(March 27 – 10: 25 ET) – Caisse Centrale Desjardins, the financial agent of the Desjardins Group, is reporting net income in 1999 of 28 million dollars, up 8 % over the preceding year and its total contribution to the caisses network increased by 7 % to reach 44 million
dollars.
“In 1999, total assets increased from 9.7 to 11.5 billion dollars,” says Jean-Guy Langelier, president and Chief Executive Officer of Caisse Centrale . “Or by 19 %, due to higher liquidity maintained to sustain the passage of year 2000 and the business development of the
Desjardins Group.”
The improvement in net income is explained by a 11 % annual increase of the net interest income which totalled 65 millions dollars in 1999, says Caisse Centrale. This increase comes from the growth of revenues generated from assets associated to the 100 million capital injected at the beginning of 1999 and from the net margin from the growth of loans to businesses.
Commercial loans increased annually by 10 % due to 660 million dollars of new loans to medium-sized businesses in partnership with the caisses, as well as the large-sized businesses which generate revenues for the Desjardins network.
In order to increase its liquidities, Caisse Centrale increased its deposits by 1.4 billion to 9.5 billion dollars at the end of 1999. To do so, Caisse Centrale Desjardins successfully floated 11 issues under the European medium-term note program for a total value of 1.6 billion dollars. At year-end, 67 % of its deposit liabilities were raised on the international markets.
-IE Staff