Capital régional et coopératif Desjardins’ semi-annual results – Shares rise by $0.08
Montréal, August 20, 2009 – Capital régional et coopératif Desjardins (“the Company”) closed the first half of its fiscal year on June 30, 2009 with net income of $6.9 million compared with a net loss of $4.5 million for the same period of 2008 in spite of the particularly difficult economic and financial times. These results raise the per share value to $9.62 compared with $9.54 at the end of fiscal 2008. The new share value goes into effect at noon today.
Capital subscriptions during the first half of the year reached $84.1 million, while share redemptions totalled $23.2 million. This figure is due to the fact that approximately 23% of the shares eligible for redemption at the end of their minimum seven-year holding period were redeemed. Net assets totalled $880.4 million as at June 30, 2009, and the number of shareholders was 121,584.
Marie-Claude Boisvert, COO of manager Desjardins Venture Capital, reiterated her confidence in the global asset management strategy implemented 3 years ago. “While there were other factors that influenced our performance, we are happy to say that this approach has allowed us to navigate through some very unstable economic conditions and report positive results for our shareholders.”
Among these other factors, improving credit conditions helped generate positive returns for both Capital régional portfolios – Investments impacting the Québec economy, and the liquid portfolio now known as Other investments. That being said, investment in companies, cooperatives and funds generated a contribution of $5.9 million, allowing the portfolio to post a return of 1.6% for the six-month period ended June 30, 2009 compared with a negative return of 6.5% for fiscal 2008. The Other investments portfolio generated a 3.1% return for the first six months of 2009 compared with 4.7% for fiscal 2008.
About investments, says Marie-Claude Boisvert, “We continued to fulfil our mission among Québec’s businesses by offering them direct support. Over these six months, close to 40 companies have taken advantage of Capital régional backing, making for disbursements of more than $35 million – mainly in new projects.” As at June 30, 2009, the Company held commitments totalling $488.7 million in 227 companies, cooperatives and funds, creating or retaining 31,000 jobs.
Chairman of the Board André Lachapelle declared that, “We’re proud of Capital régional’s performance, in spite of a particularly challenging environment. With the new share value, shareholders who invested seven years ago will obtain an annual after-tax return of more than 9.0% taking into account a 50% tax credit. I firmly believe that results like these will encourage our existing shareholders to renew their trust and stimulate new shareholders to buy the securities. And, on that note, I’d like to remind everyone that the Company’s securities are still available throughout the caisse network,” concluded Mr. Lachapelle.
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 120,000 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)