Canada's
Challenger Bank™ Now Serves Nearly 275,000 Canadians
TORONTO, May 4, 2021 /CNW/ - Equitable Group Inc. (TSX:
EQB) (TSX: EQB.PR.C) today reported record first quarter earnings
for the three months ended March 31,
2021 and upgraded its outlook for 2021 on the strength of
growth trends at Equitable Bank (Canada's Challenger Bank™) including new
account openings and increasing affinity for its smarter banking
solutions that enrich the lives of Canadians.
Q1 Net Earnings $69.2
Million +$43.2 Million from 2020
- Q1 diluted EPS $3.97, +172% from
suppressed levels in Q1 2020 at the onset of COVID-19
ROE, Book Value, Efficiency Demonstrate Structural
Advantages
- Q1 ROE 17.1%, +9.9% from Q1 2020 and above target of
15-17%
- Book value +19% y/y or $15.86 to
$97.86 per share (and +5% or
$4.51 from Q4 2020)
- Efficiency ratio 38.2%
High-Quality Asset Growth with Industry-Leading
Efficiency
- Loans under management +9% y/y to $34.2
billion, (and +2% from Q4)
- Total loan originations +39% y/y to $2.7
billion, Commercial +52% y/y and Personal +28%
- Reverse mortgages +44% q/q and 241% y/y
Capital Ratios Provide Capacity for Future
Growth
- CET1 ratio 14.5%, remaining above target range of 13-14%
"Canadians deserve a better commercial and personal banking
experience, and they are finding it at Equitable, the recent
recipient of Canada's Best Bank
award from Forbes and an institution that challenges itself to
persistently innovate for customers. The ongoing efforts of our
team produced outstanding first quarter results. Customer account
openings at EQ Bank increased 92% from a year ago to nearly 202,000
with 28,000 new customers joining us in Q1 helping to drive
deposits up by $1.2 billion in just
three months. Lending surpassed our expectations with no change in
our conservative risk management approach but strong asset
gathering in Conventional commercial, Insured multis, Wealth
decumulation solutions and a return to market leadership on new
originations in Alternative single family. Based on the way
customers are embracing Canada's
Challenger BankTM, and the trend lines in our deposit
and lending businesses, we are pleased to raise our outlook for
2021," said Andrew Moor, President and Chief Executive
Officer.
New 2021 Outlook Features Higher Expectations for
Conventional Loan Growth and EQ Bank Deposits
- Equitable's revised 2021 outlook now includes full
year-over-year EQ Bank deposit growth of 30-50% (upgraded from
20-30%) and total loan growth of 8-12% (upgraded from 6-10%),
including increases in Commercial finance group (20-25% growth from
12-15%), Alternative single family mortgages (12-15% from 5-8%) and
Reverse mortgages to 200%+ (from 100%+).
- The improved growth outlook for conventional commercial and
personal loans is expected to create additional momentum for
2022.
Reaffirming Confidence in Medium-Term Growth
Objectives
- Equitable is reaffirming its medium-term performance and growth
objectives which are found in its Q1 2021 MD&A.
EQ Bank Deposits Exceed $6
Billion in Deposits in early April
2021
- EQ Bank's customer base grew 92% over the past 12 months and
16% in Q1 to nearly 202,000 with 28,000 new accounts opened in the
first three months of the year.
- EQ Bank deposits increased 114% since Q1 2020 to
$5.8 billion at March 31, 2021 and $1.2
billion within the first quarter reflecting growth in the
customer base and the introduction of new services including the EQ
Bank RSP, EQ Bank TSFA and the EQ Bank Joint Savings Account.
- Customer engagement – measured by use of services each month
and the number of products held per customer – increased
substantially year over year.
Total Deposits Top $17.4
Billion As Sources of Funding Grow and Diversify
- Equitable Bank's total deposits were up
13% year-over-year to $17.4 billion
from $15.5 billion a year ago and up
6% within the first quarter.
- Customer demand for Equitable Trust high interest savings
accounts and U.S. currency GICs complemented growth in other parts
of the portfolio including EQ Bank joint accounts, RSPs, TSFAs and
long term GICs.
- Equitable Bank's Deposit Note Program surpassed
$1 billion during the quarter with
the issuance of a $250 million 4-year
fixed rate deposit note maturing March 10,
2025 priced at 120 bps over comparable term Government of
Canada bonds – the lowest spread
of all issuances to date.
- Great progress was made toward an issuance in the first half of
2021 of an inaugural covered bond including filing the Bank's
issuer application with CMHC.
Personal and Commercial Banking Add Quality Assets in
Diversified Markets
- Total originations were up 39% to $2.7 billion from a year ago, reflecting a more
constructive posture to underwriting compared to the early days of
the pandemic.
- Total on-balance sheet loan principal increased by $2.1 billion year-over-year, driven by growth in
both Personal and Commercial segments.
- The Bank's Commercial loan originations increased $475 million or 52% since Q1 2020 on 65% growth
in conventional commercial loans, 42% growth in multi-unit
residential mortgages, and 35% growth in equipment leases
(primarily within the logistics and transportation sectors).
- The Bank's Personal loan originations increased $291 million or 28% year-over-year with 78%
growth in Prime loan originations.
- Alternative single family originations, a key driver of the
Bank's Personal segment earnings, increased 17% year-over-year on
strong market leadership.
- Assets under management were up 8% over the past 12-months (and
2% from Q4) to $36.7 billion
reflecting broad-based growth.
Wealth Decumulation Book Breaks Through $100 Million Level
- Equitable Bank's Wealth Decumulation business increased assets
by nearly three-fold year-over-year to $115
million.
- Demand for the Bank's reverse mortgage products accelerated due
to low interest rates, record property values and a strong
preference for aging in place and is expected to further increase
as the Canadian market is under-served compared to international
benchmarks with Equitable poised to benefit based on its expanded
market share and differentiated product terms and features that
appeal to a larger audience of Canadian mortgage advisors and
clients.
- Triple-digit year-over-year asset growth was also realized by
the Bank's CSV line of credit offering with further expansion
expected on the strength of new lending arrangements made in Q1
with Sun Life whereby qualifying policyholders can access Equitable
Bank's market-leading product.
Credit Metrics Reflect Long-Term Prudence, Q1 Reserve
Releases $3.1M
- Reserve releases amounted to $3.1
million in Q1 (or $0.13 per
share), reflecting an improvement in macroeconomic forecasts used
for loss modelling and the large provision for credit losses taken
a year ago.
- Provision for credit losses (PCL) was a net benefit of
$0.8 million for the period ended
March 31, 2021 compared to charge in
prior periods (Q4 2020 – $0.1
million, Q1 2020 – $35.7
million), as future expected losses resulting from the
pandemic were recorded in Q1 and Q2 2020.
- Net impaired loans declined to 0.36% of total loan assets at
March 31, 2021 compared to
0.47% a year ago (and 0.42% at year-end) reflecting a reduction of
$22.0 million year-over-year and
$12.7 million from the preceding
quarter.
- Equitable remains well reserved for credit losses with
allowances as a percentage of total loan assets equaling 22 bps at
March 31, 2021 reflecting a decrease
in allowances in stages 2 and 3 over last year.
- Stage 3 allowances dropped by $2.8
million or 46% since the prior year.
- Realized losses remained low at $2.5
million or 3 basis points relative to total loan
assets.
EQ Bank Mortgage Marketplace Joins New
Challenger Bank Services
- Equitable in collaboration with Nesto, an online mortgage
agency, launched the EQ Bank Mortgage Marketplace in late
April, an all-digital service that allows customers to compare over
2,000 mortgage products offered by Canadian lenders.
- EQ Bank has completed development of a new U.S. currency
account for launch in mid-May, increasing its value proposition to
customers by offering customers the ability to earn more while
saving on their U.S. dollar transactions.
- In partnership with Wise, EQ Bank expanded its
international money transfer service to include 40 currencies –
three added in the first quarter – to better serve Canadians who
appreciate the dual advantage of speed and cost with transfers up
to 8 times1 less expensive than traditional
alternatives.
- The popularity of Equitable Bank's new U.S. Currency
GICs and the Equitable Bank U.S. High Interest Savings
Accounts grew on the strength of recommendations from
independent wealth advisors.
1
|
Based on research
conducted by Equitable comparing exchange rates and transaction
fees from Wise, Canada's 'Big 5' banks and Simplii Financial.
Research considered comparable online global money transfer
services and was conducted using the following transactions for
both $500 CAD and $999 CAD: total cost to send CAD to INR in India,
total cost to send CAD to USD in the United States and total cost
to send CAD to EUR in France. Research took place on October 19,
2020. Promotions excluded.
|
Strengthened Capital and Liquidity Positions Provide
Protection, Growth Capacity
- The Bank's CET1 Capital Ratio of 14.5% at March 31, 2021 exceeded the top end of
management's target range by 100 bps and compared favourably with
13.5% at March 31, 2020.
- Relative to our target CET1 Capital Ratio, the Bank is holding
$108 million of excess capital or
$6.37 per common share, resulting in
ROE suppression of 1.3% in Q1.
- Liquid assets were $3.2 billion
or 10.2% of total assets at March 31,
2021 compared to $2.3 billion
or 7.8% of assets a year ago.
- Liquidity Coverage Ratio at March 31,
2021 was well in excess of the regulatory minimum of
100%.
Board of Directors Declares Dividends for Second Quarter
2021
- Dividend of $0.37 per common
share will be paid on June 30,
2021 to common shareholders of record at the close of
business June 15, 2021 – a payout
ratio of 9.3%.
- Dividend of $0.373063 per
preferred share will be paid on June 30,
2021 to preferred shareholders of record at the close of
business on June 15, 2021.
- Dividend rate was unchanged from 2020 reflecting regulatory
guidance from OSFI to all federally regulated banks.
Governance Excellence, Strong Sustainability Focus
- Equitable will publish its 2021 Sustainability Report and
Public Accountability Statement on May 7,
2021, which will provide information on the Bank's
commitment to ESG.
- The Report notes that Equitable runs an environmentally
conscious business, supports its employees, the community, and
underserved customers through a challenging year in 2020, and
operates with consistently strong governance.
- Equitable will host its annual and special meeting of
shareholders virtually beginning at 10
a.m. Eastern on May 12.
Information can be found in the Virtual AGM User Guide available at
www.equitablebank.ca and at Envision at
www.envisionreports.com/EQB2021.
Equitable Bank Named a Top 50 Best Workplace
- Equitable's employee base of Challengers reaches nearly 1,000
as the Bank prepares for growth, but revenue per FTE still
increased 10% year-over-year.
- In April 2021, Equitable Bank was
recognized as one of the top 50 Best Workplaces™ in Canada complied by Great Place to Work®
Institute and based on a survey of 82,000 employees.
Forbes Names EQ Bank the Canada's Best Bank on its 2021 World's
Best List
- Forbes recognized EQ Bank as the Best Bank in Canada and named it – for the first time – to
its list of the World's Best Banks based on a survey of 43,000
customers in 28 countries.
- Banks were rated on general consumer satisfaction and key
attributes like trust, fees, digital services and financial
advice.
"Equitable is challenging the way banking is done in
Canada in a thoughtful,
no-nonsense manner with a clear goal: enrich lives," said Mr. Moor.
"Canadians are responding in kind, entrusting us with the growth of
their savings and counting on us to meet their personal and
business objectives with competitive financing. Between the new
Challenger Bank services we will bring forward this year and the
strong and growing allegiance our customers have to our diverse and
proven banking products, we expect 2021 to be our best year
ever."
Analyst Conference Call and Webcast: 8:30 a.m. Eastern Wednesday, May 5, 2021
Equitable's Andrew Moor,
President and Chief Executive Officer, Chadwick Westlake, Chief Financial Officer and
Ron Tratch, Chief Risk Officer will
host the first quarter conference call and webcast. 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 eqbank.investorroom.com/events-webcasts.
A replay of the call will be available until May 12, 2021 at midnight at (416) 849-0833
(passcode 6354597 followed by the number sign). Alternatively, the
webcast will be archived on the Bank's website.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheets (unaudited)
|
|
|
|
($000s) As
at
|
March 31,
2021
|
December 31,
2020
|
March 31,
2020
|
Assets:
|
|
|
|
Cash and cash
equivalents
|
596,267
|
557,743
|
737,335
|
Restricted
cash
|
532,693
|
504,039
|
390,398
|
Securities purchased
under reverse repurchase
agreements
|
350,037
|
450,203
|
499,966
|
Investments
|
611,718
|
589,876
|
410,639
|
Loans –
Personal
|
19,507,100
|
19,445,386
|
18,552,216
|
Loans –
Commercial
|
9,384,917
|
8,826,182
|
8,229,032
|
Securitization retained
interests
|
187,866
|
184,844
|
145,850
|
Other assets
|
183,939
|
188,045
|
188,443
|
|
31,354,537
|
30,746,318
|
29,153,879
|
Liabilities and
Shareholders' Equity
|
|
|
|
Liabilities:
|
|
|
|
Deposits
|
17,609,846
|
16,585,043
|
15,695,407
|
Securitization liabilities
|
11,731,668
|
11,991,964
|
10,777,497
|
Obligations under repurchase agreements
|
-
|
251,877
|
429,347
|
Deferred
tax liabilities
|
63,269
|
60,880
|
48,117
|
Other
liabilities
|
217,975
|
208,852
|
252,822
|
Bank
facilities
|
-
|
-
|
499,988
|
|
29,622,758
|
29,098,616
|
$27,703,178
|
Shareholders'
equity:
|
|
|
|
Preferred shares
|
72,194
|
72,477
|
72,557
|
Common
shares
|
224,397
|
218,166
|
213,701
|
Contributed surplus
|
7,722
|
8,092
|
7,405
|
Retained
earnings
|
1,449,715
|
1,387,919
|
1,212,125
|
Accumulated other comprehensive loss
|
(22,249)
|
(38,952)
|
(55,087)
|
|
1,731,779
|
1,647,702
|
1,450,701
|
|
31,354,537
|
30,746,318
|
29,153,879
|
Consolidated statements of
income (unaudited)
|
|
|
($000s, except per
share amounts) Three month period ended
|
March 31,
2021
|
March 31,
2020
|
Interest
income:
|
|
|
Loans – Personal
|
161,057
|
181,557
|
Loans –
Commercial
|
101,258
|
100,206
|
Investments
|
2,899
|
2,488
|
Other
|
2,620
|
5,947
|
|
267,834
|
290,198
|
Interest
expense:
|
|
|
Deposits
|
77,785
|
101,820
|
Securitization
liabilities
|
55,892
|
67,021
|
Bank facilities
|
191
|
1,206
|
|
133,868
|
170,047
|
Net interest
income
|
133,966
|
120,151
|
Non-interest
income:
|
|
|
Fees and other
income
|
5,575
|
6,723
|
Net loss on loans and
investments
|
(1,461)
|
(8,531)
|
Gains on securitization
activities and income from securitization retained
interests
|
12,090
|
6,502
|
|
16,204
|
4,694
|
Revenue
|
150,170
|
124,845
|
Provision for credit
losses
|
(772)
|
35,687
|
Revenue after
provision for credit losses
|
150,942
|
89,158
|
Non-interest
expenses:
|
|
|
Compensation and
benefits
|
28,973
|
26,895
|
Other
|
28,344
|
27,285
|
|
57,317
|
54,180
|
Income before income
taxes
|
93,625
|
34,978
|
Income
taxes:
|
|
|
Current
|
22,042
|
15,580
|
Deferred
|
2,389
|
(6,572)
|
|
24,431
|
9,008
|
Net income
|
69,194
|
25,970
|
Dividends on
preferred shares
|
1,114
|
1,119
|
Net income available
to common shareholders
|
68,080
|
24,851
|
|
|
|
Earnings per
share:
|
|
|
Basic
|
4.02
|
1.48
|
Diluted
|
3.97
|
1.46
|
Consolidated statements of comprehensive income (unaudited)
|
|
|
($000s) Three month
period ended
|
March 31,
2021
|
March 31,
2020
|
Net income
|
69,194
|
25,970
|
|
|
|
Other comprehensive
income – items that will be reclassified subsequently to
income:
|
|
|
Debt instruments at
Fair Value through Other Comprehensive Income:
|
|
|
Net
unrealized losses from change in fair value
|
(1,658)
|
(825)
|
Reclassification of net losses (gains) to income
|
1,139
|
(668)
|
|
|
|
Other comprehensive
income – items that will not be reclassified subsequently to
income:
|
|
|
Equity instruments
designated at Fair Value through Other Comprehensive
Income:
|
|
|
Net
unrealized gains (losses) from change in fair value
|
9,728
|
(22,908)
|
|
9,209
|
(24,401)
|
Income tax (expense)
recovery
|
(2,418)
|
6,447
|
|
6,791
|
(17,954)
|
Cash flow
hedges:
|
|
|
Net unrealized gains
(losses) from change in fair value
|
13,910
|
(28,061)
|
Reclassification of
net (gains) losses to income
|
(465)
|
2,855
|
|
13,445
|
(25,206)
|
Income tax (expense)
recovery
|
(3,533)
|
6,659
|
|
9,912
|
(18,547)
|
Total other
comprehensive income (loss)
|
16,703
|
(36,501)
|
Total comprehensive
income (loss)
|
85,897
|
(10,531)
|
Consolidated statements of changes in shareholders' equity (unaudited)
|
|
($000s)
|
March 31,
2021
|
|
Preferred
Shares
|
Common
Shares
|
Contributed
Surplus
|
Retained
Earnings
|
Accumulated other
comprehensive
income (loss)
|
Total
|
|
Cash Flow
Hedges
|
Financial
Instruments at FVOCI
|
Total
|
Balance, beginning of
period
|
72,477
|
218,166
|
8,092
|
1,387,919
|
(19,943)
|
(19,009)
|
(38,952)
|
1,647,702
|
Net Income
|
-
|
-
|
-
|
69,194
|
-
|
-
|
-
|
69,194
|
Other comprehensive
income, net of tax
|
-
|
-
|
-
|
-
|
9,912
|
6,791
|
16,703
|
16,703
|
Exercise of stock
options
|
-
|
5,226
|
-
|
-
|
-
|
-
|
-
|
5,226
|
Purchase of
treasury
preferred
shares
|
(283)
|
-
|
-
|
-
|
-
|
-
|
-
|
(283)
|
Net loss
on
cancellation
of
treasury
preferred
shares
|
-
|
-
|
-
|
(10)
|
-
|
-
|
-
|
(10)
|
Dividends:
|
|
|
|
|
|
|
|
|
Preferred shares
|
-
|
-
|
-
|
(1,114)
|
-
|
-
|
-
|
(1,114)
|
Common
shares
|
-
|
-
|
-
|
(6,274)
|
-
|
-
|
-
|
(6,274)
|
Stock-based
compensation
|
-
|
-
|
635
|
-
|
-
|
-
|
-
|
635
|
Transfer relating
to
the exercise of
stock
options
|
-
|
1,005
|
(1,005)
|
-
|
-
|
-
|
-
|
-
|
Balance, end of
period
|
72,194
|
224,397
|
7,722
|
1,449,715
|
(10,031)
|
(12,218)
|
(22,249)
|
1,731,779
|
($000s)
|
March 31,
2020
|
Balance, beginning of
period
|
72,557
|
213,277
|
6,973
|
1,193,493
|
241
|
(18,827)
|
(18,586)
|
1,467,714
|
Net Income
|
-
|
-
|
-
|
25,970
|
-
|
-
|
-
|
25,970
|
Other
comprehensive
loss, net of tax
|
-
|
-
|
-
|
-
|
(18,547)
|
(17,954)
|
(36,501)
|
(36,501)
|
Exercise of stock
options
|
-
|
357
|
-
|
-
|
-
|
-
|
-
|
357
|
Dividends:
|
|
|
|
|
|
|
|
|
Preferred shares
|
-
|
-
|
-
|
(1,119)
|
-
|
-
|
-
|
(1,119)
|
Common
shares
|
-
|
-
|
-
|
(6,219)
|
-
|
-
|
-
|
(6,219)
|
Stock-based
compensation
|
-
|
-
|
499
|
-
|
-
|
-
|
-
|
499
|
Transfer relating
to
the exercise of
stock
options
|
-
|
67
|
(67)
|
-
|
-
|
-
|
-
|
-
|
Balance, end of
period
|
72,557
|
213,701
|
7,405
|
1,212,125
|
(18,306)
|
(36,781)
|
(55,087)
|
1,450,701
|
Consolidated statements of cash flows (unaudited)
|
|
|
($000s) Three
month period ended
|
March 31,
2021
|
March 31,
2020
|
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
Net income
|
69,194
|
25,970
|
Adjustments for non-cash items in net income:
|
|
|
Financial instruments at fair value through income
|
(7,390)
|
13,362
|
Amortization of premiums/discount on investments
|
18
|
309
|
Amortization of capital assets and intangible costs
|
7,337
|
5,231
|
Provision for credit losses
|
(772)
|
35,687
|
Securitization gains
|
(4,178)
|
(2,767)
|
Stock-based compensation
|
635
|
499
|
Income taxes
|
24,431
|
9,008
|
Securitization retained interests
|
10,679
|
8,480
|
Changes in operating assets and liabilities:
|
|
|
Restricted
cash
|
(28,654)
|
72,594
|
Securities purchased
under reverse repurchase agreements
|
100,166
|
(349,897)
|
Loans receivable, net
of securitizations
|
(647,107)
|
(205,567)
|
Other assets
|
5,907
|
(2,470)
|
Deposits
|
1,028,166
|
235,874
|
Securitization
liabilities
|
(260,329)
|
66,119
|
Obligations under
repurchase agreements
|
(251,877)
|
(77,697)
|
Bank
facilities
|
-
|
499,988
|
Other
liabilities
|
35,578
|
21,860
|
Income taxes paid
|
(17,225)
|
(37,499)
|
Cash flows from operating activities
|
64,579
|
319,084
|
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
Proceeds from issuance of common shares
|
5,226
|
357
|
Dividends paid on preferred shares
|
(1,114)
|
(1,119)
|
Dividends paid on common shares
|
(6,274)
|
(6,219)
|
Cash flows used in financing activities
|
(2,162)
|
(6,981)
|
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
Purchase of investments
|
(31,307)
|
(115,962)
|
Proceeds on sale or redemption of investments
|
16,355
|
62,181
|
Net change in Canada Housing Trust re-investment accounts
|
(425)
|
(23,670)
|
Purchase of capital assets and system development costs
|
(8,516)
|
(6,170)
|
Cash flows used in investing activities
|
(23,893)
|
(83,621)
|
Net increase in cash and cash equivalents
|
38,524
|
228,482
|
Cash and cash equivalents, beginning of period
|
557,743
|
508,853
|
Cash and cash equivalents, end of period
|
596,267
|
737,335
|
Cash flows from operating activities include:
|
|
|
Interest received
|
338,505
|
280,309
|
Interest paid
|
(139,957)
|
(143,095)
|
Dividends received
|
1,482
|
1,554
|
About Equitable
Equitable Group Inc. trades on the Toronto Stock Exchange (TSX:
EQB and EQB.PR.C) and serves over a quarter million Canadians
through Equitable Bank, Canada's
Challenger Bank™. Equitable Bank has grown to become the country's
eighth largest Schedule I bank measured by market capitalization,
with a clear mandate to drive real change in Canadian banking to
enrich people's lives. Founded over 50 years ago, Equitable
Bank provides diversified personal and commercial banking and its
EQ Bank platform (eqbank.ca) is a recognized innovator in digital
services. Please visit equitablebank.ca for details.
Cautionary Note Regarding Forward-Looking Statements
Statements made by the Bank 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 Bank's objectives, strategies and
initiatives, financial performance expectations and other
statements made herein, whether with respect to the Bank'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 Bank 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 Bank'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 Bank and the Canadian economy.
Although the Bank 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 Bank 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 Bank 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
Return on shareholders' equity (ROE), Book value per common share,
CET1 capital ratio, Efficiency ratio, Assets under management,
Loans under management, Liquid assets, Liquidity Coverage Ratio
(LCR) and revenue per FTE, 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 Q1 2021 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.