Central 1 Credit Union has reported net income of $30.9m in the first nine months of 2010, compared with $88.7m in the same period last year.
Central 1 said that it has experienced higher financial margin and larger trading gains in the nine months ended 30 September 2010, than in the previous year, but with continuing volatility in the financial markets, net income was adversely affected by mark-to-market losses.
In contrast, in the first nine months of 2009, Central 1 benefited from a unusual combination of events in financial markets, including declining interest rates and shrinking bond spreads, resulting in very strong mark-to-market gains that generated record net income.
Assets declined by 2.9% year-over-year, amounting to $10bn as at 30 September 2010 compared with $10.3bn a year earlier.
Central 1’s return on equity was 7.4%, compared with 24.2% a year earlier.
Central 1 Credit Union president and CEO Don Rolfe said Central 1 expected that net income would revert closer to historical levels this year as financial market conditions returned toward normal.
"Our results to date for 2010 are in line with those expectations," Rolfe said.