ANNUAL REPORT 2019

Caisse Desjardins duVal-Saint-François

Head office77, rue Saint-GeorgesWindsor (Québec) J1S 2K5819 845-2707

CAISSE DESJARDINS DU VAL-SAINT-FRANÇOIS

Note to readers

This annual report provides an overview of Caisse Desjardins du Val-Saint-François'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.

Julie Bourgeois, ChairLyne Logan, Secretary

About Caisse Desjardins du Val-Saint-François:

23,401 members

$192,770 given back through our CommunityDevelopment Fund

A dynamic team of managers and employees under thegeneral management of Joé Robert

Dedicated directors

Julie Bourgeois Chair

Denis Demers Vice-Chair

Lyne Logan Secretary

Catherine Beaumier-Dupont Director

Roch Bourassa Director

Michel Champagne Director

Simon Ferland Director

Joannie La Madeleine Director

Julie Lahaye Director

Marc Marin Director

Benoît Martine Director

Bernard Moreau Director

Manon Morin Director

René Pelletier Director

Vicky Villeneuve 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 DU VAL-SAINT-FRANÇOIS

Caisse Financials

Assets of $842,472K, up 5.3%

Liabilities of $748,790K, an increase of 5.0%

Equity of $93,682K, up 8.6%

Capital stock: $1,547K

Distributable surplus earnings: $7,190K

Accumulated other comprehensiveincome: $1,082K

Reserves: $83,863K

Stabilization reserve: $2,534K

Reserve for future member dividends: $4,451K

Community Development Fund: $458K

Operating surplus earnings of $9,088K, up 33.2%

Interest income totalling $26,869K, an increaseof 10.7%

Interest expenses of $10,004K, up 9.4%

Other income totalling $5,925K, up 2.1%

Non-interest expenses of $13,472K, an increaseof 0.9%

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 $317K.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) (297) 0.0

Desjardins CapitalManagement (INV) 59,318 30.6

Desjardins FinancialHolding (FIN5A) 25,095,734 12.1

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 DU VAL-SAINT-FRANÇOIS

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 0.4% 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 470,018 87 20,496 92 1,130 78 491,644 257 491,387 472,608Consumer and otherpersonal loans 27,874 44 2,758 80 111 75 30,743 199 30,544 31,767

Business and government 184,190 119 42,515 197 1,930 416 228,635 732 227,903 207,619

Total 682,082 250 65,769 369 3,171 569 751,022 1,188 749,834 711,994

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 $567,076K, up $45,583K, or 8.7%, year over year. Deposits by individuals provide the main source of funding forthe caisse's expansion. These deposits represent 78.9% 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 187,742 13,260 246,675 447,677 418,521

Business and government 99,107 283 20,001 119,391 102,832

Deposit-taking institutions - 3 8 140

Total 286,854 13,543 266,679 567,076 521,493

*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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