The Desjardins Group, Quebec’s largest financial institution, said its third-quarter profit was up three per cent from last year.
The financial co-operative’s profits before member dividends increased to $445 million, up from $432 million in the third quarter of 2010.
Return on equity was 13.5% compared with 14.6% in the same quarter of 2010, the Desjardins said Thursday.
The co-op, which operates a branch network throughout Quebec, said it returned $77 million to members and the community during the quarter, including a $60-million provision for member dividends.
Desjardins Group’s revenue for the third quarter was $3.7 billion, up $513 million or 16% from the third quarter of 2010.
“This business growth was based in particular on the signing of new contracts and an increase in the number of policies in both the life and health insurance and the property and casualty insurance segments, which allowed premiums to grow 14.3% to $1.2 billion,” Desjardins said in a statement.
Other income stood at $1,525 million, up $390 million or 34.4% compared to the same quarter of 2010, mainly due to an increase in investment income associated with life and health insurance activities that was offset by higher insurance provisions included in expenses.
The increase was also due to other income reported by Western Financial Group, acquired in the second quarter of 2011, and by growth in credit card business, Desjardins said.
Despite a five per cent increase in loans outstanding over the year, low interest rates resulted in a 3.1% decrease in net interest income in the third quarter, to $968 million.