(February 9 – 14:50 ET) – Desjardins Trust had net earnings of $15.5 million in the 1999 fiscal year, the company says . That represents a 25.2% return on shareholder equity, says Desjardins. It’s drop from the 1998 earnings due to higher operating costs, lower net investment income, and the corporation’s tax status.

Fee income grew from $74.9 million in 1998 to $81.0 million in 1999. Securities administration and custody services in particular contributed to fee income growth. Net investment income was inferior due to lower gains on disposal of investments in 1998, standing at $18.6 million compared with $22.5 million for the previous year. Total income from both sources combined was $99.5 million as at last December, compared with $97.5 million in 1998.

Operating expenses were $82.6 million compared with $77.6 million for the previous year. This increase is mainly due to extra expenses incurred to support growth in business – particularly in the areas of securities administration and custody services – and for technological investments in the mutual funds sector.

As at December 31, 1999, Desjardins Trust’s assets were $1.20 billion,
compared with $1.21 billion on the same date the previous year.

In 1999, Desjardins Trust partnered with recognized promoters to launch to Desjardins
Select Funds. In addition, following a partnership between Desjardins and the Credit Union Central of Canada, Desjardins Trust joined with the Credential Group – owned by Credit Union Central and creator of Ethical Funds – in marketing in the caisse network three funds of funds composed of Ethical Funds units. This association likewise gave rise to the Credential Portfolio Funds family, four funds made up of Desjardins Funds units, that are distributed throughout the Canadian credit union network.

Desjardins Trust is also making headway in other areas such as wealth management with its discretionary portfolio management, among other services. Since 1995, this service has grown phenomenally, going from $30 million in assets to over a half-billion as at December 31, 1999, for growth averaging over $10 million per month.
-IE Staff