Credit 1 Credit Union, the provider of wholesale services to credit unions in B.C. and Ontario, reported a stronger third quarter in 2009.

Higher financial income and a positive change in the fair value of its financial investments were cited as the reason.

It reported third quarter net income of $35.5 million compared with a loss of $1.3 million. Its interest margin increased 52.5% to $20.9 million from $13.7 million, benefiting from a sharp increase in deposits in B.C. and Ontario credit unions, higher credit spreads on its investment portfolio and the lower cost of funds in capital markets.

Central 1′s net financial income rose to $46.8 million, up from $1.2 million in the same period a year ago primarily from a net gain of $25.9 million from the disposal of financial instruments and an increase in the fair value of its remaining financial instruments.

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