Equitable Group Inc. (TSX: EQB and EQB.PR.C) is a leading Canadian financial services business that operates through its wholly-owned subsidiary, Equitable Bank (the “Bank” or “Equitable”). Equitable Bank is a Schedule I Bank regulated by the Office of the Superintendent of Financial Institutions Canada (“OSFI”) with total Assets Under Management of approximately $23 billion. It serves retail and commercial customers across Canada with a range of savings solutions and mortgage lending products, offered under the Equitable Bank and EQ Bank brands. Measured by assets, Equitable Bank is the ninth largest independent Schedule I Bank in Canada.
Equitable operates with a branchless banking model and competes in niche lending and savings markets that are not well served by the larger Canadian banks or in which we have a unique advantage. The Bank’s strategy is to continue growing over time by delivering superior service to our customers and business partners across Canada, and to diversify by launching new offerings. With this approach, it aims to grow earnings, produce a Return on Equity for our shareholders in the mid to high-teens, and maintain strong regulatory capital ratios.
Currently, Equitable Bank provides mortgage loans to a wide range of customers that includes business-for-self borrowers, newcomers to Canada and commercial real estate investors. The Bank also provides Canadians with various saving options that offer security and attractive interest rates, including Guaranteed Investment Certificates (“GIC”s), High Interest Savings Accounts (“HISA”s), and deposit notes. We generally serve these customers through our extensive partnerships with Canada’s mortgage brokers, mortgage bankers, deposit agents, investment dealers, and financial planners who provide independent professional advice to their clients.
Equitable Bank competes successfully with other financial institutions on the basis of its niche strategy and ability to execute well against it. The Bank’s execution reflects the breadth of its capabilities and customer service focus. Management intends to build on these capabilities to grow existing businesses and to prudently diversify the products and services offered over time.
Commitment to service excellence and partner and customer satisfaction
Disciplined deployment of the Bank’s capital, which is generated by retaining the majority of earnings
Broad relationships with mortgage brokers and agents who originate Equitable mortgages
A low-cost, branchless business model that allows sustainability in an industry leading efficiency ratio
Rigorous risk management standards, including a disciplined approach to credit risk management
Access to cost-effective funding, most importantly deposits that are eligible for CDIC insurance and CMHC sponsored securitization programs
Highly skilled and engaged people
Equitable Bank organizes operations according to products and customers’ needs:
Equitable offers mortgages for owner-occupied and investment properties including detached and semi-detached house, townhouses, and condos across Canada with a competitive product suite including a Home Equity Line of Credit (“HELOC”).
The Single Family Lending Services business leverages an extensive network of licensed mortgage brokers and agents to create a highly responsive customer service ethic.
Through its brokers, the Bank delivers lending solutions to an attractive, under-served niche, the alternative mortgage market.
The Bank’s customers include entrepreneurs and Business-For-Self Canadians, new Canadians, the credit challenged, who have the financial resources to achieve real estate ownership but don't qualify for a mortgage in the prime market.
The Commercial business serves the market with two distinct offerings: Business Enterprise Solutions (“BES”) and Commercial Finance Group (“CFG”).
The BES team works with independent commercial mortgage brokers and agents to serve entrepreneurs, business operators and real estate investors in the purchase of:
The CFG team partners with other large institutions and mortgage investment corporations to finance large, sophisticated commercial mortgage transactions across Canada. By teaming up with other like-minded organizations, Equitable provide a reliable source of funding on a variety of transactions, including bridge loans, construction facilities and asset repositioning transactions.
The Bank’s four decade history of success as a commercial lender is built on in-depth market knowledge and an efficient underwriting process, both of which allow it to maintain a high level of service to our customers and partners. The team is able to expertly asses the current condition and future potential of the property, the financial capacity of the borrower and the viability of the transaction – all in tight timeframes.
Equitable’s Securitization Financing business originates and then securitizes insured Multi-Unit and Single Family residential mortgages.
The Bank has extensive experience in mortgage securitization as a result of its participation in the Canada Mortgage and Housing Corporation, administered National Housing Act Mortgage-Backed Securities and Canada Mortgage Bond programs. It also benefits from its extensive partner and mortgage broker distribution relationships.
Our Prime Single Family Lending team provides licensed mortgage brokers and agents, working on behalf of Canadian borrowers, with a choice behind the traditional banks for prime fixed-rate mortgages (with terms of one to five years) and prime adjustable mortgages (terms of three and five years). Whether prime funds are needed for a first home, vacation property or rental unit, Equitable Bank is the bank for those who value responsive, respectful service along with competitive rates.
The Deposit Services business is responsible for maintaining our portfolio of safe and secure savings products that our sold directly, and through the broker channel, under Equitable Bank by capitalizing on its natural cost advantage as a branchless financial institution, Equitable is able to offer Canadian savers a highly competitive rate of interest on all of our deposit products. The team delivers exceptional service that meets the needs of customers and their investment advisors in all provinces and territories.
The Bank offers a range of deposit products including short-term, long-term and Cashable GICs, available in a non-registered or Tax Free Savings Account (“TFSA”), and High Interest Savings Account ("HISA").
Equitable Bank deposits are available at our Toronto office, or through a deposit agent or investment advisor.
EQ Bank is Equitable’s digital bank, designed and built for customers to access their bank accounts from anywhere, at any time, on any device. That means customers have digital access to their money 24/7 and a personalized, always-open Customer Care Centre.
With no branches or costly overhead, EQ Bank is able to offer great interest rates and no monthly fees on the EQ Bank Savings Plus Account. It’s a high interest savings account that can be used for everyday banking such as paying bills and transferring money, without any hassles. Plus, transfer your money when you need to – with 5 free Interac e-Transfers® per month and free unlimited Electronic Fund Transfers.
Since launching EQ Bank has become the go-to choice of saving for thousands of Canadians and allowed Equitable to diversify our multibillion dollar deposit business.
Equitable Group Inc.'s common and preferred shares are traded on the Toronto Stock Exchange under the symbols EQB and EQB.PR.C.