Desjardins-Laurentian Financial Corp. is reporting reduced earning for the second quarter ended June 30.

Consolidated net earnings for the quarter were $28.6 million compared with net earnings of $44.3 million a year earlier. Return on equity for the quarter was10.1% compared with ROE of 17.7% a year earlier.

The financial services holding company said that poor performance of financial markets in the first six months of 2002 and the resulting uncertainty led the company and its subsidiaries to account for more than $30 million in provisions in order to counter the risk associated with certain investments.

“Despite the difficult conditions that impacted negatively on financial markets, our insurance subsidiaries reported solid growth in operating revenues. Sales were up in several activity sectors and premiums rose 9% for the quarter and 10% year-to-date”, said Monique Leroux, president of DLFC in a statement.

Consolidated revenues totalled $876.4 million in the second quarter of 2002 and $1,812.0 million year-to-date, compared to $882.5 million and $1,728.4 million in 2001, the same level for the quarter but up 5% for the six- month period.

Net premiums in the life and health and general insurance sectors were up 9% in the second quarter and 10% year-to-date, at $660.1 million and $1,336.8 million, compared to $603.7 million and $1,219.4 million, respectively, in 2001.