Desjardins Group reported surplus earnings of $816 million before member dividends in the third quarter of 2021, up by $87 million or 11.9% from a year prior.
The company said Friday that its earnings growth was primarily due to lower losses in its property and casualty insurance segment and “strong performance” from the caisse network. It also benefited from a decrease in the provision for credit losses after boosting reserves in 2020 due to the pandemic.
Guy Cormier, president and CEO of Desjardins, called the results “excellent” and in line with the trend from earlier in the year. In his statement, he also pointed to the financial co-operative’s “efforts to ensure a green socioeconomic recovery” as it endeavours to fight climate change.
The wealth management and life and health insurance division posted $109 million in net surplus earnings, down $31 million or 22.1% from a year earlier.
“This decrease was mainly due to the markets’ less favourable impact on guaranteed investment funds compared to the third quarter of 2020 as well as a downward revision, also in the third quarter of 2020, of provisions recognized for travel insurance in the first quarter of 2020,” Desjardins said in its release.
The financial co-operative reported total assets of $390.6 billion this quarter, marginally higher than the previous quarter and up 7.9% in the first nine months of this year. Leading factors included “the increase in net loans and acceptances, as well as securities,” the release said.
Assets under administration of $480.6 billion on Sept. 30 were lower than the $485.8 billion reported on June 30. Year-over-year AUA increased about 7.6%.
Assets under management increased roughly 23.8% year over year to $90.5 billion, and were up from $85.4 billion last quarter.
Provision for member dividends for the quarter was $90 million, up $10 million from the same period in 2020 and unchanged from Q2 2021.