Desjardins Group today reported higher surplus earning for the third quarter ended September 30.

The Quebec-based financial services conglomerate said surplus earnings before dividends to members were $342 million during the quarter, an increase of $75 million, or 28.1%, over the results for third quarter 2003.

The firm said the rise in profitability owes mainly to the excellent contributions from Desjardins Group’s subsidiaries, whose earnings soared $58 million in one year. Earnings at Desjardins General Insurance Group grew by more than $27 million compared to 2003 thanks in part to increased sales, improved underwriting profits, and much improved results at

Earnings at Desjardins Venture Capital reached $13 million during the quarter, compared to a $9 million loss in the year-earlier quarter.

The company said return on equity for the quarter stood at 19.8% compared to 17.2% for the same period in 2003. In the financial intermediation sector, the operating expenses to total revenues ratio, including the benefits from subsidiaries, was 60.2% for the quarter compared to 64.2% in 2003.

As at September 30, 2004, the firm’s Tier 1 capital ratio was 13.69%, one of the best in the industry, and its total capital ratio was 13.71%.

Total assets, including federations in Manitoba and New Brunswick, stood at $104.3 billion, an 8.2% (or $7.9 billion) increase over the previous year.

“As evidenced by these results, Desjardins remains an effective cooperative organization, all for the benefit of its members and clients in Quebec and across Canada, where our presence is increasingly strong,”said Alban D’Amours, president and CEO of Desjardins Group, in a release.