ANNUAL REPORT 2019
Caisse d'économie solidaireDesjardins
Head office155, boulevard Charest EstQuébec (Québec) G1K 3G6514 598-1666
CAISSE D'ÉCONOMIE SOLIDAIRE DESJARDINS
Note to readers
This annual report provides an overview of Caisse d'économie solidaire Desjardins's key financial data as at December31, 2019.
This document complies with the reporting requirements of the Act respecting financial services cooperatives and theAutorité des marchés financiers and was approved by the caisse board of directors.
Garry Lavoie, ChairMathieu Pellerin, Secretary
About Caisse d'économie solidaire Desjardins:
15,286 members
$809,341 given back through our CommunityDevelopment Fund
A dynamic team of managers and employees under thegeneral management of Marc Picard
Dedicated directors
Garry Lavoie Chair
Léopold Beaulieu First Vice-Chair
Katina Binette Second Vice-Chair
Gérald Larose Third Vice-Chair
Mathieu Pellerin Secretary
Claude Allard Director
Denise Boucher Director
Zahra Louasi Director
François-Xavier Michaux Director
Josée Montpetit Director
Louise Pettigrew Director
Jeanne Robin Director
Denis Roy Director
Sokchiveneath Taing Chhoan Director
Gabriel Chaloult-Lavoie Young Intern Director
Marie-Pierre Jacob Young Intern Director
Desjardins Group highlights
Surplus earnings before member dividends up$272 million compared to 2018, for a total of$2,598 million, including:
$1,881 million from Personal and BusinessServices
$729 million from Wealth Management andLife and Health Insurance
$187 million from Property and CasualtyInsurance
$203.5 billion in outstanding loans andacceptances
$67.6 billion in assets under management
21.6% Tier 1A capital ratio
9.9% return on equity, compared to 9.3% in2018
Adjusted return on equity of 8.9%, the sameratio as in 2018
Assets having exceeded $300 billion to total$313 billion
$17,909 million in operating income
$445 million given back to members and thecommunity
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CAISSE D'ÉCONOMIE SOLIDAIRE DESJARDINS
Caisse Financials
Assets of $1,097,080K, up 3.2%
Liabilities of $1,011,414K, an increase of 2.6%
Equity of $85,666K, up 10.2%
Capital stock: $1,336K
Distributable surplus earnings: $10,034K
Accumulated other comprehensive income: $421K
Reserves: $73,875K
Stabilization reserve: $2,934K
Reserve for future member dividends: $4,698K
Community Development Fund: $2,251K
Operating surplus earnings of $12,344K, up 56.5%
Interest income totalling $36,705K, an increaseof 19.2%
Interest expenses of $12,032K, up 27.2%
Other income totalling $4,305K, up 5.8%
Non-interest expenses of $16,560K, a decreaseof 1.8%
All loans to restricted parties* were granted inAll loans to restricted parties* were granted in
accordance with the caisse's applicable rules ofaccordance with the caisse's applicable rules of
professional conduct. Loans granted to restricted partiesprofessional conduct. Loans granted to restricted parties
totalled totalled $255K.K.
**Restricted partiesRestricted parties include: include:
a)a) Caisse directors and the caisse general manager,Caisse directors and the caisse general manager,
including their relatives including their relatives
b)b) Federation directors, including their relativesFederation directors, including their relatives
Investment Funds
The money that caisses invest in these funds allows the
Fédération des caisses Desjardins du Québec (the
Federation) to invest in Desjardins Group subsidiaries and
regional projects. The table below indicates the caisse's
interest in each investment fund and the fund's return at
the end of the fiscal year.
Provincial funds Value of shares held as at
December 31, 2019($)
Averagereturn
(%)
Société de Services descaisses Desjardins (SER) (177) 0.0
Desjardins CapitalManagement (INV) 47,892 30.6
Desjardins FinancialHolding (FIN5A) 16,255,393 12.7
The Federation's obligation toholders of permanent shares
Further to a recommendation issued by the Autorité des
marchés financiers, the Federation guarantees that it will
indemnify Quebec caisse members holding permanent
shares in the event of losses resulting from
misinformation in the audited Combined Financial
Statements of the Desjardins caisses in Quebec and
Desjardins Group's annual Management's Discussion and
Analysis. These documents are available at
www.sedar.com. The Federation's obligation in this matter
is subject to certain conditions. Holders of permanent
shares can request more information at their caisse.
The Combined Financial Statements of the Desjardins
caisses in Quebec are also available to the public at
www.desjardins.com.
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CAISSE D'ÉCONOMIE SOLIDAIRE DESJARDINS
Summary of the loan portfolio
As at December 31, 2019, the quality of the caisse's loan portfolio remained high. Gross impaired loans represent just 0.6% of total gross loans. The table below shows the grosscarrying amount of loans and their allowance balance by stage:
Stage 1Non-credit impared
Stage 2Non-credit impared
Stage 3Credit-impared
Total 2019 Total 2018
As at December 31(in thousands of Canadian dollars)
Gross carryingamount
Allowance forcredit losses
Gross carryingamount
Allowance forcredit losses
Gross carryingamount
Allowance forcredit losses
Gross carryingamount
Allowance forcredit losses
Net carryingamount
Net carryingamount
Residential mortgages 581,925 136 22,232 299 819 47 604,976 482 604,494 538,723Consumer and otherpersonal loans 7,837 10 729 15 44 32 8,610 57 8,553 9,631
Business and government 192,603 137 46,560 266 4,075 998 243,238 1,401 241,837 220,587
Total 782,365 283 69,521 580 4,938 1,077 856,824 1,940 854,884 768,941
For more information, see Note 2, "Basis of presentation and significant accounting policies" to the Combined Financial Statements of the Desjardins caisses in Quebec for the yearended December 31, 2019, available at www.desjardins.com. Certain comparative figures have been reclassified to conform with the presentation to the current year's annualreport.
Summary of the deposit portfolio
As at December 31, 2019, the caisse's member deposits totalled $981,973K, up $22,577K, or 2.4%, year over year. Deposits by businesses and governments provide the mainsource of funding for the caisse's expansion. These deposits represent 75.8% of total deposits as at December 31, 2019. The following table shows the breakdown of deposits bytype of depositor with amounts by type of savings*.
As at December 31(in thousands of Canadian dollars)
Payable on demand
Payable uponnotice
Payable on afixed date
Total 2019 Total 2018
Individuals 80,398 8,146 104,954 193,498 168,504
Business and government 527,892 23,333 193,246 744,471 744,317
Deposit-taking institutions - 35,735 44,004 46,575
Total 616,559 31,479 333,935 981,973 959,396
*For more information on presentation and significant accounting policies, see Note 2 to the Combined Financial Statements of the Desjardinscaisses in Quebec, available at www.desjardins.com.
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