Desjardins Group, Canada’s largest financial co-operative, today reported that it earned $254 million in the fourth quarter ended Dec. 31, 2005, an increase of 23.3%.

Return on equity for the quarter was 12.9% compared with 11.5% for the same period in 2004.

For 2005 as a whole, profits, which the co-operative calls surplus earnings, amounted to $1.1 billion, for an increase of $17 million over the previous year.

Annual revenues for the group reached $9.1 billion, a 7.2% increase over 2004.

The group said it had higher business volumes in each area of activity, including the credit union network, the life and health insurance subsidiary, Desjardins Financial Security, the general insurance subsidiary, Desjardins General Insurance Group, and Desjardins Securities, the securities brokerage arm.

Desjardins Securities, however, recorded a net loss of $11.1 million compared to a net loss of $100,000 a year earlier.

Net earnings also declined at Desjardins Venture Capital, which earned $4 million compared to $8 million in 2004.

For the year, Desjardins returned $408 million in dividends out of its profits to credit union members, up 9.7% from 2004.

As at Dec. 31, 2005, Desjardins Group’s total assets amounted to $118.1 billion, up 10.9%.

“We are certainly very satisfied with this financial performance, especially since these results are stronger than what had been expected and reflected in our financial plan,” said Alban D’Amours, president and CEO.