Growth of trust company activities in 2005

Deposit institutions

Québec City – Trust companies with operations in Québec posted a 14.1% increase in trust activities over the past year based on assets under administration. Assets related to these activities grew from $987.5 billion as at December 31, 2004 to almost $1.127 trillion as at December 31, 2005.

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 indicates that, as at December 31, 2005, a total of 39 trust companies were licensed to carry on business in Québec, namely four with a Québec charter and 35 with a federal charter. Furthermore, 31 of these companies were registered with the AMF under the Deposit Insurance Act and therefore authorized to receive deposits from the public.

In 2005, three new trust companies started operations in Québec, and one company1 merged with a savings company. As a result, total assets jumped 45.1% to $80.1 billion in 2005. Excluding the companies involved in the above-mentioned events, assets of remaining trust companies rose 13.6% in 2005 compared with the previous year.

As well, net earnings of trust companies increased 58.9% from $454.9 million in 2004 to $722.9 million in 2005. However, again excluding the companies involved in the above-mentioned events, net earnings of the remaining trust companies fell 4.1% compared with the previous year. Operating expenses rose 22.7% in 2005, thereby reducing profit margins. The net earnings ratio of these companies stood at 26.5% in 2005, down from 30.9% in the previous year.

With respect to savings and credit in Québec, the report notes that, in 2005, trust companies collected 16.8% of their deposits from Québec investors and extended to them 26.3% 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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Information:

Media only:
Frédéric Alberro (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, choose option 9 for English, then 1 for industry
Consumers and investors: (877) 525-0337, choose option 9 for English, then 8 for consumers

1 Canada Trust Company merged with Canada Trustco Mortgage Company (savings company).

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