Central 1 is a leading financial institution that serves as a primary banker and payments provider to more than 280 financial institutions and financial services companies.
Every day we securely move money and make money for credit unions, financial institutions, fintechs and others who are delivering banking choice to more than five million Canadians.
Our role as a financial utility provider is centered around these core principles:
We are a wholesale financial services provider, dedicated to our clients’ success.
We aggregate scale to maximize cost efficiencies and reduce barriers.
We offer integrated banking services to improve efficiency by delivering end-to-end payments, clearing and settlement, and treasury services.
Payments
We securely manage and process more than $1 billion in payments every day on behalf of more than 250 clients, and offer a full suite of account-to-account payments solutions including Interac e-Transfer®, bill payments, electronic funds transfer, wires, cheques, shared-network fraud intelligence, and AML screening. We support end-to-end payments processing including transaction clearing and settlement, infrastructure, and operations managed on our client’s behalf.
Treasury
We provide investment, lending, liquidity and risk management products and services that support the financial strength and stability for our clients and system partners. Through disciplined balance sheet management, diversified market access, and deep expertise, Treasury enables clients to achieve their financial goals and manage their risks effectively while continuously evolving to meet the needs of the communities they serve.
Our Enterprise Fraud Management tool prevented over 16,000 payment scams
47% increase in FX derivatives driven by increased risk management, funding, and hedging needs during a year of heightened volatility and tariff uncertainty
We kept money moving with 123 Million Interac e-Transfer payments, totaling over $56 Billion
34% increase in repurchase agreements as secured funding emerged as a more cost‑effective funding option and liquidity solution
We remain the largest Interac e-Transfer aggregator in Canada
We protected more than $15 Million from fraudsters
66% increase in ILTDs from 2024 – 2025 as demand grew for diversification and index‑linked growth with zero downside risk
Message from the President & CEO
Sheila Vokey
For Central 1, 2025 was a pivotal year — one in which our Board, executive leadership team, and employees took important strides to shape our future in a rapidly evolving financial services landscape. For several years, we have spoken about the pace of change across our industry and within the credit union system. That pace has only accelerated. Competition is intensifying, client expectations are rising, and technology and regulation continue to reshape how money moves in Canada.
Standing still is not an option. In 2025, Central 1 embraced this reality. We strengthened our foundations, sharpened our priorities, and pursued bold changes — all guided by our purpose to enable banking choice for people in Canada.
Redefining our future
Evolution begins with clarity. Over the past year, we refocused our business, modernized our governance, and refreshed our long‑term strategy to position Central 1 for a future that will look fundamentally different from our past.
Following the late‑2024 decision to wind down our digital banking offering and support clients through their transition to new vendors, we partnered with Intellect Design to take over our digital banking operations. This transition enables us to concentrate on our core strengths — payments, clearing and settlement, and treasury products and services — where Central 1 is best positioned to differentiate and scale.
We also advanced significant governance modernization to ensure the organization is equipped for the years ahead. After constructive dialogue with our Class A members, they voted overwhelmingly in support for two major changes: removing the double‑majority requirement for rules changes and introducing a refreshed approach to Board composition.
Later in the year, our Board approved a refined three‑year strategy anchored in a clear ambition: to be a thriving, growing national payments and treasury business. This strategy brings focus and discipline, ensuring our investments and execution are aligned with areas where we can deliver the greatest value to our clients and members.
Standing still is not an option. In 2025, Central 1 embraced this reality. We strengthened our foundations, sharpened our priorities, and pursued bold changes — all guided by our purpose to enable banking choice for people in Canada.
Strengthening our client partnerships
At the heart of Central 1’s evolution is a deeper commitment to a competitive, client‑centric mindset. We must earn our clients’ business every day.
In 2025, we transformed our client engagement model — from primarily service‑based interactions to more strategic partnerships. Our teams strengthened relationships with executive leaders, aligned to client priorities, and engaged earlier in planning cycles. These changes are already improving the quality of our relationships and our ability to drive meaningful outcomes. This will remain a key area of focus in 2026.
We also expanded our ability to serve organizations beyond the credit union system with our payments product and service offerings. These additional payment volumes help fund the scale and ongoing investment required to support the infrastructure used by all clients and members. In 2025, we onboarded major fintechs to our payments offerings and established a strong pipeline that reflects the value Central 1 brings to the broader financial services ecosystem.
Focusing on our core
Even as we shaped our desired future, our teams continued to advance our products and services. In 2025, we onboarded our first clients to Central 1’s Payments Integration Platform, transforming how institutions connect to our payments capabilities. We launched Treasury Basic Banking — including a new HISA offering — and continued enhancing our payments and treasury solutions.
The Real-Time Rail (RTR) also re‑emerged as an industry priority. Throughout the year, our teams worked closely with clients to meet readiness milestones and prepare for the next era of real‑time payments in Canada. This remains important and focused work over the next two years.
Throughout the year, our teams worked closely with clients to meet readiness milestones and prepare for the next era of real-time payments in Canada.
Looking ahead
While this letter highlights key milestones, it only begins to reflect the dedication of our teams, who work every day to maintain resilient operations and deliver value to the clients — and ultimately the Canadians — we serve.
As we look to 2026, our path is clear. We will deepen client partnerships. We will accelerate product innovation. We will execute with focus and discipline. And we will continue evolving to grow our business and meet the demands of a transforming industry.
To our members, clients, partners, and employees: thank you for your trust, collaboration, and commitment throughout this pivotal year. I am confident in what we are building together and excited for what we will achieve in 2026.
Sheila Vokey
President & CEO
Message from the Board Chair
Shelley McDade
Over Central 1’s 80‑plus year history, Canada’s financial services landscape has undergone profound transformation — from the consolidation in the banking sector, to the rise of digital payments, to the era of disruption and intensified competition we navigate today. Each shift has tested our ability to adapt, but each has also strengthened our resolve to reaffirm who we are and reimagine the future we choose to build.
In 2025, Central 1’s Board and management had several pivotal opportunities to reflect on this moment in time and take pragmatic, future‑defining steps.
Following the decision in late 2024 to wind down Central 1’s digital banking offering and support clients as they transitioned to new vendors, the Board approved the transition of the existing digital banking business to Intellect Design in early 2025. This was more than a transaction — it was a strategic choice to ensure stability and continuity for our clients while enabling Central 1 to sharpen its focus and invest in the areas where it can truly differentiate and scale. It was the right decision for our members and for Central 1’s future.
This strategy focuses on expanding our value proposition, increasing scale, and serving a broader range of challenger financial service providers that will bring value to credit unions too.
At the same time, we advanced significant modernization of our governance model to better position the organization for the years ahead — not only in how decisions are made, but in ensuring the Board has the perspectives required to take a future‑focused view. In July, after robust engagement with our members, our Class A members overwhelmingly voted in favour of two substantial governance changes: the elimination of the double‑majority requirement for rules changes, and a refreshed approach to Board composition.
These were monumental decisions, and on behalf of the Board and management, we are deeply grateful for the trust and support our members placed in us.
The latter half of the year centred on mobilizing our evolution. With a clearer understanding of the external environment and the organization we need to be for long‑term resilience, the Board and management redefined our three-year strategy with a bold ambition: to be a thriving and growing national payments and treasury business.
This strategy focuses on expanding our value proposition, increasing scale, and serving a broader range of challenger financial service providers that will bring value to credit unions too — while continuing to be a trusted and indispensable partner to our member credit unions. Approved in November, it is now actively guiding the Central 1 team as they evolve the organization and deliver for clients.
With a modernized governance framework, a focused strategy, and a capable leadership team, Central 1 is well positioned not only to respond to change, but to thrive in a rapidly evolving financial services ecosystem.
As Central 1’s strategic direction has evolved, so too must the skills and perspectives around the Board table. To bring to life the composition changes approved by members, the Nominations and Elections Committee undertook a significant refresh of our Board skills matrix — expanding to include deeper expertise in financial services, technology, and growth disciplines. These perspectives will complement our deep credit union roots and strengthen the Board’s ability to guide Central 1 into its next chapter and beyond.
This was also a year of evolution for Central 1’s executive leadership team, with the addition of Barclay Hancock, Chief Payments Officer; Dan Semmens, Chief Technology Officer; and Priyal Thakrar, Chief Finance Officer. Their leadership and expertise enhance the strong foundation already established by President and CEO Sheila Vokey and the broader executive team. The Board has great confidence in their collective ability to lead Central 1 to a bright future.
As I prepare to conclude my tenure as Board Chair and a director of Central 1 at this year’s Annual General Meeting, I must thank our members, my colleagues on the Central 1 board, and the Central 1 management team for their resilience in stewarding the progress we have made — particularly over the past year.
I am honoured and humbled to work with a group of dedicated professionals focused on serving our system. We have strengthened governance, clarified our strategic direction, and made difficult but necessary decisions to secure Central 1’s long‑term resilience and relevance, in service of our members and clients.
The work ahead will require continued adaptability, discipline, and ambition. I am confident that with a modernized governance framework, a focused strategy, and a capable leadership team, Central 1 is well positioned not only to respond to change, but to thrive in a rapidly evolving financial services ecosystem.
Shelley McDade
Chair of the Board
Our performance in 2025
$31.9 M
NET INCOME
Treasury
$76.3 M
NII growth of 52% YoY
$47.5 M
Fair value gains
- Strong net interest income benefited from improvements to funding mix and asset allocation
- Solid investment gains, driven by continued tightening of credit spreads
Payments
$94.6 M
Revenue growth of 5% YoY
- Driven by growth from new clients and a broadening of our product and services offering
- Results are underpinned by continued investments in capabilities to ensure long-term sustainability
Digital Banking
Results largely reflect the one-time accounting provision resulting from the sale of the Digital Banking business in Q1.
System Affiliates & Other
Revenues driven by strong affiliate performance.
Core capital metrics
In 2025, Central 1’s capital ratio and borrowing capacity are above regulatory requirements, reflecting a strong financial foundation and long term resilience.
Total capital ratio1
Tier 1 capital ratio1
16.1%
Borrowing multiple1
9.0:1
1 These are non-GAAP Financial Ratios. Refer to the “Non-GAAP and Other Financial Measures” section of this MD&A for more information.
