(March 6 – 15:30 ET) – Desjardins-Laurentian Financial Corp. is reporting improved earnings for year ending Dec. 31, 2000. Consolidated net earnings reached $80.8 million, compared to $67.8 million in 1999. Return on common shareholders’ equity was 8.7% compared to 7.8% in 1999.

Desjardins-Laurentian Life Assurance’s net earnings attributable to the shareholder totalled $67.2 million in 2000, compared to $53.8 million in 1999, for a return on shareholder’s equity of 21.5% compared to 19.7% in 1999. The 2000 results reflect the increased profitability of individual insurance business, which was attributable to improved underwriting experience in life insurance as well as non-recurring items of $20 million.

Imperial Life’s net result attributable to the shareholder represents a loss of $4.1 million in 2000, compared to a loss of $37.9 million in 1999. Had it not been for the significant provisions taken in the U.K. pension transfer file referred to previously, net earnings attributable to the shareholder would have been $7.5 million in 2000, compared to a net loss of $9.9 million in 1999, for a significant improvement of $17.4 million.

Société de portefeuille du Groupe Desjardins, assurances générales contributed $35.7 million to DLFC’s consolidated net earnings. ROI was 13.6%. In 1999, SPGDAG contributed $34.2 million for ROI of 14.3%.

Desjardins Specialized Financial Services Management (DSFSM) contributed $11.6 million to DLFC’s consolidated net earnings compared to $12.1 million in 1999. ROI was 27.0% compared to 68.8% in 1999. As for Desjardins Trust, DSFSM’s principal subsidiary, it reported net earnings of $13.5 million in 2000, compared to $15.5 million in 1999, for ROE of 20.8% compared to 25.2% in 1999

Fee income rose from $81.1 million to $86.7 million in 2000, up $5.6 million, due mainly to increased sales for all of the company’s products and services, in a context where the industry experienced a slowdown in the sale of investment funds, one of Desjardins Trust’s major activities.

Desjardins Securities contributed $14.1 million to DLFC’s consolidated net earnings in 2000, compared to $3.7 million in 1999. ROI was 34.9% compared to 11.2% in 1999.

Intense stock market activity, which began in the fourth quarter of 1999, continued into the first half of 2000, enabling Desjardins Securities to post performance records in terms of monthly transactions and commission revenue. Activities in the second half of the year were less frantic.

Total revenue rose $45.2 million in 2000 to reach $116.3 million, up 64% from 1999. Commissions rose 66% to $91.0 million and the volume of activity jumped 91%. The contribution to commission revenue from members referred by the Desjardins caisse network was 52%, the same as in 1999.

The growth in operating expenses mainly reflected the higher transaction volume, the 27% increase in the number of clients and the amortization of technology investments.

Assets under administration totalled $7.2 billion at December 31, compared to $6 billion in 1999, an increase of 20%.
-IE Staff