News
TORONTO, Aug. 10, 2011 /CNW/ - Equitable Group Inc. (TSX: ETC) and (ETC.PR.A) ("Equitable" or the "Company") today reported strong earnings growth for the three and six months ended June 30, 2011 and provided a positive outlook.
SECOND QUARTER HIGHLIGHTS
- Diluted earnings per share increased 44.1% to $0.98 from $0.68 a year ago, while adjusted diluted earnings per share (a non-GAAP measure that removes gains and losses associated with unmatched derivative measurement accounting) grew 16.7% to $0.98 from $0.84 a year ago;
- Net income increased 42.1% to $15.7 million from $11.1 million in the same period of 2010 and adjusted net income grew 16.6% to $15.7 million from $13.5 million a year ago;
- Net interest income grew 16.0% to $32.5 million from $28.0 million in the corresponding period of 2010;
- Total assets reached a record $9.6 billion as originations during the second quarter of 2011 amounted to $629.2 million, 46.1% of which were conventional single family residential mortgages;
- Return on Equity ("ROE") was 16.8% compared to 13.7% in the second quarter of 2010 while adjusted ROE was 16.7% compared to 16.8% in the second quarter of 2010;
- Productivity ratio on a TEB - a measure of efficiency - was 28.7%, compared to 28.3% in the second quarter of 2010;
- Equitable Trust's total capital ratio (when collective allowance is included in capital) was 17.1% at June 30, 2011, compared to 16.6% a year earlier;
- Book value per share at June 30, 2011 increased 18.8% to $24.05 from $20.24 a year ago.
Basic and diluted EPS for the second quarter of $0.99 and $0.98, respectively, were slightly lower than the basic and diluted EPS of $1.01 and $1.00 reported in the first quarter of 2011. This differential can be explained in the context of several factors that are individually minor, but which in aggregate cause some fluctuation in quarter over quarter results. In the case of the first and second quarters of 2011, gains and losses on the liquidation of equity securities sold, net prepayment penalty income earned in the Company's securitized portfolio, fluctuations in credit provisions, as well as fair value gains on hedges combined to cause quarter over quarter fluctuation in net income available to common shareholders, which if removed would have resulted in pro forma basic and diluted EPS in the second quarter that would have been $0.04 greater than those of the first quarter.
DIVIDEND DECLARATIONS
The Company's Board of Directors declared a dividend of $0.11 per share
on the Company's common shares, payable on October 5, 2011, to common
shareholders of record at the close of business on September 15, 2011.
These payments are consistent with the 10% increase in common share
dividend payments announced by the Company's Board of Directors in
February, 2011. The Board also declared a quarterly dividend in the
amount of $0.453125 per preferred share, payable on September 30, 2011,
to preferred shareholders of record at the close of business on
September 15, 2011.
SIX MONTH HIGHLIGHTS
- Diluted earnings per share increased 39.2% to $1.99 from $1.43 a year ago, while adjusted diluted earnings per share advanced 15.2% to $1.97 from $1.71 a year ago;
- Net income increased 36.9% to $31.8 million from $23.2 million in the same period of 2010 and adjusted net income grew 14.6% to $31.5 million from $27.5 million a year ago;
- Net interest income increased 12.4% to a record $63.7 million from $56.6 million in the corresponding period of 2010;
- ROE was 17.4% compared to 14.8% a year ago, while adjusted ROE was 17.3% compared to 17.7% a year ago;
- Productivity ratio on a TEB was 28.1%, compared to 26.7%.
Note to Readers: Results for both reporting periods were prepared using International Financial Reporting Standards ("IFRS"), with a transition date of January 1, 2010. As a result, prior period comparative information in this news release, the Company's MD&A and financial statements reflects conversion from previous Canadian Generally Accepted Accounting Principles ("GAAP") to an IFRS basis.
MANAGEMENT COMMENTARY
"Equitable's strong rate of earnings growth to date this year reflects
the ongoing success of our balanced business strategy, with its focus
on service excellence, diligent cost and risk management and portfolio
growth," said Andrew Moor, President and CEO. "Of note, we continue to
derive significant advantages from our growing presence in the single
family residential market in Canada, where conventional mortgage
production in the first half of the year surpassed the half billion
dollar mark - a new record for the period. As a result, Single Family
Lending Services is now firmly established as our largest business,
accounting for almost 48% of conventional mortgage principal
outstanding at quarter end compared to just over 37% a year ago. This
planned increase in emphasis adds to immediate earnings potential and
has also allowed us to advance our standing with mortgage broker
partners in our chosen markets. In the context of both market
conditions and the traction gained with our mortgage portfolio growth
strategies, we are extremely pleased with Equitable's performance as we
close in on the $10 billion milestone for total assets."
"The substantial expansion of our mortgage book has translated into sizeable and ongoing year-over-year growth in net interest income," said John Ayanoglou, Senior Vice-President and Chief Financial Officer. "Looking at Net Interest Margin or NIM on a taxable equivalent basis shows that NIM was a healthy 2.5% on non-securitized assets in both reporting periods in 2011, while NIM on securitized assets was 0.5% in both 2011 periods. We generally expect to earn lower NIM on securitized mortgages, which are insured under government programs, but by seeking an optimal balance between conventional and securitized portfolios, our goal is to optimize the NIM we earn in order to drive an improvement in overall ROE."
MORTGAGE PORTFOLIO AND CREDIT HIGHLIGHTS
- Single Family Lending Services originated $290.1 million of conventional mortgages in the second quarter of 2011, to bring year-to-date conventional production for this business line to $506.3 million compared to $488.3 million in the corresponding six months of 2010;
- Commercial Mortgage - Broker Services originated $54.2 million of mortgages or 8.6% of total second quarter production to bring year-to-date production to $150.2 million compared to $167.8 million a year ago;
- Commercial Lending Services originated $86.9 million of conventional mortgages to bring total conventional production for this business line over the first half of 2011 to $187.1 million from $155.8 million in the same period a year ago and originated $194.7 million of CMHC-insured multi-unit residential mortgages to bring total CMHC-related production to $488.7 million over the first half of 2011.
At quarter end:
- Fixed-rate mortgages represented 90.9% of the mortgage portfolio compared to 88.1% a year earlier;
- Conventional mortgage principal increased 19.2% during the 12 months ended June 30, 2011 to $3.9 billion, while the Company's securitized portfolio increased 14.5% to $5.0 billion;
- Net impaired mortgages were 0.29% of total mortgage principal, compared to 0.45% a year ago and 0.33% at March 31, 2011;
- Mortgage principal in arrears 90 days or more was 0.27% of total mortgage principal compared to 0.43% a year ago and 0.33% at March 31, 2011;
- Early stage delinquency rates at quarter end decreased to 0.21% of total outstanding principal compared to 0.34% at December 31, 2010.
LOOKING AHEAD
"The results of our sales activities in the latter part of the second
quarter and to-date in the third quarter have been encouraging," said
Mr. Moor. "In fact, although it's still early, third quarter single
family residential mortgage production is on track to significantly
outperform second quarter origination volumes. The increase in our
Single Family Lending Services portfolio of $637.3 million or 52.5%
compared to June 30, 2010 is a strong indicator of the success we are
having in this business. Combined with good levels of production in our
commercial mortgage lending businesses, we expect portfolio growth to
continue in the third quarter with commensurate benefits to our
earnings performance for the balance of the year."
While market conditions may moderate in certain areas beyond the third quarter, and the potential for modest contraction in NIM remains, management believes that Equitable can continue to grow without undue risk and achieve strong results for shareholders. The Company also expects its productivity ratio to remain strong even as it supports further growth and expansion in its operations and core banking system.
Mr. Ayanoglou added: "Our capital base, which provides the foundation for continued growth, is strong and this is reflected in solid year-over-year enhancements to all capital ratios at quarter end. Going forward, we will manage our capital and liquidity positions as we grow to ensure the ongoing solidity and vibrancy of the Equitable franchise."
Q2 CONFERENCE CALL
The Company will hold its second quarter conference call and webcast at
10:00 a.m. ET Thursday August 11, 2011. To access the call live, please
dial in five minutes prior to 416-640-9737. To access a listen-only
version of the webcast, please log on to www.equitablegroupinc.com.
A replay of the call will be available until August 18, 2011 and it can be accessed by dialing 416-640-1917 and entering passcode 4461460 followed by the number sign. Alternatively, the call will be archived on the Company's website for three months.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS | |||||||||
CONSOLIDATED BALANCE SHEETS (unaudited) | |||||||||
AS AT JUNE 30, 2011 | |||||||||
With comparative figures as at December 31, 2010, June 30, 2010 and January 1, 2010 | |||||||||
($ THOUSANDS) | |||||||||
June 30, 2011 | December 31, 2010 | June 30, 2010 | January 1, 2010 | ||||||
Assets | |||||||||
Cash and cash equivalents | $ | 264,724 | $ | 155,242 | $ | 153,545 | $ | 389,170 | |
Restricted cash | 48,346 | 86,570 | 29,415 | 25,372 | |||||
Investments | 377,160 | 413,330 | 303,449 | 302,292 | |||||
Mortgages receivable | 3,865,669 | 3,468,507 | 3,241,713 | 2,763,020 | |||||
Mortgages receivable - securitized | 4,998,688 | 4,748,794 | 4,369,621 | 4,137,247 | |||||
Other assets | 12,768 | 11,686 | 11,591 | 15,191 | |||||
$ | 9,567,355 | $ | 8,884,129 | $ | 8,109,334 | $ | 7,632,292 | ||
Liabilities and Shareholders' Equity | |||||||||
Liabilities: | |||||||||
Deposits | $ | 4,254,271 | $ | 3,878,853 | $ | 3,460,584 | $ | 3,332,319 | |
Securitization liabilities | 4,776,241 | 4,531,680 | 4,170,998 | 3,885,187 | |||||
Obligations under repurchase agreements | 34,298 | - | 37,558 | - | |||||
Deferred tax liabilities | 7,457 | 7,086 | 6,012 | 5,191 | |||||
Other liabilities | 21,202 | 19,884 | 18,562 | 14,959 | |||||
Bank term loans | 12,500 | 12,500 | 27,500 | 27,500 | |||||
Subordinated debentures | 52,671 | 52,671 | 37,671 | 37,671 | |||||
9,158,640 | 8,502,674 | 7,758,885 | 7,302,827 | ||||||
Shareholders' equity: | |||||||||
Preferred shares | 48,494 | 48,494 | 48,494 | 48,494 | |||||
Common shares | 129,054 | 128,068 | 127,631 | 127,336 | |||||
Contributed surplus | 4,292 | 3,935 | 3,613 | 3,267 | |||||
Retained earnings | 228,881 | 202,187 | 174,316 | 155,890 | |||||
Accumulated other comprehensive loss | (2,006) | (1,229) | (3,605) | (5,522) | |||||
408,715 | 381,455 | 350,449 | 329,465 | ||||||
$ | 9,567,355 | $ | 8,884,129 | $ | 8,109,334 | $ | 7,632,292 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) |
|||||||||
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2011 | |||||||||
With comparative figures for the three and six month periods ended June 30, 2010 | |||||||||
($ THOUSANDS, EXCEPT PER SHARE AMOUNTS) | |||||||||
Three months ended | Six months ended | ||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | ||||||
Interest income: | |||||||||
Mortgages | $ | 50,474 | $ | 41,839 | $ | 98,323 | $ | 83,603 | |
Mortgages - securitized | 52,610 | 48,373 | 104,762 | 95,593 | |||||
Investments | 2,648 | 2,190 | 4,927 | 3,655 | |||||
Other | 1,242 | 653 | 2,267 | 1,305 | |||||
106,974 | 93,055 | 210,279 | 184,156 | ||||||
Interest expense: | |||||||||
Deposits | 28,251 | 22,958 | 54,991 | 44,730 | |||||
Securitization liabilities | 45,111 | 40,990 | 89,380 | 80,558 | |||||
Bank term loans | 203 | 430 | 403 | 894 | |||||
Subordinated debentures | 870 | 649 | 1,732 | 1,276 | |||||
Other | 78 | 44 | 107 | 53 | |||||
74,513 | 65,071 | 146,613 | 127,511 | ||||||
Net interest income | 32,461 | 27,984 | 63,666 | 56,645 | |||||
Provision for credit losses | 2,217 | 1,488 | 4,155 | 4,428 | |||||
Net interest income after provision for credit losses | 30,244 | 26,496 | 59,511 | 52,217 | |||||
Other income: | |||||||||
Fees and other income | 790 | 875 | 1,644 | 1,641 | |||||
Net loss on investments | (311) | (68) | (13) | (124) | |||||
479 | 807 | 1,631 | 1,517 | ||||||
Net interest and other income | 30,723 | 27,303 | 61,142 | 53,734 | |||||
Non-interest expenses: | |||||||||
Compensation and benefits | 5,540 | 4,930 | 11,013 | 9,321 | |||||
Other | 4,208 | 3,480 | 7,850 | 6,711 | |||||
9,748 | 8,410 | 18,863 | 16,032 | ||||||
Income before income taxes and fair value gain (loss) | 20,975 | 18,893 | 42,279 | 37,702 | |||||
Fair value gain (loss) on derivative financial instruments - securitization activities | 48 | (3,453) | 367 | (6,182) | |||||
Income before income taxes | 21,023 | 15,440 | 42,646 | 31,520 | |||||
Income taxes: | |||||||||
Current | 5,149 | 4,551 | 10,476 | 8,928 | |||||
Deferred | 139 | (182) | 371 | (631) | |||||
5,288 | 4,369 | 10,847 | 8,297 | ||||||
Net income | 15,735 | 11,071 | 31,799 | 23,223 | |||||
Dividends on preferred shares | 906 | 906 | 1,812 | 1,812 | |||||
Net income available to common shareholders | $ | 14,829 | $ | 10,165 | $ | 29,987 | $ | 21,411 | |
Earnings per share: | |||||||||
Basic | $ | 0.99 | $ | 0.68 | $ | 2.00 | $ | 1.44 | |
Diluted | $ | 0.98 | $ | 0.68 | $ | 1.99 | $ | 1.43 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) |
|||||||||||
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2011 | |||||||||||
With comparative figures for the three and six month periods ended June 30, 2010 | |||||||||||
($ THOUSANDS) | |||||||||||
Three months ended | Six months ended | ||||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | ||||||||
Net income | $ | 15,735 | $ | 11,071 | $ | 31,799 | $ | 23,223 | |||
Other comprehensive income (loss), net of tax: | |||||||||||
Available for sale investments: | |||||||||||
Net unrealized gains (losses) from change in fair value | 903 | (1,568) | 1,726 | 1,008 | |||||||
Reclassification of net losses to income | 198 | 788 | 7 | 909 | |||||||
Cash flow hedges: | |||||||||||
Net unrealized losses from change in fair value | (3,700) | - | (2,501) | - | |||||||
Reclassification of net losses (gains) to income | 4 | - | (9) | - | |||||||
Other comprehensive (loss) income | (2,595) | (780) | (777) | 1,917 | |||||||
Comprehensive income | $ | 13,140 | $ | 10,291 | $ | 31,022 | $ | 25,140 | |||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) |
||||||||||||||
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2011 | ||||||||||||||
With comparative figures for the three month period ended June 30, 2010 | ||||||||||||||
($ THOUSANDS) | ||||||||||||||
June 30, 2011 |
Preferred shares |
Common shares |
Contributed surplus |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total | ||||||||
Balance, beginning of period | $ | 48,494 | $ | 128,369 | $ | 4,169 | $ | 215,700 | $ | 589 | $ | 397,321 | ||
Net income | - | - | - | 15,735 | - | 15,735 | ||||||||
Other comprehensive income, net of tax | - | - | - | - | (2,595) | (2,595) | ||||||||
Contributions from reinvestment of dividends | - | 149 | - | - | - | 149 | ||||||||
Contributions from exercise of stock options | - | 455 | - | - | - | 455 | ||||||||
Dividends: | ||||||||||||||
Preferred shares | - | - | - | (906) | - | (906) | ||||||||
Common shares | - | - | - | (1,648) | - | (1,648) | ||||||||
Stock-based compensation | - | - | 204 | - | - | 204 | ||||||||
Transfer relating to the exercise of stock options | - | 81 | (81) | - | - | - | ||||||||
Balance, end of period | $ | 48,494 | $ | 129,054 | $ | 4,292 | $ | 228,881 | $ | (2,006) | $ | 408,715 | ||
June 30, 2010 |
Preferred shares |
Common shares |
Contributed surplus |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total | ||||||||
Balance, beginning of period | $ | 48,494 | $ | 127,568 | $ | 3,457 | $ | 165,643 | $ | (2,825) | $ | 342,337 | ||
Net income | - | - | - | 11,071 | - | 11,071 | ||||||||
Other comprehensive income, net of tax | - | - | - | - | (780) | (780) | ||||||||
Contributions from reinvestment of dividends | - | 59 | - | - | - | 59 | ||||||||
Contributions from exercise of stock options | - | 3 | - | - | - | 3 | ||||||||
Dividends: | ||||||||||||||
Preferred shares | - | - | - | (906) | - | (906) | ||||||||
Common shares | - | - | - | (1,492) | - | (1,492) | ||||||||
Stock-based compensation | - | - | 157 | - | - | 157 | ||||||||
Transfer relating to the exercise of stock options | - | 1 | (1) | - | - | - | ||||||||
Balance, end of period | $ | 48,494 | $ | 127,631 | $ | 3,613 | $ | 174,316 | $ | (3,605) | $ | 350,449 | ||
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) |
||||||||||||||
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2011 | ||||||||||||||
With comparative figures for the six month period ended June 30, 2010 | ||||||||||||||
($ THOUSANDS) | ||||||||||||||
June 30, 2011 |
Preferred shares |
Common shares |
Contributed surplus |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total | ||||||||
Balance, beginning of period | $ | 48,494 | $ | 128,068 | $ | 3,935 | $ | 202,187 | $ | (1,229) | $ | 381,455 | ||
Net income | - | - | - | 31,799 | - | 31,799 | ||||||||
Other comprehensive income, net of tax | - | - | - | - | (777) | (777) | ||||||||
Contributions from reinvestment of dividends | - | 276 | - | - | - | 276 | ||||||||
Contributions from exercise of stock options | - | 599 | - | - | - | 599 | ||||||||
Dividends: | ||||||||||||||
Preferred shares | - | - | - | (1,812) | - | (1,812) | ||||||||
Common shares | - | - | - | (3,293) | - | (3,293) | ||||||||
Stock-based compensation | - | - | 468 | - | - | 468 | ||||||||
Transfer relating to the exercise of stock options | - | 111 | (111) | - | - | - | ||||||||
Balance, end of period | $ | 48,494 | $ | 129,054 | $ | 4,292 | $ | 228,881 | $ | (2,006) | $ | 408,715 | ||
June 30, 2010 |
Preferred shares |
Common shares |
Contributed surplus |
Retained earnings |
Accumulated other comprehensive income (loss) |
Total | ||||||||
Balance, beginning of period | $ | 48,494 | $ | 127,336 | $ | 3,267 | $ | 155,890 | $ | (5,522) | $ | 329,465 | ||
Net income | - | - | - | 23,223 | - | 23,223 | ||||||||
Other comprehensive income, net of tax | - | - | - | - | 1,917 | 1,917 | ||||||||
Contributions from reinvestment of dividends | - | 171 | - | - | - | 171 | ||||||||
Contributions from exercise of stock options | - | 106 | - | - | - | 106 | ||||||||
Dividends: | ||||||||||||||
Preferred shares | - | - | - | (1,812) | - | (1,812) | ||||||||
Common shares | - | - | - | (2,985) | - | (2,985) | ||||||||
Stock-based compensation | - | - | 364 | - | - | 364 | ||||||||
Transfer relating to the exercise of stock options | - | 18 | (18) | - | - | - | ||||||||
Balance, end of period | $ | 48,494 | $ | 127,631 | $ | 3,613 | $ | 174,316 | $ | (3,605) | $ | 350,449 | ||
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
|||||||||
FOR THE THREE AND SIX MONTH PERIODS ENDED JUNE 30, 2011 | |||||||||
With comparative figures for the three and six month periods ended June 30, 2010 | |||||||||
($ THOUSANDS) | |||||||||
Three months ended | Six months ended | ||||||||
June 30, 2011 | June 30, 2010 | June 30, 2011 | June 30, 2010 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||
Net income for the period | $ | 15,735 | $ | 11,071 | $ | 31,798 | $ | 23,223 | |
Adjustments to determine cash flows relating to operating activities: | |||||||||
Financial instruments at fair value through income | 1,000 | 2,580 | 1,099 | 4,275 | |||||
Amortization of capital assets | 173 | 158 | 237 | 295 | |||||
Provision for credit losses | 2,217 | 1,488 | 4,155 | 4,428 | |||||
Net (gain) loss on sale or redemption of investments | 311 | 4 | 13 | 56 | |||||
Income taxes | 5,288 | 4,369 | 10,847 | 8,297 | |||||
Taxes paid | (4,770) | (4,660) | (9,541) | (8,365) | |||||
Stock-based compensation | 204 | 157 | 468 | 364 | |||||
Amortization of premiums/discount on investments | 887 | 456 | 1,672 | 868 | |||||
Net increase in mortgages receivable | (304,697) | (445,371) | (650,482) | (714,940) | |||||
Net increase in deposits | 221,880 | 177,858 | 375,418 | 128,429 | |||||
Change in obligations related to investments sold under repurchase agreements | 34,298 | 7,640 | 34,298 | 37,558 | |||||
Net change in securitization liability | 122,759 | 82,152 | 244,561 | 285,811 | |||||
Other assets | (3,663) | (871) | (5,093) | 374 | |||||
Other liabilities | 2,158 | 2,739 | (35) | 1,397 | |||||
Cash flows used in operating activities | 93,780 | (160,230) | 39,415 | (227,930) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||
Dividends paid on preferred shares | (906) | (906) | (1,812) | (1,812) | |||||
Dividends paid on common shares | (1,499) | (1,432) | (3,018) | (2,812) | |||||
Proceeds from issuance of common shares | 455 | 3 | 599 | 106 | |||||
Cash flows used in financing activities | (1,950) | (2,335) | (4,231) | (4,518) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||
Purchase of investments | (20,071) | (67,557) | (59,722) | (197,115) | |||||
Proceeds on sale or redemption of investments | 13,406 | 43,834 | 34,349 | 141,418 | |||||
Net change in Canada Housing Trust re-investment accounts | (4,893) | (1,431) | (7,531) | (3,240) | |||||
Purchase of investments under reverse repurchase agreements | (5,115) | (69,543) | (30,108) | (219,419) | |||||
Proceeds on sale or redemption of investments under reverse repurchase agreements | 24,993 | 149,876 | 99,901 | 279,597 | |||||
Changes in restricted cash | (11,942) | (7,069) | 38,224 | (12,776) | |||||
Purchase of capital assets | (735) | (282) | (815) | (375) | |||||
Cash flows used in investing activities | (4,357) | 47,828 | 74,298 | (11,910) | |||||
Net increase (decrease) in cash and cash equivalents | 87,473 | (114,737) | 109,482 | (244,358) | |||||
Cash and cash equivalents, beginning of period | 177,251 | 268,282 | 155,242 | 397,903 | |||||
Cash and cash equivalents, end of period | $ | 264,724 | $ | 153,545 | $ | 264,724 | $ | 153,545 | |
Supplementary cash flow information | |||||||||
Net cash provided by (used in) operating activities include: | |||||||||
Interest paid | $ | 62,371 | $ | 55,097 | $ | 118,161 | $ | 104,400 | |
Interest received | 103,570 | 91,869 | 204,253 | 180,068 | |||||
Dividends received | 2,533 | 2,225 | 4,883 | 4,126 |
ABOUT EQUITABLE GROUP INC.
Equitable Group Inc. is a niche mortgage lender. Our core business is
first charge mortgage financing, which we offer through our wholly
owned subsidiary, The Equitable Trust Company. Founded in 1970,
Equitable Trust is a federally incorporated trust company. It serves
single family, small and large commercial borrowers and their mortgage
advisors. It also serves the investing public as a provider of
Guaranteed Investment Certificates. Equitable is active in providing
GICs across all Canadian provinces and territories. We actively
originate mortgages across Canada, with offices in Ontario, Alberta and
Quebec. Equitable Group's shares are traded on the Toronto Stock
Exchange under the symbols ETC and ETC.PR.A respectively. Visit the
Company on line at www.equitabletrust.com and click on Investor Relations.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements made by the Company in the sections of this report entitled
"Management Commentary" and "Looking Ahead", 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 result 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."
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, the nature of our
customers and rates of default, and competition as well as those
factors discussed under the heading "Risk Management" in the
Management's Discussion and Analysis 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 at current levels, 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.
John Ayanoglou
Senior Vice-President and Chief Financial Officer
416-515-7000