LÉVIS, QC, Aug. 9, 2024
/CNW/ - For the second quarter ended June 30, 2024, Desjardins
Group, North America's largest
financial cooperative group, recorded surplus earnings before
member dividends of $918 million, up $365 million from
the same quarter of 2023. This increase was mainly due to the
results of the Property and Casualty Insurance segment, owing to
fewer claims combined with higher revenues from automobile and
property insurance. In addition, we would like to highlight the
very good performance by the Personal and Business Services segment
stemming from higher net interest income, mainly tied to business
growth, and lower non-interest expense. Overall, for Desjardins
Group as a whole, non-interest expense was comparable to that of
the second quarter of 2023 due to rigorous expenditure
management.
For the second quarter of 2024, the provision for member
dividends totalled at $110 million, an amount comparable to
that recorded in the corresponding period of 2023. Sponsorships,
donations and scholarships amounted to $33 million, of which
$16 million came from caisse Community Development Fund.
"I am proud of these results for the second quarter of 2024,
with surplus earnings before member dividends of $918 million, up $365
million from the same period of 2023," said Guy Cormier, President and Chief Executive
Officer of Desjardins Group. "These results reflect the same upward
trend as in the first quarter. As a result, Desjardins can give
back to the community, in particular through our involvement in a
partnership with the Québec government to make available more than
1,750 affordable housing units."
For the first six months ended June 30, 2024, Desjardins
Group recorded surplus earnings before member dividends of
$1,773 million, up
$878 million from the same period of 2023. All business
segments contributed to these excellent results, including the
Property and Casualty Insurance segment due to fewer claims and
higher insurance revenue. There was also growth in the net
insurance finance result in both life and health insurance and
property and casualty insurance. In addition, surplus earnings
growth was recorded in the Personal and Business Services segment,
owing to higher net interest income, particularly as a result of
business growth. We should also note that the increase in
non-interest expense was limited as a result of measures deployed
across the organization to improve efficiency and
effectiveness.
Supporting a green economic and social recovery
Desjardins is contributing to regional development and the
economy through the GoodSpark Fund, which has set aside
$250 million to stimulate social and
economic activity in communities.
Since 2017, Desjardins Group has committed a total of
$198 million to 874 projects related to the GoodSpark
Fund.
In particular, Desjardins is still working to implement the
climate goal announced in 2021. The goal is to achieve, by 2040,
net zero emissions in its operations, its supply chain, its lending
activities and investments in three key carbon-intensive sectors:
energy, transportation and real estate.
In addition, Desjardins has once again been ranked as one of
Canada's Best 50 Corporate
Citizens by Corporate Knights, a leading Canadian media and
sustainable-economy research centre. According to this renowned
organization, these corporations invest seven times more in
sustainable investments than the average Canadian company.
Governance
At the annual general meeting (AGM) of the Federation held on
March 24 and 25, 2023, delegates from
Desjardins caisses in Québec and the Desjardins Ontario Credit
Union voted to separate the roles of chair of the board of
directors from the role of president and CEO of Desjardins Group,
positions that had been held together for almost 30 years.
At the end of the 2024 AGM, on March 23,
2024, this new governance model came into effect,
resulting in the separation of the two positions' roles and
responsibilities. Guy Cormier
continues to carry out the role of President and Chief Executive
Officer entrusted to him by the Board of Directors, and in
May 2024, Louis Babineau became
the Chair of the Board of Directors under this new governance model
for leadership at the head of Desjardins Group.
Doing what's best for members and clients
Desjardins is involved in people's lives, whether by supporting
community initiatives related to diversity, inclusion, cooperation,
financial literacy and healthy living, or by offering innovative
financial solutions to meet their needs. Here are some ways that
Desjardins made a positive difference in people's lives in the
second quarter of 2024.
Giving back to the community
- Desjardins Group is continuing its partnership with the Québec
government to make more than 1,750 affordable housing units
available by the end of 2025. This includes the four affordable
housing projects in Gatineau (in French only), Varennes (in French only), Drummondville (in French only) and Alma (in
French only) that were announced in the second quarter of 2024, for
a total of 238 units.
- Desjardins granted $940,000 to
Moisson Rive-Sud (in French only) for its food assistance hub
project. The new facility will triple the organization's storage
space and enable it to provide a robust, efficient and innovative
food security ecosystem to the most vulnerable citizens.
- Desjardins Group President and Chief Executive Officer,
Guy Cormier continued a series of
visits he began last fall to Québec chambers of commerce. In May
and June 2024, he visited those in
Rive-Sud de Montréal (in French only) and Sorel-Tracy (in French only) to discuss
leadership and solidarity, especially with young
entrepreneurs.
Innovating
- On May 31, 2024, Desjardins
Group, through Desjardins General Insurance Group Inc., confirmed
closure of the transaction announced in March 2024 to acquire all the issued and
outstanding shares of The Insurance Company of Prince Edward Island. This acquisition will
enable Desjardins to diversify its insurance offer and better meet
the insurance needs of businesses.
- On June 4, 2024, Desjardins
presented an economic web conference (in French only) with
Jimmy Jean, Vice-President and Chief
Economist of Desjardins Group, and Emna
Braham, Executive Director of the Institut du Québec, to
demystify the economy and the effects of interest rates on
individuals and businesses.
Financial highlights
Comparison of second quarter 2024 with second quarter 2023:
- Surplus earnings before member dividends of $918 million, up $365
million.
- Total net revenue of $3,753
million, up $514 million or
15.9%:
- Net interest income of $1,861
million, up $195 million or
11.7%, due to growth in the average outstanding loan
portfolio.
- Insurance service result of $620
million, up $332 million,
mainly due to the decrease in expenses related to claims and the
increase in automobile and property insurance income in the
Property and Casualty Insurance segment.
- Net insurance finance result of $237
million, up $60 million,
mainly due to the gain on disposal of buildings in the Wealth
Management and Life and Health Insurance segment.
- Other income of $1,035 million,
down $73 million.
- Provision for credit losses of $87
million, up $21 million from
the corresponding period of 2023.
- Gross non-interest expense of $2,697
million, comparable to the amount recorded for the second
quarter of 2023.
- $143 million returned to members
and the community,(1) an amount comparable to
that recorded in the second quarter of 2023.
- Other highlights:
- Tier 1A capital ratio(1) of 21.2%, compared to
20.4% as at December 31, 2023.
- Total capital ratio(1) of 23.2%, compared to 21.9%
as at December 31, 2023.
- Total assets grew 5.1% since December
31, 2023, for a total of $444.3
billion as at June 30,
2024.
- Legislative covered bond program:
- Issuance of £750 million on April 12,
2024.
- Issuance of 440 million Swiss
francs on April 18, 2024.
- Issuance of €1.0 billion on May 30,
2024.
- Issuance, on May 15, 2024, of
CA$1.0 billion in Non-Viability Contingent Capital (NVCC)-eligible
notes under the Canadian NVCC Subordinated Notes program.
- In June and July 2024, the Fitch
and DBRS rating agencies, respectively, affirmed the ratings of
instruments issued by the Fédération des caisses Desjardins du
Québec while maintaining the outlook at ''stable''.
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____________________
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(1)
For additional information on supplementary financial
measures, see "Non-GAAP Financial Measures and Other Financial
Measures" on page 5.
|
|
(1)2
In accordance with the Capital Adequacy
Guideline for financial services cooperatives issued by the
Autorité des marchés financiers (AMF).
|
Comparison of first half 2024 with first half 2023:
- Surplus earnings before member dividends of $1,773 million, up $878
million.
- Total net revenue of $7,317
million, up $1,411 million or
23.9%:
- Net interest income of $3,594
million, up $387 million or
12.1%, due to growth in the average outstanding loan
portfolio.
- Insurance service result of $1,029
million, up $632 million,
mainly due to the decrease in expenses related to claims and the
increase in automobile and property insurance income in the
Property and Casualty Insurance segment.
- Net insurance finance result of $547
million, up $247 million, due
to a gain on disposal of buildings and favourable trends in
financial markets.
- Other income of $2,147 million,
up $145 million or 7.2%, mainly due
to the $56 million increase in
revenues related to the activities acquired from
Worldsource(2) and the increase in income from
brokerage and investment fund revenues, related in particular to
the good performance of capital markets.
- Provision for credit losses of $220
million, up $49 million
compared to the corresponding period of 2023.
- Gross non-interest expense of $5,253
million, up $228 million,
compared to the first six months of 2023, of which $69 million was due to expenses related to the
activities acquired from Worldsource. Measures rolled out to
improve efficiency and effectiveness, including reduced fees, made
it possible to limit the increase in other items included under
this heading to $159 million, or
3.3%.
- $280 million returned to members
and the community,(3) similar to the amount returned in
the first six months of 2023.
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___________________________
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(2)4
|
On March 1, 2023,
through Worldsource Group of Companies Inc. (formerly
9479-5176 Québec Inc.), a wholly-owned indirect subsidiary of the
Federation, Desjardins Group acquired, among others, all the
outstanding shares of IDC Worldsource Insurance Network Inc.,
Worldsource Financial Management Inc. and Worldsource Securities
Inc. (collectively designated as "Worldsource").
|
|
(3)
|
For additional
information on supplementary financial measures, see "Non-GAAP
Financial Measures and Other Financial Measures" on page
5.
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Non-GAAP financial measures and other financial
measures
To measure its performance, Desjardins Group uses different GAAP
(International Financial Reporting Standards (IFRS)) financial
measures and various other financial measures, some of which are
non-GAAP financial measures. Regulation 52-112 respecting
Non-GAAP and Other Financial Measures Disclosure (Regulation
52-112) provides guidance to issuers disclosing specified financial
measures, including the following measures used by Desjardins
Group:
- A non-GAAP financial measure;
- Supplementary financial measures.
Non-GAAP financial measure
The non-GAAP financial measure, used by Desjardins Group in this
press release, and which does not have a standardized definition,
is not directly comparable to similar measures used by other
companies, and may not be directly comparable to any GAAP measure.
It is defined as follows:
Return to members and the community
As a cooperative financial group contributing to the development
of communities, Desjardins Group gives its members and clients the
support they need to be financially empowered. The amounts returned
to members and the community, a non-GAAP financial measure, are
used to present the overall amount returned to the community and
are composed of member dividends, as well as sponsorships,
donations and scholarships.
More detailed information about the amounts returned to members
and the community may be found in the "Financial Highlights" table
on the following page.
Supplementary financial measures
In accordance with Regulation 52-112, supplementary financial
measures are used to show historical or expected future financial
performance, financial position or cash flows. In addition, these
measures are not disclosed in the financial
statements. Desjardins Group uses certain supplementary
financial measures, and their composition is presented in the
Glossary on pages 51 to 58 of the MD&A for the second
quarter of 2024.
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FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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As at and for
the
|
As at and for
the
|
|
(in millions of
dollars and as a percentage)
|
three-month periods
ended
|
six-month
periods ended
|
|
June 30,
2024
|
March 31,
2024
|
June 30,
2023(1)
|
June 30,
2024
|
June 30,
2023(1)
|
|
Results
|
|
|
|
|
|
|
Net interest
income
|
$
1,861
|
$
1,733
|
$
1,666
|
$
3,594
|
$
3,207
|
|
Net insurance
service income
|
857
|
719
|
465
|
1,576
|
697
|
|
Other
income
|
1,035
|
1,112
|
1,108
|
2,147
|
2,002
|
|
Total net
revenue
|
3,753
|
3,564
|
3,239
|
7,317
|
5,906
|
|
Provision for credit
losses
|
87
|
133
|
66
|
220
|
171
|
|
Net non-interest
expense
|
2,447
|
2,311
|
2,434
|
4,758
|
4,530
|
|
Surplus earnings
before member dividends(2)
|
$
918
|
$
855
|
$
553
|
$
1,773
|
$
895
|
|
Contribution to
surplus earnings by business segment(3)
|
|
|
|
|
|
|
Personal and Business
Services
|
$
459
|
$
401
|
$
302
|
$
860
|
$
496
|
|
Wealth Management and
Life and Health Insurance
|
231
|
169
|
155
|
400
|
247
|
|
Property and Casualty
Insurance
|
300
|
280
|
56
|
580
|
31
|
|
Other
|
(72)
|
5
|
40
|
(67)
|
121
|
|
|
|
$
918
|
$
855
|
$
553
|
$
1,773
|
$
895
|
|
Returned to members
and the community(4)
|
|
|
|
|
|
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Member
dividends
|
$
110
|
$
110
|
$
109
|
$
220
|
$
215
|
|
Sponsorships, donations
and scholarships(5)
|
33
|
27
|
37
|
60
|
63
|
|
|
|
$
143
|
$
137
|
$
146
|
$
280
|
$
278
|
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Indicators
|
|
|
|
|
|
|
Return on
equity(6)
|
10.2 %
|
9.8 %
|
6.8 %
|
10.0 %
|
5.6 %
|
|
Credit loss
provisioning rate(6)
|
0.13
|
0.21
|
0.10
|
0.17
|
0.14
|
|
Gross credit-impaired
loans/gross loans and acceptances(6)
|
0.77
|
0.80
|
0.57
|
0.77
|
0.57
|
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Liquidity coverage
ratio(7)
|
160
|
152
|
143
|
160
|
143
|
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Net stable funding
ratio(7)
|
129
|
125
|
125
|
129
|
125
|
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Productivity index –
Personal and Business Services(6)
|
70.8
|
70.3
|
78.9
|
70.6
|
80.5
|
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Insurance and annuity
premiums – Wealth Management and Life and Health
Insurance(6)
|
$
1,783
|
$
1,607
|
$
1,434
|
$
3,390
|
$
2,741
|
|
Total contractual
service margin (CSM) - Wealth Management and Life and
Health
Insurance(8)
|
2,587
|
2,630
|
2,643
|
2,587
|
2,643
|
|
Direct Written Premiums
– Property and Casualty Insurance(6)
|
2,082
|
1,556
|
1,910
|
3,638
|
3,350
|
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On-balance sheet and
off-balance sheet
|
|
|
|
|
|
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Assets
|
$
444,348
|
$
435,819
|
$
409,558
|
$
444,348
|
$
409,558
|
|
Net loans and
acceptances
|
276,996
|
269,012
|
257,743
|
276,996
|
257,743
|
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Deposits
|
290,085
|
281,189
|
265,539
|
290,085
|
265,539
|
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Equity
|
36,488
|
35,169
|
32,943
|
36,488
|
32,943
|
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Assets under
administration(6)
|
557,902
|
549,580
|
492,638
|
557,902
|
492,638
|
|
Assets under
management(6)
|
88,202
|
83,289
|
80,229
|
88,202
|
80,229
|
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Capital
measures
|
|
|
|
|
|
|
Tier 1A capital
ratio(9)
|
21.2 %
|
21.0 %
|
20.9 %
|
21.2 %
|
20.9 %
|
|
Tier 1 capital
ratio(9)
|
21.2
|
21.0
|
20.9
|
21.2
|
20.9
|
|
Total capital
ratio(9)
|
23.2
|
22.0
|
22.4
|
23.2
|
22.4
|
|
TLAC
ratio(10)
|
30.9
|
29.8
|
29.7
|
30.9
|
29.7
|
|
Leverage
ratio(9)
|
7.6
|
7.4
|
7.6
|
7.6
|
7.6
|
|
TLAC leverage
ratio(10)
|
10.9
|
10.4
|
10.6
|
10.9
|
10.6
|
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Risk-weighted
assets(9)
|
$
147,074
|
$
142,266
|
$
135,499
|
$
147,074
|
$
135,499
|
|
Other
information
|
|
|
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Number of
employees
|
55,028
|
55,188
|
59,389
|
55,028
|
59,389
|
|
|
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(1)
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The data have been
adjusted to conform to the current period's
presentation.
|
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(2)
|
The breakdown by line
item is presented in the Statement of Income in the Interim
Combined Financial Statements.
|
|
(3)
|
The breakdown by line
item is presented in Note 11, "Segmented information" to the
Interim Combined Financial Statements.
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(4)
|
For more information on
non-GAAP financial measures, see "Non-GAAP financial measures and
other financial measures" on page 5.
|
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(5)
|
Including $16 million
from the caisses' Community Development Fund ($11 million for the
first quarter of 2024 and $15 million for the second quarter of
2023, $27 million for the first six months of 2024 and $23 million
for the first six months of 2023).
|
|
(6)
|
For additional
information on supplementary financial measures, see "Non-GAAP
Financial Measures and Other Financial Measures" on page
5.
|
|
(7)
|
In accordance with the
Liquidity Adequacy Guideline issued by the AMF.
|
|
(8)
|
Total CSM of $2,795
million ($2,895 million as at June 30, 2023) presented
net of reinsurance for a total of $208 million ($252 million as at
June 30, 2023). Included in the line items "Insurance
contract liabilities" and "Reinsurance contract assets
(liabilities)" on the Combined Balance Sheets. For more
information, see Note 7, "Insurance and reinsurance contracts," to
the Interim Combined Financial Statements.
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(9)
|
In accordance with the
Capital Adequacy Guideline for financial services
cooperatives issued by the AMF.
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(10)
|
In accordance with the
Total Loss Absorbing Capacity Guideline ("TLAC Guideline")
issued by the AMF and based on risk-weighted assets and exposures
for purposes of the leverage ratio at the level of the resolution
group, which is deemed to be Desjardins Group, excluding Caisse
Desjardins Ontario Credit Union Inc.
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Strong capital base
Desjardins Group maintains strong capitalization levels, in
accordance with Basel III rules. As at June 30, 2024, its Tier
1A and total capital ratios stood at 21.2% and 23.2%, respectively,
compared to 21.0% and 22.0%, respectively, as at
December 31, 2023.
Analysis of business segment results
PERSONAL AND BUSINESS SERVICES SEGMENT
Results for the second quarter
For the second quarter of 2024, surplus earnings before member
dividends were $459 million, up $157
million from the same period in 2023, mainly due to the
growth in net interest income and the decrease in non-interest
expense following the implementation of measures to improve
efficiency and effectiveness, affecting in particular spending on
personnel. This increase in surplus earnings was offset by a higher
provision for credit losses than in the corresponding period of
2023.
WEALTH MANAGEMENT AND LIFE AND HEALTH INSURANCE
SEGMENT
Results for the second quarter
For the second quarter of 2024, the segment posted
$231 million in net surplus earnings, up $76 million from
the same period of 2023. This increase was primarily due to a
higher net insurance finance result owing to the gain on disposal
of buildings and the favourable impact of hedging the interest rate
risk, partly offset by the favourable adjustment made to liability
discount curve parameters in the second quarter of 2023. In
addition, growth was recorded in other income, stemming from the
gain on disposal of the interest in Fiera Holdings Inc. and Fiera
Capital L.P. This surplus earnings growth was offset by an increase
in non-interest expenses, due to growth in assets under
administration.
PROPERTY AND CASUALTY INSURANCE SEGMENT
Results for the second quarter
For the second quarter of 2024, the segment posted
$300 million in net surplus earnings, up $244 million,
from the same period of 2023. This increase was mainly due to a
decline in the cost of claims stemming from a lack of catastrophes
and major events, while the second quarter of 2023 was marked by
two major events: an ice storm in Québec and Ontario and forest fires in Nova Scotia. The current year claims
experience in automobile and property insurance was also lower than
in the comparative period of 2023, in particular due to a reduced
frequency of claims. In addition, there was an increase in
insurance income in automobile and property insurance.
OTHER CATEGORY
Results for the second quarter
For the second quarter of 2024, the Other category posted a net
deficit of $72 million, compared to surplus earnings of
$40 million for the second quarter of 2023. The Other category
includes treasury activities and those related to financial
intermediation between the liquidity surpluses and needs of the
caisses. It also includes investments in the continued
implementation of Desjardins-wide strategic projects, which are
aimed at creating innovative technological platforms, protecting
privacy and improving business processes. The Other category also
includes changes in contingency provisions for our operations,
supplier agreements and the investment portfolio, as well as
commitments made to the GoodSpark Fund, with the aim, in
particular, of providing social and economic support to the
regions.
More detailed financial information can be found in Desjardins
Group's interim Management's Discussion and Analysis (MD&A) for
the second quarter of 2024, available on the
Desjardins website or on the SEDAR+ website, at
www.sedarplus.com (under the Fédération des caisses
Desjardins du Québec profile).
About Desjardins Group
Desjardins Group is the largest cooperative financial group
in North America and the sixth
largest cooperative financial group in the world, with assets of
$444.3 billion as at
June 30, 2024. It was named one of Canada's Best Employers by Forbes
magazine and by Mediacorp. To meet the diverse needs of its members
and clients, Desjardins offers a full range of products and
services to individuals and businesses through its extensive
distribution network, online platforms and subsidiaries across
Canada. Ranked among the world's
strongest banks according to The Banker magazine, Desjardins
has some of the highest capital ratios and credit ratings in the
industry.
Caution concerning forward-looking statements
Desjardins Group's public communications often include oral or
written forward-looking statements, within the meaning of
applicable securities legislation, particularly in Québec,
Canada and the United States. This press release contains
forward-looking statements that may be incorporated in other
filings with Canadian regulators or in any other communications. In
addition, Desjardins Group's representatives may make verbal
forward-looking statements to investors, the media and others.
The forward-looking statements include, but are not limited to,
comments on Desjardins Group's objectives regarding financial
performance, priorities, vision, operations, targets and
commitments, the review of economic conditions and financial
markets, the outlook for the Québec, Canadian, U.S. and global
economies, its results and its financial position, as well as on
economic conditions and financial markets. Such forward-looking
statements are typically identified by words or phrases such as
"target," "objective," "believe," "expect," "count on,"
"anticipate," "intend," "estimate," "plan," "forecast," "aim,"
"propose," "should" and "may," words and expressions of similar
import, and future and conditional verbs.
By their very nature, such statements require us to make
assumptions, and are subject to uncertainties and inherent risks,
both general and specific. Desjardins Group cautions readers
against placing undue reliance on forward-looking statements when
making decisions since a number of factors, many of which are
beyond Desjardins Group's control and the effects of which can be
difficult to predict, could influence, individually or
collectively, the accuracy of the assumptions, predictions,
forecasts or other forward-looking statements in this press
release. Although Desjardins Group believes that the expectations
expressed in these forward-looking statements are reasonable and
founded on valid bases, it cannot guarantee that these expectations
will materialize or prove to be accurate. It is also possible that
these assumptions, predictions, forecasts or other forward-looking
statements, as well as Desjardins Group's objectives and
priorities, may not materialize or may prove to be inaccurate, and
that future actual results, conditions, actions or events differ
materially from targets, expectations, estimates or intentions that
have been explicitly or implicitly put forward. Readers who rely on
these forward-looking statements must carefully consider these risk
factors and other uncertainties and potential events, including the
uncertainty inherent in forward-looking statements.
The factors that may affect the accuracy of the forward-looking
statements in this press release include those discussed in the
"Risk management" section of Desjardins Group's 2023 annual
MD&A and of its MD&A for the second quarter of 2024, and
include credit, market, liquidity, operational, insurance,
strategic and reputation risk, environmental, social and governance
risk, and regulatory risk.
Such factors also include those related to security (including
cybersecurity) breaches, fraud risk, the housing
market and household and corporate indebtedness, technological
advancement and regulatory developments, including changes to
liquidity and capital adequacy guidelines, and requirements
relating to their presentation and interpretation, as well as
interest rate fluctuations, inflation, climate change and
geopolitical uncertainty. Furthermore, there are factors related to
general economic and business conditions in the regions in which
Desjardins Group operates; monetary policies; the critical
accounting estimates and accounting standards applied by Desjardins
Group; new products and services to maintain or increase Desjardins
Group's market share; geographic concentration; acquisitions, joint
arrangements and the ability to achieve the anticipated benefits;
changes in the credit ratings assigned to Desjardins Group;
reliance on third parties; the ability to recruit and retain
talent; and tax risk. Other factors include interest rate benchmark
reform, unexpected changes in consumer spending and saving habits,
the potential impact of international conflicts on operations,
public health crises such as pandemics and epidemics, including the
COVID-19 pandemic, or any other similar disease affecting the
local, national or global economy, as well as Desjardins Group's
ability to anticipate and properly manage the risks associated with
these factors despite a disciplined risk management environment.
Additional information on these factors is available under the
"Risk management" section of Desjardins Group's 2023 Annual Report
and of its MD&A for the second quarter of 2024.
It is important to note that the above list of factors that
could influence future results is not exhaustive. Other factors
could have an effect on Desjardins Group's results. Additional
information on these and other factors is found in the "Risk
management" section of Desjardins Group's 2023 Annual MD&A and
of its MD&A for the second quarter of 2024 and can be updated
in subsequent quarterly MD&As.
The significant economic assumptions underlying the
forward-looking statements in this document are described in the
"Economic environment and outlook" section of Desjardins Group's
2023 MD&A and of its MD&A for the second quarter of 2024
and can be updated in the interim MD&As subsequently
filed. Readers are cautioned to consider the foregoing factors
when reading this section. To determine our economic growth
forecasts in general, and for the financial services sector in
particular, Desjardins Group mainly uses historical economic data
provided by recognized and reliable organizations, empirical and
theoretical relationships between economic and financial variables,
expert judgment and identified upside and downside risks for the
domestic and global economies.
Any forward-looking statements contained in this press release
represent the views of management only as at the date hereof, and
are presented for the purpose of assisting readers in understanding
and interpreting Desjardins Group's financial position as at the
dates indicated or its results for the periods then ended, as well
as its strategic priorities and objectives as considered as at the
date hereof. These forward-looking statements may not be
appropriate for other purposes. Desjardins Group does not undertake
to update any oral or written forward-looking statements that could
be made from time to time by or on behalf of Desjardins Group,
except as required under applicable securities legislation.
Basis of presentation of financial information
The financial information in this document comes primarily from
the Annual and Interim Combined Financial Statements. Those
statements have been prepared by Desjardins Group's management in
accordance with IFRS issued by the International Accounting
Standards Board (IASB) and the accounting requirements of the AMF,
which do not differ from IFRS. IFRS represent Canada's GAAP. The Interim Combined Financial
Statements of Desjardins Group have been prepared in accordance
with International Accounting Standard (IAS) 34, "Interim Financial
Reporting." All the accounting policies were applied as described
in Note 2, "Accounting policies," to the Annual Combined Financial
Statements except for certain comparative figures from the prior
period, which have been restated to conform with the
presentation of the Interim Combined Financial Statements for the
current period. During the first quarter of 2024, a presentation
accounting policy relating to interest income and interest expense
recognized on the financial instruments of Desjardins Securities
Inc. was changed, and these items are now presented under "Net
interest income" instead of "Other income." This new presentation
was considered preferable to provide reliable and more relevant
information. As a result, for the six-month period ended
June 30, 2023, a net amount of
$219 million has been moved in two gross amounts from "Other
income" to interest income and interest expense, under "Net
interest income" ($103 million for the three-month period
ended June 30, 2023), changing these
line items by $552 million and $771 million,
respectively, for the six-month period ended June 30, 2023, and by $282 million and
$385 million, respectively, for the three-month period ended
June 30, 2023. This change had no
impact on total net revenue and net surplus earnings for the
comparative period.
This press release has been prepared in accordance with the
current regulations of the Canadian Securities Administrators (CSA)
on continuous disclosure obligations. Unless otherwise indicated,
all amounts are presented in Canadian dollars ($) and are primarily
from Desjardins Group's annual and interim combined financial
statements.
SOURCE Desjardins Group