VANCOUVER, British Columbia, March 12, 2025 (GLOBE NEWSWIRE) — Central 1 Credit Union (Central 1) today reported its 2024 fourth quarter and year end performance reflecting strong financial results, including total revenue of $302.9 million for the year, a notable increase compared to last year.
“We achieved strong financial results in 2024, despite economic challenges and our difficult decision to wind down our digital banking business,” said Sheila Vokey, President & CEO of Central 1. “To provide the long-term value and support our clients need in areas where we deliver value as a scale aggregator, we will take decisive action throughout 2025 to transform our business and focus on the strength of our payments, clearing and settlements, and treasury services to continue serving our clients long into the future.”
Fourth quarter 2024 compared with the fourth quarter 2023:
- Net income was $16.3 million, compared with $1.9 million.
- Net interest income was $14.4 million, compared with $13.0 million.
- Net fair value gain was $29.3 million, compared with $4.1 million.
- Return on average equity1 of 7.7%, compared with 1.0%.
For the year 2024 compared with 2023:
- Net income was $64.1 million, compared with $25.5 million.
- Net interest income was $48.4 million, compared with $54.3 million.
- Net fair value gain was $89.5 million, compared with $28.4 million.
- Return on average equity1 of 8.0%, compared with 3.6%.
- Assets of $10.0 billion at December 31, 2024, compared with $11.2 billion as at December 31, 2023.
Central 1’s 2024 results reflect strong total revenue, which grew to $302.9 million, compared to $244.4 million in 2023. Additionally, net income more than doubled, reaching $64.1 million in 2024, up from $25.5 million in 2023. Return on average equity for 2024 was 8.0%.
This growth is primarily due to $89.5 million net fair value gains in 2024, which marked a $61.2 million year-over-year increase, due to positive sentiment in the marketplace evidenced by narrowing credit spreads. Non-interest income also increased by $3.4 million compared with last year, driven by higher payments transaction volumes.
As a result of our strong financials, Central 1 will issue a dividend to our Class A members (owners) of $10 million, which is 15 per cent of our net income.
Core Business Performance
Treasury
Treasury reported net income for the year of $92.0 million, an increase of $35.2 million, compared with last year, reflecting higher total revenue and fair value gains from securities managed in the Treasury portfolio.
Payments
Higher payments transaction volumes resulted in net income in Payments of $3.8 million, an increase of $3.4 million from the $0.4 million net income reported in last year. Payments continues to reinvest for the future through the development and delivery of a new API platform model for our new and existing clients.
Digital Banking
In October 2024, Central 1 announced its intention to wind down its digital banking business and transition clients to one or more alternative digital banking providers. Central 1 is currently completing the necessary planning to support clients to transition to other with digital banking providers within a three-to-four-year timeline.
In 2024, the digital banking business reported net loss was $29.5 million, compared with a reported net loss of $25.2 million for 2023.
After the close of the quarter, in January 2025, Central 1 announced the transfer of digital banking operations to Intellect Design Arena Ltd., and the transaction closed February 28, 2025.
Central 1’s fourth quarter Management’s Discussion and Analysis (MD&A) and Financial Statements have been filed on Central 1’s SEDAR profile at www.sedarplus.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 $10.0 billion as of December 31, 2024, Central 1 provides critical payments, treasury and clearing and settlement 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.
Notes
1. This is a non-GAAP financial ratio. Refer to the “Non-GAAP and Other Financial Measures” section of the MD&A for more information.
Caution Regarding Forward Looking Statements
This press release and announcement contain historical and forward-looking statements. All statements other than statements of historical fact are or may be based on assumptions, uncertainties, and management’s best estimates of future events. Central 1 has based the forward-looking statements on current plans, information, data, estimates, expectations, and projections about, among other things, results of operations, financial condition, prospects, strategies and future events, and therefore undue reliance should not be placed on them. These include, without limitation, statements relating to our financial and non-financial performance objectives, vision and strategic goals and priorities, including focus on capital and cost management, the economic, market and regulatory review and outlook for the Canadian economy and the provincial economies in which our member credit unions operate, the impacts of external events such as international conflicts, protests, natural disasters or pandemics, 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 and regulatory considerations. Important risk factors that could cause actual results and the timing of such 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 rising or falling interest rates, international conflicts, natural disasters or pandemics, 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, risks relating to the transition of clients to alternative digital banking providers, 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.
Contacts
Media:
Heather Merry
Senior Manager, Communications
Central 1 Credit Union
T 1.800.661.6813 ext. 2355
E communications@central1.com
Investors:
Brent Clode
Chief Investment Officer
Central 1 Credit Union
T 905.282.8588 or 1.800.661.6813 ext. 8588
E bclode@central1.com
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