Desjardins Group has announced remarkably strong financial results for the fiscal year 2024, showcasing significant growth and increased returns for its members. The cooperative financial institution reported profits of $3.35 billion, representing a 32.7% increase from the previous year. This growth was largely driven by enhanced net interest income and performance across its insurance sector.
At the forefront of this positive performance is the solid revenue from Desjardins' Personal and Business services sectors, which have experienced notable expansion. Total assets for the organization ballooned to $470.9 billion by the end of the year, marking an impressive rise of 11.3%. Guy Cormier, the President and CEO of Desjardins, expressed pride in these results, stating, "Thanks to business growth and stringent expense management, we announce excellent results for the benefit of our members, continuing to invest in our communities."
One of the standout figures from this financial report includes the allocation of $437 million for member returns, which is $25 million more than the previous year. Coupled with this are contributions amounting to $120 million distributed as sponsorships, donations, and scholarships, reinforcing Desjardins' commitment to community engagement. Cormier declared, "When I tour Quebec and Canada, I don’t know many companies returning half a billion dollars to their members and community each year," highlighting the unique position Desjardins holds within the financial cooperative sector.
Despite these successes, challenges loom on the horizon, particularly concerning economic uncertainty stemming from potential tariff impositions by the American administration. Alain Leprohon, Desjardins' Chief Financial Officer, cautioned, "The possibility of tariffs, the potential impacts they could lead to have made us more cautious." This leads the cooperative to bolster its reserves, increasing the provision for potential credit losses to $597 million, up by $68 million compared to the previous year. Leprohon noted, "We have already proactively contacted our vulnerable business clients, especially those within the manufacturing sector, to prepare for possible challenges."
Desjardins has illustrated its unwavering commitment to social development through various initiatives, including financing affordable housing projects throughout Quebec. The organization has pledged to assist the construction of over 1,750 affordable housing units by 2025, with several projects already underway. This initiative emphasizes Desjardins's strategy not just to be financially sound but also socially responsible.
With the industry's competitive nature, particularly due to the approaching 2025 mortgage renewals, Desjardins acknowledges the necessity to remain proactive in helping members secure favorable mortgage terms. Cormier pointed out, "We are very proactive with our clients to offer them the best solutions available," ensuring members feel supported during this pivotal transition.
Overall, Desjardins closes the year with heightened confidence and forward-thinking strategies, positioning itself solidly amid impending economic uncertainties. The cooperative continues to focus on empowering its members and meeting their diverse financial needs, proving its resilience and adaptability.
Looking forward, Cormier assured stakeholders of Desjardins' capability to navigate upcoming challenges, stating, "Desjardins is well positioned and remains a strong financial institution to face this situation." This steadfast commitment to its members and communities encapsulates what Desjardins stands for: cooperative values intertwined with financial performance, aiming for sustained growth hand-in-hand with societal welfare.