Financial giant Desjardins Movement reported a $614 million surplus before member dividends in the third quarter of 2023, allowing it to return $106 million to its members.
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Desjardins reported earning $319 million more than in the same period last year, an increase that can be explained in particular by an increase in revenue due to high interest rates.
Discounts
The discounts, which can be granted individually or to the community, come from the additional money generated by a fund and then returned to members each year under certain conditions, Desjardins recalled on his website. Almost 90% of Desjardins members are eligible for this refund amount.
This year, the amount of dividends that can be redistributed to members is $106 million, a stable figure compared to 2022. This amount, received in different forms, is generally taxable.
Discounts in the form of sponsorships, donations and scholarships amount to $25 million, compared to $22 million in the same period last year.
“Desjardins Group presents excellent financial results for the third quarter of 2023. These results, combined with good capitalization and financial solidity as well as strict risk management, allow us to adequately support our members and customers during this more difficult time,” said the President and CEO of the Desjardins Group, Guy Cormier.
Since the beginning of 2023
For the first nine months of 2023, Desjardins Movement reported profit before dividends of $1.51 billion, an increase of $725 million compared to the same period in 2022.
This increase in surplus is primarily due to the $582 million increase in net financial income from insurance, which was impacted by the significant increase in interest rates in the comparable 2022 period.
However, this increase was slowed by costs related to increased personnel and technology expenditure. Increasing car theft and inflation have led to an increase in the costs associated with car insurance claims, which also impacts deductibles.