Capital régional et coopératif Desjardins announces net income of $11.9 million for the first six months of 2011
Per share value rises to $10.02 on net assets of $1,081.7 million
Rimouski, August 18, 2011 – Capital régional et coopératif Desjardins today released its financial results for the first six months of fiscal 2011, announcing net income of $11.9 million compared with $7.0 million for the same period in 2010. This performance raises per share value by $0.11 as of noon today to $10.02, the fifth consecutive semi-annual increase. Net assets are now $1,081.7 million, the highest level in Capital régional’s 10 years of existence.
Chairman of the Board André Lachapelle qualified the results for the first half of 2011 as deeply satisfying, stating, “Once again, we are able to present a positive balance sheet for our operations owing to our prudent management approach and the soundness of the financial asset management strategy we implemented a few years ago. These two vectors are core to our investment philosophy, which is firmly focused on supporting small businesses and on business transfers that will be a major issue in the Québec business landscape over the next ten years. We are proud to report an increase in earnings for this last six-month period while fulfilling our primary mission to contribute to the economic development of Québec’s resource regions and cooperatives.”
For Marie-Claude Boisvert, Chief Operating Officer of Desjardins Venture Capital, Capital régional’s manager, the positive results are clear confirmation not only of the quality of the financial asset management strategy but also of her team’s achievements. “Our portfolios have posted positive returns – investments in Québec companies and cooperatives generated a 4.4% return for the first six months of 2011, compared with 2.6% for the same period last year. The Other investments portfolio, made up mainly of bonds and whose performance is tied to changes in interest rates, yielded a return of 1.8% for the first half of 2011, compared with 2.3% for the first half of 2010.”
Ms. Boisvert also noted that after 10 years in operation, Capital régional et coopératif Desjardins has built a solid base. “We have achieved the balance we wanted in our Investments impacting the Québec economy portfolio. Our choices have focused on assisting small companies in the regions, business transfer financing and supporting employee-shareholder cooperatives. This balance allows us to limit volatility in our overall portfolio, thereby promoting steady, long-term growth.”
Serving regional economies
As at June 30, 2011, investments impacting the Québec economy made by Capital régional et coopératif Desjardins totalled $467.7 million and funds committed but not disbursed amounted to $153.2 million. In all, Capital régional held commitments totalling $620.9 million in 224 companies, cooperatives and funds, creating or retaining some 35,000 jobs in every corner of Québec.
Capital régional et coopératif Desjardins also carried out its economic development mission through Capital croissance PME, a fund created in partnership with the Caisse de dépôt et placement du Québec in July 2010. The main goal of this financial lever is to provide subordinated debt financing to small and medium enterprises in Québec. As at June 30, 2011, the fund had committed a total of $44.3 million to supporting the development of 37 companies.
Shares in strong demand
On March 17, 2011, in tabling his budget, the Québec Minister of Finance announced that he was raising the capitalization limit of Capital régional et coopératif Desjardins from $1 billion to $1.25 billion to allow it to continue growing and supporting the Québec economy. Highly popular with investors, subscriptions during the first six months of 2011 reached $105.5 million while redemptions totalled $55.5 million. As of today, only $13 million in shares of the $150 million 2011 issue remain available through the Desjardins caisse network. At that pace, Capital régional estimates that the sale of 2011 shares could close by the end of August.
About Capital régional et coopératif Desjardins
Capital régional et coopératif Desjardins, this year celebrating its 10th anniversary, is a publicly traded company managed by Desjardins Venture Capital. With over 107,000 shareholders and net assets of $1,082 million, 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 220 companies, cooperatives and funds in various industries spanning all Québec regions. (www.capitalregional.com)