(June 5 – 15: 30 ET) – The Mouvement Desjardins’ surplus earnings before patronage allocations to members for the first quarter of 2000 totalled $77.3 million, compared to $49.3 million in the first quarter of 1999, an increase of 56.8%. This represents a return of 49¢ per $100 of average assets. Return on equity was 7%, a 2.6% improvement over last year’s quarter.
The cooperative network’s total income for the quarter was $681.3 million, an increase of $50.3 million or 8%. The increased profit was due mainly to growth in total income, and reduced loan losses, as a result of tighter credit management and favourable economic conditions.
“These results attest to the entire Desjardins network’s ongoing efforts to achieve a healthy profitability so that the caisses can continue giving their members efficient service,” said Alban D’Amours, president of the Mouvement des caisses Desjardins. “We are confident that the important changes underway in both the caisse network and the support organizations will further enhance our results in the future. Desjardins intends to reaffirm its position as the premier financial institution in Quebec.”
The network of Desjardins caisses has one of the highest capital ratios among Canadian financial institutions. At March 31, the Tier 1 and total capital ratios amounted to 11.08% and 11.92% respectively, well above the minimum regulatory requirements.
At March 31, overall assets for the Mouvement des caisses Desjardins, including the caisses and federations in Ontario, Manitoba and Acadia, grew to $77.9 billion, vs $76.2 billion a year ago.
-IE Staff