For the third quarter ended Sept. 30, 2006, Desjardins Group, recorded a solid performance and announced surplus earnings before patronage dividends to members of $328 million, up $22 million or 7.2% from the same quarter in 2005.

Return on equity (surplus earnings before patronage allocations to members over average capital assets) stood at 15.8% compared to 15.9% for the same period in 2005.

The third-quarter provision for patronage dividends to members was $147 million compared to $113 million in the same quarter last year.

Desjardins said the Personal and Commercial segment did particularly well and showed a $19 million increase in surplus earnings before patronage dividends to members when compared to the same quarter in 2005. This segment enjoyed higher revenue in credit card activity due to business growth at Desjardins Card Services, higher revenues in investment fund activities attributable to growth in investment funds outstanding, and higher revenues from the capital markets and the securitization activities of Caisse centrale Desjardins. However, despite the sharp growth in financing activities observed in the Personal and Commercial segment, net interest income remained stable compared to the third quarter of 2005 due to low interest rates.

As for the subsidiaries, Desjardins Financial Security (specializing in life and health insurance) recorded a 5.4% increase in earnings, reaching $39 million. Desjardins General Insurance Group saw a decrease of $9 million in earnings, which totalled $28 million, principally due to weaker performance in its investments. The Securities Brokerage, Asset Management, Venture Capital and Other segment, for its part, recorded sharp growth in earnings, which rose from $4 million to $14 million.

“The measures we have taken to improve Desjardins Group’s productivity and to ensure profitable business development had a positive impact on third-quarter results, and we are certainly very pleased,” explained Alban D’Amours, president and CEO Officer of Desjardins Group. “Our performance across all components is encouraging and motivating us to continue our efforts toward sufficient and reliable overall profitability for the benefit of all members and clients.”