Desjardins Group is preparing to close its $1.67 billion acquisition of Guardian Capital Group early next year as it looks to expand its financial services footprint and strengthen its position across North America. The Quebec-based co-operative continues to build on its track record of strategic transactions while navigating a challenging economic environment.
BNN Bloomberg spoke with Denis Dubois, president and CEO of Desjardins Group, about the co-operative’s growth strategy, sector outlook, and its efforts to enhance stability and security across its operations.
Key Takeaways
- Desjardins expects to finalize its $1.67 billion acquisition of Guardian Capital Group early in 2026, doubling its wealth management platform.
- CEO Denis Dubois says the co-operative will pursue additional growth through both acquisitions and organic initiatives in insurance and wealth management.
- The lender’s first-half surplus earnings fell to $1.64 billion amid higher insurance claims and a near-doubling of credit loss provisions.
- Fitch Ratings notes Desjardins faces exposure to U.S. tariffs due to its lending concentration in Quebec’s aluminum, steel and agriculture sectors.
- Despite near-term challenges, Desjardins maintains a double-A-minus credit rating with a stable outlook and more than $500 billion in assets.
Read the full transcript below:
MERELLA: Desjardins Group, a federation of North American credit unions, is set to close its $1.67-billion acquisition of money manager Guardian Capital Group early next year. The new head of the co-operative, who took over last month, has plans for more acquisitions and organic growth. Joining us now is Denis Dubois, president and CEO of Desjardins Group. Thanks for joining us today.
DENIS: Thank you. Hi.
MERELLA: Let’s talk about Guardian Capital first. That deal is expected to close next year. Do you have other names on your shopping list?
DENIS: We do have other names, but none that we can share right now. Acquisitions are clearly part of our strategy for sustainable growth across Canada. There are some sectors that are high on our list — property and casualty insurance, life and health insurance, and wealth management. Those are areas where we’re looking at potential opportunities. But for now, our focus is on closing the Guardian Capital transaction, as you mentioned, in the first quarter of 2026.
MERELLA: Your surplus earnings were down by $135 million in the first half of the year. What expenses were up?
DENIS: The main factor was credit losses, which were somewhat higher in the first half of the year. That reflects what we’re seeing with the tariff war happening right now. Other than that, we’re seeing good growth across our five business sectors and solid performance across the organization. The outlook looks good at this point.
MERELLA: You mentioned growth. What do you expect for the second half of the year?
DENIS: We’re active in five business sectors, and we’re seeing strong growth in each of them. On the mortgage side, most of that growth is in Quebec, but we’re also seeing momentum in Ontario. Commercial banking is showing solid gains, as is our property and casualty insurance division. We’re seeing very strong growth in life and health insurance and in wealth management as well. So, based on what we’re seeing now, we expect solid growth across all five business sectors when we release our next results in a few weeks.
MERELLA: Can I ask for your outlook on the financial sector, given the current climate between Canada and the U.S.? Do you see the two markets diverging?
DENIS: The second quarter was more challenging in Canada because of the recently announced tariffs, but we’re still seeing growth — slower growth, but still positive. Some of our members and clients are taking steps to improve their situations. We’re realistic about the current environment but optimistic about what’s ahead. A major area of focus for us is the renegotiation of CUSMA. What helps right now is that nearly 90 per cent of what’s shipped to the U.S. isn’t exposed to tariffs — but that could change. So the CUSMA talks are definitely something we’re watching closely.
MERELLA: Recently, the Bank of Canada’s deputy governor referred to Canada’s banking sector as an oligarchy. What has been your experience dealing with the big banks?
DENIS: We believe competition is good for Canada, so we welcome it — whether it’s from existing players or new entrants. At the same time, maintaining a stable financial system is critical. We’ve been through so many challenges in recent years — the pandemic, high inflation, and now tariffs — so we need to strike a balance between encouraging competition and preserving the stability that has proven its resilience.
MERELLA: The federal government has announced new financial fraud measures, with more details expected in the upcoming budget. Desjardins suffered a privacy breach that affected information for more than four million clients. How has security changed since then?
DENIS: It has changed significantly. We’ve made major investments in security in recent years. At Desjardins, we now have a dedicated security office with about 1,800 people focused on protecting our members and clients from fraud and cyberattacks. We invest more than $300 million a year in security. This is a daily battle against those trying to defraud or attack our systems. With developments like AI, that fight will continue for a long time. It’s important that all stakeholders, including the government, work together to protect Canadians.
MERELLA: Denis, we’ll have to leave it there. Thank you for your time.
DENIS: Thank you.
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This BNN Bloomberg summary and transcript of the Oct. 20, 2025 interview with Denis Dubois are published with the assistance of AI. Original research, interview questions and added context was created by BNN Bloomberg journalists. An editor also reviewed this material before it was published to ensure its accuracy and adherence with BNN Bloomberg editorial policies and standards.
