Desjardins Group posts increase in profitability for 2009

Organization Deposit institutions

Montréal – The 2009 report on financial services cooperatives published by the Autorité des marchés financiers (AMF), tabled today in the Québec National Assembly, indicates a positive bill of health in this sector.

This sector consists primarily of entities of the Fédération des caisses Desjardins du Québec (FCDQ) The main entities included in the scope of Basel II are the Fédération des caisses Desjardins du Québec, credit unions in Québec, the Caisse centrale Desjardins, MM Trust II, Capital Desjardins inc., Fonds de sécurité Desjardins, Desjardins Credit Union, Transit Desjardins inc., Desjardins Trust, Gestion de placement Desjardins, Desjardins Financial Services Firm, Desjardins Securities, 9210-6764 Québec Inc., 9210-6855 Québec Inc., Desjardins Société financière, Desjardins Gestion d’actifs, Location Desjardins, 9186-8034 Québec Inc., PCAACO Mère, DGAG Holding and Stratégie alternative (DGAM). and, to a lesser extent, of the Caisse des mutuellistes d’épargne et de crédit (CMEC).

Desjardins posts significant surpluses

FCDQ posted sharp increases in combined surplus earnings before patronage refunds, rising from $62.7 million in 2008 to $1.044 billion in 2009. This financial performance is largely attributable to the recovery of financial markets in 2009.

Since January 1, 2009, the FCDQ has been calculating its capital ratio using a new guideline issued by the AMF based on the Basel II standards. This guideline covers capital base requirements for financial services cooperatives. As at December 31, 2009, the FCDQ’s capital ratio was 15.95%, above the minimum ratio of 8%. Although this ratio cannot be compared with the results of previous years, it is a sign of the financial health of the FCDQ.

The application of this new guideline also explains the increase in FCDQ assets, which rose from $122.1 billion in 2008 to $139.3 billion in 2009. The assets of the CMEC stood at $24.1 million as at December 31, 2009, up 6.5% over December 31, 2008.

As at December 31, 2009, 460 credit unions in Québec were affiliated with the FCDQ. The CMEC was the only independent credit union.

For more information about the financial services cooperatives industry in Québec, please consult the 2009 report on financial services cooperatives (in French only) on the AMF website, under the heading Publications/Documents regarding the AMF/AMF annual reports.

The Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector.

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