Another year of record results for the Caisses populaires acadiennes

April 18, 2008
Bathurst, April 18, 2008 - During the Caisses populaires acadiennes Annual Convention in Bathurst on Friday and Saturday, the Mouvement des caisses populaires acadiennes unveiled its 2007 financial results to its delegates. Many of these results are indicative of new accomplishments for the organization.

In 2007, the Mouvement reported a 30% increase in surplus earnings before taxes and dividends, and reached an historical high of $27.7 million. This exceptional performance is partially due to an increase in net interest income, which was up 9%, going from $93 million in 2006 to $101 million in 2007. The Mouvement continued to grow its assets for a total of $2.7 billion. This represents an increase of $273 million, up 12% compared to the 2006 fiscal year.

The 2007 fiscal year owes its high level of profitability to the good financial performances of the Caisses network and all elements of the Mouvement. "All 34 Caisses can pat themselves on the back for having performed outstandingly. My most sincere thanks go out to the staff and their professionalism, as well as to the members who continue to displayed their unwavering confidence in the Caisse managing their assets," stated Mr. Camille Thériault, Mouvement President and CEO.

Impact of Third-party ABCP

Like the majority of financial institutions, the Mouvement des Caisses populaires acadiennes was affected by Third-party asset-backed commercial paper (ABCP) situation. The Mouvement has had to record a charge of $8.4 million in 2007, representing 18.28% on investments of $46.3 million.

"The solidity of our organization and the cautious nature of our managers have allowed us to face this market crisis without affecting our caisses. This, for us, is a source of great pride, all the more so because we are announcing a record surplus of $27.7 million. This has not been the case for all large financial institutions in 2007," added Camille Thériault.

Acadia Life continues to shine

In 2007, the subsidiary Acadia Life recorded earnings of $6.6 million, an increase of $1.3 million in comparison to 2006 results. This has been a record year for the sale of personal life insurance and life insurance on loans. In fact, the Acadia Life Insurance Company issued its 20,000th insurance policy in 2007. This was an historical milestone in terms of personal insurance for the subsidiary.

Other great results from the subsidiaries

At Acadia Financial Services, mutual fund sales grew by 24%, as compared to the previous year. Average growth calculated over the past three years is 27.5%. As at December 31, 2007, the mutual fund portfolio totalled $108 million, up 15% in this portfolio. The financing department has had its best year since its inception. It handled a volume of more than $48 million, representing 130% of predefined objectives.

A strong loans portfolio

A $37 million increase has been recorded for the corporate and governmental loans portfolio. This represents 7% growth in comparison to the previous year. Consumer loans and other personal loans rose by 6% or $36 million. Residential mortgage loans rose by 11% or $93 million, compared to 2006. For 2007, the loans before provision for credit losses portfolios experienced growth of $165 million or 8%. On a cumulative basis, the corporate loans portfolio has reached $589 million, and the consumer loans and other personal loans portfolio has reached $620 million. However, the residential mortgage loans portfolio exceeds $952 million.

One other element can be added to these positive results: member deposits increased by $289 million or 15% in 2007, for a total of $2.3 billion as at December 31.

"Despite a highly competitive financial market, we continue to achieve impressive results. We are always inspired by our commitment to meet the needs of our member-owners and face the challenges presented to us by a constantly changing world. With close to 1,200 Mouvement employees, we all aim higher, further, together," declared Mr. Thériault.

Respectful of our cooperative commitment

The Mouvement remains among the foremost generous and committed organizations in the province. By returning $8.8 million to member-owners and communities in New Brunswick, the Mouvement is dedicated to the social, economic and cultural development of Acadian and Francophone regions.

Members will share $6.8 million in member dividends, representing an increase of 25% compared to 2006. An estimated $2 million has been given in donations, sponsorships and scholarships. The largest share of this $2 million, or 33 %, has been dedicated to funding education and youth programs, specifically the Lire, découvrir et grandir literacy program.

"We continue to prosper like never before, but it is even more important to display our pride and never forget to emphasize the human face of our organization, in contrast to the bleakness of other financial institutions, by giving back to individuals and communities that support the cooperative movement. This is very important to us," emphasized Mr. Thériault at a press conference.

About the Mouvement:

The Mouvement des caisses populaires acadiennes was founded in 1946. It is the largest Acadian financial institution in New Brunswick. With global assets at nearly $2.7 billion, this network consists of 34 Caisses and is represented by 86 business locations in New Brunswick. More than 1,200 employees and 350 elected representatives constitute the strength of the organization. The Fédération des caisses populaires acadiennes is located in Caraquet, New Brunswick.

For further details, go to our Web site at www.acadie.com.

                                                                                                 -30-

For all additional information:

Mario Griffin
Communications and Public Relations Manager
Fédération des caisses populaires acadiennes
Telephone: (506) 726-4785
Cel.: (506) 724-0078
Fax: (506) 726-8220
mario.griffin@acadie.com