Desjardins Group has reported a sharp year-over-year increase in first-quarter earnings and member returns, while closing its acquisition of Guardian Capital Group and continuing to invest in innovation and community initiatives.
For the quarter ended March 31, Desjardins posted surplus earnings before member dividends of $960 million, up $222 million, or 30.1%, compared with the same period in 2025.
Total net revenue rose 11.4% to $4.1 billion, driven largely by the Personal and Business Services segment, which benefited from higher net interest income tied to growth in average residential mortgages and business loans outstanding.
Provision for member dividends totaled $151 million, up 33.6% from $113 million a year earlier. Desjardins also returned $31 million through sponsorships, donations and scholarships, including $15 million from the caisses’ Community Development Fund. In all, $182 million was returned to members and communities in the quarter, an increase of 30.9%.
In property and casualty, the insurance service result improved to $375 million, up 29.3%, supported by stronger automobile and property insurance performance and a less adverse impact from the loss component on onerous contracts.
Meanwhile, wealth management and life and health insurance reported higher fee income linked to assets under management and administration, though this was offset by a decrease in net insurance service income.
The provision for credit losses was broadly stable at $212 million, compared with $210 million a year earlier, indicating no significant deterioration in overall credit quality during the period. Gross non-interest expense rose 5.2% to $2.9 billion, mainly due to higher personnel costs, but expense growth remained below revenue growth, contributing to the stronger bottom line.
Desjardins reported that it continues to operate with capital well above regulatory minimums. As of March 31, 2026, the Tier 1A capital ratio stood at 23.2%, compared with 23.7% at December 31, 2025, while the total capital ratio was 26.1%, broadly unchanged over the same period. Total assets increased 2.8% since year-end to $524.3 billion.
During the quarter, the group completed several securities issuances under its Canadian and multi-currency medium-term note programs, its Canadian Non-Viability Contingent Capital subordinated notes program and its legislative covered bond program. The transactions support funding diversification and highlight continued access to wholesale capital markets.
A key strategic development in the quarter was the completion, on March 23, 2026, of the acquisition of Guardian Capital Group Limited. The deal combines Desjardins Global Asset Management with Guardian to create a larger asset management platform with a broader national and international footprint.
The acquisition is a central element of Desjardins’ effort to expand fee-based asset management income and strengthen its presence beyond its traditional cooperative base. The enlarged platform is positioned to support Desjardins’ own general account and third-party mandates, at a time when many financial institutions are seeking greater scale in investment management and diversification away from purely interest-sensitive earnings.
Desjardins also highlighted several initiatives in support of innovation, its employment brand and community engagement.
The group has partnered with Quantino, a high-tech incubator, to support start-ups and growth in strategic technology sectors, with the goal of fostering economic development and skilled job creation. It also hosted an economic web conference featuring vice president and chief economist Jimmy Jean to brief businesses and the public on the outlook for 2026 and key economic and financial issues.
On the talent side, Desjardins was once again named one of Canada’s top employers by Forbes and Mediacorp and received Platinum Parity Certification from Women in Governance for the fourth consecutive year, recognizing efforts around gender parity and inclusion.
Community-focused activity in the quarter included support for the La HUTTE project, which will create 60 temporary housing units for people experiencing homelessness. The Desjardins Foundation continued to focus on youth and education, reporting that it donated $7.1 million over the past year to benefit nearly 700,000 young people across the country.
