Central 1 reports fourth quarter and fiscal 2025 financial results

VANCOUVER, British Columbia, March 12, 2026 (GLOBE NEWSWIRE) — Central 1 Credit Union (Central 1) today reported fourth quarter and year-end 2025 performance ahead of expectations.

“With solid financial performance providing a strong foundation, 2025 gave us the clarity to accelerate transformative change across our organization,” says Sheila Vokey, Central 1’s President & CEO. “This year marked a defining turning point for Central 1 as we advanced our strategy, strengthened our governance, and deepened client partnerships to shape Central 1 as an agile, future-ready national leader in payments and treasury services.”

Fourth quarter 2025 compared with fourth quarter 2024:

• Net income was $9.7 million, compared with $16.3 million
• Adjusted net income¹ was $9.2 million, compared with $25.7 million
• Net interest income was $19.8 million, compared with $14.4 million
• Net fair value gain was $4.8 million, compared with $29.3 million
• Return on equity (ROE)^2,3 was 4.3%, compared with 7.7%
• Adjusted ROE² of 4.2%, compared with 12.2%

For the year 2025 compared with 2024:

• Net income was $31.9 million, compared with $64.1 million
• Adjusted net income¹ was $63.3 million, compared with $93.6 million
• Net interest income was $75.4 million, compared with $48.4 million
• Net fair value gain was $46.5 million, compared with $89.5 million
• Return on equity (ROE)² was 4.0%, compared with 8.0%
• Adjusted ROE² of 7.7%, compared with 11.6%
• Assets of $9.6 billion at December 31, 2025, compared with $10.0 billion at December 31, 2024.

Core Business & Financial Performance

Central 1 reported net income of $31.9 million in 2025, supported by solid underlying performance and deliberate investment across its core businesses. Net interest income increased by $27.0 million year-over-year, reflecting the benefits of optimizing of our funding mix and asset allocation. Fee-based revenue was supported by continued growth in the Payments business, driven by higher transaction volumes and increased Enterprise Fraud Management and Automated Funds Transfer revenue, partially offsetting lower Digital Banking revenue following the successful transition earlier in the year of operations to Intellect Design Arena Ltd.

Central 1’s Board of Directors has declared a dividend of $8.0 million to Class A members, payable in March 2026.

Treasury

Treasury reported net income of $75.8 million for the year, reflecting strong growth in net interest income as well as net fair value gains. Active management of our funding mix and asset allocation resulted in net interest income increasing by $25.9 million. Net fair value gains additionally contributed to the reported net income as credit spreads narrowed.

Payments 

In 2025, payments revenue grew 7 per cent compared to the previous year, driven by growth in transaction volumes, which benefit from organic growth and the adoption of new product offerings. Significant investment in strategic technology initiatives and capabilities to support long-term growth in Canada’s evolving payments landscape contributed to a net loss of $13.0 million for the year.

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 Consolidated Financial Statements.

Adjusting Item

Adjusted results for the three months and year ended December 31, 2025, exclude the net income (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 MD&A for more information.
²This is a non-GAAP financial ratio. Refer to the “Non-GAAP and Other Financial Measures” section of the 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.}

About Central 1
Central 1 cooperatively empowers credit unions and other financial institutions who deliver banking choice to Canadians. With assets of $9.6 billion as of December 31, 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