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:
TreasuryThe 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.
Notes1These 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 1Central 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.
