April 19, 2024

Monetary large Desjardins Motion reported a $614 million surplus earlier than member dividends within the third quarter of 2023, permitting it to return $106 million to its members.

• Additionally learn: 400 staff at Desjardins lose their jobs

• Additionally learn: Desjardins will improve sure account charges by 22%

Desjardins reported incomes $319 million greater than in the identical interval final yr, a rise that may be defined specifically by a rise in income attributable to excessive rates of interest.

Reductions

The reductions, which could be granted individually or to the neighborhood, come from the extra cash generated by a fund after which returned to members every year below sure circumstances, Desjardins recalled on his web site. Virtually 90% of Desjardins members are eligible for this refund quantity.

This yr, the quantity of dividends that may be redistributed to members is $106 million, a steady determine in comparison with 2022. This quantity, acquired in numerous kinds, is usually taxable.

Reductions within the type of sponsorships, donations and scholarships quantity to $25 million, in comparison with $22 million in the identical interval final yr.

“Desjardins Group presents wonderful monetary outcomes for the third quarter of 2023. These outcomes, mixed with good capitalization and monetary solidity in addition to strict danger administration, enable us to adequately assist our members and clients throughout this tougher time,” stated the President and CEO of the Desjardins Group, Man Cormier.

For the reason that starting of 2023

For the primary 9 months of 2023, Desjardins Motion reported revenue earlier than dividends of $1.51 billion, a rise of $725 million in comparison with the identical interval in 2022.

This improve in surplus is primarily as a result of $582 million improve in web monetary earnings from insurance coverage, which was impacted by the numerous improve in rates of interest within the comparable 2022 interval.

Nonetheless, this improve was slowed by prices associated to elevated personnel and know-how expenditure. Rising automotive theft and inflation have led to a rise within the prices related to automotive insurance coverage claims, which additionally impacts deductibles.