$112 million returned to members and the community
Lévis, August 12, 2019 -
At the end of the second quarter ended June 30, 2019, Desjardins Group
, Canada's leading financial cooperative group, recorded surplus earnings before member dividends of $692 million, up $15 million from the same quarter of 2018. Adjusted surplus earnings() were up $144 million or 26.3 % for the specific item related to the creation of Aviso Wealth, i.e. the gain from the transaction involving Qtrade Canada Inc. and the interest in Northwest & Ethical Investments L.P. recognized in 2018. These results were due to strong performance in caisse network activities and the operations of the Property and Casualty Insurance segment, which posted higher premium income and a favourable claims experience compared to the same quarter of 2018. The higher surplus earnings were also due to a smaller provision for credit losses as a result of the parameter update for non-credit impaired loans and economic factors. As for the privacy breach, a total of $70 million in expenses and provisions for the implementation of protections for our members (i.e. the credit monitoring plan and the identity theft solution for Desjardins caisse members) were recognized in the second quarter of 2019.
The amount returned to members and the community was $112 million (Q2 2018: $106 million), including an $80 million provision for member dividends (Q2 2018: $71 million), $20 million in sponsorships, donations and scholarships (Q2 2018: $25 million), and $12 million in Desjardins Member Advantages (Q2 2018: $10 million). There was also another $8 million (Q2 2018: $6 million) in commitments related to the $100 million regional development fund.
"Our second quarter results are fully in line with our expectations, in particular due to the growth in caisse network operations," said President and CEO Guy Cormier. "They demonstrate Desjardins Group's financial strength and its ability to deal with the unexpected. Members who are worried about the privacy breach can rest assured that their cooperative protects them by providing automatic protection against identity theft to all its members. Our employees are working very hard to address our members' concerns and needs."
It should be remembered that the identity theft solution for Desjardins caisse members includes the following:
Protection of assets and transactions
The assets and transactions of Desjardins members are protected. If the breach results in unauthorized transactions in members' accounts, they will be reimbursed.
Individual support during the identity recovery process
In the event of identity theft, Desjardins offers its members individual support throughout the identity recovery process.
Reimbursement of $50,000
In relation to the identity recovery process, Desjardins members will be reimbursed up to $50,000 for certain expenses incurred, such as notary and legal fees and other expenses.
This offer, when combined with the Equifax credit monitoring plan and our Credit Score feature from TransUnion, will help members better protect themselves against identity theft and its consequences.