ANNUAL REPORT 2019

Caisse Desjardins du Témiscamingue

Head office51, rue Sainte-AnneVille-Marie (Québec) J9V 2B6

CAISSE DESJARDINS DU TÉMISCAMINGUE

Note to readers

This annual report provides an overview of Caisse Desjardins du Témiscamingue'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.

Normand Gingras, ChairMarie-Paule Vézina, Secretary

About Caisse Desjardins du Témiscamingue:

16,072 members

$345,440 given back through our CommunityDevelopment Fund

A dynamic team of managers and employees under thegeneral management of François Prévost

Dedicated directors

Normand Gingras Chair

Mario Trudel Vice-Chair

Marie-Paule Vézina Secretary

Lynn Carrière Director

Pierrette Charron Director

Claude Desrochers Director

René Drouin Director

Bernard Gauthier Director

Denise Généreux Director

Carmen Ippersiel Director

Richard Lacasse Director

Nathalie Landry Director

Meggan Lévesque-Hébert Director

Denis Nolet Director

Monique Rivest Director

Frédérique Côté 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 DU TÉMISCAMINGUE

Caisse Financials

Assets of $488,786K, up 5.2%

Liabilities of $420,899K, an increase of 5.1%

Equity of $67,887K, up 5.9%

Capital stock: $644K

Distributable surplus earnings: $3,723K

Accumulated other comprehensive income: $896K

Reserves: $62,624K

Stabilization reserve: $2,471K

Reserve for future member dividends: $3,167K

Community Development Fund: $972K

Operating surplus earnings of $4,306K, up 28.4%

Interest income totalling $15,245K, an increaseof 8.7%

Interest expenses of $4,813K, up 7.2%

Other income totalling $4,089K, up 2.1%

Non-interest expenses of $9,579K, a decreaseof 3.1%

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 $984K.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) (258) 0.0

Desjardins CapitalManagement (INV) 51,317 30.6

Desjardins FinancialHolding (FIN5A) 20,134,531 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 TÉMISCAMINGUE

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 0.6% 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 219,614 44 8,965 49 843 52 229,422 145 229,277 215,808Consumer and otherpersonal loans 19,717 26 1,815 59 38 6 21,570 91 21,479 22,424

Business and government 106,004 38 9,680 48 1,344 326 117,028 412 116,616 112,218

Total 345,335 108 20,460 156 2,225 384 368,020 648 367,372 350,450

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 $405,927K, up $20,248K, or 5.2%, year over year. Deposits by individuals provide the main source of funding forthe caisse's expansion. These deposits represent 74.9% 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 132,232 9,299 162,638 304,169 288,802

Business and government 78,511 489 22,758 101,758 96,877

Total 210,743 9,788 185,396 405,927 385,679

*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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