Profits stable despite volatile economy

Organization Deposit institutions

Montréal - The Autorité des marchés financiers (AMF) has published the 2011 annual report on trust companies and savings companies (pdf - 5 MB)This link will open in a new windowUpdated on June 13, 2012Rapport annuel 2011 - Sociétés de fiducie et sociétés d'épargne - Autorité des marchés financiers tabled today in the Québec National Assembly.

In 2011, the AMF oversaw 46 trust and savings companies carrying on business in Québec. Thirty-eight carried on business under a trust company licence and 8 under a savings company licence. Thirty-seven of all companies holding a licence in Québec were registered with the AMF under the Deposit Insurance Act and were therefore authorized to receive deposits from the public.

Despite volatile markets and low interest rates, the profitability of trust and savings companies remained relatively stable compared with 2010. Companies posted higher profit margins in 2011 which were offset by an increase in operating expenses supporting the growth in business.

All companies boasted solid capitalization with capital ratios greater than the minimum required under the AMF's Capital Adequacy Guideline. These ratios far exceed the median scored by the main financial institutions in Canada.

The AMF is adapting the regulation of trust and savings companies by updating its guidelines and anticipating the impact of the new capitalization rules which will be introduced by the Basel III accords. The guidelines published by the AMF are available by clicking on the Deposit Institutions Guidelines tab under the Deposit Institutions menu.

Financial intermediation and trust activities in Québec

In 2011, trust companies collected 11.4% of total deposits from Quebeckers, while the proportion stood at 7.5% with savings companies.

Hypothecary (or mortgage) loans issued by savings companies in Québec remained stable at 13.6% of their portfolio, while those granted by trust companies represented 6.5% of their portfolio at the end of 2011, down from 21.9% one year earlier.

The report shows a roughly 4% increase in the value of assets administered by trust companies between 2010 and 2011. As well, assets administered on behalf of clients living in Québec rose from 16.4% in 2010 to 19.6% last year.

For more information about trust companies and savings companies in Québec, please consult the 2011 annual report on trust companies and savings companies (pdf - 5 MB)This link will open in a new windowUpdated on June 13, 2012Rapport annuel 2011 - Sociétés de fiducie et sociétés d'épargne - Autorité des marchés financiers (in French only).

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

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