After the beginning of the year marked by a decline in surpluses, Desjardins Group achieved better results in the second quarter.
Excess earnings before member dividends were $553 million for the three months ended June 30, an increase of $515 million compared to the same period in 2022.
The organization attributes the performance primarily to its insurance business, which grew to $424 million after being weighed down by sharp interest rate hikes in the second half of 2022.
Provision for patronage refunds reached $109 million, an amount consistent with second quarter 2022, and sponsorships, donations and grants were $37 million.
For Guy Cormier, President and CEO of Desjardins Group, these are “solid results”. He adds that the organization continues to invest in technology and security to improve efficiency and simplicity.
Loans pay more
Excess income before member dividends for the first half of 2023 was $895 million, an increase of $406 million compared to the same period in 2022. Total net income was $5.906 billion, an increase of $980 million. dollars or 19.9%.
Rising interest rates increase the average yield on mortgages and business loans. The business volume in credit card payment transactions is also growing.
On the other hand, insurance activities recorded a decrease of 23.4% compared to the first half of 2022. This is due to the increase in the average claims costs in the automotive sector and the increase in car thefts.