Lévis, Que.-based financial cooperative Desjardins Group saw an increase in its operating income during the first quarter, up 7.5% or $213 million to $3,072 million, compared to the same period last year.
Desjardins reported its first quarter results on Tuesday.
Net interest income stood at $955 million, up $21 million or 2.2% as compared to $934 million for the same quarter of 2013. This increase was due to $8.6 billion or 6.4% growth of the total portfolio over the last year.
Insurance activities generated a $118 million or 8.9% increase in net premiums, which reached $1,441 million mainly due to business growth.
Other operating income totalled $676 million, up $74 million or 12.3% from the same period of 2013. This increase was mainly due to volume growth in brokerage activities, card services and point-of-sale financing. It is also due to an increase in assets under management and commission income on insurance sales.
The provision for credit losses totalled $94 million, up $34 million compared to the same period of 2013. This change was due to an increase in collective allowances and growth in the credit card portfolio.
“We are very satisfied with these results, which provide compelling evidence of Desjardins Group’s ability to stand out in a highly competitive industry,” said Monique Leroux, chairwoman of the board, president and CEO.
Desjardin’s performance allowed it to record $384 million in surplus earnings before dividends to members, compared to $378 million in the same quarter of 2013.
At quarter end, Desjardins Group had total assets of $222.9 billion, up $10.9 billion or 5.1% from Dec. 31, 2013.