(November 22 – 16:40 ET) – Mouvement des caisses Desjardins is reporting an increase in surplus earnings for the third-quarter ended September 30.

Surplus earnings before patronage allocations were $161.7 million or $1 per $100 of average assets, compared to $153.9 million or 96¢ a year earlier

For the nine months ended September 30, surplus earnings before patronage allocations amounted to $371.2 million or 78¢ per $100 of average assets, for an increase of $77 million or 26.2% compared to 1999. Desjardins says the growth in profitability was due to growth in total income and a reduction in expenses for provisions and loan losses.

Since the start of the year, the amount of patronage allocations recorded in the caisse network was up 13.2% compared to 1999, to total $97.6 million. Desjardins says this excellent level of capitalization in the caisse network combined with a good financial performance in recent months has enabled the caisses to increase the remuneration given to their members as owner-users.

Return on equity rose to 10.8%, compared to 8.5% during the same period in 1999.

“Without a doubt, the Mouvement Desjardins is headed for an excellent year end, notably as a result of better control of operating expenses and a clean-up of its balance sheet, as well as favourable economic conditions,” said Alban D’Amours, president of the Mouvement des caisses Desjardins. “

At the end of the third quarter of 2000, overall assets of the Mouvement des caisses Desjardins, including the caisses and federations in Ontario, Manitoba and Acadia, amounted to $79.9 billion, an increase of $2.5 billion or 3.2 % over the year, compared to 1% growth recorded for the second quarter.

Desjardins attribute the growth in assets to stronger credit demand, a significant upsurge in deposit recruitment and the acquisition of CIBC’s two Canadian general insurance subsidiaries by Société de portefeuille du Groupe Desjardins, assurances générales inc.
-IE Staff