Financial services holding company Desjardins Financial Corp. is reporting an increase in profit for the third quarter ended September 30.

The company says consolidated net earnings for the quarter were $59.9 million, compared to $40.1 million in the same quarter last year. Net earnings reached $138.6 million for the first nine months of the year, compared to $86.6 in 2002. Return on equity was 16%, compared to 10.7% for the same period in 2002.

Consolidated revenues totalled $1,012.5 million for the third quarter, up 20% from a year ago.

“Consistent with its development and growth strategies, Desjardins Financial Corp. had another excellent quarter and all indications suggest that it will meet if not exceed its objectives,” said Alban D’Amours, CEO of Desjardins Financial Corp., in a news release.

“Beyond the excellent results achieved, particularly by our subsidiaries active in life and health and in general insurance, the turnaround witnessed in the stock market promises continued improvement in our investment income and mutual fund sales,” said Monique Leroux, president of Desjardins Financial Corp.

Consolidated net earnings at life insurance subsidiary Desjardins Financial Security in the first nine months of 2003 totalled $72.7 million, which compares to $55.7 million for the same period last year.

In the general insurance group, Desjardins General Insurance Group contributed 39.2 million to consolidated net earnings for the nine-month period as compared to $26.3 million for the same period in 2002.

Desjardins Trust’s profitability was influenced by financial market conditions that had a negative impact on mutual fund sales. The recovery of the last two quarters, combined with the acquisition of NorthWest Mutual Funds, had a positive effect on the funds outstanding, which reached $5.86 billion. This increase has however not yet been reflected in fee income. This segment’s contribution to consolidated net earnings was $9.9 million in the first nine months of 2003, compared to $11 million in the preceding year.