Desjardins: Pre-dividend surplus for members jumps 65.2%

Desjardins posted member pre-dividend surpluses of more than $2.5 billion during the first nine months of 2021, which is a 65.2% increase over the same period last year.

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Desjardins saw its operating income increase by 9.8%, to a total of $14.9 billion during the first nine months of 2021, compared to the corresponding period in 2020.

The return on members and the community has also been rising since the beginning of the year, reaching $335 million, compared to $314 million for the same period in 2020.

The good performance of the third quarter of 2021 contributed to these positive results. The surplus before distributions to members amounted to 816 million dollars. This increase of $87 million translates to an 11.9% increase compared to the third quarter of 2020.

As for operating income, it is $5.25 billion from July to September 2021. That is an increase of 13.1%.

For its part, the revenue to members and the community is $114 million. This result is $10 million higher than the same period in 2020.

“The excellent third-quarter results for the Desjardins group follow the trend that began at the beginning of the year,” Jay Cormier, Desjardins president and CEO, said Friday. Surpluses and refunds are on the rise, thanks in particular to the strong performance of the Caisse Network and the low rate of loss in damage insurance.”

Overall, Desjardins reported a significant drop in claims expense in 2021, especially for auto insurance.

Remember that surpluses for the first nine months ending September 30, 2020 marked the onset of the COVID-19 pandemic. The provision for credit losses has been affected by the impact of the deteriorating economic outlook.

“I am proud of the work done by the great Desjardins team and our efforts to ensure a green social and economic recovery,” the manager commented.