After starting the year with a bang acquiring State Farm’s Canadian activities,
Desjardins Group released some 2014 numbers that has the company hungry for more.
Desjardins Group, Canada's largest cooperative financial group posted $12,654 million in operating income, an increase of close to 6 per cent over the previous year. Surplus earnings before member dividends total $1,593 million, up 4.1 per cent, compared to the $1,530 million recorded in 2013.
“These results are compelling evidence of our ability to stand out in a rapidly changing industry in which competition is becoming increasingly fierce,” said Desjardins Group Chair of the Board, President and CEO Monique F. Leroux. “I would like to thank the Desjardins members and clients who place their trust in us, year after year. My thanks also to our elected officers and all our employees, whose efforts are paying off and will allow us to realize our goal of being a leader in our industry in terms of quality of service.”
Major investments made to acquire the Canadian activities of State Farm, the completion of key strategic projects and the increase of average equity through the recent issues of Federation capital shares had an impact on return on equity, which was 8.7 per cent at the end of fiscal 2014, compared to 9.4 per cent one year earlier.
Highlights
- Surplus earnings of $1,593 million, up 4.1 %
- Operating income up 5.9%
- Total assets of $229.4 billion, an increase of $17.4 billion
- Tier 1a capital ratio of 15.7%
- Outstanding residential mortgages increased by $6.1 billion
- Member deposits up 7.0% to $146.3 billion
- Assets under management and under administration up $36.5 billion, to $370.8 billion
- New capital shares issuance by the Federation totals $986 million
- Closing on January 1, 2015 of the acquisition of State Farm’s Canadian activities
Total loan portfolio grew $9.9 billion or 7.1 per cent, producing $3,976 million in net interest income, up $119 million or 3.1 per cent compared to $3,857 million for the same period of 2013. This increase was nevertheless restrained by strong competition in the market, which placed pressure on interest margins.
Business growth related to insurance activities generated a $358 million or 6.4 per cent increase in net premiums, which reached $5,916 million.
Other operating income totalled $2,762 million, up $226 million or 8.9 per cent from 2013. This was partly due to an increase in assets under management, acquired through strong sales of various products, increased brokerage income and growth in credit card activities and point-of-sale financing.
Total income — which is made up of net interest income, net premiums, other operating income and investment income — stood at $15,235 million, up $3,501 million or 29.8 per cent from one year earlier.
