{"id":446436,"date":"2021-02-26T21:21:45","date_gmt":"2021-02-27T02:21:45","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=446436"},"modified":"2021-02-26T21:21:45","modified_gmt":"2021-02-27T02:21:45","slug":"central-1-reports-fourth-quarter-and-2020-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/central-1-reports-fourth-quarter-and-2020-results\/","title":{"rendered":"Central 1 reports fourth quarter and 2020 results"},"content":{"rendered":"
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VANCOUVER, British Columbia, Feb. 26, 2021 (GLOBE NEWSWIRE) — Central 1 Credit Union (\u2018Central 1\u2019 or \u2018the organization\u2019) reported a profit after tax of $36.1 million for the year ended December 31, 2020, a $1.9 million increase in profit after tax of $34.2 million in 2019.<\/p>\n

Central 1 has consistently maintained strong operational resilience to support credit unions in B.C. and Ontario. In 2020, the organization made significant and immediate changes to support our employees, members and clients during the pandemic. Central 1 focused on maintaining essential products and services, while delivering core business functions for the credit union system and clients.<\/p>\n

\u201cCentral 1 delivered solid earnings during an uncertain macroenvironment driven by the global pandemic. Our strong balance sheet and diverse business lines are a testament to the strength and resilience of our business and our ability to effectively operate and progress our strategic initiatives in a challenging environment,\u201d said Sheila Vokey, Central 1 Interim President and CEO. \u201cOur success is underpinned by our people who have been unwavering in their commitment to support our members and clients.\u201d<\/p>\n

\n Treasury and Mandatory Liquidity Pool <\/strong>
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Treasury continues to deliver strong and consistent contributions to Central 1 earnings. Treasury reported an increase of $27.3 million in profit after tax, primarily driven by a $19.0 million increase in net financial income. In addition to a strong financial performance in 2020, liquidity at Central 1 continues to be robust as deposits remain at an all-time high, increasing by over $5.2 billion during 2020.<\/p>\n

On January 1, 2021, Central 1 successfully transitioned the Mandatory Liquidity Pool (MLP) from a deposit structure to an investment structure, representing a significant change in liquidity management for the credit union system in B.C. and Ontario. The initiative ensured the MLP is bankruptcy remote and creditor-proof while maintaining a cost-effective and capital efficient structure for the credit union system to manage its liquidity, drive market confidence and comparability, and ensure the system and individual credit unions continue to thrive.<\/p>\n

\n Digital & Payments Services<\/strong>
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As the reliance on digital banking solutions increased this year due to the impact of COVID-19, Central 1 focused on streamlining and accelerating its Digital Banking Platform launches and product enhancements. The organization empowers clients to confidently meet the changing demands facing their organizations.<\/p>\n

Central 1 received strong support from its members on its payments strategy which is designed to position the credit union system and financial services industry for growth and innovation. In addition, Central 1 launched its Payments Customer Advisory Council (Payments Council) to maintain strong collaboration between Central 1 and its payments clients.<\/p>\n

Central 1 processed 1.8 million Interac e-Transfer<\/em>\u00ae transactions on behalf of Canadian credit unions and other financial institutions, totaling almost $760 million. The organization also facilitated a total of 28,000 Canada Emergency Business Account applications worth over $1 billion in loans during 2020.<\/p>\n

\n 2020 consolidated financial results compared to 2019<\/strong>\n <\/p>\n