VANCOUVER, British Columbia, Nov. 27, 2025 (GLOBE NEWSWIRE) — Central 1 Credit Union (Central 1) today reported third quarter performance and stable financial results across business lines, consistent with plans and expectations.
“This quarter’s results show consistent financial performance and solid management amid economic uncertainty,” said Sheila Vokey, Central 1’s President & CEO. “As an aggregated services provider, we continue to focus time and energy on investing in our payments infrastructure along with the industry and supporting clients through a generational transformation of Canada’s payments system.”
Third quarter 2025 compared with third quarter 2024:
Net income was $24.9 million, compared with $5.8 million
Adjusted net income1 was $25.2 million, compared with $12.5 million
Net fair value gains were $30.7 million, compared with $6.9 million
Net interest income was $17.5 million, compared with $9.7 million
Return on equity (ROE) 2,3 was 12.2%, compared with 2.1%
Adjusted ROE2 was 12.1%, compared with 6.0%
Year-to-date 2025 compared with year-to-date 2024:
Net income of $22.2 million, compared with $47.8 million, includes a $29.3 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 $53.9 million, compared with $66.6 million
Net fair value gains of $41.7 million, compared with $60.2 million
Net interest income of $55.5 million, compared with $34.0 million
ROE2,3 was 5.4%, compared with 8.0%
Adjusted ROE2 was 8.9%, compared with 11.2%
Core Business & Financial Performance
Central 1’s third quarter and year-to-date (YTD) continue to report strong financial performance in 2025. Central 1’s net income for the third quarter was $24.9 million, an increase of $19.1 million, compared to the third quarter last year, reflecting continued strength in net interest income and significant net fair value gains.
The reported YTD net income was $22.2 million, a decrease of $25.6 million, compared to the same period last year, primarily attributable to the recognition of the provision for onerous contracts related to the transition of Digital Banking to Intellect Design Arena Ltd. (Intellect).
Treasury
Treasury reported a net income of $31.3 million, an increase of $19.7 million compared to $11.6 million reported in the same quarter last year. The strong performance was primarily driven by a $7.7 million increase in net interest income and an increase of $24.1 million in net fair value gains. The growth in net interest income is driven by a favorable funding mix, leading to a meaningful reduction in interest expense. Additionally, the increase in net fair value gains was driven primarily by narrowing credit spreads, which contributed positively to the reported net income.
Payments
Payments delivered net income of $0.2 million for the quarter, compared to $0.7 million in the same quarter last year, reflecting continued investment in strategic initiatives to support long-term growth. Non-interest income grew by $2.5 million year-over-year, driven by increased transaction volumes across select payment services. A $3.2 million increase in non-interest expenses reflects Central 1’s ongoing commitment to innovation and digital transformation. The Payments group continues to invest in key technology initiatives that support the significant transformation of the payments landscape in Canada.
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 nine months ended September 30, 2025 exclude the net loss from Digital Banking, which was transferred to Intellect Design Arena Ltd., effective March 1, 2025. To enhance comparability and present a clearer view of Central 1’s core business performance, Digital Banking has been excluded from the calculation of the adjusted net income.