ANNUAL REPORT 2019

Caisse Desjardins deBrome-Missisquoi

Head office101, rue PrincipaleCowansville (Québec) J2K 1J3450 263-1393

CAISSE DESJARDINS DE BROME-MISSISQUOI

Note to readers

This annual report provides an overview of Caisse Desjardins de Brome-Missisquoi'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.

Catherine Allen-Dénommé, ChairMichel Guenette, Secretary

About Caisse Desjardins de Brome-Missisquoi:

15,128 members

$109,959 given back through our CommunityDevelopment Fund

A dynamic team of managers and employees under thegeneral management of Nadine Boire

Dedicated directors

Catherine Allen-Dénommé Chair

Guylaine Roy-Desroches Vice-Chair

Michel Guenette Secretary

Rudy C. Robitaille Director

Marie-Pier Jean-Coulombe Director

Edgar Larrivée Director

Bertrand Meunier Director

Alexandra Pagé Director

Monique Verreault Director

Laurence Levasseur 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 BROME-MISSISQUOI

Caisse Financials

Assets of $442,838K, up 9.9%

Liabilities of $395,435K, an increase of 9.8%

Equity of $47,403K, up 10.6%

Capital stock: $496K

Distributable surplus earnings: $4,033K

Accumulated other comprehensive income: $606K

Reserves: $42,268K

Stabilization reserve: $1,477K

Reserve for future member dividends: $2,337K

Community Development Fund: $273K

Operating surplus earnings of $5,041K, up 48.0%

Interest income totalling $13,827K, an increaseof 14.5%

Interest expenses of $4,788K, up 19.6%

Other income totalling $3,707K, up 20.1%

Non-interest expenses of $7,623K, an increaseof 2.9%

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 $360K.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) (179) 0.0

Desjardins CapitalManagement (INV) 28,646 30.6

Desjardins FinancialHolding (FIN5A) 13,727,957 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 BROME-MISSISQUOI

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 0.3% 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 264,385 54 11,049 44 442 23 275,876 121 275,755 253,171Consumer and otherpersonal loans 18,749 22 1,554 18 20 7 20,323 47 20,276 20,360

Business and government 81,733 56 9,979 57 683 140 92,395 253 92,142 81,112

Total 364,867 132 22,582 119 1,145 170 388,594 421 388,173 354,643

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 $327,717K, up $30,819K, or 10.4%, year over year. Deposits by individuals provide the main source of fundingfor the caisse's expansion. These deposits represent 77.7% 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 120,067 8,222 126,247 254,536 232,432

Business and government 59,458 550 13,149 73,157 64,436

Deposit-taking institutions - - 24 30

Total 179,549 8,772 139,396 327,717 296,898

*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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