Central 1’s Treasury team supported the system to achieve a highly successful year with record earnings, as credit unions substantially grew their loans and deposits. Looking ahead, the team continues to drive value and support.
Treasury offers a broad portfolio of products and services and support all sizes of credit unions and financial institutions with our expertise and knowledge. Our role is threefold:
- To support client access to the capital markets
- Act as a central banker to help facilitate access to liquidity, borrowing and investing
- Lead as a knowledge provider and bring education and insights to help our clients drive profitability and performance in their organizations
Helping our clients grow
We offer support in continuing to make the right decisions to deliver sustainable value. In 2021, we issued a $250 million, five-year senior deposit note at a low rate to boost our liquidity reserves. Our Treasury team helped our clients and members address overall liquidity securitization, with over $5 billion of new securitization transactions taking place through 2021. Our Commercial Real Estate Lending group prudently grew our commercial portfolio – 2021 was the 12th consecutive year we had $0 losses in the portfolio. We also had a strong year for interest rate derivatives executed with bank and central counterparties.
Support through transition
The Treasury team also supported our members with Asset Management Services (AMS), a direct response to help with the Mandatory Liquidity Pool transition, from a deposit structure to an investment structure, for the benefit of the credit union system in British Columbia and Ontario. We worked with clients across the country to help them manage AMS including portfolio rebalancing to comply with liquidity regulatory requirements and optimize return in accordance with investment mandates. We consistently respond to our clients’ needs and provide expertise, knowledge and training to ensure their success.
Responsible investing in our community
We are consistently incorporating ESG (Environmental, Social, Governance) factors into our investing activities as an integral part of our investing framework. In 2021, 12.3 per cent of our investment portfolio consisted of green, social or sustainable securities – substantially exceeding our UN Principles of Responsible Investment commitment of five per cent.
We initiated CREL investment in an all-female real estate project that supports DEI funding, syndicating $27 million of a $97 million construction loan (led by Laurentian Bank of Canada) associated with Canada’s first all-female designed and developed residential condominium project in Toronto.
We also invested $40 million in Bank of Montreal’s $750 million inaugural Women in Business bond offering. Proceeds from this bond offering are allocated to women-owned business lending and financing, including micro-, small- and medium-sized businesses.
Setting our clients up for success
Our Treasury team is committed to providing a stable source of market funding to support our clients and members while consistently delivering strong contributions to overall earnings. We recognize the importance of our role as the primary liquidity provider to the credit union system, and continue to take steps to ensure we have the appropriate levels of liquidity to support and maintain confidence in the system.