Mortgage growth boosts Desjardins' profits in the first quarter

Montreal —
The Desjardins Group recorded stronger performance in the first quarter of the year, driven by growth in the residential mortgage portfolio and an increase in net interest income.

The surplus earnings before member distributions reached $960 million during the quarter ended March 31, an increase of 30.1% compared to the same period last year, while total net revenues rose 11.4% to $4.1 billion.

Net interest income rose by 11.2% to $2.19 billion, supported by growth in average residential mortgages and business loans.

Residential mortgages remain the cornerstone of Desjardins' lending portfolio, representing 63% of total loans amounting to $320 billion.

The residential mortgage portfolio reached about $201 billion in the first quarter, compared to $199 billion at the end of 2025, and $180 billion in 2024.

Data showed that the average loan-to-value ratio was 51%, while 67% of the portfolio was insured and 33% uninsured.

Desjardins also continued to rely heavily on fixed-rate mortgages, which accounted for 74% of the residential mortgage portfolio, compared to 26% for variable-rate mortgages.

Despite economic pressures and rising household debt, delinquent mortgage loans remained relatively stable, declining to $421 million in the first quarter, compared to $446 million at the end of 2025.

The ratio of delinquent mortgage loans also improved to 0.21%, compared to 0.22% at the end of last year and 0.27% a year ago.

Desjardins faces a large wave of mortgage renewals in the coming years, with about $50 billion due for renewal within a year, and another $103 billion over a period of two to five years.