Investor Presentation Q2 2018 2 CAUTION CONCERNING FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking statements regarding, among other things, Desjardins Group’s business objectives and priorities, financial targets and maturity profile. Such statements are typically identified by words or phrases such as “believe”, “expect”, “anticipate”, “intend”, “estimate”, “plan” and “may”, words and expressions of similar import, and future and conditional verbs. By their very nature, such statements involve assumptions, uncertainties and inherent risks, both general and specific. It is therefore possible that, due to many factors, these forward-looking statements may not materialize or may prove to be inaccurate and that actual results differ materially. Desjardins Group cautions readers against placing undue reliance on these forward-looking statements since actual results, conditions, actions and future events could differ significantly from those anticipated. A number of factors, many of which are beyond Desjardins Group’s control and the effects of which can be difficult to predict, could influence the accuracy of the forward-looking statements in this presentation. These factors include: credit, market, liquidity, operational, insurance, strategic, and reputation risks; regulatory and legal environment risk; environmental risk; risk related to pension plans; technological advancement and regulatory developments; cybersecurity; household indebtedness; real estate market trends; geopolitical risks; communication and information; general economic and business conditions in regions in which Desjardins Group operates; changes in the economic and financial environment in Quebec, Canada and globally; monetary policies; the accuracy and completeness of information concerning clients and counterparties; the critical accounting estimates and accounting standards applied by Desjardins Group; new products and services to maintain or increase Desjardins Group’s market share; the ability to recruit and retain key management personnel, including senior management; geographic concentration; acquisitions and joint arrangements; credit ratings; amendments to tax laws; unexpected changes in consumer spending and saving habits; the ability to implement Desjardins Group’s disaster recovery plan within a reasonable time; the potential impact of international conflicts or natural disasters; and Desjardins Group’s ability to anticipate and properly manage the risks associated with these factors. It is important to note that the above list of factors that could influence future results is not exhaustive. Other factors could have an adverse effect on Desjardins Group’s results. Additional information about these and other factors is found in the “Risk management” sections of Desjardins Group’s most recently published annual and quarterly MD&As. Any forward-looking statements contained in this presentation represent the views of management only as at the date hereof, and are presented for the purpose of assisting readers in understanding and interpreting Desjardins Group’s balance sheet as at the dates indicated or its results for the periods then ended, as well as its business objectives and priorities. These statements may not be appropriate for other purposes. Desjardins Group does not undertake to update any oral or written forward-looking statements that could be made from time to time by or on behalf of Desjardins Group, except as required under applicable securities legislation.

2 3

About Us 4

Financial Results 7

Balance Sheet Quality 11

Capital and Funding Strategies 15

Contact Information 26

3 4 HIGHLIGHTS AT JUNE 30, 2018

Results Balance Sheet Liquidity & Capital Six months ended June 30, 2018 At June 30, 2018 At June 30, 2018 (Comparison against 6M 2017) (Comparison against December 31, 2017)

$1,178 million $290 billion 17.5% Surplus earnings, up 22% Total assets, up 5% CET1 ratio (Tier 1A)

$8.8 billion $182 billion 119.8% Total income, down 0.4% Total deposits, up 6% Average LCR ratio

The Banker

5th largest financial cooperative Strongest financial institution 97th most important financial group in the world by total in North America and 5th in institution by Tier 1 capital income the world (1)

1. July 2015 edition. ABOUT US 4 5 ORGANIZATION CHART

271 caisses

Capital Desjardins Inc. Fédération des caisses Desjardins Desjardins Security du Québec Fund

Desjardins Global Desjardins Desjardins General Desjardins Asset Desjardins Trust Financial Security Insurance Group Securities Management

Note: 271 caisses at July 1, 2018 ABOUT US 5 6 MARKET LEADERSHIP

LEADING MARKET SHARES IN QUEBEC

Personal LIFE & HEALTH savings 41.6% #2 insurer in Quebec #5 insurer in Canada ▪ Extensive range of products Farm loans 39.3% ▪ Offices across Canada

GENERAL

Residential #1 in direct distribution in Quebec 36.1% mortgages #2 insurer in Quebec #3 insurer in Canada

Consumer credit 22.4%

Commercial & industrial 19.7% ▪ 47 full-service branches loans ▪ No. 7 fixed income group in Canada

Sources: Data at December 31, 2017; Market shares in Quebec: Desjardins Economic Studies; Life & Health Insurance: Canadian Life Insurers’ Annual Reports and Autorité des marchés financiers’ 2016 Annual Report on Financial Institutions; General Insurance: 2016 MSA Market Share Report; Desjardins Securities, ABOUT US 6 fixed-income group: Market Trade Reporting System. 7 SOLID AND STEADY PROFITABILITY

SURPLUS EARNINGS, MEMBER DIVIDENDS AND ROE ($M)

11.8 % 12.0 % 10.2 % 10.2 % 9.7 % 9.4 % 9.1 % 9.1 % 8.7 % 8.4 % 8.0 %

2,151 1,959 1,772 1,593 1,512 1,504 1,530 1,337 1,178 1,091 964

311 299 320 279 171 217 202 154 144 75 121

2009 2010 2011 2012 2013 2014 2015 2016 2017 6M 2017 6M 2018

Surplus earnings Member dividends ROE

Source: Desjardins Group’s Financial Reports Note: Since 2010, financial statements are prepared in accordance with IFRS. Previously, Desjardins Group issued financial FINANCIAL RESULTS 7 statements prepared in accordance with Canadian generally accepted accounting principles. 8 DIVERSIFIED SURPLUS EARNINGS AND INCOME

SURPLUS EARNINGS BY SEGMENT – 6M 2018 OPERATING INCOME DISTRIBUTION – 6M 2018

Property and Casualty Insurance ($78M; 7%) Other banking Net interest activities income Personal and 7% 28% Business Services and Brokerage and Other investment Wealth fund services category Net premiums Management ($563M; 48%) 6% and Life and Life & Health Health Net premiums 29% Insurance Other income Property and ($537M; 45%) 4% Casualty Insurance 26%

Source: Desjardins Group’s Financial Reports FINANCIAL RESULTS 8 9 SURPLUS EARNINGS BY SEGMENT

Personal Services and Business and ▪ Good performance from the caisse Institutional Services and Other category (M$) network, especially in net interest income, as a result of growth in the average portfolio of loans and 1,096 1,093 1,002 1,015 acceptances, as well as higher interest rates ▪ Growth in business volume as a 563 552 result of card payment activities ▪ Increase in caisse network sales of various products, such as 2014 2015 2016 2017 6M 2017 6M 2018 investment funds

Source: Desjardins Group’s Financial Reports FINANCIAL RESULTS 9 10 SURPLUS EARNINGS BY SEGMENT

Wealth Management and Life and ▪ Excluding a $129M gain related to the Health Insurance (M$) creation of Aviso Wealth, adjusted net surplus earnings are $408M(1) 612 537 503 ▪ Higher gains on the disposal of 461 411 securities and real estate investments 332 and higher income from growth in assets under management 2014 2015 2016 2017 6M 2017 6M 2018 ▪ Net premiums increase of 4%

Property and Casualty Insurance (M$) ▪ Impact of the sale of Western Financial

446 Group Inc. and Western Life Assurance 360 Company completed on July 1, 2017 296 ▪ Net premiums increase of 10% 180 ▪ Less favourable claims experience 80 78

2014 2015 2016 2017 6M 2017 6M 2018

Source: Desjardins Group’s Financial Reports 1. For reconciliation of adjusted net surplus earnings, refer to the Q2 2018 Desjardins Group’s MD&A FINANCIAL RESULTS 10 11 STRONG BALANCE SHEET

LOANS AND ACCEPTANCES ($B) DEPOSITS ($B)

4% 6%

185.3 181.5 178.0 171.6 166.5 160.5 2.2 1% 23% 1.9 40.8 42.7 1.5 37.6 76.0 42% 25.3 14% 69.1 22.2 24.0 62.8

106.7 113.1 117.4 63% 96.3 100.6 103.4 57%

2016 2017 Q2 2018 2016 2017 Q2 2018 Residential mortgages Consumer and other personal loans Business and government Individuals Business and government Deposit-taking institutions

TOTAL ASSETS ($B) EQUITY ($B)

Q2 2018 290.1 Q2 2018 25.5

2017 275.1 2017 24.8

2016 258.4 2016 23.3

Source: Desjardins Group’s Financial Reports BALANCE SHEET QUALITY 11 12 DIVERSIFIED RESIDENTIAL MORTGAGE PORTFOLIO

BY PRODUCT TYPE BY PROPERTY TYPE

2%

Insured 8% 31% 35% 15% Total Total of of $117B $117B 13% $105B 62% 6% 28% Average LTV of 55.7% Insured mortgages Single-family Conventional term mortgages Multi-properties (4 or less) Multi-properties (5 or more) Heloc (lines of credit) Condominiums Heloc (term mortgages) Secondary houses

BALANCE SHEET QUALITY 12 13

WELL-BALANCED BUSINESS AND GOVERNMENT LOAN PORTFOLIO

INDUSTRY DISTRIBUTION

Mining, oil and gas 1% ▪ 16% WERE GUARANTEED AT Q2 2018 Other Utilities 5% 1% ▪ HIGH QUALITY OF TOP SECTORS Professional services 2% Agriculture o Agriculture: $8.4B, most loans are Arts and 20% guaranteed and covered by income entertainment 2% protection programs Other services Real estate 2% 20% o Real estate: $8.4B Company management 2% o Manufacturing: $3.4B Finance and insurance o Retail trade: $3.1B 2% Manufacturing 8% Wholesale trade o Public agencies: $2.7B (governmental 3% Accommodation agencies and school boards) Public Retail trade 3% Transportation Health agency 7% 3% care loans ▪ OTHER INDUSTRIES WELL-DIVERSIFIED Construction 6% 6% 6%

Source: Desjardins Group’s Financial Reports BALANCE SHEET QUALITY 13 14 ASSET QUALITY

PROVISION FOR CREDIT LOSSES AS A % OF AVERAGE LOANS (Trailing 12 months at Q2 2018) 1.09

Canadian Banks US Commercial Desjardins 0.55 0.48 0.43 0.37 0.38 0.38 0.33 0.25 0.23 0.24 0.21 0.21 0.21 0.21 0.18 0.18 0.19 0.16

0.09 0.10

TD

RBC

BNS

PNC

NBC

CIBC

BMO

BB&T

Keycorp

Citigroup

JPMorgan

Fifth Third Fifth

Desjardins

M&T Bank M&T

Huntington

US Bancorp US

Wells Fargo Wells

First Republic First

Suntrust Banks Suntrust

Bank of America of Bank Regions Financial Regions

Sources: Desjardins Group’s Financial Reports and Bloomberg for Canadian banks and US commercial banks 1. For Canadian banks and Desjardins, provision for credit losses is under IFRS 9 starting Q1 2018 and under IAS 39 for previous quarters. BALANCE SHEET QUALITY 14 Only US Banks with more than US$60B of deposits are illustrated. 15 LEADING NORTH AMERICAN FINANCIAL INSTITUTION

TIER 1A OR COMMON EQUITY TIER 1 CAPITAL RATIO (%)(1)

17.5 Tier 1A/ CET1

Canadian Banks

US Banks

12.4 12.1 12.0 12.0 12.0 11.8 11.4 11.3 11.3 11.3 11.2 11.1 11.0 10.9 10.9 10.2 9.7 9.5

9.1

TD

RBC

BNS

PNC

NBC

CIBC

BMO

BB&T

Citigroup

JPMorgan

US US Bancorp

Capital Capital One

Wells Fargo Wells

State State Street

DESJARDINS

NorthernTrust

Fifth ThirdFifthBank

Sun Trust Sun Banks

Bank ofAmerica Bank Bank ofMellonNY Bank

Sources: Financial Reports of Desjardins Group, U.S. banks and Canadian banks 1. As at Q2 2018 for Canadian banks and U.S. banks. Only US Banks with more than US$60B of deposits are illustrated. CAPITAL AND FUNDING STRATEGIES 15 16 EXCELLENT TIER 1A CAPITAL AND LEVERAGE RATIOS

LEVERAGE RATIO TIER 1A CAPITAL RATIO (CET1)

Desjardins 8.2% Desjardins 17.5%

Scotia 4.8% Scotia 12.0%

RBC 4.3% TD 11.8%

BMO 4.2% NBC 11.3%

CIBC 4.1% BMO 11.3%

TD 4.1% CIBC 11.2%

NBC 4.0% RBC 10.9% Canadian Banks Canadian Banks 4.3% 11.4% (average) (average)

Sources: Banks and Desjardins Group’s Financial Reports (Q2 2018 for banks and Desjardins) CAPITAL AND FUNDING STRATEGIES 16 17 CAPITAL MANAGEMENT

REGULATORY CAPITAL COMPOSITION ($M) TOTAL CAPITAL TIER 1 CAPITAL TIER 1A (CET1) CAPITAL

2,913 817 426

19,046

21,514 21,514 21,905

Tier 1A Tier 1 Total ratio ratio ratio 599 17.5% 17.5% 17.8% 4,782

Federation Capital Reserves and Other Total Total Senior notes Other Total capital instruments undistributed Tier 1A Tier 1A Tier 1 subject to Tier 2 capital shares subject to surplus capital capital phase out capital phase out earnings Tier 2

Source: Desjardins Group’s Financial Reports CAPITAL AND FUNDING STRATEGIES 17 18 LEADING NORTH AMERICAN FINANCIAL INSTITUTION

LARGEST FINANCIAL INSTITUTIONS BY DEPOSITS(1) (US $B) Canadian Banks

US Banks

1,452

1,310 1,269 #17 OF > 7,500 DEPOSIT TAKING FINANCIAL INSTITUTIONS IN NORTH AMERICA 997

711 626 488 374 342 340 265 248 231 187 161 159

138 125 107 105 104

TD

RBC

BNS

PNC

NBC

CIBC

BMO

BB&T

KeyCorp

Citigroup

JPMorgan

US US Bancorp

Capital Capital One

Wells Fargo Wells

DESJARDINS

NorthernTrust

Fifth ThirdBank Fifth

Sun Trust Sun Banks

Bank ofAmerica Bank

State Corp State Street Bank ofMellonNY Bank

Sources: Desjardins Group’s Financial Reports and Bloomberg 1. As at Q2 2018 for Canadian and U.S. banks; exchange rate as at June 30, 2018: C$ 1.0000 = US$ 0.7614406457. CAPITAL AND FUNDING STRATEGIES 18 19 ROBUST LIQUIDITY POSITION

TOTAL DEPOSITS LIQUIDITY COVERAGE RATIO (LCR)

77% from personal & commercial sector

119.8% Q2 2018 100% 21%

13% 119.1% Q1 2018 100%

121.4% 9% Q4 2017 100% 56%

119.9% 1% Q3 2017 100%

121.9% Q2 2017 Individual Deposits 100% Business and Government LCR Regulatory requirement Long Term Wholesale Funding Short Term Funding Subordinated Debt

Note: as at June 30, 2018 CAPITAL AND FUNDING STRATEGIES 19 20 ROBUST LIQUIDITY POSITION

SECURITIES PORTFOLIO

DESJARDINS (Q2 2018) CANADIAN BANKS (Q4 2017) (AVERAGE)

Equities 8% Canadian Other issuers and US 14% governments 42%

Canadian Other and US Other governments governments governments Equities 9% 1% 77% 25% MBS Other issuers 4% 15% ABS 5%

Sources: Banks and Desjardins Group’s Financial Reports MBS: Mortgage-Backed Securities CAPITAL AND FUNDING STRATEGIES 20 ABS: Asset-Backed Securities 21 WELL-ESTABLISHED GLOBAL FUNDING PROGRAMS

WHOLESALE FUNDING PROGRAMS

PROGRAMS CURRENCY LIMIT Short term Commercial paper – Canada Canadian None Commercial paper – United-States United-States US$15B Commercial paper – Europe Euro €3B Mid-Long term Medium term notes – Canada Canadian C$7B Global medium term notes Multi-currency €7B Covered bonds Multi-currency C$10B Securitization program (CMHC) Canadian Allocation

CAPITAL AND FUNDING STRATEGIES 21 22 WELL-ESTABLISHED GLOBAL FUNDING PROGRAMS

WHOLESALE FUNDING

BY PROGRAM TYPE BY CURRENCY

3%

23% 36% 13%

7% 15%

41% 45% 13%

4%

Short term (CAD, USD & Euro) CAD Medium Term Notes (CAD) USD Global MTN (USD & Euro) Covered Bonds EURO Subordinated Debt GBP Mortgage Securitization

Note: as at June 30, 2018 CAPITAL AND FUNDING STRATEGIES 22 23 MATURITY PROFILE

(IN $M, AS AT JUNE 30, 2018)

9,000

8,000 1,427 7,000

6,000 1,169

5,000 900

4,000 2,969 1,130 3,000 1,730 4,508 2,000 815 1,627 2,868 1,272 1,000 1,850 1,250 700 500 - - - 2018 2019 2020 2021 2022 2023 & +

MT Deposit Note & Term debt Subordinated debt Securitization Covered bonds

Note: exchange rate used at the time of issuance of securities CAPITAL AND FUNDING STRATEGIES 23 24 CREDIT RATINGS AMONG THE BEST IN THE INDUSTRY

MOODY’S S&P FITCH DBRS RATING OUTLOOK RATING OUTLOOK RATING OUTLOOK RATING OUTLOOK

FÉDÉRATION DES CAISSES DESJARDINS Aa2 NEGATIVE A+ STABLE AA- STABLE AA NEGATIVE DU QUÉBEC

TD BANK Aa1 STABLE AA- STABLE AA- STABLE AA POSITIVE

ROYAL BANK OF CANADA Aa2 STABLE AA- STABLE AA STABLE AA POSITIVE

BANK OF MONTREAL Aa2 STABLE A+ STABLE AA- STABLE AA STABLE

SCOTIA BANK Aa2 STABLE A+ STABLE AA- STABLE AA STABLE

CIBC Aa2 STABLE A+ STABLE AA- NEGATIVE AA STABLE

NATIONAL BANK Aa3 STABLE A STABLE A+ STABLE AA (low) STABLE

LAURENTIAN BANK N/A N/A BBB NEGATIVE N/A N/A A (low) NEGATIVE

Note: at July 30, 2018 CAPITAL AND FUNDING STRATEGIES 24 25 RECENT DEBT TRANSACTION HIGHLIGHTS

May October August 2018 2017 2017 Covered Bonds Senior Unsecured Notes Senior Unsecured Notes Rated Aaa/AAA US$1,500,000,000 C$850,000,000 €750,000,000 Due October 2020 Due August 2022 Due May 2023

January January November 2017 2016 2015 Covered Bonds Senior Unsecured Notes Senior Unsecured Notes Rated Aaa/AAA C$1,000,000,000 €1,000,000,000 €1,000,000,000 Due January 2022 Due January 2018 Due November 2020

September March January 2015 2015 2015

Senior Unsecured Notes Senior Unsecured Notes Senior Unsecured Notes €750,000,000 C$1,500,000,000 €500,000,000 Due September 2017 Due March 2020 Due January 2020

CAPITAL AND FUNDING STRATEGIES 25 26 CONTACT INFORMATION

PATRICK NADEAU Head of Investor Relations and Capital Instruments (514) 281-8634, 1-866-866-7000, ext. 5558634 [email protected]

INVESTOR RELATIONS www.desjardins.com/ca/about-us/investor-relations/ [email protected]

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