Decreased Profitability of Savings Companies in 2003

Deposit institutions

Québec – Net earnings of savings companies decreased by 3.8% during the past year in Québec, falling from $933.3 million dollars in 2002 to $898 million in 2003. This decrease is mainly explained by a 7.2% increase in operating expenditures. The cancellation of the permit of a large company also influenced the overall results.

The figures are taken from the annual report of the Agence nationale d’encadrement financier (also known as the “Autorité des marchés financiers” or “AMF”) on trust companies and savings companies in Québec in 2003, which was tabled in the National Assembly by Finance Minister Yves Séguin.

The report also shows that the assets of savings companies increased by 1.7% over the past year, rising from $127.3 billion in 2002 to $129.4 billion in 2003.

As of December 31, 2003, eight savings companies carried on financial intermediation activities in Québec. They all held an operating permit and were registered for deposit insurance in Québec. These savings companies are incorporated under federal law and all but one are directly or indirectly subsidiaries of banks.

With respect to savings and credit in Québec, the report shows that savings companies in 2003 collected 7.4% of their deposits from Québec investors and granted them 11% of all their hypothecary loans.

The 2003 report on trust companies and savings companies is available in French only free of charge on the AMF website.

Established on February 1, 2004, the Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector. The AMF consists of the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l'assurance-dépôts du Québec, the Fonds d'indemnisation des services financiers and the Inspector General of Financial Institutions.

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