Growth in trust activities in 2007

Organization Deposit institutions

Montréal – The Autorité des marchés financiers (AMF) has released the 2007 report on trust companies and savings companies following its tabling today in the Québec National Assembly by Minister of Finance Monique Jérôme-Forget.

The report notes that trust companies operating in Québec in 2007 posted a 1.9% increase in trust activities based on assets under administration. Assets related to these activities grew from $2.783 billion as at December 31, 2006 to $2.838 billion as at December 31, 2007.

The report also states that, as at December 31, 2007, a total of 37 trust companies were licensed to carry on business in Québec, namely, 3 with a Québec charter and 34 with a federal charter. Furthermore, 30 of these companies, 2 of which had a Québec charter and 28 a federal charter, were registered with the AMF under the Deposit Insurance Act and therefore authorized to receive deposits from the public.

The number of trust companies has not changed; however, it is important to note that Société de Fiducie Home now operates under the name Compagnie Home Trust. Total assets of all trust companies jumped 6.6%, from $88.8 billion in 2006 to $94.7 billion in 2007.

Net earnings of trust companies over the past year, for all of their activities in Canada, declined 2.7%, from $774.3 million in 2006 to $753.7 million in 2007. Operating expenses rose 9.9% for the period, thereby reducing profit margins. The net earnings ratio of these companies stood at 23% in 2007, down from 25.5% in 2006.

With respect to savings and credit in Québec, the report notes that, in 2007, Quebeckers accounted for 12.8% of deposits received by trust companies and 23% of their mortgage loans.

The 2007 report on trust companies and savings companies in Québec is available (in French only) on the AMF website.

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

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