CUMA Manager of the Year Award

1. CUMA Manager of the Year Award Co-sponsored by… And the 2003 honour is awarded to … Marty Komsa, President & CEO Windsor Family Savings Credit Union

2. Credit Union Leaders Speak Out! Andy Poprawa, President & CEO Deposit Insurance Corporation of Ontario

3. “Season of Change” Deposit Insurance Corporation of Ontario Credit Union Managers’ Association September 17, 2003

4. Overview • How are we doing? • Where are we going?

5. How Are We Doing? • Overall system condition is good • Risk of failures has been declining • Overall system performance stable • Some credit unions/caisses populaires performing better than others

6. Quick - System Condition at 2Q03 (   from 2Q02) • 269 institutions (16) from 285 • All except 3 met minimum (5%) capital requirements • Average size $78 M(17M) from $61 M • System Assets $20.8 Billion (3.4B) from $17.4B • System Capital 6.69% from 6.73% • Liquidity 21.3% from 17.5% • Commercial loans  by 13%

7. Quick System Performance (   from 2Q02) at 2Q03 • Margins  from 3.00% to 2.97% • Non-interest expenses  from 3.33% to 3.22% • Non-interest income  by .08% • Loan Costs  from .16% to .12% • Gross Delinquency (> 30 days) from 1.38% to 1.01% • ROA  from 29 bp to 36 bp

8. Quick - DICOFinancial • DICO July 31, 2003 financial results • No major failures during 2003 • No new insurance losses to date • Recoveries of $5.5 million on past losses • Gross operating expenses 14.4% below budget • Reserve Fund of $56 million vs. target of $56 million by year end

9. Quick - DICO Operational • On-Site Verifications (OSVs) • 91 completed/in progress as at end of 3Q03 • Intervention Programs – improvements since last conference update of 2002

10. Distribution of Assets By Premium Category @ 2Q03 vs 2Q02

11. Where Are We Going? • OSVs • CUCO Task Force recommendations • Exit interviews & final reports • Materiality • Appeals • Commercial loan reviews • Small Credit Union Initiative • Dedicated staff • On-site reviews • Streamlined processes

12. Where Are We Going? • Standards (By Law #5) Review • Expanded advisory committee • Industry Chair • Proposed standards circulated for comment in September • Interest Rate Risk Regulation • Capital Rules • DICO Contingency Financing & Investment Policy • Research on consumer awareness

13. Questions & Dialogue

14. Credit Union Leaders Speak Out! Joanne De Laurentiis, President & CEO Credit Union Central of Canada

15. National Report: System Trends 2003 CUMA Conference Joanne De Laurentiis September 15, 2003 Huntsville, Ontario

16. National Report: System Trends Agenda: Reducing Operating Costs Finessing the Regulatory Framework Supporting System Restructuring

17. National Report: System Trends Reducing Operating Costs • Debit Transaction Switching - Migration Project to new provider – SwitchCo (joint venture of Celero Solutions and NYCE Network)

18. National Report: System Trends Reducing Operating Costs (con’t) • Switching Migration Project • Strategic Procurement Discount Program (For more information about Strategic Procurement, contact Donna Bailey at 416-232-3462)

19. National Report: System Trends Reducing Operating Costs (con’t) • Switching Migration Project • Strategic Procurement Discount Program • National Connectivity

20. National Report: System Trends Reducing Operating Costs (con’t) Switching Migration Project Strategic Procurement Discount Program National Connectivity Common Point of Purchase (CPP) (For more information about the CPP Alert system, contact Lorraine Ogley at 416-232-3445 )

21. National Report: System Trends Click to Add Heading Reducing Operating Costs (con’t) – Common Point of Purchase (CPP) Click to add slide copy

22. National Report: System Trends Finessing Regulatory Framework Current Cost of credit disclosure Privacy and money laundering courses & procedures Retail association definition BIS rules Future Preparing for Legislative Review – 2006

23. National Report: System Trends Finessing Regulatory Framework (con’t) • Legislative Review – 2006 • Regulatory Harmonization • Cost of credit disclosure rules • Privacy legislation compliance

24. National Report: System Trends Finessing Regulatory Framework (con’t) • Legislative Review – 2006 • Regulatory Harmonization • BIS & Capital Adequacy Standards

25. National Report: System Trends Supporting System Restructuring • CUSOURCE™ • Credential Group • Credential Financial Inc. • Ethical Funds Inc.

26. National Report: System Trends Supporting System Restructuring • CUSOURCE™ • Credential Group • Broader system: • OPCO • Celero Solutions • SwitchCo • League Data/CGI • Genesis

27. National Report: System Trends Credit Union Central of Canada • Check out our Web site, www.cucentral.ca • Sign on for electronic news, publications • Marketing materials • Conferences

28. THANK YOU QUESTIONS?

29. Credit Union Leaders Speak Out! Cheryl Bryne, Executive Director Cu Source of Canada

30. Cheryl Byrne September 17, 2003

31. CUSOURCE Highlights • Phase I operational September 15th • Phase II operational January 2004 • CUIC Course sales continue to rise • Ontario CUSOURCE classroom course selection available • Pilot testing successful

32. CUSOURCE Phase I • 60 credit union job positions and technical competencies • Learnings mapped, where available • On-line registration • CUSOURCE Live • Informal Knowledge – i.e. RMA Industry Analysis Tool • Courses • 90 NETG e-learning courses • Harvard Mentor Manager courses • CUIC courses • Ontario classroom courses

33. CUSOURCE Phase I Benefits: • Performance management tool • Career pathing tool • On-line registration, tracking and reporting • E-learning opportunities • CUIC Designations • Medicine Hat College • Athabasca University • On-line branch meetings and product demos • On-line networking and topic discussions

34. Already registered? Enter your ID and Password Entering www.cusource.ca on your favourite browser presents the CUSOURCE home page

35. CUSOURCE Dynamic Customization • Signing in tells the system: • Who you are • Your job position or whether you are a member • Your C.U. and province • Your CUSOURCE permissions • Courses taken or in progress • Areas of interest, subscriptions and favourites • The CUSOURCE screens are then dynamically personalized just for you

36. Your Name Your C.U.

37. Your Name Your C.U. My Profile allows you to update your name, address, email etc. Make sure to keep this information up to date so the system, management and CUSOURCE can communicate with you – click to continue

38. Details of your own Learning Plan

39. Credit Unions Subscribers Credit unions may subscribe for $300/yer and gain access to many more features including: • Ability to manage their employee’s training • A wide range of reporting • 360º Evaluations • The opportunity to be active participants in the sharing of knowledge

40. Under each of the options to the right is an explanation of the functionality

41. CUSOURCE Phase IIJanuary 2004 • More e-learning available and mapped • Commercial lender training modules • All classroom training from Centrals • Lending and Marketing Community of Practice Pilots • CUIC exam registration on line • Informal Knowledge Increasing

42. CUSOURCE Classroom Courses Fall 2003 • Governance - 3 sessions • Project Management • Win-Win Negotiations

43. CUSOURCE Ontario Representatives • Kathy Clutterbuck, Sr. Mgr. Client Relations • Joan Ellis, Sr. Mgr. CUIC • Sharon Burkholder, CUSOURCE Rep • Beth McElroy, Student Support Advisor • Cheryl Byrne, Executive Director

44. Thank You

45. Credit Union Leaders Speak Out! Jonathan Guss, President & CEO Credit Union Central of Ontario

46. CUMA Welcomes DAVID Frum “The Right Man; The Surprise Presidency of George W Bush”

47. CUMA 2004 Where Credit Union Managers Connect Coming September, 2004 Sheraton on the Falls Niagara Falls We hope to see you there!

48. CUMA Thank you for your participation … Rise to the Challenges; Lead Change and Overcome Adversity…with … Commitment …Laughter …Integrity …Heart & Passion Go Safely!