ANNUAL REPORT 2019

Caisse Desjardins deSainte-Foy

Head office990, avenue de BourgogneQuébec (Québec) G1W 0E8418 653-0515

CAISSE DESJARDINS DE SAINTE-FOY

Note to readers

This annual report provides an overview of Caisse Desjardins de Sainte-Foy's key financial data as at December 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.

Louis Babineau, ChairChanele Morel-Lebrun, Secretary

About Caisse Desjardins de Sainte-Foy:

42,039 members

$254,955 given back through our CommunityDevelopment Fund

A dynamic team of managers and employees under thegeneral management of Pascal Samonini

Dedicated directors

Louis Babineau Chair

Pierre-R. Tremblay Vice-Chair

Chanele Morel-Lebrun Secretary

Philippe Beaulieu Director

Renaud Bergeron Director

Marie Caron Director

Sarah Déry Director

Pierrick Gosselin-Lafrenière Director

Rémi Grenier Director

Michel Laferrière Director

Evelyne Moreau Director

Marie-Josée Pelletier Director

Lucie Saint-Gelais Director

Gabrielle St-Georges Director

Alain Vaillancourt Director

Jordan Duclos 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 DESJARDINS DE SAINTE-FOY

Caisse Financials

Assets of $1,827,936K, up 10.1%

Liabilities of $1,648,853K, an increase of 10.2%

Equity of $179,083K, up 8.9%

Capital stock: $3,359K

Distributable surplus earnings: $12,418K

Accumulated other comprehensiveincome: $2,517K

Reserves: $160,789K

Stabilization reserve: $5,184K

Reserve for future member dividends: $9,722K

Community Development Fund: $1,067K

Operating surplus earnings of $15,614K, up 27.3%

Interest income totalling $52,838K, an increaseof 11.6%

Interest expenses of $21,837K, up 15.7%

Other income totalling $10,960K, up 6.9%

Non-interest expenses of $25,307K, a decreaseof 1.5%

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 $288K.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) (727) 0.0

Desjardins CapitalManagement (INV) 126,309 30.6

Desjardins FinancialHolding (FIN5A) 57,924,791 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 DE SAINTE-FOY

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 0.5% 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 988,171 180 43,480 224 3,509 242 1,035,160 646 1,034,514 997,232Consumer and otherpersonal loans 60,252 99 6,079 152 504 274 66,835 525 66,310 67,510

Business and government 355,983 178 41,821 153 3,152 1,208 400,956 1,539 399,417 380,675

Total 1,404,406 457 91,380 529 7,165 1,724 1,502,951 2,710 1,500,241 1,445,417

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 $1,591,045K, up $158,466K, or 11.1%, year over year. Deposits by individuals provide the main source of fundingfor the caisse's expansion. These deposits represent 57.8% of total deposits as at December 31, 2019. 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 2019 Total 2018

Individuals 396,812 26,977 496,320 920,109 845,630

Business and government 370,530 170,091 128,904 669,525 586,861

Deposit-taking institutions - - 1,411 88

Total 768,753 197,068 625,224 1,591,045 1,432,579

*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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