Central 1 reports 2025 third quarter financial results

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
• ROE^2,3 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.

Notes

¹This is a non-GAAP financial measure. Refer to the “Non-GAAP and Other Financial Measures” section of the Q3 MD&A for more information.
²This is a non-GAAP financial ratio. Refer to the “Non-GAAP and Other Financial Measures” section of the Q3 MD&A for more information.
³When calculating the annualized ROA and ROE, certain items were treated as a non-recurring item and therefore 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 $9.5 billion as of September 30, 2025, Central 1 provides 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. 

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