Montréal, June 14, 2013 - The Autorité des marchés financiers ("AMF") has published the 2012 annual report on trust companies and savings companies (in French only) tabled today in the Québec National Assembly. The report presents the financial portrait of trust and savings companies carrying on business in Québec, the changes they have undergone, as well as the percentage of their business generated in Québec.
As at December 31, 2012, 48 trust and savings companies were licensed to carry on business in Québec under An Act respecting trust companies and savings companies, 40 of them under a trust company licence and eight under a savings company licence. Thirty-six of all companies holding a licence in Québec were registered with the AMF under the Deposit Insurance Act and were therefore authorized to receive deposits from the public.
The report reveals that trust companies and savings companies continued to maintain their market share of deposits received in Québec. It also indicates that savings companies were more active in granting hypothecary (or mortgage) loans in Québec than trust companies. Moreover, it shows an increase in the value of assets administered and managed by trust companies on behalf of clients residing in Québec.
In 2012, trust and savings companies strengthened their total capital ratios due mainly to income generated during the most recently completed fiscal year. These capital ratios easily exceed the 8% minimum required under the AMF's Capital Adequacy Guideline.
In the past year, trust and savings companies posted better results than in the preceding fiscal year, due primarily to higher profit margins and lower operating expenses.
The AMF regulates trust and savings companies, in particular, by issuing, updating and overseeing the application of its guidelines. It also adapts the regulation of the institutions it oversees to the new rules which were introduced by the Basel III accords and came into effect in January 2013. In this regard, the guidelines published by the AMF are available by clicking on the "Guidelines" tab under the "Deposit Institutions" menu.
For more information about the financial condition of trust companies and savings companies in Québec, please consult the 2012 annual report on trust companies and savings companies.
The Autorité des marchés financiers ("AMF") is the regulatory and oversight body for Québec's financial sector.
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