annual report 2020 - desjardins
TRANSCRIPT
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
1
CAISSE DESJARDINS DU CENTRE ET DE L'EST DE LAVAL
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.
2
CAISSE DESJARDINS DU CENTRE ET DE L'EST DE LAVAL
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
Gross carryingamount
Allowance forcredit losses
Gross carryingamount
Allowance forcredit losses
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.
3