Capital régional et coopératif Desjardins announces its results: shares rise by $0.19
Montréal, February 10, 2010 – Capital régional et coopératif Desjardins (the Company) today released its financial results for fiscal 2009, announcing net income of $17.1 million compared with a net loss of $29.3 million in 2008. The Company posted a return of 2.0% compared with a negative return of 3.6% for the previous fiscal year. These results raise the per share value to $9.73 effective at noon today, up $0.19 compared with $9.54 at the end of fiscal 2008.
Chairman of the Board André Lachapelle expressed delight with fiscal 2009 results, “Against the economic conditions that prevailed last year, the economic development mission of Capital régional et coopératif Desjardins sprang sharply into focus. I’m proud that Capital régional has become such a key player in helping to build a strong Québec that values its local businesses.”
The portfolio of investments in Québec companies and cooperatives, benefitting from growth in current revenue, produced a 6.1% return in 2009, compared with a negative return of 6.5% in 2008. The Other investments portfolio, composed mainly of bond issues, also performed well, posting a return of 5.2%, compared with 4.7%. Overall portfolio soundness and improved credit conditions combined to achieve these results.
The Company expanded its investments impacting the Québec economy activities with new commitments totalling $94.5 million for fiscal 2009 compared with $65.0 million in 2008, for an increase of 45.4%. As at December 31, 2009, total commitments reached $539.7 million in 228 companies, cooperatives and funds, helping to secure and create over 32,000 jobs.
Marie-Claude Boisvert, COO of manager Desjardins Venture Capital, remarked, “These results illustrate two things – first, the staying power and creativity of our partner entrepreneurs and, second, the wisdom of the global asset management strategy implemented 3 years ago. The profile of Capital régional’s portfolio is gaining maturity and balance, which limits its volatility. Not only were we able to obtain good results but – more than ever in 2009 – we worked hand in hand with our partners to help them get through this challenging period. I’m especially proud of this hands-on support – it really shows how appropriate our mission is. »
Last, subscriptions totalled $129.4 million in 2009, compared with $126.4 million in 2008. Shares from the 2009 issue are still available throughout the Desjardins caisse network and, by investing, shareholders enjoy a provincial income tax credit of 50%. Share redemptions in 2009 reached $53.3 million while totalling $17.0 million for the previous year. Since the time a portion of shares first became eligible for redemption at the end of the minimum seven-year holding period, approximately one third of eligible shares have been redeemed.
About Capital régional et coopératif Desjardins
Founded in 2001, Capital régional et coopératif Desjardins is a publicly traded company managed by Desjardins Venture Capital. With over 118,000 shareholders, the Company contributes to Québec’s economic development while driving the growth of cooperatives and the resource regions. Capital régional et coopératif Desjardins currently supports more than 225 companies, cooperatives and funds in various industries spanning all Québec regions. (www.capitalregional.com)
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