Decline in savings company activities in 2005

Deposit institutions

Québec City - Net earnings of savings companies in Québec declined from $1.2 billion in 2004 to $940.9 million in 2005. The decline was due primarily to the withdrawal from the sector of a savings company that merged its operations with those of a trust company in 2005. Excluding this company, profits posted by savings companies rose 14.3% in 2005 compared with the previous year.

These figures are taken from the annual report of the Autorité des marchés financiers (AMF) on trust companies and savings companies in Québec in 2005, which was tabled recently in the National Assembly by Finance Minister Michel Audet.

The report also shows that the assets of savings companies decreased from $127.2 billion in 2004 to $110.9 billion in the past year. Excluding the company that withdrew from the sector, total assets held by savings companies rose 1.6% in 2005.

As at December 31, 2005, seven savings companies carried on financial intermediation activities in Québec. They all held an operating permit and were registered with the AMF under the Deposit Insurance Act. These savings companies are incorporated under federal law and all but one are part of bank groups.

With respect to savings and credit in Québec, the report notes that, in 2005, savings companies collected 9.5% of their deposits from Québec investors and extended to them 12.5% of their mortgage loans.

The 2005 report on trust companies and savings companies is available free of charge (in French only) on the AMF website.

The AMF is the regulatory and oversight body for Québec’s financial sector.

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