Caisse centrale Desjardins, of the Desjardins Group, is reporting for the second quarter ending June 30, 2002, a net income of $8.9 million. That’s down from $11.1 million last year.

This result is explained, says the Caisse, by an increase in the provision for creditlosses charged to income of $3.3 million, which totalled $4.5 million for the quarter, compared to $1.2 million in 2001. “This increase was necessary due to the economic deterioration of some industrial sectors where some clients of Caisse centrale Desjardins have activities.”

Deposit liabilities and subordinated debentures were at $8 billion and will be reduced during the last quarter of 2002 as a number of issues will come to maturity and not be renewed. As of June 30, 2002, a total of $3.8 billion, or 48% of deposits and subordinated debentures was raised on international markets.

In order to fulfill its mission as the wholesale provider of funds for the Desjardins Group, Caisse centrale Desjardins says it is maintaining a high level of capital. As out the end of the quarter, its capital, as defined by the Bank of International Settlements, amounted to $630 million, which represented a ratio of 13.4% compared to a minimum level of 8%.