Satisfying financial statements for the Caisses populaires acadiennes in 2008

May 8, 2009
During its Annual Congress, held in Caraquet this Friday and Saturday, the Mouvement des caisses populaires acadiennes will unveil its 2008 financial statements to its delegates.

At the end of the 2008 fiscal year, the largest Acadian financial institution announced surplus earnings before taxes, member dividends and other elements of $21 million. However, the year 2008 marked the beginning of a difficult financial situation worldwide, and we have had to take an additional provision of $9.7 million related to asset-backed commercial papers (ABCP). "Considering the impact of this unique financial crisis, we can be satisfied with our financial results in this unfavourable situation. Regardless of the exceptional results of the Mouvement in 2007, however, the year 2008 was similar to 2004, 2005 or 2006 in terms of performance. We know that 2009 will be a challenge for all and we will have to work together within our organizations to face the challenges to come" says Camille Thériault, President and CEO of the Mouvement.

The Mouvement des caisses populaires acadiennes has registered an increase in its assets to reach $2.8 billion, an increase of $130 million, or 5% compared to the 2007 fiscal year. For its part, the Fédération des caisses populaires acadiennes registers record earnings, with cumulated surplus before taxes, member dividends and financial instruments of $5.2 million. This represents a 31% increase compared to the 2007 financial statements.  

The subsidiary Acadia Life announced profits of $3.4 million in 2008, representing a $3.2 million decrease compared to the record performances of 2007. The extraordinary results of 2007, for tax purposes, allowed us to realize gains of $2.4 million upon the disposal of a portion of our Fédération Pooled Funds. With this transaction, the fluctuation in the market value of this investment went from equity to operating results. Acadia Life's 2008 operating results are similar to results in the years prior to 2007 in terms of performance.

Acadia Service Centre's financial statements 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 also had an excellent year, with a total amount disbursed of $57.7 million, on a target of $37.7 million.  

Stability of savings and loan portfolios
Business and public administration loans have had an increase of a portfolio totalling $44 million, representing a 7 % increase compared to last year. Residential mortgage loans increased by $54 million, or 6% compared to 2007. In total, loan portfolios before allowances for loan impairment for 2008 have increased by $77 million, or 4%.

Adding to these positive earnings results are member deposits, totalling $2.4 billion as of December 31, 2008, representing a $99.6 million increase over least year, or 4%. The only decrease registered is related to consumer loans and other individual loans, with a $21 million decrease, or 3%, compared to last year.

Generosity and responsibility
The Mouvement remains generous once again in 2008, and is also among the most committed in the social, economic and cultural development of the Acadian and French-speaking communities across the province, with returns of nearly $4 million to member-owners and communities in New Brunswick. Members will share nearly $2 million in dividends. Another amount of nearly $2 million will have been paid out in donations, sponsorships and scholarships. "The caisses have opted for a more cautious approach by injecting more money into their reserves, because good capitalization is essential, especially in an uncertain economic context. Observers estimate that the recession could be felt more deeply in 2009, and I believe that the member-owners of the caisses will understand our cautiousness in this exceptional period", explains Mr. Thériault.

About the Mouvement 
The Mouvement des caisses populaires acadiennes was founded in 1946. It is the largest Acadian financial institution in the Atlantic Provinces. With global assets at more than $2.8 billion, this network consists of 29 Caisses and 86 service points 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 at Place de l'Acadie in Caraquet, New Brunswick. For further details, visit our Web site at http://www.acadie.com.

For additional information:
Mario Griffin
Communications and Public Relations Consultant
Caisses populaires acadiennes
Telephone: 506 726-4785
Mobile: 506 724-0078
Fax: 506 726-8220
mario.griffin@acadie.com