Desjardins Group posted Thursday evening a surplus before member dividends down 35% for its first quarter, while its total revenues fell 5.5%.
The Lévis cooperative saw its surplus stand at $519 million for the quarter ended March 31, when it had been $798 million during the same period in 2021.
Desjardins attributed this decline to greater investments in strategic projects, “particularly in digital transformation and security”, as well as to an increase in claims in its damage insurance sector.
The co-op’s operating revenue increased by $267 million to $5.05 billion, but higher investment losses reduced total revenue from $3.03 billion l year to $2.87 billion in the most recent quarter.
Desjardins’ Tier 1A capital ratio stood at 20.6%, compared to 21.1% as at December 31 and 22.1% at the end of the previous first quarter.
Return to members and community was $118 million in the first quarter, up 15.7% from $102 million for the same period last year. Excluding sponsorships, donations and scholarships, total member dividends rose 13.3% year-on-year to $102 million in the most recent quarter.
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