Higher profits for Québec financial services cooperatives in 2007

Organization Deposit institutions

Montréal – The Autorité des marchés financiers (AMF) has released the 2007 report on financial services cooperatives following its tabling today in the Québec National Assembly by Minister of Finance Monique Jérôme-Forget. The report notes that combined surplus earnings after patronage refunds grew from $610.3 million Combined data include data for the Group, based on the capital adequacy requirements for financial services cooperatives, after elimination of balances and transactions among Group entities. in 2006 to $675.4 million Combined data include data for the Group, based on the capital adequacy requirements for financial services cooperatives, after elimination of balances and transactions among Group entities. in 2007, an increase of 10.7% over 2006 results.

The assets of Desjardins entities The main entities are the Fédération des caisses Desjardins du Québec and the Desjardins credit unions across Québec, Caisse centrale Desjardins, MM Trust and MM Trust II. were up 10% in 2007 to $112.044 billion, Combined data include data for the Group, based on the capital adequacy requirements for financial services cooperatives, after elimination of balances and transactions among Group entities. The main entities are the Fédération des caisses Desjardins du Québec and the Desjardins credit unions across Québec, Caisse centrale Desjardins, MM Trust and MM Trust II. On January 1, 2007, Desjardins Group changed its accounting policy regarding the consolidation of variable-interest entities (VIEs) in respect of investment companies, in accordance with the requirements of the Canadian Institute of Chartered Accountants. This resulted in the deconsolidation of certain investment companies that were VIEs and their recognition at fair value. This new accounting method was applied retroactively and comparative financial statements were restated to reflect the impact of the new requirements. compared with $101.854 billion On January 1, 2007, Desjardins Group changed its accounting policy regarding the consolidation of variable-interest entities (VIEs) in respect of investment companies, in accordance with the requirements of the Canadian Institute of Chartered Accountants. This resulted in the deconsolidation of certain investment companies that were VIEs and their recognition at fair value. This new accounting method was applied retroactively and comparative financial statements were restated to reflect the impact of the new requirements. the previous year. This increase was primarily due to growth in the securities sector and in personal residential loans. "Securities" climbed 22.8%,On January 1, 2007, Desjardins Group changed its accounting policy regarding the consolidation of variable-interest entities (VIEs) in respect of investment companies, in accordance with the requirements of the Canadian Institute of Chartered Accountants. This resulted in the deconsolidation of certain investment companies that were VIEs and their recognition at fair value. This new accounting method was applied retroactively and comparative financial statements were restated to reflect the impact of the new requirements. from $11.992 billion in 2006 to $14. billion in 2007. As for personal loans, they rose 9.5%, from $48.38 billion in 2006 to $53 billion last year.

The report also indicates that, as at December 31, 2007, all but one of the 515 credit unions in Québec were affiliated with Desjardins Group. This represents a decrease of 13 credit unions compared with the previous year. La Caisse des Mutuellistes Épargne et Crédit was the only independent credit union.

The 2007 report on financial services cooperatives is available (in French only) on the AMF website.

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

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