Fédération des caisses populaires acadiennes

Transcription

Mission
To give a better quality of life to our
members, all the while taking part in
the socioeconomic independence of
New Brunswick’s Acadian community,
respecting its linguistic identity and
co-operative values.
Vision
The Caisse populaire is the Acadian financial
institution at its best, supporting the
co-operative method where the first priority
is the members and their needs.
The 2008 Annual Report was created and published by:
Communications and Strategic Planning Vice Presidency
P.O. Box 5554
Caraquet NB E1W 1B7
www.acadie.com
Graphic design and printing : DPG COMMUNICATION
Our values
– Solidarity in action,
effort and environment
– Pride of ownership
– Equal decision power
– Equal assets and sharing
– Respect of the person
and of the environment
Version française : la version française de ce rapport annuel peut
être obtenue sur demande.
Printed in Canada on 100% post-consumer fibre,
certified EcoLogo, processed chlorine free.
FSC recycled and manufactured using biogas energy.
Table of contents
Mouvement des caisses populaires acadiennes
2
Being the largest Acadian financial institution
3
Financial highlights
5
Message from the President and Chief Executive Officer
8
Board of Directors and Management
9
Governance
10
Organization chart
12
2008 economic conditions
14
Economic and financial forecast
16
Operations report
23
Social Responsibility Report: growing together with communities
25
Combined financial statements
62
Executive Committee
63
Internal Management Structure
64
Acadia Life
69
Office de stabilisation de la Fédération
des caisses populaires acadiennes
75
76
This annual report states
financial and business results.
To learn more about how
communities benefit from our
presence, see our Social
Responsibility Report
(Bilan de responsabilité sociale
2008, available in French only).
2
Being the largest Acadian
financial institution
The Caisses populaires acadiennes owe their existence
to their members, who have joined together to establish
a financial institution that provides them with the
financial products and services they need.
Since the establishment of the first caisse in PetitRocher in 1936, people from a large number of
communities joined their resources to establish several
caisses. Over the years, these caisses generated sufficient
surpluses to create affiliates able to meet the
increasingly diversified needs of their members. Today,
the Caisses populaires are not only an inalienable
collective heritage, but have also become the largest
Acadian financial institution and provide their
thousands of members with a comprehensive range
of financial products and services.
The Mouvement des caisses populaires acadiennes and
the caisses are more than a financial institution. By
their co-operative nature, they take an active part in the
social and economic development of the communities
they serve, and the caisses return a large portion of their
surpluses to their members and communities.
Our involvement,
our activities
– Assets of $2.8 billion.
– 86 business locations operated
by 29 caisses.
– Over 350 committed and
democratically elected leaders.
– Approximately 10 institutions offering a
comprehensive range of financial services.
– 121 cutting-edge ATMs, virtual and
Internet networks.
Our members
– Approximately 200,000 member-owners.
Our employees
– 1,200 dedicated employees.
– Salaries and benefits: $62 million.
Community contribution
– Member dividends in 2008: $1.9 million.
– Donations, sponsorships and scholarships:
$1.9 million.
Economic contribution
– Income taxes: $4.2 million.
– The number one choice of
business owners.
– Financing through business loans:
$633 million.
Caisses populaires acadiennes – Annual Report 2008
3
Concerted actions by the network of caisses, their
support institutions and affiliates gave the Mouvement
financial statements for 2008 that allow us to look
to the future with confidence. These same actions also
ensure the durability of our organization.
However, the year 2008 has marked the beginning of
a difficult financial situation worldwide, of which no
specialist had anticipated the magnitude. The durability
of our financial institution has always been a top
priority for our leaders, by building a solid capitalization
and using sound management practices.
The year’s highlights
(in thousands of dollars)
2008
2007
$101,246
$101,664
(0.4%)
Other income
$50,050
$49,056
2.0%
Surplus earnings before income taxes,
member dividends and other items
$21,067
$36,605
(42.4%)
$1,850
$6,806
(72.8%)
Assets
$2,794,097
$2,664,467
4.9%
Equity
$281,274
$250,703
12.2%
Net interest income
Member dividends
Change
2008
2007
Earnings
$66,511
$63,582
4.6%
31.5%
Surplus earnings before income taxes,
member dividends and other item
Change
$5,193
$3,949
Assets
$560,814
$545,226
2.9%
Equity
$22,771
$25,625
(11.1%)
$817
$1,242
(34.2%)
Dividends to the
Caisses populaires acadiennes
4
Acadia Life
2008
2007
Change
Revenue
(14.4%)
$16,730
$19,548
Insurance benefits
$4,109
$3,927
4.6%
Operating income before dividends
$3,654
$6,638
(45.0%)
Dividends to the
$2,691
$2,980
(9.7%)
Assets
$67,980
$70,871
(4.1%)
Shareholder’s equity
$19,865
$23,423
(15.2%)
Office de stabilisation de la
Contribution income from the
2008
$3,751
2007
Change
$4,735
(20.8%)
$3,316
$2,875
15.3%
Assets
$81,579
$76,755
6.3%
Net assets
$75,278
$70,745
6.4%
Investment income
5
Message from the President and
Chief Executive Officer
Camille H. Thériault
Expert, responsible and
at your service
For the last five years, I have had the privilege of
experiencing some exhilarating moments in my
role as President and Chief Executive Officer
of the Mouvement. Among the important
achievements of this period, I particularly recall
the return, in 2007, of the Caisse populaire
de Shippagan to the Mouvement after an absence
of over 25 years.
Another memorable moment was the celebration of
the 60th anniversary of the Fédération in 2006,
crowned by the presence of its founder, Mr. Martin J.
Légère. We also took this opportunity to officially name
the Fédération building in his honour. The launch of
our major social project, the Lire, découvrir et grandir
literacy program, inaugurated in 2005, has also been a
positive element helping to enhance our commitment
toward our youth. We can be proud of these
accomplishments and we owe our success to our
1,200 devoted employees, who use their expertise on
a daily basis, in order to better serve our members.
The Caisses populaires acadiennes have come a long
way since 1936! Constant attention to bettering
themselves inspires these men and women, who want
to meet the needs of those who put their confidence
in their institution. The year 2008 was slightly more
difficult, but still full of significant achievements.
Now, more than ever, we must work to maintain high
professional standards in the delivery of our services
to maintain our assets and ensure our durability.
looking to the future,
“butWeonearething
is clear: we will have
to do more in 2009 and in coming
years to remain the institution we
have become.
”
We are also strongly motivated to concentrate our
efforts in the accomplishment of projects that aim for
new heights. We cannot let ourselves be discouraged by
the challenges we encounter, because these experiences
help us grow and make us even stronger. It is in this
perspective that I encourage the caisses to continue
their progression and I intend to take on the coming
challenges with confidence as President and Chief
Executive Officer of the Caisses populaires acadiennes.
A turbulent financial market
During the last quarter of 2008, stock markets were
affected by a period of insecurity of colossal proportions
felt worldwide. The roots of this instability come from
the difficulties encountered by the United States with
the collapse of the housing bubble. These difficulties
were followed by a loss of confidence from investors,
resulting in a recession in industrialized countries
worldwide. Our financial statements, much like
those of the major Canadian banks, have therefore
been undermined by the effects of this economic and
financial crisis. These concerns have brought these
institutions to re-evaluate their perspectives for the
future, and the Caisses populaires acadiennes are no
exception. Our Operations Report shows that we
have had to take additional provision of nearly 10 million
dollars related to asset-backed commercial paper. Much
like a domino effect, other factors have contributed to
keep us from reaching the same excellent performance
as in previous years. The income of the caisses was
negatively impacted by the provision for credit losses
totalling 10.6 million dollars in 2008. In addition, a
decision by Caisse centrale Desjardins to reduce
dividends on its shares by 1.6 million dollars following
a negative performance in 2008, as well as the decision
made by VISA Desjardins not to pay dividends for the
same period, deprives our Mouvement of nearly one
million dollars in additional income.
The Mouvement is still able to announce surplus
earnings before taxes, dividends and other items of
nearly 21 million dollars, which is commendable in
the current situation.
A strategic partnership with
Assumption Life
The year 2008 has also been affected by significant
achievements in the insurance sector. In October 2008,
Assumption Life and the Caisses populaires acadiennes,
through their affiliate Acadia Life, entered into a
partnership agreement that created a new subsidiary
specializing in the distribution of personal insurance
products in New Brunswick. This combining of the
forces of two important Acadian companies, with the
creation of the new subsidiary named AVie, represents
the union of two very important parts of the heritage of
New Brunswick’s French-speaking personal insurance
market. By combining our knowledge, expertise and
quality products, our goal is to better serve our clients.
6
Acadia General Insurance,
the first milestones
Another long-term project, and one that began
producing results in 2008, is the subsidiary Acadia
General Insurance. After a few years of effort, the first
office open to the public began its operations in
Tracadie-Sheila in April 2008. The second office
opened its doors in Shippagan in December, and
we have also acquired the Després Hébert Insurance
company, located in Bouctouche.
In response to the difficult period where auto insurance
premiums were on the rise, the announcement in 2006
of our intention to enter into this sphere of activity
created certain expectations from the public. Despite
our determination to establish ourselves, our road was
filled with challenges. The strong opposition to our
project from brokers required a review of our strategies,
and again today, there is a certain resistance that
requires our attention and vigilance.
Despite that, we strongly believe in the potential of this
new company, knowing that many of our subsidiaries
have had modest beginnings to then become important
pillars in their sphere of activity, and Acadia Life is
probably the most inspiring example!
The pride of being recognized
as one of the best companies in
Atlantic Canada
The indicators we possess tell us consumers are
expressing their growing need for better life insurance
coverage. We know there is also an important potential
market and we will now be able to meet the current
needs of that market.
The Caisses populaires acadiennes received a prestigious
recognition in the last year. We are proudly among
the best employers in Atlantic Canada, having been
nominated among the 101 best companies in Atlantic
Canada by Progress-Progrès magazine.
The union of the strengths of Acadia Life and
Assumption Life requires over 15 Financial Security
Advisors to start up the new company. This type of
strategic alliance only helps reinforce our position in
broadening the range of financial services we offer.
We will continue to listen to the needs of our members
and our clients in order to establish other promising
partnerships. This is the natural and sound evolution
of a company working toward continuous growth.
Our organization is in 2nd position in the overall
ranking of companies for the quality of our internal
practices in matters of human resources and in the
recruitment and retention of employees.
We owe our employees so much for the success of our
financial co-op. By their professionalism, we continue
to stand out both as an employer and as a company.
In a highly competitive financial market, it is important
to be able to count on a qualified workforce, especially
with the challenges we will be facing in the next few
years. It will be paramount to continue to attract and
to retain experts in their respective spheres of activity.
7
flexibility is becoming increasingly limited. When the
Bank of Canada lowers the key interest rate by one
quarter of a percentage point, there is a direct impact
on our profitability.
We must continue to reinvent ourselves and to find
ways to improve the services we offer our members. To
maintain their confidence, we must show that, beyond
rates, we are the financial institution that offers the best
financial advice in New Brunswick.
A network that doesn’t back
away from its responsibilities
The difficulties encountered by the stock market have
had an impact on our 2008 balance sheet and we will
feel those effects throughout 2009, and possibly longer.
In light of these events, the Boards of Directors of
several caisses suggested their members consider
the reduction or elimination of dividends. This is an
exceptional situation and the Boards of the caisses are
confident that increasing the reserves of the caisses is a
sound and responsible decision rather than paying
dividends to their members. Incidentally, we encourage
the caisses to develop solid capitalization, testament to a
strong financial institution. The situation prompts us to
remain cautious and to protect our members’ assets.
This age-old notion of conservatism and responsibility
has allowed the Caisses populaires acadiennes to
become the largest Acadian financial institution,
with assets of 2.8 billion dollars.
Our co-op difference was once again demonstrated
abundantly in 2008 with our contributions in
donations, sponsorships and scholarships for nearly
2 million dollars. We continue to be a socially
committed organization and we remain sensitive to
community development. We have a particular
interest in the education and development of our
youth, because they will become tomorrow’s society.
The challenges of tomorrow
We are looking to the future, but one thing is clear: we
will have to do more in 2009 and in coming years to
remain the institution we have become. Profitability is a
particular challenge with the transformation of financial
markets. We only have to think about the decrease in
interest rates to record lows to understand that our
Our challenge is still to better serve our members!
However, even though a recent survey shows a high
rate of satisfaction regarding the services offered, we
must constantly increase our performance.
Our network must undergo transformations to become
more efficient and thus to better serve our members. I
believe mergers between caisses can help us achieve
those goals, and I encourage the caisses to consider this
option. However, the Fédération will be faced with
challenges, because it will have to support these new
caisses that require increasingly specialized services to
optimize the offer to their members. The watchword
within the Mouvement will resolutely be that of
solidarity. To thrive in these uncertain economic times,
it is important to work together now more than ever.
We will have to weather the economic storm and make
difficult but necessary decisions at times, in order to
preserve the strength of our foundations.
Another challenge we are faced with is to put emphasis
on the co-op difference. The co-op advantage must
take precedence over dividends. Dividends are certainly
important to our members, but we must concentrate on
our social commitment. Even with all the problems
encountered in the financial sector throughout 2008,
we have kept the human aspect of our organization.
This is in fact one of the great qualities of our
Mouvement, a quality directly linked to its mission.
The creation of Associative Life Committees will
mainly serve to emphasize this important aspect of the
close ties between the caisses and their communities.
It seems important to me to pursue the demonstration
that our Mouvement not only has business acumen,
but also a social conscience. We are always ready to
listen to our member-owners. We will proudly
perpetuate the great legacy of the forefathers of the
co-operative movement!
8
Fédération des
caisses populaires acadiennes
In front from left to right
Back row from left to right
– Pierre-Marcel Desjardins, Director elected at large
– Jean-Eudes Duguay, Director Gloucester
– Guilda Landry, Vice Chairman and
Director Restigouche
– Brian L. Comeau, Chairman and Director Gloucester
– Camille H. Thériault, President and CEO
– Elmo Caissie, Director Kent
– David Losier, Vice President Business Development
– Rolland LeBouthillier, Vice President and
COO Office
– Nathalie Cyr, Director Restigouche
– Renald Durepos, Director Westmorland
– Roger Daigle, Director Kent
– René Legacy, Vice President Communications and
Strategic Planning
– Denis Laverdière, Vice President Finance and
Administration
– André Chouinard, Director Madawaska/Victoria
– Simonne Godin, Corporate Secretary
– Gilberte Nowlan, Director Westmorland
– Lloyd Plourde, Director Madawaska/Victoria
(Absent from photo)
9
Governance
The Caisses populaires acadiennes are owned by
their members. Because member involvement
is at the centre of our operations and our
governance practices, we must constantly strive to
implement all of the necessary conditions to
ensure the highest possible degree of democratic
lifestyle for all the caisses and the Mouvement’s
institutions.
the Fédération. This method was developed following a
series of discussion workshops, with the last one held in
Moncton a few months previously, attended by some
120 representatives of the Mouvement.
For the last several years, the Board of Directors has been
adhering to governance practices which enable it to
perform its duties efficiently and fulfill the mandate with
which it has been entrusted. The governance practices in
force were developed to allow the Board to better supervise
management in its role of creating long-term value for the
members of the organization.
This Association is a communication tool intended
mainly to rally and inform. Through the association,
caisse Boards can all benefit from the same information
and tools, such as workshops, as well as face the same
challenges. This sharing of objectives, visions and
orientations is critical to ongoing and planned growth.
Know-how and governance:
training for our elected leaders
Being elected to a position of caisse director now calls
for dealing with increasingly complex issues and having
to abide by stricter requirements with regard to
governance. Committed to meeting its responsibilities,
the Fédération has developed a governance guide that
defines the rules, roles, responsibilities, structures and
ethical principles necessary for sound and efficient
management of its operations. This guide also serves as
an information and evaluation tool for members of the
Fédération’s Board of Directors.
An active democratic lifestyle:
a major consultation on the
representation on the Board of
Directors of the Fédération
Consultation meetings were held between November
2008 and January 2009, following a request by the
Board of Directors of the Fédération as well as the
Association of General Managers and the Association of
Caisses populaires Chairs. This consultation tour, which
involved visiting the Board of each caisse, was to gather
information on the position of each Board on a new
representation method within the Board of Directors of
Association of Caisses populaires
Chairs: an essential leadership
Another important role of the association involves
consultation. The longevity of the caisses relies on
successful institutions with strong Boards that work in
consensus with the network and management. This
leadership is key.
In 2008, the Chairs have held consultation meetings in
Campbellton in January, in Caraquet in May and in
Moncton in October, in order to discuss and learn
more about the major stakes of the organization,
namely risk management at the caisse, challenges with
regard to human resources, associative affairs,
governance, representation on the Board of Directors
of the Fédération, mergers and financial statements.
Part of the January meeting was held jointly with the
Association of General Managers. This meeting allowed
participants to discuss the different roles of the various
associations, the objectives of the annual joint meeting
as well as the Credit Unions Act review project.
In 2008, the Association of Caisses populaires Chairs
significantly changed its structure. It has created an
Executive Committee composed of a representative
from each region of the province. This Committee,
created specifically for communication purposes, will be
responsible for taking into account the needs of each
region in terms of subjects up for discussion and for
planning the meetings of the association and also
meetings with the Executive Committee of the
Association of General Managers, in order to establish
the contents of the joint annual meeting.
10
Organization chart
Mouvement des
Cooperative Sector
Members
29 Caisses operated in
86 Business Locations
Fédération des caisses
populaires acadiennes
Support Institutions
Conseil acadien de la coopération
Fondation des caisses populaires acadiennes
Corporate Sector
Office de stabilisation de la
Acadia Service
Corporation
Acadia Financial
Holdings
Acadia Service Centre
Acadia Life
Services unis de
Vérification et d’Inspection
Acadia General Insurance
AVie
Acadia Investments
Acadia Financial Services
Organization chart
Caisses
11
Business Locations
Gloucester Region
Caisse populaire Acadie
Caisse populaire de Beresford
Caisse populaire Chaleur
Caisse populaire des Fondateurs
Caisse populaire des Iles
Caisse populaire le lien d’or
Caisse populaire de Néguac
Caisse populaire de la Péninsule
Caisse populaire de Saint-Sauveur
Caisse populaire de Sheila
Caisse populaire de Shippagan
Caisse populaire de Tracadie
Bertrand, Caraquet, Grande-Anse, Maisonnette
and Paquetville
Beresford
Allardville and Bathurst (2)
Petit-Rocher, Pointe-Verte and Robertville
Lamèque (2) and Sainte-Marie-Saint-Raphaël
Pont-Landry and Saint-Isidore
Néguac, Rivière du Portage-Brantville and Tabusintac
Bas-Caraquet, Inkerman, Pokemouche and Saint-Simon
Saint-Sauveur
Tracadie-Sheila
Shippagan
Sainte-Rose and Tracadie-Sheila
Kent Region
Caisse populaire de Baie Sainte-Anne
Caisse populaire Kent-Centre
Caisse populaire Kent Nord
Caisse populaire Kent-Sud
Baie Sainte-Anne
Richibouctou Village, Richibucto and Rogersville
Acadieville, Pointe-Sapin, Saint-Ignace and
Saint-Louis de Kent
Bouctouche, Cocagne, Grande-Digue, Notre-Dame,
Sainte-Anne de Kent, Saint-Antoine, Sainte-Marie de
Kent and Saint-Paul
Madawaska/Victoria Region
Caisse populaire La Vallée
Caisse populaire Madawaska
Caisse populaire Trois Rives
Drummond, Grand Falls, Notre-Dame de Lourdes,
Saint-André, Saint-Georges and Saint-Léonard
Edmundston, Saint-Jacques and Sainte-Anne du
Madawaska
Baker Brook, Clair, Edmundston (2), Lac Baker,
Rivière-Verte, Saint-Basile, Saint-François and Saint-Hilaire
Restigouche Region
Caisse populaire Atholville – Val d’Amours
Caisse populaire de Kedgwick
Caisse populaire Restigouche
Caisse populaire Restigouche Est
Caisse populaire de Saint-Quentin
Atholville and Val d’Amours
Kedgwick
Balmoral and Campbellton
Charlo, Dalhousie, Dundee and Eel River Crossing
Saint-Quentin
Westmorland Region
Caisse populaire Beauséjour
Caisse populaire Dieppe
Caisse populaire de Memramcook
Caisse populaire de Notre-Dame de Grâce
Caisse populaire Sud-Est
Fredericton and Moncton (2)
Dieppe (2) and Scoudouc
Memramcook and Pré-d’en-Haut
Moncton
Barachois, Cap-Pelé, Haute-Aboujagane and Shédiac
12
Pierre-Marcel Desjardins
Associate Professor
Department of Economics
Université de Moncton
The economy has once again made the headlines in
2008. Most Western countries have been experiencing a
significant slowdown, which led to a recession by the
end of the year. The phenomenon began in the United
States, initially in the real estate sector, and then spread
to other economic sectors of our southern neighbours.
However, as shown in the graph below, New Brunswick
exporters’ dependency on the American market has
caused the province to suffer the effects of the United
States’ economic slowdown. The preponderance of
the American market for New Brunswick exporters
has decreased, following the significant drop in
exports to the United States in sectors such as the
manufacturing of veneer, plywood and reconstituted
wood products -43.8%, sawmills and wood
preservation -32.8%, the manufacturing of all
other wood products -22.5%, as well as pulp and
paper mills -18.6%.
This economic slowdown has led to an increase in
unemployment rates, mainly in the northern regions
of the province, where a large number of companies
operate in the sectors most affected, particularly the
forest sector.
13
Another significant phenomenon in 2008 is the
continuous surge in oil prices that peaked by
mid-year, followed by a significant plunge. Oil prices
have been an important factor in the decline in value
of the Canadian dollar during the last few months of
2008, compared to the American dollar.
Our own economic recovery will depend on the recovery
in the United States, by far the largest buyer of our
exports. In the meantime, while the Canadian economy
seems to fair better than that of our southern
neighbours, the Bank of Canada is attempting to
stimulate the Canadian economy by reducing its
official discount rate. Nonetheless, the economic
conditions are such that the deflationary pressures that
began in 2008 – in part following the drop in oil prices
linked to the economic slowdown – should last until
the Western economy resumes its cruising speed.
The important drop in stock markets in the last months
of 2008 was also another important catalyst of the
slowdown. The result of poor financial and economic
conditions, this drop has also had a considerable impact
on personal and other various investment funds, such as
pension funds.
The 2008 recession in the United States is not a
“normal” recession. While recessions or economic
slowdowns since World War II were the result of a lack
of balance between supply and demand in the goods and
services markets, the 2008 recession – like the recession
in the 1930s – is not only an economic crisis, but also a
financial crisis. The graph shows the huge amounts
injected by the American Federal Reserve into
American financial institutions, in an effort to stimulate
the economy. However, as long as financial actors do
not regain the confidence lost, recovery will be slow.
14
It has been a long time since we have seen such a
synchronized global economic slowdown and stock
market correction. This phenomenon is in part the
result of trade liberalization. The globalization of
finance has contributed to most major financial groups
taking write-downs on sub-prime mortgages originating
in the US. This situation limited both the capacity and
the desire of these financial institutions to grant credit,
sending their economy into recession.
Bruno Noël, CFA
Portfolio Manager
Acadia Investments
The global financial markets certainly could have done
without the year 2008. Practically every stock market
has registered a loss, including -33% in Canada and
-37% in the United States.
Total return for 2008
(local currency)
England (FTSE 100)
-28.0%
Canada (TSX)
-33.0%
United States (S&P 500)
-37.0%
France (CAC 40)
-40.3%
Germany (DAX)
-40.4%
Japan (Nikkei 225)
-41.1%
China (Hang Seng)
-46.4%
In such a volatile and extremely uncertain financial
context, only low-risk investments have been popular
among investors, which is why government-issued
bonds have produced good returns. This situation also
explains the rise of the American currency. Regardless of the
economic uncertainties, the US dollar is still considered
the safest and most liquid currency worldwide.
A recession is normally defined as being a decrease
in the Gross Domestic Product, lasting at least two
consecutive quarters. According to this definition,
Canada likely fell into a recession in October 2008.
The growth for the last quarter of 2008 was negative
and this trend will probably continue for at least the
first three months of 2009, possibly longer. It is
interesting to note, however, that Canada’s last recession
ended in March 1991.
In the US, the National Bureau of Economic Research
(NBER) is responsible for dating business cycles. It
defines a recession as a significant decline in economic
activity, lasting more than a few months. This decrease
in economic activity is not necessarily accompanied by
a decrease in the GDP. In December 2008, NBER
announced that the recession began in the US in
December 2007, before economic growth became
negative.
Our baseline scenario estimates that the American
economic slowdown will end after mid-year and will
begin a slow recovery. If such is the case, the recession
will have lasted for at least 19 months, making it the
longest recession since the depression of the 1930s.
We also believe that Canada will come out of its
recession in 2009, after the US, by far the largest buyer
of our exports.
A peculiar aspect of this recession is that it emanated
from the financial sector following the collapse of the
housing bubble in the US. The first interventions by
government authorities, costing several billion dollars,
were all designed to stabilize the financial sector. These
interventions will have to pay off before the economy
can fully recover.
Consumers will also have to regain their confidence. It
was shaken by two factors: the decrease in value of
houses, their main asset, and more recently, job losses.
However, we believe that American consumers will be
more patient than usual. They have accumulated a lot
of debt over the last few years and we believe they will
be particularly cautious and try to strengthen their
balance sheet before accumulating more debt. This is
why we believe that recovery will be slower than in past
recessions. Additionally, if the recovery does not occur
before government programs come to an end, this
period of slow growth could persist.
However, certain elements point toward a faster
recovery in the housing sector. Government actions
have allowed mortgage rates to drop to record lows, and
falling prices make buying a house more affordable.
15
Finally, over three years of slowdown in residential
construction has created a lot of pent-up demand in the
construction sector and other related industries.
In Canada, consumers have been more cautious over
the last few years and our financial system is faring
much better. This is why we continue to believe that
the recession won’t be as severe as it has been in the US.
A large portion of our economy comes from our
exports. Exporters are, of course, highly affected by the
recession in the US, as well as by the significant price
drops in most of our natural resources. The decrease of
the Canadian dollar over the last few quarters does give
them a little breathing room.
In 2009, we remain modest in our expectations
surrounding the economy and financial markets. We
are forecasting a slow recovery starting in the last few
months of this year, and reaching a more normal
growth rate later in 2010.
16
Operations report
General review of results
The Caisses populaires acadiennes are able to
provide their members and clients with a
comprehensive range of financial products and
services. Once again in 2008, the complementarities
and concerted actions of its constituents, the
caisses network and its affiliates, have provided
the Mouvement with operating results that allow
it to envision the future with confidence and to
ensure its durability.
However, the year 2008 has marked the beginning
of a difficult financial situation worldwide, of which no
specialist had anticipated the magnitude. Furthermore,
economists are still divided on the potential length of
this crisis. The durability of our financial institution has
always been a top priority for our leaders, by building
a solid capitalization and using sound management
practices.
Our network has excellent reserves. Our organization is
among the best capitalized in the country, through the
Office de stabilisation de la Fédération des caisses
populaires acadiennes. However, even though we have
had positive operating results in 2008, we must begin
2009 with vigilance.
2008 Financial Statements
The assets of the Mouvement have gone from
2.7 billion to 2.8 billion dollars as of December 31,
2008, an increase of 130 million dollars, or 5%. At
the end of the fiscal 2008, the Mouvement des caisses
populaires acadiennes, the largest Acadian financial
institution, announced surplus earnings before taxes,
dividends and other items of 21 million dollars,
compared to 36.6 million dollars in 2007. Return on
equity has reached 10%, compared to 9% last year.
However, the organization’s overall performance has
been significantly impacted by specific elements, such
as impacts related to the financial crisis, including
asset-backed commercial paper (ABCP) and interest
rate swaps.
Impact of asset-backed commercial paper (ABCP)
We have established cumulative provision of
18.5 million dollars for ABCP, or 41% of the initial
portfolio. This represents additional provision of
9.7 million dollars before taxes. We believe that a
portion of this amount represents a temporary
fluctuation in the market value of this investment
and that we will recover a significant portion of the
initial investment. As was the case last year, the increase
in provision is absorbed by the Fédération.
Impact of interest rate swaps
As of December 31, 2008, we held 457 million dollars
in interest rate swaps. The market value of this portfolio
has increased by 26 million dollars. The derivatives
portfolio has paid out an average of 2.2% interest and
received 3.7%, a favourable variance of 1.5%. In 2008,
our network has shown profits of approximately
2.5 million dollars from cumulative derivatives. Our
position is to keep our interest rate swaps to stabilize
the net interest income.
Savings and Financial Portfolios
Member deposits totalled 2.4 billion dollars as of
December 31, 2008, an increase of 99.6 million dollars
compared to last year, or 4%. In 2008, loan portfolios
before allowance for credit losses have increased by
77 million dollars, or 4%.
– Residential mortgage loans have increased by
54 million dollars, or 6%, compared to last year.
– Consumer loans and other personal loans have
decreased by 21 million dollars, or 3%, compared
to last year.
– Business and government loans have increased by
44 million dollars, or 7%, compared to last year.
Operations report
17
to build a solid capitalization, because current events
require a cautious approach more than ever. This is also
an example of sound management practices, and these
temporary and exceptional measures will help us face a
financial and economic situation that is out of the
ordinary. These decisions respect the sound management
practices that allowed us to become the strong
institution we are today and will help us come out of
this crisis even stronger.
These returns to member-owners
and communities are among the
distinct elements of our Mouvement,
and keeps our organization at the top
of the charts as being among the
most generous and most committed
in the social, economic and cultural
development of New Brunswick’s
Acadian and French-speaking
communities.
Individual and collective returns
As part of our co-operative nature, a portion of the
surplus earnings from the last fiscal year will be
returned to members: 1.9 million dollars will soon be
paid out in member dividends, and 1.9 million dollars
was paid out in 2008 in donations, sponsorships
and scholarships, for a total of 3.8 million dollars in
member dividends and community returns.
Individual member dividends are significantly lower
than those paid out in previous years. Instead, we chose
Acadia Life
In 2008, Acadia Life realized net operating profits
before taxes of 3.7 million dollars, a 45% decrease
compared to the record performance of 2007. However,
it is essential to mention that in 2007, for tax purposes,
we realized gains of 2.4 million dollars upon the
disposal of a portion of our Fédération Pooled Funds.
With this transaction, the fluctuation in the market
value of this investment was transferred from equity to
operating results.
The caisses will receive 2.7 million dollars in dividends,
a 10% decrease from last year.
Operations report
The Fédération des caisses populaires acadiennes
finished the last fiscal year with surplus earnings before
taxes, dividends and other item totalling 5.2 million
dollars, making 2008 a record year for the Fédération.
This excellent performance represents a 31% growth
compared to 2007.
From the record surplus on regular operations, we have
established provision for ABCP totalling 17.3 million
dollars, or 41% of the initial portfolio, representing
additional provision of 9.4 million dollars before taxes.
The caisses will receive dividends of $817,435, a 34.2%
decrease from last year. For its part, the Mortgage Fund
of the Fédération amounted to 208 million dollars, an
11% decrease compared to last year. This is due to the
increase of liquidity within the caisses network.
Acadia Service Centre
Acadia Service Centre’s financial statements as of
December 31, 2008 show surplus earnings before
taxes totalling $390,237, or $246,170 more than the
budgeted amount. Last year, surplus earnings before
income taxes for Acadia Service Centre totalled
$77,369, meaning that surplus earnings have increased
by more than five times.
The Financing Centre has had an excellent year, with
a total amount disbursed of 57.7 million dollars on a
target of 37.7 million dollars, a 153% success rate.
As of December 31, 2008, the Payroll Service still
showed excellent performance with a total of 158 new
clients integrated on a target of 157, a 101% success
rate.
Acadia Investments
During 2008, Acadia Investments realized a net income
of $126,510 before taxes. The budget forecasted a
surplus of $74,341, representing a favourable variance
of $52,169. However, 2008 was more difficult in terms
of income for most portfolio managers. The strong
stock market correction has caused a decrease in assets
under management, and consequently, a decrease in
earnings. Acadia Investments did not escape this trend.
Cost control, some of which is also linked to stock
market performance, still allowed the company to make
considerable profits.
18
As for performance, we are overall satisfied, because one
of our four funds ended the year in the first quartile,
two of them ended in the second quartile and finally,
one ended in the third quartile. Our decisions to
proceed with asset allocation have also added a certain
value, while the performance of the Caisses populaires
acadiennes pension fund is 1.3% higher than
anticipated, allowing it to end the year in the first
quartile. Furthermore, the performance of the pension
fund was 6.1% higher than that of the market.
Acadia Financial Services
At Acadia Financial Services, sales in mutual investment
funds have decreased by 28% compared to last year.
This subsidiary has experienced a difficult year, much
like the rest of the financial services industry,
specifically in the securities sector. Now more than
ever, our member-investors need the expertise of our
Financial Planners and Investment Advisors.
Evolving co-operative practices
The caisses, as the origins of the Mouvement,
are co-operative businesses whose members are
both co-owners and users. This co-operative
nature defines policies and operations of our
components, as well as our commercial and
management practices.
The first caisse having been founded over 70 years ago,
our co-operative practices have evolved and continue to
do so. Back in those days, parishes and villages were the
cornerstones of social organizations, and citizens joined
together on those same bases when came the time to
establish a caisse; consequently, there were almost as
many caisses as there were parishes or villages.
Elements such as the restructuring of administrative
regions, secularization, more efficient means of
communication and travel, as well as the buying
behaviour and habits of our members, whose needs
are increasingly sophisticated, have changed things.
These changes have resulted in mergers among several
caisses over the past 10 years.
Operations report
19
New areas of belonging
Over the last few years, in light of consultations held in the caisses network, it became apparent that the
evolution of the network and the size of the caisses would become an important issue.
The financial sector is also going through important transformations. The increase in the number of
savings and financing products, the complexity of the financial market, the expertise and training
required for Advisors and Financial Planners, have resulted in scarcity among the specialized workforce.
The caisses, much like banks, now have to review their offer of services to comply with regulations and
the realities of the market.
In 2008, members of eight caisses have voted, during special meetings, in favour of the following mergers:
New caisse
Originating from
Date of legal
merger
Caisse populaire de Caraquet
Caisse populaire de Paquetville
May 1, 2008
Caisse populaire Kent-Beauséjour
June 1, 2008
Caisse populaire Trois Rives
Caisse populaire de Saint-Basile
Caisse populaire Haut-Madawaska
Caisse populaire République
January 1, 2009
These mergers will help ensure a higher potential for market development, a union of the strengths
of each caisse to match the competition, services that meet the needs of the members as well as the
reinforcement of the co-op difference.
Improving our co-operative life
The co-op difference remains a major value in the
Caisses populaires acadiennes experience. With the
evolution of the caisses network, the size of these caisses
and the fact that they now serve a larger area brings us
to review our practices regarding the co-op difference.
In 2008, an Associative Life project was developed and
combined with the merger projects.
In every caisse taking part in the merger, the project’s
success rests on two key points:
1. The creation of an Associative and Co-operative
Life Committee at the caisse
Since the project becomes the responsibility of the
Board of Directors of the caisse, it includes the creation
of a permanent committee of the Board, namely the
Associative and Co-operative Life Committee of the
caisse. Acting as a link between the caisse, its members
and their community, the committee will address the
following issues:
– the involvement of the caisse in its community;
– associative and democratic life;
– education;
– communication.
2. The hiring of an Associative Life and
Communications Agent at the caisse
A true turntable at the caisse for corporate
communications and co-operative animation, the role
of the Associative Life and Communications Agent will
be to contribute to the continued improvement of the
various aspects of associative life and communications
at the caisse, the democratic involvement of its
members as well as the support from the caisse in the
development of its community.
In 2008, Caisse populaire Acadie was the first caisse to
hire an Associative Life and Communications Agent.
The Associative Life Committee of the caisse held its
first meeting in March 2009.
Operations report
“
I believe that by having an Agent
at the caisse as well as an Associative
Life Committee, we will be able to
significantly increase the involvement
of our members in the activities of
their caisse.
”
Marie Dugas Albert, Associative Life Agent at
20
Tax-free savings account (TFSA):
an additional savings tool
The 2008 federal budget implemented an important
tax solution by creating the tax-free savings account
(TFSA). This registered account, with tax-free
investment income and withdrawals, is an additional
tool for saving and reducing your tax bill. Contrary
to RRSPs and RESPs, the TFSA aims to help members
save for any future financial goal, such as purchasing
a vehicle, home renovations, starting a business or to
save for difficult times.
Our image on the Classic VISA card
This card, which is used by approximately 43,000
customers throughout the Caisses populaires acadiennes
network, showed the image of their partner, Desjardins.
Under an agreement negotiated between VISA and both
financial institutions, the Classic VISA card now displays
the Caisses populaires acadiennes logo.
This VISA credit card is the first to display the Caisses
populaires acadiennes logo, and negotiations are
underway to extend this initiative to all cards offered
in the caisses network throughout New Brunswick,
including the Prestige card series.
First Associative Life Committee at Caisse populaire Acadie
From left to right: Paquerette Bock, Vice Chairman, Thérèse Haché,
Frédéric Poirier, Léo-Paul Pinet, Albert Lagacé, Chairman, Marie Dugas
Albert, Associative Life Agent, Étienne Boudreau, Myriam Léger,
Serge Désilets, General Manager. Absent from photo, Manon Morin.
Improving the offer
to our members
Thanks to their various components, the Caisses
populaires acadiennes are able to provide their
members with a comprehensive range of financial
products and services. In 2008, the Mouvement
has continued to develop dynamically, in
accordance with the strategic plan in which it
takes shape, while continuing its mission to
serve and by optimizing the tools at its disposal,
to effectively meet the needs of individuals,
businesses and communities.
Cheque imagery: member-businesses can now
keep track of their cheques online!
AccèsD users will soon be able to keep track of their
cheques online, thanks to the new cheque imagery
service. For example, the cheque imagery service allows
the member-business to view each cheque, as soon as it
is processed, and to download all their cheques for a
specific period. The member also benefits from quick
and easy bank reconciliations by downloading
processed cheques, a more effective cheque search and
a computerized history report, therefore eliminating
the accumulation of paper, and also contributing to the
protection of the environment.
Operations report
A user-friendly, flexible and popular
Payroll Service: 1,000th client!
In 2008, the Caisses populaires acadiennes payroll
service landed its 1,000th client, therefore reaching a
historic milestone. The Payroll Service, operating since
1988, was originally created to meet the organization’s
needs. The Payroll Service now processes the payroll of
over 20,000 employees. It has doubled in capacity in
only a few short years, and its future looks promising.
Since employee payroll management requires time and
money from a business, the choice is clear when it
comes to the expertise of a team like the Caisses
populaires acadiennes Payroll Service, which offers a
user-friendly, flexible and popular solution. Payroll
processing is a complex and increasingly specialized
operation. The electronic payroll solutions offered by
the Caisses populaires acadiennes stand out from the
competition with a personalized and superior quality
service, allowing employees to devote more time to
business development.
Acadia General Insurance:
three offices now open
In 2008, Acadia General Insurance opened offices in
Shippagan and Tracadie-Sheila, and also acquired a
third office in Bouctouche, to meet the population’s
general insurance needs. As a promising subsidiary of
the Fédération, we intend to work hard to make this
company one of the best in the distribution of general
insurance in New Brunswick. The acquisition of an
insurance broker in Bouctouche, established in the
Kent region for over 40 years, is the first acquisition
of an existing insurance broker for Acadia General
Insurance. This acquisition is part of the initial strategy
to be implemented in the five regions served by the
caisses within five years.
21
Assumption Life and Acadia Life create AVie
Assumption Life and
the Caisses populaires
acadiennes, through
their affiliate Acadia
Life, have entered
into a partnership
agreement creating
a new personal insurance product distributor in
New Brunswick. This partnership is the union of two
very important parts of the heritage of New Brunswick’s
French-speaking personal insurance market.
Both insurance companies maintain their respective
operations and offer their products to the new affiliate,
AVie. Acadia Life and Assumption Life have combined
their sales personnel, totalling over 20 people, to benefit
the new company. AVie offers a comprehensive range of
personal insurance products:
– personal life insurance;
– universal life insurance;
– critical illness insurance;
– disability insurance;
– health and dental insurance;
– group insurance; and
– extended care insurance.
We’re going green!
In 2008, the Caisses populaires acadiennes started a
pilot program at the Fédération in order to act more
eco-responsibly. This first year of research, analysis and
behaviour observations have already brought tangible
results. In fact, several small actions have been initiated:
– A more ecological printing system that reduces
the employee-equipment ratio and to meet market
standards, the use of recycled products in printing
equipment in order to protect the environment and
reduce our printing volume by 15% in the first year
of the program, by opting for two-sided printing of
most documents.
– The implementation of an eco-responsible vehicle
policy: this policy applies to employees who benefit
from an allowance for their vehicle.
Opening of the Tracadie-Sheila office of Acadia General Insurance.
– The hiring of a consultation firm to conduct an
eco-responsible study: the purpose of this study is to
make an inventory of the green actions that can be
implemented at the Édifice MARTIN-J.-LÉGÈRE,
such as: reducing electricity consumption by
using less energy-consuming lighting, etc. The
implementation of the actions recommended in the
study will start in 2009.
Operations report
– Styrofoam cups have been eliminated.
– Paperless meetings: the Executive Committee and
the Boards of Directors of the Fédération and the
Office now use a virtual concept for their meetings.
2009-2011 strategic planning
The beginning of 2008 was affected by a massive
consultation of the network: 16 different groups
have been consulted, namely, all the members of
the Boards of Directors of the caisses as well as
their General Managers. Consultation sessions of
the Executive Committee of the Fédération took
place, followed by brainstorming sessions held
with the Board of Directors of the Fédération.
This event was a first, where the members of the
caisses Boards of Directors were invited to discuss
strategic planning.
Strengthened by an excellent attendance to
meetings, we have collected, over the course of
these fruitful exchanges and discussions, over
1,050 comments and remarks. These observations
have allowed us to elaborate strategies and
objectives.
The development of this plan, as well as its
implementation, will reinforce our unity in
thought and action. This spirit of wholeness is
also supported by a united strategic management
team, which encourages efforts aimed at
increasing the Mouvement’s cohesiveness in order
to serve its members as efficiently as possible.
Direction 1
A complete, integrated and proactive offer to
all our members and clients
Objective 1 – Implement a structured mechanism
that allows to properly organize
development, significantly increase
our offer and to concentrate on the
potential and unexplored market of
each of our lines of business.
Objective 2 – Provide our members and clients with
accessibility to competent, expert and
qualified personnel in order to meet
their needs and expectations.
Objective 3 – Become a major player in
offering specialized services (asset
management, corporate sector).
22
– The implementation of virtual pay statements:
employees of the Fédération and its subsidiaries can
now view their pay statements online through a
secure access.
Objective 4 – Clearly define our competitive
advantages, and include them in
our offer and in our business strategy.
Direction 2
An articulate strategy, with strong growth and
development possibilities
Objective 5 – Increase sales efforts by maximizing
consultation as well as member
service time.
Objective 6 – Maintain our parts of the market
share in mature products, become
more aggressive in emerging
products and strive to attain a
critical mass in new products and
general insurance products.
Objective 7 – Maintain our financial soundness
and keep risk management within
the norms of the industry, in order
to develop with confidence.
Objective 8 – Develop non-traditional markets
(geographic, products, etc.).
Direction 3
A strong, exemplary, efficient and
unified structure
Objective 9 – Formally agree on the roles and
responsibilities as well as the
autonomy of the various entities
of the Mouvement.
Objective 10 – Identify and clearly position
ourselves regarding the
independence and autonomy
level of our Mouvement compared
to the industry’s other actors
and partners, and make sound
partnership decisions.
Objective 11 – Take advantage of the added
value and unite the forces of our
network by accelerating the
development of our structuring
project.
23
Social Responsibility Report:
growing together with communities
Our cooperative nature compels us to search for global
and sustainable performance to benefit our members
and their communities. In other words, the payoff
takes on a new sense when it allows us to ensure our
financial stability and provides all the essential resources
to help us develop, better serve our members, and to
take part in the sustainable development of the
communities we serve.
In 2008, members will share 1.9 million dollars in
dividends, and the Mouvement injected close to
1.9 million dollars into communities, through various
donations, sponsorships and scholarships.
Donations, sponsorships
and scholarships
Donations
Sponsorships
Scholarships
$1,027,671
698,645
194,072
Total contributions in 2008
$1,920,388
Over the last five years,
the Caisses populaires
acadiennes have paid
out close to 37 million
dollars in individual and
collective dividends to
their members and
communities.
Social Responsibility Report: growing together with communities
24
Our major social project:
Lire, découvrir et grandir
literacy program
The Mouvement selected literacy as its primary social
cause in 2005. Through the program Lire, découvrir et
grandir, the Caisses populaires acadiennes have made a
commitment to helping children learn how to read.
Literacy is a cause where the stakes are high, and
choosing this cause helps the long-term development
and well-being of New Brunswick’s French-speaking
and Acadian communities.
Because reading is discovering and growing! In 2008,
we continued our efforts to ensure that children aged
4 to 8 years would have an acceptable literacy level by
the end of their second year of schooling.
In 2008, various awareness initiatives, such as broadening
access to books, encouraging reading and helping the
community’s organizations, have been maintained.
– Moi, j’aime jouer dehors Contest
In 2008, over 70 classes entered the contest!
Every student is a winner, since they have all taken
one more step in developing their reading and
writing skills.
– In 2008, for a fourth consecutive year, we have
sent a book to every parent who was enrolling
their child in kindergarten. Approximately 2,500
4-year old tots received a book to help better prepare
for school in 2009!
– Lire, découvrir et grandir has sponsored the
following organizations in 2008:
– Frye Festival
– Salon du livre d’Edmundston
– Salon du livre de Dieppe
– Salon du livre de la Péninsule acadienne
– PGI golf tournament
25
as at December 31, 2008
Mouvement des
Table of contents
26
Management’s Responsibility for Financial Information
27
Auditors’ Report
Combined Financial Statements
28
Combined Balance Sheet
29
Combined Statements of Income and
Distributable Surplus Earnings
30
Combined Statement of Distribution
31
Combined Statements of Comprehensive Income and
Accumulated Other Comprehensive Income
32
Combined Statement of General Reserve
33
Combined Statement of Cash Flows
34 to 61
Notes to the Combined Financial Statements
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
Executive Committee
Fédération des
From left to right
– David Losier, Vice President Business Development
– René Legacy, Vice President Communications and
Strategic Planning
– Rolland LeBouthillier, Vice President and
COO Office
– Denis Laverdière, Vice President Finance and
Administration
63
Internal Management Structure
Fédération des
Camille H. Thériault
President and CEO
Marc Roy
Simonne Godin
Legal Affairs and
Compliance
Corporate Secretary
David Losier,
CGA
Business
Development
Vice Presidency
Human Resources
and Training
Management Services
and Sales Support
Support Services
Wealth Management
Denis
Laverdière,
CGA
Finance and
Administration
Vice Presidency
Finance and
Investment
Acadia Investments
Credit and Recovery
Services
Operations and
Facilities Management
Acadia Life
Acadia Financial
Services
AVie
Technology and
Services
Acadia General
Insurance
René Legacy
Communications
and Strategic
Planning
Vice Presidency
Strategic Planning and
Communications
Marketing and
Promotion
Conseil acadien de la
coopération
Fondation des caisses
populaires acadiennes
Rolland
LeBouthillier,
CMA
Office
Vice Presidency
Audit and Inspection
64
Fédération des
65
66
67
68
69
Acadia Life
Acadia Life
70
Acadia Life
71
72
Acadia Life
73
74
75
In front from left to right
Back row from left to right
– Guilda Landry, appointed by the Board of Directors
of the Fédération des caisses populaires acadiennes
– Me Corinne A. Godbout, Chairman and
appointed by the Minister of Justice
– Robert Penney, Superintendent of the
Caisses populaires
– Marcel Lanteigne, Caisses populaires
members’ representative
– Janice Lirette Evers, Caisses populaires
members’ representative
– Luc St-Jarre, Vice Chairman and
Caisses populaires members’ representative
– Gilles Haché, appointed by the Minister of Justice
– Rolland LeBouthillier, Vice President and COO
– Brian L. Comeau, appointed by the
Board of Directors of the Fédération des
Office de stabilisation de la Fédération des caisses populaires acadiennes
76
77
78
79
80
WWW.ACADIE.COM

Fédération des caisses populaires acadiennes

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