Desjardins Group posted surplus earnings of $935 million before member dividends in the second quarter of 2021, up by $406 million or 76.7% from a year earlier, the financial cooperative reported Thursday.
Desjardins chalked up the significant increase to a drop in the provision for credit losses, strong caisse network performance and fewer losses in its property and casualty segment. In Q2 2020, the cooperative had increased its provision for credit losses in response the Covid-19 pandemic.
Desjardins president and CEO Guy Cormier called the results “solid,” noting in the release, “We are also proud to play a leading role in developing the circular economy in Canada.”
Provision for member dividends was $90 million in Q1 2021, up $10 million from the same period in 2020.
The wealth management and life and health insurance division posted $235 million in net surplus earnings, down $26 million from a year earlier. The cooperative said markets were more favourable for guaranteed investment funds in Q2 2020, and that there had been “a downward revision of provisions recognized for travel insurance in the first quarter of 2020.”
Equity assets under administration were nearly $486 billion while assets under management were $85 billion as of June 30, both up from a year earlier and the previous quarter.
Desjardins reported total assets of $389.3 billion as of June 30, up 7.5% from Dec. 31, 2020.