THE LARGEST COOPERATIVE FINANCIAL GROUP IN CANADA Annual Report 2004 And proud of it. www.desjardins.com 1 800 CAISSES Commemorative $5 coin issued by the Royal Canadian Mint in honour of the 150th anniversary of the birth of our founder, Alphonse Desjardins. Desjardins 2004 Annual Report THE LARGEST COOPERATIVE FINANCIAL GROUP IN CANADA A FINANCIAL FORCE WITH $106.2 BILLION IN ASSETS HEAD OFFICE Fédération des caisses Desjardins du Québec A HUMAN FORCE OF OVER 5.5 MILLION MEMBERS AND CLIENTS, 100, avenue des Commandeurs Lévis (Québec) G6V 7N5 125,000 BUSINESS MEMBERS, 39,000 MOTIVATED EMPLOYEES Canada AND 7,660 DEDICATED ELECTED OFFICERS Telephone: (418) 835-8444 VERSION FRANÇAISE A HIGHLY ACCESSIBLE DISTRIBUTION NETWORK COMPRISING: La version française de ce Rapport annuel peut être obtenue sur demande. • 1,483 points of service in Québec and Ontario: 572 caisses and This annual report was produced by the Corporate Executive Division of Desjardins Group (Communications and Public Affairs Division) and the Financial Executive Division of Desjardins Group 911 service centres (Control and Financial Disclosure Division), Fédération des caisses Desjardins du Québec. • A combined total of 114 points of service in Manitoba and This annual report is made from paper containing recycled pulp. New Brunswick, that is 40 affiliated caisses and 74 service centres Graphic Design lg2d Production la souris masquée • 55 Corporate Financial Centres in Québec and 3 in Ontario Photoengraving and Printing J.B. Deschamps • 28 Desjardins Credit Union points of service in Ontario PRINTED IN CANADA • Some 20 subsidiaries, many of which are active across the country • Two Desjardins Bank service centres in Florida and Desjardins Commercial Lending, also in the United States • A state-of-the-art virtual network WE HAVE EVERY REASON TO BE PROUD! DESJARDINS 1 PROFILE DESJARDINS 2 CONTENTS Belonging to over 5.5 million owner-members, both individuals and businesses, 3 DESJARDINS ORGANIZATION CHART Desjardins is not only the leading financial institution in Québec, it is also the 4 AREAS OF ACTIVITY largest cooperative financial group in Canada. A pioneer in the cross-pillar integration of financial services, Desjardins draws on the synergy of its caisses 5 HIGHLIGHTS and subsidiaries and the strength of its advisory force to constantly improve 8 MESSAGE FROM THE PRESIDENT AND CEO its service offering and provide members and clients with innovative financial products and services tailored to their needs. Because Desjardins makes a 12 BOARD OF DIRECTORS community commitment like no other financial institution, and because it is 14 REVIEW OF ACTIVITIES dedicated to balancing assets with values, Desjardins contributes to the economic and social well-being of the people and communities it serves. 15 Proud of our cooperative difference With a vast distribution network consisting of caisses and their service centres, corporate financial centres, subsidiary branches, and electronic networks, Desjardins is the most accessible financial institution in Québec. Elsewhere in The “Proud of our cooperative difference” section is completed in the Desjardins Canada, Desjardins helps to strengthen the cooperative movement through 2004 Social Responsibility Report, which is available at www.desjardins.com or upon caisses populaires in Ontario, Manitoba and New Brunswick as well as through request at our offices. Desjardins Credit Union, its subsidiaries and its many partners. Thanks to Desjardins Bank in Florida, Desjardins is accessible to all members – individuals and businesses alike – that vacation or conduct business in the state of Florida. And, having made a commitment to help over 2.5 million people in twenty-some 18 Employees motivated by excellence, more satisfied members developing countries, Desjardins has earned an enviable reputation in matters of international cooperation. 24 Our integrated service offering ensures accessibility that is beyond compare 32 Desjardins & Co., putting all of Desjardins to work for your business Desjardins remains committed to the values of its founder, Alphonse Desjardins, 38 Canadian business development forging ahead and celebrated the 150th anniversary of his birth in 2004. Today, the movement that bears his name intends to be known as the best cooperative financial 44 Recognition to be proud of! institution in the world. To achieve this goal, Desjardins makes sure it delivers 45 FINANCIAL REVIEW sustainable overall performance, one that fulfills the needs of its members and clients as well as the highest industry standards in terms of management 149 CORPORATE GOVERNANCE practices and governance. DESJARDINS 1 PROFILE DESJARDINS 2 CONTENTS Belonging to over 5.5 million owner-members, both individuals and businesses, 3 DESJARDINS ORGANIZATION CHART Desjardins is not only the leading financial institution in Québec, it is also the 4 AREAS OF ACTIVITY largest cooperative financial group in Canada. A pioneer in the cross-pillar integration of financial services, Desjardins draws on the synergy of its caisses 5 HIGHLIGHTS and subsidiaries and the strength of its advisory force to constantly improve 8 MESSAGE FROM THE PRESIDENT AND CEO its service offering and provide members and clients with innovative financial products and services tailored to their needs. Because Desjardins makes a 12 BOARD OF DIRECTORS community commitment like no other financial institution, and because it is 14 REVIEW OF ACTIVITIES dedicated to balancing assets with values, Desjardins contributes to the economic and social well-being of the people and communities it serves. 15 Proud of our cooperative difference With a vast distribution network consisting of caisses and their service centres, corporate financial centres, subsidiary branches, and electronic networks, Desjardins is the most accessible financial institution in Québec. Elsewhere in The “Proud of our cooperative difference” section is completed in the Desjardins Canada, Desjardins helps to strengthen the cooperative movement through 2004 Social Responsibility Report, which is available at www.desjardins.com or upon caisses populaires in Ontario, Manitoba and New Brunswick as well as through request at our offices. Desjardins Credit Union, its subsidiaries and its many partners. Thanks to Desjardins Bank in Florida, Desjardins is accessible to all members – individuals and businesses alike – that vacation or conduct business in the state of Florida. And, having made a commitment to help over 2.5 million people in twenty-some 18 Employees motivated by excellence, more satisfied members developing countries, Desjardins has earned an enviable reputation in matters of international cooperation. 24 Our integrated service offering ensures accessibility that is beyond compare 32 Desjardins & Co., putting all of Desjardins to work for your business Desjardins remains committed to the values of its founder, Alphonse Desjardins, 38 Canadian business development forging ahead and celebrated the 150th anniversary of his birth in 2004. Today, the movement that bears his name intends to be known as the best cooperative financial 44 Recognition to be proud of! institution in the world. To achieve this goal, Desjardins makes sure it delivers 45 FINANCIAL REVIEW sustainable overall performance, one that fulfills the needs of its members and clients as well as the highest industry standards in terms of management 149 CORPORATE GOVERNANCE practices and governance. ORGANIZATION CHART 3 DESJARDINS AREAS OF ACTIVITY 4 DESJARDINS AN INTEGRATED COOPERATIVE FINANCIAL GROUP 31,053 DCU MEMBERS FINANCIAL INTERMEDIATION INVESTMENT FUNDS & TRUST SERVICES IN ONTARIO 219,026 MEMBERS 5,364,497 MEMBERS IN NEW BRUNSWICK IN QUÉBEC AND ONTARIO AND MANITOBA This segment consists of the Desjardins caisse network and One of the largest investment fund manufacturers in Québec the network of affiliated caisses in Ontario, the organization ■ Québec leader in securities administration and custody ■ DESJARDINS 40 CAISSES IN that supports them (the Fédération des caisses Desjardins Private management services and group savings plans. CREDIT UNION 572 CAISSES POPULAIRES AND CAISSES D’ÉCONOMIE NEW BRUNSWICK IN QUÉBEC AND ONTARIO AND MANITOBA du Québec) and its business units: Desjardins Card Services, www.desjardinsfunds.com Desjardins Electronic Access and Payment Services, www.northwestfunds.com Desjardins Point-of-Sale Financing Services, and Desjardins www.desjardinsprivatemanagement.com DESJARDINS ONTARIO NEW BRUNSWICK AND TRUST FEDERATION MANITOBA FEDERATIONS Payroll and Human Resources Services. It also includes Caisse centrale Desjardins, Fonds de sécurité Desjardins SECURITIES – DESJARDINS SECURITIES ■ Full-service brokerage services for individuals and discount FÉDÉRATION and Capital Desjardins inc. Leading market shares in FONDS DE SÉCURITÉ ■ DESJARDINS DES CAISSES Québec in savings activities, in residential mortgage loans, brokerage services through its Disnat division Brokerage DESJARDINS in agricultural lending and in consumer lending ■ Pioneer services for businesses and institutions ■ 32 full-service DU QUÉBEC ■ ■ DÉVELOPPEMENT SOCIÉTÉ and leader in on-line solutions in Québec The most-visited branches in Québec and 4 in Ontario A branch in CAPITAL CAISSE CENTRALE FONDATION HISTORIQUE INTERNATIONAL DESJARDINS ALPHONSE- DESJARDINS DESJARDINS Vancouver tailored to the needs of institutional clients ■ DESJARDINS DESJARDINS financial services Web site in Québec and the third most-visited site in Canada ■ The largest credit card