ANNUAL REPORT 2019 - Desjardins.com€¦ · Mélanie Viau Vice-Chair Valérie Leclair Secretary...
Transcript of ANNUAL REPORT 2019 - Desjardins.com€¦ · Mélanie Viau Vice-Chair Valérie Leclair Secretary...
ANNUAL REPORT 2019
Caisse Desjardins desSeigneuries de la frontière
Head office373, rue Saint-JacquesNapierville (Québec) J0J 1L0450 245-3391
CAISSE DESJARDINS DES SEIGNEURIES DE LA FRONTIÈRE
Note to readers
This annual report provides an overview of Caisse Desjardins des Seigneuries de la frontière's key financial data as atDecember 31, 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.
Jean Bourgogne, ChairValérie Leclair, Secretary
About Caisse Desjardins des Seigneuries de lafrontière:
18,286 members
$54,270 given back through our CommunityDevelopment Fund
A dynamic team of managers and employees under thegeneral management of Pierre Savard
Dedicated directors
Jean Bourgogne Chair
Jean-François Bousquet Vice-Chair
Mélanie Viau Vice-Chair
Valérie Leclair Secretary
Isabelle Bourgeois Director
Nicolas Desrochers-Ruhdorfer Director
Yvon Fournier Director
Isabelle Guay Director
Diane Latour Director
Jean-Pierre Paiement Director
Charles Patenaude Director
Guy Trudeau 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 DESJARDINS DES SEIGNEURIES DE LA FRONTIÈRE
Caisse Financials
Assets of $728,636K, up 8.7%
Liabilities of $652,360K, an increase of 8.7%
Equity of $76,276K, up 8.8%
Capital stock: $774K
Distributable surplus earnings: $5,896K
Accumulated other comprehensive income: $764K
Reserves: $68,842K
Stabilization reserve: $2,091K
Reserve for future member dividends: $3,514K
Community Development Fund: $227K
Operating surplus earnings of $7,542K, up 44.3%
Interest income totalling $22,523K, an increaseof 19.9%
Interest expenses of $8,927K, up 20.6%
Other income totalling $5,112K, up 3.9%
Non-interest expenses of $10,838K, an increaseof 1.1%
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 $215K.K.
**Restricted partiesRestricted parties include: include:
a)a) Caisse directors and the caisse general manager,Caisse directors and the caisse general manager,
including their relatives including their relatives
b)b) Federation directors, including their relativesFederation directors, including their relatives
Investment Funds
The money that caisses invest in these funds allows the
Fédération des caisses Desjardins du Québec (the
Federation) to invest in Desjardins Group subsidiaries and
regional projects. The table below indicates the caisse's
interest in each investment fund and the fund's return at
the end of the fiscal year.
Provincial funds Value of shares held as at
December 31, 2019($)
Averagereturn
(%)
Société de Services descaisses Desjardins (SER) (213) 0.0
Desjardins CapitalManagement (INV) 43,703 30.6
Desjardins FinancialHolding (FIN5A) 18,744,887 12.2
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 DESJARDINS DES SEIGNEURIES DE LA FRONTIÈRE
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 0.8% 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 394,179 75 12,512 69 831 36 407,522 180 407,342 384,297Consumer and otherpersonal loans 21,598 25 1,906 28 23 23 23,527 76 23,451 22,117
Business and government 167,739 74 26,147 122 4,071 344 197,957 540 197,417 177,492
Total 583,516 174 40,565 219 4,925 403 629,006 796 628,210 583,906
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 $500,101K, up $30,602K, or 6.5%, year over year. Deposits by individuals provide the main source of funding forthe caisse's expansion. These deposits represent 73.4% of total deposits as at December 31, 2019. The following table shows the breakdown of deposits by type of depositor withamounts 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 157,438 6,984 202,428 366,850 344,287
Business and government 113,188 510 19,549 133,247 125,207
Deposit-taking institutions - - 4 5
Total 270,630 7,494 221,977 500,101 469,499
*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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