TORONTO, May 31, 2021 /CNW/ - Fitch Ratings, a globally
recognized provider of credit ratings, commentary and research, has
assigned long-term and short-term ratings of 'BBB-'/'F3'
respectively to Equitable Bank, with a stable outlook.
In its report published May 26,
2021, Fitch notes that "Equitable Bank's ratings reflect its
small but growing franchise in Canada. Fitch believes Equitable Bank (EQB) is
adequately positioned as a challenger bank to take advantage of the
growing branchless banking trends that have been accelerated by the
COVID-19 pandemic, and any future government Opening Banking
initiatives."
Some additional highlights from the Fitch report:
- Fitch believes EQB's good loan growth and lack of any
significant losses results in stable earnings that grew 10.1% per
annum over the past five years, with an average annual ROE of 15.4%
over the same period.
- Regarding the bank's EQ Bank platform, Fitch holds a positive
view of the bank's successful deposit growth that saw balances
reach $5.8 billion as of Q1
2021.
- Fitch also notes that the bank's capital ratios are higher than
many of the larger Canadian peers.
Equitable Bank is pleased that Fitch recognizes not only its
strengths, but also its successful position as Canada's Challenger BankTM.
A full copy of the Fitch Ratings report for Equitable Bank can
be found at fitchratings.com.
About Equitable Group Inc.
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 through
its EQ Bank platform (eqbank.ca) is a recognized innovator in
digital services. Please visit equitablebank.ca for details.
SOURCE Equitable Bank