News Releases

Equitable Group Reports Record Quarterly Net Income, Increases Dividend

TORONTO, Nov. 5, 2019 /CNW/ - Equitable Group Inc. (TSX: EQB and EQB.PR.C) ("Equitable" or the "Company") today reported record quarterly earnings for the three months ended September 30, 2019 on the strength of diversified growth in its wholly owned subsidiary, Equitable Bank ("Canada's Challenger Bank™" or "Bank") and the contribution of Bennington Financial Corp. ("Bennington").

Equitable Group Inc. (CNW Group/Equitable Group Inc.)

THIRD QUARTER HIGHLIGHTS

  • Adjusted Diluted earnings per share were a third quarter record $3.17, up 19% from $2.67 in Q3 2018.
  • Adjusted Return on Shareholders' Equity was 16.2% compared to 15.2% in Q3 2018.
  • Retail loan principal outstanding at September 30, 2019 was $17.9 billion, up 23% from $14.6 billion a year ago on growth in all retail asset categories.
  • Commercial loan principal outstanding at September 30, 2019 was $7.9 billion, up 13% from $7.0 billion a year ago as a result of organic growth and the acquisition of Bennington.
  • The Provision for Credit Losses ("PCL") was $3.5 million or 0.05% of average loan principal outstanding.
  • Deposits at September 30, 2019 were $14.9 billion, up 16% from $12.9 billion a year ago and included growth in EQ Bank of $446 million.
  • The Bank's Common Equity Tier 1 Capital Ratio at September 30, 2019 was 13.3% compared to 13.1% at June 30, 2019 as the Bank further strengthened its capital position following the Bennington acquisition.

 

Q3 2019 reported Diluted earnings per share were $3.18 and reported Return on Shareholders' Equity ("ROE") was 16.2%.  Adjusted Q3 2019 results exclude the positive impact of net mark-to-market gains of $0.3 million on certain security investments and derivative transactions.

DIVIDEND DECLARATIONS

The Board of Directors (the "Board") today declared a dividend of $0.35 per common share, payable on December 31, 2019 to common shareholders of record at the close of business December 13, 2019.  This 25% increase over the dividend declared in November 2018 is in keeping with the commitment the Board made to growing Equitable's dividend at a rate of between 20% to 25% for each of the next five years.  Even with this faster pace of dividend growth, the Bank is expected to maintain a solid capital position and to retain sufficient capital to support strong business growth. 

The Board also declared a quarterly dividend in the amount of $0.373063 per preferred share, payable on December 31, 2019, to preferred shareholders of record at the close of business on December 13, 2019.  As previously announced, the dividend rate for the Series 3 Preferred Shares was reset on September 30, 2019 and will remain at this rate through September 29, 2024.

COMMENTARY ON PERFORMANCE AND OUTLOOK

"From the 88,000 Canadians who have now made EQ Bank their choice for digital banking to the billions of dollars of deposits and assets we've added to the balance sheet over this past year, Equitable is displaying a clear capacity for growth, innovation and service as Canada's Challenger BankTM," said Andrew Moor, President and Chief Executive Officer. "Q3 was particularly rewarding.  EQ Bank surpassed $2.5 billion of deposits, up 22% from last year and we expanded our other funding sources.  Our retail and commercial businesses, including Bennington, set new all-time highs for assets and maintained solid credit quality.  The Bank's record of value creation was recognized in Equitable's elevation into the S&P/TSX Composite Index in September."  Mr. Moor added: "I would also like to acknowledge the tremendous effort that our team and business partners, including Temenos and Microsoft, put into successfully migrating our banking system to the cloud.  With this migration complete, we are now able to accelerate the pace of new EQ Bank product and service introductions, and are better able to support an innovation and partnership agenda suitable for the open banking era.  Equitable has never been better positioned to challenge industry conventions and improve the financial lives of Canadians."

Equitable's key financial and operating metrics point to strength in its business fundamentals and ability to deliver on key strategic objectives.  Based on current assessments, management expects fourth quarter adjusted earnings to increase between 16% and 18% over Q4 2018 due to loan growth, higher margins and the contribution of Bennington.  Relative to Q3 2019, adjusted earnings should be relatively stable as the positive effects of asset growth and low credit losses are offset by increased levels of marketing and cloud migration expenses.  Fourth quarter ROE is expected to be between 15% and 16%.  The Bank also continues to add to its capital position organically such that its CET1 ratio is expected to reach the mid point of management's target range of 13% to 14% by the end of the year.

Management's complete business outlook can be found in Management's Discussion and Analysis ("MD&A") for the three and nine months ended September 30, 2019 which is available on SEDAR and on Equitable's website.

CONFERENCE CALL AND WEBCAST

Equitable will hold its third quarter conference call and webcast at 8:30 a.m. ET Wednesday, November 6, 2019. To access the call live, please dial (647) 427-7450 five minutes prior to the start time.  The listen-only webcast with accompanying slides will be available at www.equitablebank.ca under Investor Relations.  The call will be hosted by Andrew Moor, President and Chief Executive Officer.

A replay of the call will be available until November 13, 2019 at midnight and it can be accessed by dialing (416) 849-0833 and entering passcode 5565699 followed by the number sign.  Alternatively, the call will be archived on the Company's website for three months.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

       
                   

CONSOLIDATED BALANCE SHEETS (unaudited)

                 

AS AT SEPTEMBER 30, 2019

                 

With comparative figures as at December 31, 2018 and September 30, 2018

($ THOUSANDS)

                 
                   
     

September 30, 2019

   

December 31, 2018

   

September 30, 2018

                   

Assets:

                 

Cash and cash equivalents

 

$

373,904

 

$

477,243

 

$

755,952

Restricted cash

   

408,635

   

327,097

   

359,283

Securities purchased under reverse repurchase agreements

 

250,079

   

250,000

   

-

Investments

   

250,927

   

193,399

   

159,034

Loans – Retail(1)

   

18,059,496

   

16,203,137

   

14,692,346

Loans – Commercial(1)

   

7,900,558

   

7,323,267

   

6,978,992

Securitization retained interests

   

132,683

   

115,331

   

111,202

Other assets

   

168,694

   

147,671

   

90,805

   

$

27,544,976

 

$

25,037,145

 

$

23,147,614

                   

Liabilities and Shareholders' Equity

                 

Liabilities:

                 

Deposits

 

$

15,111,948

 

$

13,668,521

 

$

13,021,485

Securitization liabilities

   

10,294,459

   

9,236,045

   

8,175,776

Obligations under repurchase agreements

   

463,071

   

342,010

   

299,028

Deferred tax liabilities

   

63,284

   

42,610

   

38,990

Other liabilities

   

200,692

   

177,961

   

178,946

Bank facilities

   

-

   

289,971

   

173,514

     

26,133,454

   

23,757,118

   

21,887,739

                   

Shareholders' equity:

                 

Preferred shares

   

72,557

   

72,557

   

72,557

Common shares

   

210,794

   

200,792

   

200,760

Contributed surplus

   

6,898

   

7,035

   

6,707

Retained earnings

   

1,144,628

   

1,014,559

   

980,272

Accumulated other comprehensive loss

   

(23,355)

   

(14,916)

   

(421)

     

1,411,522

   

1,280,027

   

1,259,875

   

$

27,544,976

 

$

25,037,145

 

$

23,147,614

                   

(1) 

Effective January 1, 2019, the Company has changed the presentation of its loan products.  Prior period presentation has been updated accordingly.

 

CONSOLIDATED STATEMENTS OF INCOME (unaudited)

     

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019

     

With comparative figures for the three and nine month periods ended September 30, 2018

     

($THOUSANDS, EXCEPT PER SHARE AMOUNTS)

                 
                   
   

Three months ended

Nine months ended

   

September 30, 2019

September 30, 2018

September 30, 2019

September 30, 2018

                   

Interest income:

                 

Loans – Retail(1)

 

$

176,082

$

138,553

$

503,440

$

390,347

Loans – Commercial(1)

   

98,477

 

76,923

 

294,314

 

212,706

Investments

   

2,304

 

1,496

 

6,209

 

4,042

Other

   

6,720

 

4,964

 

19,378

 

12,932

     

283,583

 

221,936

 

823,341

 

620,027

Interest expense:

                 

Deposits

   

98,872

 

77,908

 

288,848

 

209,584

Securitization liabilities

   

64,858

 

47,581

 

190,414

 

135,968

Bank facilities

   

1,706

 

3,423

 

6,258

 

20,685

     

165,436

 

128,912

 

485,520

 

366,237

Net interest income

   

118,147

 

93,024

 

337,821

 

253,790

Provision for credit losses

   

3,463

 

517

 

14,477

 

1,455

Net interest income after provision for credit losses

   

114,684

 

92,507

 

323,344

 

252,335

Other income:

                 

Fees and other income

   

6,110

 

4,843

 

17,654

 

16,767

Net (loss)/gain on investments

   

(327)

 

131

 

(1,072)

 

(101)

Gains on securitization activities and income from 

                 

securitization retained interests

   

3,919

 

5,500

 

8,481

 

11,461

     

9,702

 

10,474

 

25,063

 

28,127

Net interest and other income

   

124,386

 

102,981

 

348,407

 

280,462

Non-interest expenses:

                 

Compensation and benefits

   

25,696

 

19,406

 

75,731

 

57,041

Other

   

24,793

 

18,391

 

69,365

 

53,089

     

50,489

 

37,797

 

145,096

 

110,130

Income before income taxes

   

73,897

 

65,184

 

203,311

 

170,332

Income taxes:

                 

Current

   

14,524

 

17,124

 

45,961

 

43,848

Deferred

   

4,431

 

254

 

6,725

 

974

     

18,955

 

17,378

 

52,686

 

44,822

Net income

 

$

54,942

$

47,806

$

150,625

$

125,510

Dividends on preferred shares

   

1,191

 

1,191

 

3,573

 

3,573

Net income available to common shareholders

 

$

53,751

$

46,615

$

147,052

$

121,937

                   

Earnings per share:

                 

Basic

 

$

3.22

$

2.82

$

8.84

$

7.38

Diluted

 

$

3.18

$

2.80

$

8.75

$

7.33

                   

(1)

  Effective January 1, 2019, the Company has changed the presentation of its interest income relating to loan products.  Prior period presentation has been updated accordingly.

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019

With comparative figures for the three and nine month periods ended September 30, 2018

($ THOUSANDS)

       
   

Three months ended

Nine months ended

   

September 30, 2019

September 30, 2018

September 30, 2019

September 30, 2018

Net income

 

$

54,942

$

47,806

$

150,625

$

125,510

                   

Other comprehensive income – items that will be

                 

reclassified subsequently to income:

                 

Debt instruments at Fair Value through Other 

                 

Comprehensive Income:

                 

Net unrealized (losses)/gains from change in fair value

   

(71)

 

(4)

 

474

 

(30)

Reclassification of net (gains)/losses to income

   

-

 

17

 

(162)

 

17

                   

Other comprehensive income – items that will not be

                 

reclassified subsequently to income:

                 

Equity instruments designated at Fair Value through

                 

Other Comprehensive Income:

                 

Net unrealized (losses)/gains from change in fair value

   

(425)

 

831

 

(3,924)

 

603

Reclassification of net (gains)/losses to retained earnings

   

-

 

14

 

(638)

 

8

     

(496)

 

858

 

(4,250)

 

598

Income tax recovery/(expense)

   

128

 

(228)

 

1,127

 

(159)

     

(368)

 

630

 

(3,123)

 

439

                   

Cash flow hedges:

                 

Net unrealized gains/(losses) from change in fair value

   

582

 

3,533

 

(5,863)

 

2,564

Reclassification of net (gains)/losses to income

   

(1,496)

 

(4)

 

(1,373)

 

1,441

     

(914)

 

3,529

 

(7,236)

 

4,005

Income tax recovery/(expense)

   

240

 

(936)

 

1,920

 

(1,062)

     

(674)

 

2,593

 

(5,316)

 

2,943

Total other comprehensive (loss)/income

   

(1,042)

 

3,223

 

(8,439)

 

3,382

Total comprehensive income

 

$

53,900

$

51,029

$

142,186

$

128,892

 

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)

FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2019

With comparative figures for the three month period ended September 30, 2018

($ THOUSANDS)

 
                 

September 30, 2019

 
                 

Accumulated other

comprehensive

income (loss)

     
 

Preferred shares

Common shares

Contributed surplus

Retained
earnings

Cash flow hedges

Financial instruments at FVOCI

 

Total

 

Total

 
                                   

Balance, beginning of period

$

72,557

$

206,039

$

7,132

$

1,096,231

$

(1,993)

$

(20,320)

$

(22,313)

$

1,359,646

 

Net income

 

-

 

-

 

-

 

54,942

 

-

 

-

 

-

 

54,942

 

Transfer of losses on sale of equity instruments

 

-

 

-

 

-

 

169

 

-

 

(169)

 

(169)

 

-

 

Other comprehensive loss, net of tax

 

-

 

-

 

-

 

-

 

(674)

 

(199)

 

(873)

 

(873)

 

Exercise of stock options

 

-

 

4,132

 

-

 

-

 

-

 

-

 

-

 

4,132

 

Dividends:

                                 

Preferred shares

 

-

 

-

 

-

 

(1,191)

 

-

 

-

 

-

 

(1,191)

 

Common shares

 

-

 

-

 

-

 

(5,523)

 

-

 

-

 

-

 

(5,523)

 

Stock-based compensation

 

-

 

-

 

389

 

-

 

-

 

-

 

-

 

389

 

Transfer relating to the exercise of stock options

 

-

 

623

 

(623)

 

-

 

-

 

-

 

-

 

-

 

Balance, end of period

$

72,557

$

210,794

$

6,898

$

1,144,628

$

(2,667)

$

(20,688)

$

(23,355)

$

1,411,522

 
                                   
                                   
                 

September 30, 2018

 
                 

Accumulated other

comprehensive

income (loss)

     
 

Preferred shares

Common shares

Contributed surplus

Retained
earnings

Cash flow

hedges

Financial

instruments at FVOCI

 

Total

 

Total

 
                                   

Balance, beginning of period

$

72,557

$

199,305

$

6,612

$

938,122

$

3,503

$

(7,147)

$

(3,644)

$

1,212,952

 

Net income

 

-

 

-

 

-

 

47,806

 

-

 

-

 

-

 

47,806

 

Other comprehensive income, net of tax

 

-

 

-

 

-

 

-

 

2,593

 

630

 

3,223

 

3,223

 

Exercise of stock options

 

-

 

1,229

 

-

 

-

 

-

 

-

 

-

 

1,229

 

Dividends:

                                 

Preferred shares

 

-

 

-

 

-

 

(1,191)

 

-

 

-

 

-

 

(1,191)

 

Common shares

 

-

 

-

 

-

 

(4,465)

 

-

 

-

 

-

 

(4,465)

 

Stock-based compensation

 

-

 

-

 

321

 

-

 

-

 

-

 

-

 

321

 

Transfer relating to the exercise of stock options

 

-

 

226

 

(226)

 

-

 

-

 

-

 

-

 

-

 

Balance, end of period

$

72,557

$

200,760

$

6,707

$

980,272

$

6,096

$

(6,517)

$

(421)

$

1,259,875

 
                                               

 

 

 

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2019

With comparative figures for the nine month period ended September 30, 2018

($ THOUSANDS)

                                   
                   

September 30, 2019

                   

Accumulated other

comprehensive

income (loss)

   
   

Preferred
shares

Common
shares

Contributed
surplus

Retained
earnings

Cash flow
hedges

Financial
instruments
at FVOCI

 

Total

 

Total

                                   

Balance, beginning of period

 

$

72,557

$

200,792

$

7,035

$

1,014,559

$

2,649

$

(17,565)

$

(14,916)

$

1,280,027

Cumulative effect of adopting IFRS 16(1)

   

-

 

-

 

-

 

(840)

 

-

 

-

 

-

 

(840)

Restated balance as at January 1, 2019

   

72,557

 

200,792

 

7,035

 

1,013,719

 

2,649

 

(17,565)

 

(14,916)

 

1,279,187

Net income

   

-

 

-

 

-

 

150,625

 

-

 

-

 

-

 

150,625

Transfer of losses on sale of equity instruments

   

-

 

-

 

-

 

(469)

 

-

 

469

 

469

 

-

Other comprehensive loss, net of tax

   

-

 

-

 

-

 

-

 

(5,316)

 

(3,592)

 

(8,908)

 

(8,908)

Exercise of stock options

   

-

 

8,664

 

-

 

-

 

-

 

-

 

-

 

8,664

Dividends:

                                 

Preferred shares

   

-

 

-

 

-

 

(3,573)

 

-

 

-

 

-

 

(3,573)

Common shares

   

-

 

-

 

-

 

(15,674)

 

-

 

-

 

-

 

(15,674)

Stock-based compensation

   

-

 

-

 

1,201

 

-

 

-

 

-

 

-

 

1,201

Transfer relating to the exercise of stock options

   

-

 

1,338

 

(1,338)

 

-

 

-

 

-

 

-

 

-

Balance, end of period

 

$

72,557

$

210,794

$

6,898

$

1,144,628

$

(2,667)

$

(20,688)

$

(23,355)

$

1,411,522

                                   
                                   
                   

September 30, 2018

                   

Accumulated other

comprehensive

income (loss)

   
   

Preferred
shares

Common
shares

Contributed
surplus

Retained
earnings

Cash flow
hedges

Financial
instruments
at FVOCI

 

Total

 

Total

                                   

Balance, beginning of period

 

$

72,557

$

198,660

$

6,012

$

866,109

$

3,153

$

(8,374)

$

(5,221)

$

1,138,117

Cumulative effect of adopting IFRS 9

   

-

 

-

 

-

 

5,450

 

-

 

1,418

 

1,418

 

6,868

Restated balance as at January 1, 2018

   

72,557

 

198,660

 

6,012

 

871,559

 

3,153

 

(6,956)

 

(3,803)

 

1,144,985

Net income

   

-

 

-

 

-

 

125,510

 

-

 

-

 

-

 

125,510

Transfer of losses on sale of equity instruments

   

-

 

-

 

-

 

(6)

 

-

 

-

 

-

 

(6)

Other comprehensive income, net of tax

   

-

 

-

 

-

 

-

 

2,943

 

439

 

3,382

 

3,382

Exercise of stock options

   

-

 

1,754

 

-

 

-

 

-

 

-

 

-

 

1,754

Dividends:

                                 

Preferred shares

   

-

 

-

 

-

 

(3,573)

 

-

 

-

 

-

 

(3,573)

Common shares

   

-

 

-

 

-

 

(13,218)

 

-

 

-

 

-

 

(13,218)

Stock-based compensation

   

-

 

-

 

1,041

 

-

 

-

 

-

 

-

 

1,041

Transfer relating to the exercise of stock options

   

-

 

346

 

(346)

 

-

 

-

 

-

 

-

 

-

Balance, end of period

 

$

72,557

$

200,760

$

6,707

$

980,272

$

6,096

$

(6,517)

$

(421)

$

1,259,875

                                             

(1) 

The Company adopted IFRS 16 effective January 1, 2019 using the modified retrospective approach, with the cumulative effect of initially applying the standard recognized in opening retained earnings at the date of initial application.  The adjustment of $840 is net of tax.

 

 

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2019

With comparative figures for the three and nine month periods ended September 30, 2018

($ THOUSANDS)

                 
                   
   

Three months ended

Nine months ended

   

September 30, 2019

September 30, 2018

September 30, 2019

September 30, 2018

CASH FLOWS FROM OPERATING ACTIVITIES

                 

Net income for the period

 

$

54,942

$

47,806

$

150,625

$

125,510

Adjustments for non-cash items in net income:

                 

Financial instruments at fair value through income

   

4,715

 

(416)

 

9,938

 

(4,136)

Amortization of premiums/discount on investments

   

483

 

1,873

 

2,075

 

6,410

Amortization of capital assets and intangible costs

   

4,454

 

2,431

 

12,538

 

7,190

Provision for credit losses

   

3,463

 

517

 

14,477

 

1,455

Securitization gains

   

(2,861)

 

(5,500)

 

(7,221)

 

(11,461)

Stock-based compensation

   

389

 

321

 

1,201

 

1,041

Income taxes

   

18,955

 

17,378

 

52,686

 

44,822

Securitization retained interests

   

7,930

 

7,055

 

22,969

 

20,755

Changes in operating assets and liabilities:

                 

Restricted cash

   

53,802

 

(11,998)

 

(38,961)

 

6,755

Securities purchased under reverse repurchase agreements

   

(125,011)

 

-

 

(79)

 

-

Loans, net of securitizations

   

(1,107,255)

 

(1,214,589)

 

(2,046,715)

 

(2,366,993)

Other assets

   

(6,234)

 

(3,138)

 

38,095

 

12,118

Deposits

   

393,648

 

544,511

 

1,427,120

 

1,909,474

Securitization liabilities

   

270,452

 

591,449

 

668,621

 

610,542

Obligations under repurchase agreements

   

463,071

 

96,101

 

121,061

 

(152,972)

Bank facilities

   

-

 

(77,297)

 

(320,421)

 

44,643

Other liabilities

   

(4,769)

 

(5,733)

 

(25,080)

 

(25,879)

Income taxes paid

   

(11,328)

 

(15,485)

 

(37,019)

 

(49,183)

Cash flows from/(used in) operating activities

   

18,846

 

(24,714)

 

45,910

 

180,091

CASH FLOWS FROM FINANCING ACTIVITIES

                 

Proceeds from issuance of common shares

   

4,132

 

1,229

 

8,664

 

1,754

Dividends paid on preferred shares

   

(1,191)

 

(1,191)

 

(3,573)

 

(3,573)

Dividends paid on common shares

   

(5,523)

 

(4,461)

 

(20,309)

 

(12,879)

Cash flows used in financing activities

   

(2,582)

 

(4,423)

 

(15,218)

 

(14,698)

CASH FLOWS FROM INVESTING ACTIVITIES

                 

Purchase of investments

   

(37,325)

 

(4,847)

 

(70,708)

 

(57,469)

Acquisition of subsidiary

   

-

 

-

 

(46,772)

 

-

Proceeds on sale or redemption of investments

   

43

 

-

 

22,591

 

45

Net change in Canada Housing Trust re-investment Accounts

   

(24,363)

 

(12)

 

(24,208)

 

26

Purchase of capital assets and system development costs

   

(5,137)

 

(3,740)

 

(14,301)

 

(12,973)

Cash flows used in investing activities

   

(66,782)

 

(8,599)

 

(133,398)

 

(70,371)

Net (decrease)/increase in cash and cash equivalents

   

(50,518)

 

(37,736)

 

(102,706)

 

95,022

Cash and cash equivalents, beginning of period

   

424,422

 

793,688

 

476,610

 

660,930

Cash and cash equivalents, end of period

 

$

373,904

$

755,952

$

373,904

$

755,952

                   

Cash flows from operating activities include:

                 

Interest received

 

$

276,761

$

210,403

$

791,791

$

601,246

Interest paid

   

(173,966)

 

(67,545)

 

(379,096)

 

(211,782)

Dividends received

   

1,505

 

1,517

 

5,119

 

4,091

 

ABOUT EQUITABLE GROUP INC.

Equitable Group Inc. is a growing Canadian financial services business that operates through its wholly-owned subsidiary, Equitable Bank. Equitable Bank, Canada's Challenger BankTM, has grown to become the country's ninth largest independent Schedule I bank through its proven branchless approach and customer service focus in providing residential lending, commercial lending and savings solutions to Canadians.  EQ Bank, the digital banking platform offered by Equitable Bank, provides state-of-the-art digital banking services.  The EQ Bank Savings Plus Account reimagines banking for Canadians by offering the functionality of a chequing account to perform daily banking with ease, as well as a great everyday interest rate to help transactional balances grow into bigger savings.  From unlimited Interac® e-Transfers and bill payments to payroll deposits and no monthly fees, everyday banking is now a richer prospect for Canadians.  Equitable Bank employs over 800 dedicated professionals across the country.  For more information about Equitable Bank and its products, please visit equitablebank.ca

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Statements made by the Company in the sections of this news release, in other filings with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws ("forward-looking statements").  These statements include, but are not limited to, statements about the Company's objectives, strategies and initiatives, financial performance expectations and other statements made herein, whether with respect to the Company's businesses or the Canadian economy.  Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", or other similar expressions of future or conditional verbs.  Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, changes in accounting standards, the nature of our customers and rates of default, and competition as well as those factors discussed under the heading "Risk Management" in the MD&A and in the Company's documents filed on SEDAR at www.sedar.com.  All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting the Company and the Canadian economy.  Although the Company believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.  Certain material assumptions are applied by the Company in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its mortgage business, a continuation of the current level of economic uncertainty that affects real estate market conditions, continued acceptance of its products in the marketplace, as well as no material changes in its operating cost structure and the current tax regime.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Accordingly, readers should not place undue reliance on forward-looking statements.  The Company does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

NON-GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP") FINANCIAL MEASURES

This news release references certain non-GAAP measures such as Adjusted Diluted earnings per share, Adjusted Return on Shareholders' Equity, Reported Return on Shareholders' Equity, Provision for credit losses – rate, and Common Equity Tier 1 Capital Ratio that management believes provide useful information to investors regarding the Company's financial condition and results of operations.  The "NON-GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP") FINANCIAL MEASURES" section of the Company's third quarter 2019 MD&A provides a detailed description of each non-GAAP measure and should be read in conjunction with this release.  The MD&A also provides a reconciliation between all non-GAAP measures and the most directly comparable GAAP measure, where applicable.  Readers are cautioned that non-GAAP measures often do not have any standardized meaning, and therefore, may not be comparable to similar measures presented by other companies.

 

SOURCE Equitable Group Inc.

For further information: Andrew Moor, President and Chief Executive Officer, 416-515-7000; Tim Wilson, Senior Vice President and Chief Financial Officer, 416-515-7000