June 15, 2004 Organization

Québec City – The positive performance posted by financial services cooperatives in 2002 continued in 2003, with a 3.8% growth of profitability in Québec over the past year. Combined surplus earnings after patronage refunds rose from $524.9 million in 2002 to $544.7 million in 2003. This increase is mainly attributable to higher net financial income, which grew by $181.4 million in 2003 to reach $2.8 billion at the end of the year.

The figures are taken from the annual report of the Agence nationale d’encadrement financier (also known as the “Autorité des marchés financiers” or “AMF”) on financial services cooperatives in 2003, which was recently tabled in the National Assembly by Finance Minister Yves Séguin.

The report also shows that the assets of credit unions and their federation were up 9.4% in 2003 to $73 billion at the end of the year, compared with $66.7 billion in the previous year.

The report also indicates that, as of December 31, 2003, there were 609 credit unions in Québec, all of which, except one, were part of a federation affiliated with Mouvement Desjardins. The only independent credit union was the “Caisse des Mutuellistes Épargne et Crédit.” The ongoing restructuring of Mouvement Desjardins caused the number of credit unions to decrease by 63 in 2003.

The 2003 report on financial services cooperatives is available free of charge on the AMF website.

Established on February 1, 2004, the Autorité des marchés financiers (AMF) is the regulatory and oversight body for Québec's financial sector. The AMF consists of the Commission des valeurs mobilières du Québec, the Bureau des services financiers, the Régie de l'assurance-dépôts du Québec, the Fonds d'indemnisation des services financiers and the Inspector General of Financial Institutions.

— 30 —

Information:

Information:

Journalists only:
Barbara Timmins (514) 940-2176
Issuers, dealers, advisers and representatives: (877) 525-0337, dial 9 for English, then dial 1 for industry
Investors: (877) 525-0337, dial 9 for English,then dial 2 for consumers