(November 15 – 15:40 ET) – Desjardins Trust is reporting reduced earnings for the third quarter ended September 30. Net earnings were $3.5 million, bringing earnings for the first nine months of the year to $9.2 million.

In 1999, earnings for the third quarter and the first nine months of the year were $5.3 million and $13.4 million respectively. Desjardins says the difference is due to an increase in corporate taxes of $1.6 million in the third quarter, and $4.7 million for the first nine months of the year.

Fee revenue for the third quarter rose to $22 million compared to $20.5 million in 1999. Increase in fees from investment funds, custody services and discretionary portfolio management accounted for the year-over-year improvement.

Net investment income grew due to increased margins and volume and amounted to $7.1 million compared to $5.4 million for the fourth quarter of 1999. Together, these two sources of revenue boosted total income to $29 million as of last September 30, compared to $25.9 million in 1999.

Operating expenses for the third quarter amounted to $23.1 million compared to $19.7 for the same period in 1999. Desjardins says increased expenses are the direct result of company efforts to maintain growth in fee-based business and the development of a new family of mutual funds targeted at a new distribution networks.

As of September 30, assets amounted to $1.21 billion, compared to $1.33 billion for the same date in 1999.
-IE Staff