The Desjardins Group has granted nearly 120,300 loans totaling more than $ 4.1 billion under the Federal Contingency Account for the Canada Business Program (CUEC).
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This was disclosed by the Levis Cooperative on Wednesday when it revealed its financial results for 2020. This program, launched in the spring and managed by Export Development Canada, offers loans with interest-free credits through December 31, 2022.
Given the impacts of the pandemic, Desjardins also stated that it had received 342,195 requests for deferral payments as of December 31 for financing products, including nearly 136,000 applications for mortgage loans. For companies, 33,900 applications were submitted.
The movement’s management confirmed that it is still concluding payment agreements with people suffering from financial difficulties.
In recent months, Desjardins has also increased its provisions for credit losses by $ 498 million, due to “deteriorating economic outlook”, “projected implications for credit quality,” and “increase in related costs. $ 43 million”.
Shortage of surpluses
For fiscal year 2020, the cooperative saw a decrease in its surpluses by 6.9% compared to 2019, a decrease of $ 179 million. Profit before discount was $ 2.42 billion.
Management states that the sale of Monetico in 2019 to the US giant Global Payments had an impact on its results.
Last year, Desjardins says it has performed well with its network of funds, in the damage insurance sector, as well as with Desjardins Securities. The financial institution claims to have also registered 30,000 new members.
“The Movement has been performing strongly in 2020,” said President and CEO Jay Cormer during a press conference.
Despite the pandemic, total payments to members and the community remained the same in 2019, at $ 445 million. Members’ profits increased from $ 317 million to $ 330 million, while grants, donations and scholarships decreased by $ 15 million to $ 72 million. Finally, $ 43 million has been allocated to the Desjardins Member Benefit Program.
The revenues of the cooperative society increased in 2020 to reach 21.47 billion dollars, compared to 20.76 billion dollars in 2019.