Desjardins Group is simplifying its organizational structure as part of a plan to accelerate growth and bolster its risk management, the company announced on Thursday.

The new structure, which is in line with Desjardins Group’s development plan launched last fall by chair, president and CEO Monique Leroux, will provide greater integration between divisions and a closer working relationship with the company’s cooperative network and its members. Desjardins Group expects the organizational changes to result in productivity gains exceeding $150 million.

“We will make sure that the combining of all our vital strengths and our expertise will benefit our caisses, our members and clients, and the communities where we are present,” said Leroux. “We will have a group that is close to its caisses and caisses that are close to their members.”

Desjardins Group has established four business sectors representing the key markets in which it operates: wealth management and life insurance; personal services; business services; and general insurance. All Fédération des caisses Desjardins du Québec (FCDQ) and subsidiary teams working in these fields will be brought together in each sector to integrate expertise, the company said.

Similarly, to ensure greater consistency among Desjardins Group’s key activity sectors, four Desjardins Group functions will expand their scope to cover all the activities of the FCDQ and the subsidiaries: finance and treasury; risk management; people and culture; and technology and operations. All of the relevant FCDQ and subsidiary teams within these sectors will be brought together to consolidate expertise.

In addition, a group called strategy, performance and development has been created to ensure that the objectives of this organizational shift are met without losing sight of Desjardins Group’s development.

The communications teams of the different sectors will also be grouped together to ensure better consistency of communications within the organization and with the general public.

In order to support the caisses in their daily operations and encourage collaboration between the caisse network and the teams within the company, Desjardins Group has established a cooperative network support group. This group will help the cooperative network to increase its participation and contribution to the growth and development of Desjardins Group, the company said.

In addition, to bring the cooperative network closer to the management of Desjardins Group, the company has created a group responsible for support for cooperative development and democratic bodies. This group will help foster a democratic environment through ongoing support and communication with officers.

“The participation of our general managers and elected officers in Desjardins Group’s business, as well as its democratic and cooperative aspect, has always been an essential element of our reality as a cooperative. Through these initiatives and others to come, we are further reaffirming our distinction and recognizing more than ever that our caisses are the driving force of our group,” said Leroux.

First quarter surplus earnings surge 74.6%

On Friday, Desjardins Group announced surplus earnings before member dividends of $117 million for the first quarter ended March 31, up 74.6% from $67 million in the first quarter of 2008. The company’s net interest income fell 1.7% to $795 million, while net premiums grew $10 million, or 1%, thanks to growth in life and health insurance premiums.

Desjardins’ personal and commercial division, which includes the caisse network, the FCDQ, Caisse centrale Desjardins, the Fonds de sécurité Desjardins, Capital Desjardins inc., Desjardins Trust and the Ontario Federation and caisses, saw surplus earnings fall 30% to $126 million from the first quarter of last year. The division was hit with sharply lower profits in the caisse network, and a 26% drop in income from securities brokerage, investment fund and trust services.

Senior management changes

Desjardins Group also announced the retirement of Bertrand Laferrière, president and chief operating officer of the Fédération des caisses Desjardins du Québec, after 30 years with the company. Laferrière will act as special advisor to the chair, president and CEO of Desjardins Group.

Bruno Morin will assume the duties of president and CEO of Desjardins Trust.

Desjardins Group also announced several appointments, effective immediately:

Bruno Morin is appointed senior vice president and general manager, wealth management and life insurance. Morin will continue to carry out his current duties as General Manager of Caisse centrale Desjardins.

Normand Desautels is appointed senior vice president and general manager, personal services. He previously held the position of senior vice president, Western Québec at the Fédération des caisses Desjardins du Québec.

@page_break@Stéphane Achard is appointed senior vice president and general manager, business services. He previously held the position of senior vice-president, business markets at the Fédération des caisses Desjardins du Québec.

Sylvie Paquette is appointed senior vice president and general manager, general insurance. She previously held the position of president and chief operating officer of Desjardins General Insurance Group.

Raymond Laurin is appointed senior vice president, finance and treasury and chief financial officer of Desjardins Group. He previously held the position of senior vice-president and chief financial officer of Desjardins Group. He will continue to act as CFO
of Caisse centrale Desjardins and Capital Desjardins.

Louis-Daniel Gauvin is appointed senior vice president and chief risk officer. He previously held the position of senior vice-president, integrated risk management of Desjardins Group.

Jacques Dignard is appointed senior vice president, people and culture. He previously held the position of senior vice-president, human resources of Desjardins Group.

Robert Ouellette is appointed senior vice president of operations and chief information officer. He previously held the position of vice-president and chief information officer at Alcan.

Marie-Huguette Cormier is appointed executive vice president, communications. She previously held the position of managing vice-president, executive affairs and strategic communications of Desjardins Group.

Daniel Dupuis is appointed senior vice president, cooperative network support. He previously held the position of managing vice-president, credit risk at the Fédération des caisses Desjardins du Québec.

Serge Cloutier is appointed executive vice president, cooperative development and democratic governance support. He previously held the position of general manager of Caisse Desjardins Allard-Saint-Paul, in Montréal.

Marc Laplante is appointed senior executive vice-president, strategy, performance and development. He previously held the position of senior vice president, Fédération Finance and Credit / Desjardins Group Development.

IE