We have built for the long term

Alban D'Amours takes stock of his eight years as President of Desjardins Group

Quebec City, March 29 2008 - The cooperative business model is both modern and productive, is better suited than any other model to take on the challenges of globalization. Such is the conviction arrived at by Mr. Alban D'Amours, President and Chief Executive Officer of Desjardins Group, at the end of his eight years at the head of the largest integrated cooperative financial group in Canada.

In his last address to the caisse delegates gathered today in Québec City for the Desjardins Annual General Meetings, Mr. D'Amours reviewed the major accomplishments since March 2000, when he entered his functions as President of Desjardins Group. According to him, the road was marked with significant action in the areas of Desjardins' governance, business development and financial performance, while deepening its cooperative authenticity.

One of Mr. D'Amours' first achievements was to implement the new Fédération, which was created through the merger of the federations of regional and group caisses with the Confédération des caisses populaires et d'économie Desjardins du Québec. This made it possible, among other things, to make significant changes to Desjardins Group's governance while giving the regional and group caisses the opportunity for more direct communication within the various decision-making bodies of Desjardins Group. "We also allow caisse representatives brought together at the Assembly of Representatives, the power to decide on orientations regarding the major issues facing Desjardins Group. Today, there are no major issues in which they are not involved or that do not allow them to give their opinion and influence decisions," he added.

It is also under the presidency of Mr. D'Amours that the 18th Congress of Officers was to discuss cooperative renewal, following consultations that involved some 25,000 caisse(s) members. "We also undertook to optimize member participation—in both its political and its financial aspects—in the life of the caisse and the network. We also made the decision to get closer to young people, which gave rise to the creation of the Youth Focus program, which was deployed through a wide range of initiatives throughout the Group. We also clarified the zones of our support framework and the independence of the caisse and agreed upon a regular review of the standards and policies affecting them."

Mr. D'Amours also underlined the strength of the commitment of the caisses to their community, mentioning that sponsorships, donations, and scholarships and grants to the communities and individuals more than doubled since the beginning of the decade, to reach 72 million dollars in 2007. The President added: "The creation of a Community Development Fund within the caisses has also made it possible to provide even more concrete support today to community-driven projects. And we did it by calling upon the democratic participation of our members."

Business development also accelerated over the last eight years, with 2007 being the year when the 100-billion-dollar threshold was reached in savings investment held by Desjardins among individuals in Québec alone. Gains in market share, the campaign launched in Greater Montréal, the opening to cultural communities, rapprochement with the Canadian credit union movement, as well as the expansion throughout Canada by the many Desjardins components are examples that demonstrate, according to Mr. D'Amours, Desjardins' real momentum in Québec and in Canada.

One of the collective achievements of the caisses of which Mr. D'Amours says he is most proud is the growth of member satisfaction. This enables Mr. D'Amours to affirm that Desjardins is by far the most popular financial institution in Québec, as shown by annual surveys carried out by firms whose methodology is scientifically proven. "Our attitude to members, our commercial practices, products and services that better meet all types of needs, our exemplary commitment to the community; all of this, with a great deal of perseverance, leads to achievements that are both noticed and appreciated and that are increasingly associated with Desjardins' cooperative difference. Surveys have confirmed this to be true," he pointed out.

With respect to profitability, Mr. D'Amours recalled that, since 2000, Desjardins went from annual surplus earnings that were never higher than $500 million to surplus earnings which, for a fourth consecutive year in 2007, reached or surpassed $1 billion. The amount of dividends paid to members quadrupled and for the last 5 years Desjardins was able to maintain a return on equity within the 12% to 15% range that he had set. The level of capital maintained also constitutes an element of pride and Mr. D'Amours recalled in this regard that Desjardins today belongs to the very select circle of the 100 most solid financial institutions in the world, according to The Banker magazine.

The outgoing president of Desjardins also reviewed the various initiatives underway to improve Desjardins' overall performance including its synergies' program, mentioning that: "All of these efforts to improve our profitability have not been achieved through an uncontrolled race for higher returns. On the contrary, it is because we know how to balance our targeted financial performance with the expression of our cooperative difference, which also requires our attention, our time and our resources. We are aiming for not only sustainable, but also overall performance. We know how to take the necessary means to make money work for people as tangibly as possible, thereby proving that a cooperative can succeed financially without losing its soul."

In conclusion, Mr. D'Amours stressed the versatility of the cooperative formula, its ability to adapt and the fact that it is resolutely turned toward action and self-sufficiency. This brings him to believe that after "Québec Inc.", we are now in the era of "Canada and Québec Co-op", carried forward by the values of cooperation. "We were in fact inspired by these very values as we built Desjardins Group to last and with it, our communities are better equipped to deal with the future," he declared.

In conclusion, Mr. D'Amours invited the new Desjardins Group president, Ms. Monique F. Leroux, to rely on the intelligence, lucidity and creativity of the people in place in Desjardins to support her in her new mandate. "Madam President, you have now earned the privilege to buckle down to the exciting task of guiding Desjardins Group in continuing its progress. The vital force that sustains Desjardins asks only to follow you and to support you in carrying out your task. You can count on them—just like you can count on my support and availability".

About Desjardins Group

The largest integrated cooperative financial group in Canada, with global assets of over $144 billion as at December 31, 2007, Desjardins Group consists of a network of caisses/branches, credit unions and financial centres for Québec- and Ontario-based companies, as well as about 20 subsidiaries in life and general insurance, securities, venture capital, and asset management, many of which are active nationwide. With the skills of its 40,000 employees and the commitment of more than 6,500 elected officers, Desjardins offers its 5.8 million members and clients-individuals and businesses alike-a full range of financial products and services. Its physical distribution network is rounded out by virtual access methods supported by leading-edge technology. For more information, visit www.desjardins.com.

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Source (for journalists only):
André Chapleau
Information and Media Relations Director
514 281-7229
1 866 866-7000, ext. 7229

March 29
Press room at the Québec City Convention Centre
418 649-5218