Equitable Bank's Challenger Bank ethos positions it well for the future of branchless banking: Fitch Ratings

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 Bank^TM.

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

Investor Relations: Richard Gill, 647-600-7544; Media: Jessica Kosmack, 647-600-2512