Desjardins Trust saw second quarter net earnings dip to $4 million, down from $4.3 million for the same period last year.

These results bring the earnings for the six months ended June 30 to $7.4 million, for a return on common shareholder’s equity of 23.1%. The first half of 2001 ended with net earnings of $7.2 million.

Total fee income for the second quarter enjoyed an increase of 10.6% to $34.5 million, compared to $31.2 million for the same period last year. However, fee income growth was curbed by general market conditions, which led to a reduction in assets and the sale of mutual funds. The increase in fee income is mainly attributable to the progression of the Desjardins Funds’ and the Maestral Funds’ assets, as well as to new management and custody service mandates.

The decrease in interest rates during the quarter caused net investment income to drop to $6.4 million. However, the combined fee and investment income caused a 2% increase in total income before operating expenses, compared to figures for the second quarter of last year.

Total operating expenses for the second quarter were $23.9 million, up from $22.6 million for the same period in 2001. This increase in total operating expenses is directly attributable to the efforts invested in supporting business growth in the fee income sectors.