Photo: Jacques Nadeau Le Devoir
“We have taken the decision, given the very good results, returning more money to our members”, explained Wednesday, the president and chief executive officer of Desjardins group; Guy Cormier.
The Desjardins group has generated a net surplus before patronage dividends to a record 2.33 billion last year, which will allow him to return 253 million to its members — is the largest amount in six years.
This 8.4% increase in profitability has been achieved by the cooperative in spite of a marked decline in surpluses in its sector of damage insurance, which is feeling the effects of a more difficult context. “We have taken the decision, given the very good results, returning more money to our members, explained Wednesday, the president and chief executive officer of Desjardins group; Guy Cormier, during a conference call. It is a signal that the movement is going well. “The sum paid to the members of the cooperative established in Lévis will be higher by 25% compared to that of 2017.
Since he took control of the cooperative, Mr. Cormier reiterated more than once that he wished that the discount is not just related to the volume of investment and that the calculation had to change. He explained that members should begin to observe the changes after the month of April. “We will bring greater consistency on the discount, said Mr. Cormier. No matter cashier where you do business, with a rate of return on savings, loans and the number of products you hold. “
It also welcomed a net addition of 50 000 new members last year, which is the largest increase in the last ten years.
Excluding non-recurring items, which take particular account of a gain, net of taxes of $ 129 million, the net surplus before patronage dividends to members, has climbed 15.8 %, to $ 2.2 billion. For its part, the return on equity reached 9.3 % last year, compared to 9.1 % in 2017.
However, in spite of the earnings growth last year, Desjardins could well raise the price of their auto insurance premiums since the surplus of its insurance sector damage was $ 173 million, compared to 446 million in 2017 — where a non-recurring gain of 241 million had been made in the context of the sale of a subsidiary.