Central 1 reports second quarter 2025 financial results
VANCOUVER, British Columbia, Aug. 28, 2025 (GLOBE NEWSWIRE) -- Central 1 Credit Union (Central 1) today reported its 2025 second quarter financials, reflecting strong results in the treasury line of business and investments for growth of the payments line of business.
“Our results are showing steady performance for 2025, reflecting the renewed focus on our core payments and treasury lines of business since transferring digital banking operations to Intellect Design in the first quarter of 2025,” said Sheila Vokey, President & CEO of Central 1. “In the first half of the year, we’ve made meaningful investment and progress to evolve our business and to strengthen our position as a trusted aggregated services provider for Canadian credit unions and other financial service organizations.”
Second quarter 2025 compared with the second quarter 2024:
- Net income was $21.4 million, compared with $13.1 million
- Adjusted net income1 was $22.3 million, compared with $19.0 million
- Net fair value gains1 were $18.4 million, compared with $18.8 million
- Net interest income was $20.6 million, compared with $9.8 million
- Return on equity (ROE) 2,3 was 6.4%, compared with 6.6%
- Adjusted ROE2 was 11.4%, compared with 9.6%
Year-to-date 2025 compared with year-to-date 2024:
- Net loss of $2.6 million, compared with net income of $42.0 million, includes a $32.7 million4 provision associated with the transfer of the digital banking operations to Intellect Design Arena Ltd. that occurred in the first quarter of 2025
- Adjusted net income1 was $28.9 million, compared with $55.0 million
- Net fair value gain1 of $11.0 million, compared with $53.2 million
- Net interest income of $38.0 million, compared with $24.3 million
- ROE2,3 was 3.8%, compared with 10.9%
- Adjusted ROE2 was 7.2%, compared with 14.2%
- Total assets of $10.4 billion as at June 30, 2025, compared with $10.0 billion as at December 31, 2024
Core Business Performance:
Treasury
The Treasury business reported net income of $25.3 million, an increase of $5.4 million compared to $19.9 million reported in the same quarter last year. The year-over-year improvement was primarily driven by a $10.4 million increase in net interest income, mainly due to lower interest expenses resulting from a shift in funding mix. Net fair value gains were consistent with the same quarter last year.
Treasury continues to actively engage clients, providing expert insights and solutions tailored to support their financial goals while navigating a dynamic market environment. The team remains focused on managing risk and supporting client decision-making amid ongoing shifts in market conditions, economic factors, and investment landscapes.
Payments
Payments reported a net loss of $5.7 million, compared to net income of $2.2 million in the same quarter last year. Higher transaction volumes across select payment services drove a modest increase in income. The year-over-year change reflects a $12.4 million increase in non-interest expense, largely stemming from Central 1’s ongoing strategic investments in technology and key initiatives designed to drive innovation and support the long-term growth of the Payments business.
Barclay Hancock, Chief Payments Officer, said, “We’ve made strategic investments to strengthen our service capabilities, elevate the client experience, and ensure the business is well-positioned for scalable growth — all designed to position our clients competitively in today’s evolving Canadian payments landscape.”
Central 1’s quarterly 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.
Notes
1These are non-GAAP financial measures. Refer to the "Non-GAAP and Other Financial Measures" section of this MD&A for more information.
2This is a non-GAAP financial ratio. Refer to the "Non-GAAP and Other Financial Measures" section of this MD&A for more information.
3When calculating the annualized ROA and ROE, certain item was treated as a non-recurring item and therefore was not annualized.
4The provision, recorded at $35.1 million at inception, represents the lower of the cost of fulfilling the contracts and any compensation or penalties arising from failure to fulfil them, on a present value basis.
About Central 1
Central 1 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $10.4 billion as of June 30, 2025, 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.
Non-GAAP Financial Measures
The following non-GAAP financial measures exclude certain items from our financial results prepared in accordance with IFRS Accounting Standards. The tables below present reconciliations of these measures to their respective most directly comparable financial measures disclosed in Central 1’s Interim Consolidated Financial Statements.
Adjusting Item
Adjusted results for the three and six months ended June 30, 2025, exclude the net loss from Digital Banking, which was transferred to Intellect Design Arena Ltd. effective March 1, 2025. As management no longer considers Digital Banking part of Central 1’s core operations, its exclusion is intended to enhance comparability and provide a clearer view of the financial performance of Central 1’s core business.
| For the six months ended June 30 | ||||||||||||||||||||
| $ millions, except as indicated | Q2 2025 | Q2 2024 | Change | 2025 | 2024 | Change | ||||||||||||||
| Reported net income (loss) | $ | 21.4 | $ | 13.1 | $ | 8.3 | $ | (2.6 | ) | $ | 42.0 | $ | (44.6 | ) | ||||||
| Add: Net loss from Digital Banking | 0.9 | 5.9 | (5.0 | ) | 31.5 | 13.0 | 18.5 | |||||||||||||
| Adjusted net income | $ | 22.3 | $ | 19.0 | $ | 3.3 | $ | 28.9 | $ | 55.0 | $ | (26.1 | ) | |||||||
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 and on the reduction of corporate expenses over time in support of long-term financial sustainability, 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. Central 1 is subject to risks associated with evolving U.S. trade and tariff policies, inflationary pressures, interest rate volatility, and potential regulatory changes under the current U.S. administration. Shifts in tariff structures or global trade conditions may adversely affect our cost structure and overall operating environment. 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
Director of 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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