ANNUAL REPORT 2020 - Desjardins

ANNUAL REPORT 2020

Caisse Desjardins du Centre etde l'Est de Laval

Head office4433, boul. de la Concorde EstLaval (Québec) H7C 1M4450 661-7274

CAISSE DESJARDINS DU CENTRE ET DE L'EST DE LAVAL

Note to readers

This annual report provides an overview of Caisse Desjardins du Centre et de l'Est de Laval's key financial data as atDecember 31, 2020.

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.

Michel Guindon, ChairLaura Battisti, Secretary

About Caisse Desjardins du Centre et de l'Est deLaval:

50,331 members

$129,956 given back through our CommunityDevelopment Fund

A dynamic team of managers and employees under thegeneral management of Sylvain Filion

Dedicated directors

Michel Guindon Chair

Martine Lafrance Vice-Chair

Laura Battisti Secretary

Patricia Chamoun Director

Stéphanie Clément Director

Anne-Catherine Farley Director

Marie-Hélène Forget Director

Michel Gingras Director

Bilal Khoder Director

Martial Larocque Director

Samuel Mainville-Pannese Director

Handy Nazer Director

Chilandre Patry Director

Priscille-Nice Sanon Director

Guy Villeneuve Director

Desjardins Group highlights

Surplus earnings before member dividendsdown $179 million compared to 2019, for atotal of $2,419 million, including:

$1,314 million from Personal and BusinessServices

$609 million from Wealth Management andLife and Health Insurance

$622 million from Property and CasualtyInsurance

Provision for credit losses up $498 millioncompared to 2019, mainly due to thesignificant deterioration in the economicoutlook and the anticipated effects on creditquality as a result of the COVID-19 pandemic

$211.7 billion in outstanding loans andacceptances (+4.1%)

$77.5 billion in assets under management(+14.7%)

8.4% return on equity, compared to 8.9% in2019

Total assets grew by 15.7% in 2020 to reach$362 billion

Operating income of $18,399 million, up 2.7%compared to 2019

$445 million given back to members and thecommunity

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Caisse Financials

Assets of $1,714,545K, up 11,8%

Liabilities of $1,527,599K, an increase of 12,1%

Equity of $186,946K, up 9,4%

Capital stock: $2,813K

Distributable surplus earnings: $11,442K

Accumulated other comprehensiveincome: $2,705K

Reserves: $169,986K

Stabilization reserve: $5,923K

Reserve for future member dividends: $9,837K

Community Development Fund: $424K

Operating surplus earnings of $13,854K, up 7,2%

Interest income totalling $42,764K, a decreaseof 3,4%

Interest expenses of $11,987K, down 21,7%

Other income totalling $9,604K, down 6,9%

Non-interest expenses of $24,174K, a decreaseof 1,9%

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 restrictedprofessional conduct. Loans granted to restricted

parties totalled parties totalled $818K.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, 2020($)

Averagereturn

(%)

Société de Services descaisses Desjardins (SER) (605) 0,0

Desjardins CapitalManagement (INV) 141,876 21,8

Desjardins FinancialHolding (FIN5A) 53,302,031 10,4

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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Summary of the loan portfolio

As at December 31, 2020, 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 2020 Total 2019

As at December 31(in thousands of Canadian dollars)

Gross carryingamount

Allowance forcredit losses







Net carryingamount

Net carryingamount

Residential mortgages 982,160 514 196,971 925 1,724 126 1,180,855 1,565 1,179,290 1,133,703Consumer and otherpersonal loans 38,403 65 5,439 168 60 49 43,902 282 43,620 43,914

Business and government 99,199 225 77,403 614 3,223 603 179,825 1,442 178,383 165,658

Total 1,119,762 804 279,813 1,707 5,007 778 1,404,582 3,289 1,401,293 1,343,275

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, 2020, the caisse's member deposits totalled $1,443,420K, up $230,767K, or 19,0%, year over year. Deposits by individuals provide the main source of fundingfor the caisse's expansion. These deposits represent 84.6% of total deposits as at December 31, 2020. The following table shows the breakdown of deposits by type of depositorwith amounts by type of savings*.

As at December 31(in thousands of Canadian dollars)

Payable on demand

Payable uponnotice

Payable on afixed date

Total 2020 Total 2019

Individuals 615,736 60,596 544,383 1,220,715 1,054,302

Business and government 199,507 1,714 21,484 222,705 158,351

Total 815,243 62,310 565,867 1,443,420 1,212,653

*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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Documents

ANNUAL REPORT 2020 - Desjardins