Financial giant Desjardins Movement recorded a surplus of $614 million in the third quarter of 2023 before paying dividends to members, allowing it to return $106 million to its members.
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Desjardins said it earned $319 million more than in the same period last year, an increase that can be explained mainly by an increase in revenues obtained from high interest rates.
The discounts, which can be individual or community, come from additional money created by the fund, which is then returned to members annually under certain conditions, Desjardins reminds on its website. Almost 90% of Desjardins members are eligible for this refund.
This year, the amount of dividends that can be redistributed to members is $106 million, a stable number compared to 2022. This amount, received in various forms, is generally taxable.
Discounts in the form of sponsorships, donations and scholarships totaled $25 million, compared to $22 million for 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 reliability, as well as rigorous risk management, allow us to properly support our members and clients during this period. More difficult,” said the Director President and CEO Desjardins group, Guy Cormier.
From the beginning of 2023
For the first nine months of 2023, Desjardins Movement recorded surpluses before dividends of $1.51 billion, an increase of $725 million compared to the same period in 2022.
This increase in surpluses is primarily due to an increase in net insurance finance income of $582 million, which was impacted by a significant increase in interest rates in the 2022 comparison period.
However, costs related to higher staffing and technology have held back the same growth. Increased car theft and inflation have caused claims costs to rise, which has also had an impact on excess.