 1 engaged in a process of consultation with member credit unions to explore potential options for the future state of the system during the quarter, which followed from a discussion paper (Supporting Credit Union Success) released during the first quarter.

Starting in the second quarter, Central 1 began further analysis on what the costs and benefits of different options of a future state structure would be, including options on how an ideal future state could be operationalized.

Financially, highlights for 2016, compared to the same period in 2015:

--  Total assets were $15.7 billion, compared to $14.1 billion.--  Return on average equity of 5.3 per cent, compared to 6.3 per cent.--  Net financial income of $15.8 million, compared to $13.2 million.

Central 1's interest margin has been increasing over the past year, which primarily reflects growth in Central 1's balance sheet during that period. Central 1's weighted average cost of funds has declined during that period and increased allocation of assets to lending and securitization activities has also contributed to the increase in interest margin.

Central 1's Mandatory Liquidity Pool, Trade Services and Wholesale Financial Services business lines all recorded higher profits than the last year. While Digital & Payment Services' profit declined compared to the second quarter of 2015, Central 1's members benefited from lower pricing on certain products and Central 1 also increased its investments in new technologies.

As at June 30, 2016, Central 1's ratio of regulatory capital to risk-weighted assets for provincial capital adequacy purposes was 33.6 per cent. Central 1's borrowing multiple for federal capital adequacy purposes was 13.6:1. Central 1 was in compliance with all regulatory capital requirements throughout the second quarter of 2016.

B.C. and Ontario credit union systems

Assets of the B.C. system totalled $69.8 billion at the end of the second quarter of 2016. The B.C. system's net operating income was $81.3 million, compared to $71.1 million a year earlier. Asset growth was led by residential and commercial mortgages. Liability growth was led by non-registered demand deposits and non-registered term deposits.

The B.C. system's regulatory risk-weighted capital ratio was 14.6 per cent at the end of the second quarter.

Assets of the Ontario system totalled $42.4 billion at the end of the second quarter of 2016 compared to $38.1 billion a year earlier. The Ontario system's net operating income was $52.2 million compared to $42.3 million in the prior year. Asset growth was led by residential mortgages and commercial mortgages and loans. Liability growth was led by non-registered demand deposits.

The Ontario system's regulatory capital as a percentage of risk-weighted assets was 13.5 per cent at the end of the second quarter.

Central 1's Second Quarter Report 2016 has been filed with SEDAR and is posted on www.sedar.com and on www.central1.com.

About Central 1

With offices in Vancouver, Mississauga and Toronto, Central 1 holds on balance sheet approximately $15.7 billion in assets. We provide wholesale financial products, trust services, payment processing solutions and direct banking services to more than 300 credit unions and institutional clients from coast to coast.

In addition, Central 1 is the primary liquidity manager, payments provider and trade association for our 42 member credit unions in B.C. and 72 Ontario member credit unions. Our members represent a consumer-oriented, full-service retail financial system that collectively serves 3.3 million members and holds more than $112.2 billion in assets. For more information, visit www.central1.com.

Contacts:
Media
Art Chamberlain
Media Relations Manager
Central 1 Credit Union
905.282.8534 or 1.800.661.6813 ext. 8534
achamberlain@central1.com

Investors
Brent Clode
Chief Investment Officer
Central 1 Credit Union
905.282.8588 or 1.800.661.6813 ext. 8588
bclode@central1.com