(November 21 – 16:45 ET) – Desjardins-Laurentian Financial Corp. has reported consolidated net earnings of $37.9 million for the third quarter of 2000. That is up from $26.3 million a year earlier.

Year-to-date, net consolidated earnings totalled $73.5 million compared to $72 million in 1999, says DLFC. Return on equity was 9.3% versus 9.8% in 1999. The results at September 30, included a $12.7 million provision in the U.K. pension transfer file. Excluding this non-recurring item, net earnings totalled $86.2 million, for return on shareholders’ equity of 11%.

Desjardins-Laurentian Life Assurance contributed $13.5 million to the life and health sector results, compared to $15 million in the year-earlier quarter. Year to date, it has contributed $33.8 million compared to $36.6 million in 1999. ROE was 14.1% year to date.

The improved Desjardins network insurance experience, especially for loan insurance products, helped to offset the expenses incurred by the hiring of financial security agents in the caisses, says the company. Deteriorating group network experience in short-term disability and health was offset by improved experience in individual long-term disability and life insurance. In terms of surplus capital, investments returned well.

Desjardins Specialized Financial Services Management (DSFSM) contributed $3.4 million to DLFC’s consolidated net earnings in the third quarter of 2000, compared to $3.7 million in 1999. Year-to-date, it has contributed $7.5 million compared to $10.2 million in 1999. ROI year-to-date was 26%.

Desjardins Trust, DSFSM’s principal subsidiary, reported net earnings of $3.5 million for the third quarter of 2000, compared to $5.3 million in 1999. ROE was 19.4% at September 30, 2000 with net earnings of $9.2 million. Fee income was up 8.0% year to date, due to the higher volume of mutual funds outstanding, the increase in the number of institutional savings plans accounts, higher fees for retail financial services, securities administration and custody services and discretionary portfolio management services. Net investment income was up, reflecting wider spreads and volumes.

The volume of Desjardins funds outstanding totalled $4.4 billion at September 30, 2000, compared to $4 billion at September 30, 1999, a rise of 12%.

Desjardins Securities contributed $3.0 million to DLFC’s consolidated net earnings in the third quarter of 2000, compared to $0.8 million in 1999. Year- to-date, it has contributed $12.2 million compared to $2.5 million in 1999. ROI year-to-date was 41%.

Opvest contributed $1.4 million to DLFC’s consolidated earnings in the third quarter of 2000. Year to date, it has contributed $2.4 million. This subsidiary is managed as a shared service centre and its operating costs are allocated among DLFC’s other subsidiary companies.
-IE Staff