Equitable Group Reports Record Third Quarter 2016 Earnings and Increases Dividend

TORONTO, Nov. 10, 2016 /CNW/ - Equitable Group Inc. (TSX: EQB and EQB.PR.C) ("Equitable" or the "Company") today reported record financial and operating performance for it s wholly owned subsidiary, Equitable Bank (the "Bank") during the three months ended September 30, 2016 and increased its common share dividend.

THIRD QUARTER HIGHLIGHTS

• Net income of $35.2 million and diluted earnings per share of $2.16 were both up 12% from Q3 2015 and up 5% from Q2 2016
• Return on Shareholders' Equity ("ROE") was 17.2% compared to 17.1% in Q2 2016 and 17.5% in Q3 2015

FIRST NINE MONTHS HIGHLIGHTS

• Net income of $96.7 million and diluted earnings per share of $5.93 were both up 2% compared to the first nine months of 2015, reflecting strong growth of our franchise, offset in part by incremental costs associated with strategic investments made to support the launch of the Company's digital banking platform
• ROE was 16.3% compared to 18.4% in the same period of 2015
• Book value per common share was $51.72 at September 30, 2016, up 16% from $44.72 at September 30, 2015

DIVIDEND INCREASE AND DECLARATIONS

The Board of Directors today increased Equitable's common share dividend by 5% with a dividend declaration of $0.22 per common share, payable January 5, 2017, to common shareholders of record at the close of business on December 15, 2016.  This represents the 9^th increase in the past five years and is reflective of the Bank's positive performance and confidence in the future. Even with this increase, the Bank has maintained a low payout ratio, consistent with its strategy of building capital organically to support future earnings growth opportunities. The Board also declared a quarterly dividend of $0.396875 per preferred share, payable December 30, 2016, to preferred shareholders of record at the close of business on December 15, 2016.

CEO's COMMENTARY          

"Equitable delivered its best-ever financial results this quarter including record EPS, book value and mortgage originations while once again surpassing the ROE, efficiency ratios and credit performances of Canada's biggest banks," said Andrew Moor, President and Chief Executive Officer. "This continued outperformance reflected strong execution of our growth and risk mitigation strategies, the advantages of our branchless business model and the focus of our nearly 600 team members on service excellence. Driven by higher levels of customer affinity and market share, Equitable grew Mortgages Under management by 25% over the past year to almost $20 billion and attracted an extra $1.2 billion in deposits, including over $1 billion through our new EQ Bank digital banking platform. Clearly, Equitable is on course for another year of outstanding progress for our shareholders."

OPERATING HIGHLIGHTS

• Single Family Lending mortgage principal at September 30, 2016 was $7.5 billion, up 21% from $6.2 billion a year ago on record quarterly originations of $1.1 billion (up from $744 million in the third quarter of 2015) as the Bank's focus on service attracted more volume and share in a growing market.
• Commercial Lending mortgage principal at September 30, 2016 was $2.7 billion, up 19% from $2.2 billion a year ago while quarterly originations grew 56% year over year to $367 million (up from $236 million in the third quarter of 2015).
• Securitization Financing Mortgages under Management (MUM) increased 31% to $9.7 billion at September 30, 2016 from $7.5 billion a year ago. Securitization Financing originations were $739 million compared to $790 million a year ago.
• Deposit principal outstanding amounted to $9.2 billion at September 30, 2016, up 15% from $8.0 billion a year ago.

Equitable's credit metrics continue to reflect the high quality of the mortgage portfolio. Net impaired mortgage assets were just 0.19% of total mortgage assets compared to 0.21% a year ago.  The allowance for credit losses represented 0.20% of total mortgage assets at quarter end, in excess of the Bank's average annual loss rate of 0.04% over the past 10 years.  This allowance represents the amount that the Bank has reserved on its balance sheet to absorb potential future losses.  The provision for credit losses – which represents the net additions to that allowance in the current period – was $1.2 million or 0.03% of the average mortgage portfolio in the third quarter, up from a year ago and from the second quarter of 2016 but in line with the Bank's long-term norms.

CAPITAL

Equitable Bank's capital ratios continue to exceed minimum regulatory standards and were above the levels of all of the other eight publicly listed Schedule I Canadian banks.  At September 30, 2016:

• Common Equity Tier 1 Capital Ratio was 13.4%, surpassing the Basel III minimum of 7.0%, and unchanged from last year's level
• Total Capital Ratio was 16.2%, well above the regulatory requirement of 10.5% on an all-in basis
• Leverage Ratio was 4.9% and as such the Bank was fully compliant with the target that OSFI sets on a confidential, institution-by-institution basis

STRATEGIC UPDATE

Equitable's strategic objectives are to: grow by providing superior service, competitive products and cost-effective operations; build its capabilities and brand; consistently create shareholder value; and, maintain a low-risk profile. It delivered on these priorities in several ways to date this year:

• To complement its leading position in Alternative mortgage lending, the Bank continued to win over mortgage brokers and borrowers in Canada's Prime Single Family Lending market such that Prime MUM reached $3.4 billion, more than twice the level of a year ago. Prime originations in Q3 were $496 million (Q3 2015 - $523 million), with $228 million (2015 - $99 million) originated through the Bank's internal teams.
• Third quarter Commercial mortgage originations were at their highest level in 18 quarters as the Bank continued to deepen and expand its customer/partner relationships as part of its recently enhanced commercial market strategy.
• In just nine months, Equitable's new EQ Bank digital banking platform has attracted over $1 billion of balances.
• Equitable Bank's High Interest Savings Account (HISA), a brokered product, has expanded its balances by 51% year over year to $1.2 billion.
• In recognition of Equitable's leadership, performance culture, employment brand, and strong employee engagement, the Bank has been selected as a Platinum level Aon Best Employer in Canada.
• On October 18, 2016, the Bank became the successor issuer on $3.1 billion of NHA MBS pools in a transaction that is expected to be accretive to EPS through 2020. The transaction was financed through Equitable's existing sources of liquidity and did not require any capital issuance.
• Once again, Equitable outperformed Canada's eight other publicly traded banks on the basis of cost effectiveness with an Efficiency Ratio of 37.0% in the third quarter. As expected, this ratio improved from 38.2% in the second quarter and 43.2% in the first quarter when extra expenses were incurred to support the January 2016 public launch of the EQ Bank platform.

APPOINTMENT TO THE BOARD OF DIRECTORS

Effective November 10^th, 2016, Equitable has appointed Kishore (Kish) Kapoor to its Board of Directors. "This appointment reflects our ongoing commitment to ensuring that the Board has the right mix of relevant skills at the table.  Kish's financial and industry experience will make him a valuable addition to our Board" said David LeGresley, Chair of Equitable's Board of Directors.  Mr. Kapoor is a Corporate Director and until 2011 was President of Wellington West Holdings Inc.  From November 2003 to June 2005, he was Executive Vice-President Corporate Development of Loring Ward International Ltd., a public company formed to hold the U.S. operations of Assante Corporation, a company which provides wealth and asset management services.  As one of the founders of Assante Corporation, Mr. Kapoor was its Executive Vice President Corporate Development from March 1994 to November 2003.  He currently serves on the Board of Manitoba Telecom Services Inc. and Chairs its Audit Committee.  He also sits on the Board of Richardson Financial Group Limited.  Mr. Kapoor has a Bachelor of Science from the University of Manitoba and is a CPA and former tax partner with KPMG LLP.

BUSINESS OUTLOOK

Equitable expects that its strategies, non-branch business model advantage and commitment to providing superior customer service will lead to EPS growth and returns on shareholders' equity for the remainder of 2016 and throughout 2017 that are consistent with the Bank's long-term averages.

The assumptions used in formulating these expectations can be found in Management's Discussion and Analysis available on the Company's website and on SEDAR.

"As we look ahead, we are confident in our strategy and believe that our increasingly diversified business model can continue to deliver solid growth," said Mr. Moor.  "At the same time, we are cognizant of the potential impact of recent government interventions on Canada's housing and mortgage markets. Based on our initial analysis and in consultations with other industry partners, our current view is that in aggregate, these interventions will reduce mortgage originations and house prices and increase competition for certain segments of high-quality borrowers.

"These interventions do not call for a change in our core strategies, although aspects of our approach will likely evolve as we assimilate expected changes and respond to competitive developments. We have taken these uncertainties into account in formulating our outlook for 2017.  Although some of the Bank's business lines will be affected differently than others, the changes will likely be net neutral to Equitable's overall earnings prospects through 2017." 

Despite a shifting market landscape, Equitable believes that there is significant growth and value creation potential in all of its businesses and that over the long term, government interventions will create more market stability, which is good for all players, Equitable included.

"We believe Equitable's positioning as a diversified, non-branch, Schedule I bank with a variety of funding sources is a definitive advantage at all times, but particularly now as some of the ground rules change," said Tim Wilson, Vice President and Chief Financial Officer. "Our funding options and flexible cost structure should allow us to effectively adapt to the changing market conditions."

To remain well positioned, Equitable will continue to focus on building the value of the Bank's franchise by making ongoing investments in customer service and in the EQ Bank digital platform, as well as providing superior support to our broker partners.

CONFERENCE CALL AND WEBCAST

The Company will hold its third quarter conference call and webcast at 10:00 a.m. ET Friday, November 11, 2016. To access the call live, please dial 416-260-0113 five minutes prior.  The listen-only webcast with accompanying slides will be available at www.equitablebank.ca under Investor Relations. The call will be hosted by Andrew Moor, President and Chief Executive Officer.

A replay of the call will be available until Friday, November 18, 2016 and it can be accessed by dialing 647-436-0148 and entering passcode 3575538 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 SEPTEMBER 30, 2016
With comparative figures as at December 31, 2015 and September 30, 2015
($ THOUSANDS)
					September 30, 2016								December 31, 2015						September 30, 2015
Assets:
Cash and cash equivalents				$	383,788							$	423,366					$	413,518
Restricted cash					238,945								107,988						116,894
Securities purchased under reverse repurchase agreements					102,760								19,918						63,598
Investments					124,485								153,714						149,734
Mortgages receivable – Core Lending					10,199,787								8,674,599						8,458,087
Mortgages receivable – Securitization Financing					6,849,957								6,026,207						5,501,345
Securitization retained interests					87,262								61,650						61,524
Other assets					75,862								60,142						62,910
				$	18,062,846							$	15,527,584					$	14,827,610
Liabilities and Shareholders' Equity
Liabilities:
	Deposits			$	9,268,606							$	8,211,265					$	8,055,591
	Securitization liabilities				7,258,672								6,109,436						5,485,344
	Obligations under repurchase agreements				69,290								-						163,189
	Deferred tax liabilities				37,763								28,698						25,713
	Other liabilities				85,239								81,290						58,094
	Bank facilities				398,909								235,779						190,000
	Debentures				65,000								65,000						85,000
					17,183,479								14,731,468						14,062,931
Shareholders' equity:
	Preferred shares				72,557								72,557						72,557
	Common shares				145,694								143,690						141,971
	Contributed surplus				5,114								4,706						4,808
	Retained earnings				688,867								605,436						578,295
	Accumulated other comprehensive loss				(32,865)								(30,273)						(32,952)
					879,367								796,116						764,679
				$	18,062,846							$	15,527,584					$	14,827,610

CONSOLIDATED STATEMENTS OF INCOME (unaudited)
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2016
With comparative figures for the three and nine month periods ended September 30, 2015
($THOUSANDS, EXCEPT PER SHARE AMOUNTS)
			Three months ended									Nine months ended
			September 30, 2016					September 30, 2015				September 30, 2016				September 30, 2015
Interest income:
	Mortgages – Core Lending		$	114,416				$	99,135			$	323,379			$	290,614
	Mortgages – Securitization Financing			44,776					40,907				133,679				117,269
	Investments			2,142					1,599				6,390				5,279
	Other			1,087					1,821				3,366				4,812
				162,421					143,462				466,814				417,974
Interest expense:
	Deposits			47,204					43,560				136,947				128,614
	Securitization liabilities			41,489					35,466				122,028				102,588
	Bank facilities			1,926					1,407				3,532				2,906
	Debentures			950					1,274				2,850				3,820
	Other			25					318				26				1,277
				91,594					82,025				265,383				239,205
Net interest income				70,827					61,437				201,431				178,769
Provision for credit losses				1,243					930				1,575				2,574
Net interest income after provision for credit losses				69,584					60,507				199,856				176,195
Other income:
	Fees and other income			3,873					3,117				10,831				7,959
	Net (loss) gain on investments			(44)					-				703				(450)
	Gains on securitization activities and income from securitization retained interests			3,182					1,046				5,636				5,016
				7,011					4,163				17,170				12,525
Net interest and other income				76,595					64,670				217,026				188,720
Non-interest expenses:
	Compensation and benefits			15,574					12,015				45,417				35,201
	Other			13,465					10,108				41,372				28,332
				29,039					22,123				86,789				63,533
Income before income taxes				47,556					42,547				130,237				125,187
Income taxes:
	Current			8,227					6,133				24,521				19,992
	Deferred			4,099					4,966				9,064				10,766
				12,326					11,099				33,585				30,758
Net income			$	35,230				$	31,448			$	96,652			$	94,429
Earnings per share:
	Basic		$	2.19				$	1.96			$	5.98			$	5.88
	Diluted		$	2.16				$	1.93			$	5.93			$	5.80

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2016
With comparative figures for the three and nine month periods ended September 30, 2015
($ THOUSANDS)
		Three months ended						Nine months ended
		September 30, 2016			September 30, 2015			September 30, 2016			September 30, 2015
Net income		$	35,230		$	31,448		$	96,652		$	94,429
Other comprehensive income – items that may be reclassified subsequently to income:
Available for sale investments:
Net unrealized gains (losses) from change in fair value			3,249			(17,178)			(1,206)			(29,931)
Reclassification of net (gains) losses to income			(174)			(130)			(1,075)			229
			3,075			(17,308)			(2,281)			(29,702)
Income tax (expense) recovery			(816)			4,569			606			7,841
			2,259			(12,739)			(1,675)			(21,861)
Cash flow hedges:
Net unrealized gains (losses) from change in fair value			1,096			(1,636)			(3,734)			(4,310)
Reclassification of net losses to income			703			1,103			2,486			2,560
			1,799			(533)			(1,248)			(1,750)
Income tax (expense) recovery			(478)			141			331			462
			1,321			(392)			(917)			(1,288)
Total other comprehensive income (loss)			3,580			(13,131)			(2,592)			(23,149)
Total comprehensive income		$	38,810		$	18,317		$	94,060		$	71,280

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2016
With comparative figures for the three month period ended September 30, 2015
($ THOUSANDS)
											Accumulated other comprehensive income (loss)
September 30, 2016			Preferred shares		Common shares		Contributed surplus		Retained earnings		Cash flow hedges		Available for sale investments			Total		Total
Balance, beginning of period			$	72,557	$	144,615	$	5,099	$	658,098	$	(10,053)	$	(26,392)	$	(36,445)	$	843,924
Net income				-		-		-		35,230		-		-		-		35,230
Other comprehensive income, net of tax				-		-		-		-		1,321		2,259		3,580		3,580
Exercise of stock options				-		871		-		-		-		-		-		871
Dividends:
	Preferred shares			-		-		-		(1,191)		-		-		-		(1,191)
	Common shares			-		-		-		(3,270)		-		-		-		(3,270)
Stock-based compensation				-		-		223		-		-		-		-		223
Transfer relating to the exercise of stock options				-		208		(208)		-		-		-		-		-
Balance, end of period			$	72,557	$	145,694	$	5,114	$	688,867	$	(8,732)	$	(24,133)	$	(32,865)	$	879,367
											Accumulated other comprehensive income (loss)
September 30, 2015			Preferred shares		Common shares		Contributed surplus		Retained earnings		Cash flow hedges		Available for sale investments			Total		Total
Balance, beginning of period			$	72,557	$	141,794	$	4,640	$	550,979	$	(6,798)	$	(13,023)	$	(19,821)	$	750,149
Net income				-		-		-		31,448		-		-		-		31,448
Other comprehensive loss, net of tax				-		-		-		-		(392)		(12,739)		(13,131)		(13,131)
Exercise of stock options				-		143		-		-		-		-		-		143
Dividends:
	Preferred shares			-		-		-		(1,191)		-		-		-		(1,191)
	Common shares			-		-		-		(2,941)		-		-		-		(2,941)
Stock-based compensation				-		-		202		-		-		-		-		202
Transfer relating to the exercise of stock options				-		34		(34)		-		-		-		-		-
Balance, end of period			$	72,557	$	141,971	$	4,808	$	578,295	$	(7,190)	$	(25,762)	$	(32,952)	$	764,679

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited)
FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2016
With comparative figures for the nine month period ended September 30, 2015
($ THOUSANDS)
											Accumulated other comprehensive income (loss)
September 30, 2016			Preferred shares		Common shares		Contributed surplus		Retained earnings		Cash flow hedges		Available for sale investments			Total		Total
Balance, beginning of period			$	72,557	$	143,690	$	4,706	$	605,436	$	(7,815)	$	(22,458)	$	(30,273)	$	796,116
Net income				-		-		-		96,652		-		-		-		96,652
Other comprehensive loss, net of tax				-		-		-		-		(917)		(1,675)		(2,592)		(2,592)
Exercise of stock options				-		1,615		-		-		-		-		-		1,615
Dividends:
	Preferred shares			-		-		-		(3,573)		-		-		-		(3,573)
	Common shares			-		-				(9,648)		-		-		-		(9,648)
Stock-based compensation				-		-		797		-		-		-		-		797
Transfer relating to the exercise of stock options				-		389		(389)		-		-		-		-		-
Balance, end of period			$	72,557	$	145,694	$	5,114	$	688,867	$	(8,732)	$	(24,133)	$	(32,865)	$	879,367
											Accumulated other comprehensive income (loss)
September 30, 2015			Preferred shares		Common shares		Contributed surplus		Retained earnings		Cash flow hedges		Available for sale investments			Total		Total
Balance, beginning of period			$	72,412	$	140,657	$	4,331	$	496,097	$	(5,902)	$	(3,901)	$	(9,803)	$	703,694
Net income				-		-		-		94,429		-		-		-		94,429
Other comprehensive loss, net of tax				-		-		-		-		(1,288)		(21,861)		(23,149)		(23,149)
Issuance cost				145		-		-		-		-		-		-		145
Exercise of stock options				-		1,082		-		-		-		-		-		1,082
Dividends:
	Preferred shares			-		-		-		(3,572)		-		-		-		(3,572)
	Common shares			-		-		-		(8,659)		-		-		-		(8,659)
Stock-based compensation				-		-		709		-		-		-		-		709
Transfer relating to the exercise of stock options				-		232		(232)		-		-		-		-		-
Balance, end of period			$	72,557	$	141,971	$	4,808	$	578,295	$	(7,190)	$	(25,762)	$	(32,952)	$	764,679

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
FOR THE THREE AND NINE MONTH PERIODS ENDED SEPTEMBER 30, 2016
With comparative figures for the three and nine month periods ended September 30, 2015
($ THOUSANDS)
			Three months ended				Nine months ended
			September 30, 2016		September 30, 2015		September 30, 2016		September 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net income for the period			$	35,230	$	31,448	$	96,652	$	94,429
Adjustments for non-cash items in net income:
	Financial instruments at fair value through income			(2,479)		(981)		(3,488)		3,661
	Amortization of premiums/discount on investments			114		183		393		582
	Amortization of capital assets and intangible costs			1,963		859		5,758		2,516
	Provision for credit losses			1,243		930		1,575		2,574
	Securitization gains			(2,505)		(1,259)		(6,018)		(4,492)
	Net loss (gain) on sale or redemption of investments			44		-		(703)		450
	Stock-based compensation			223		202		797		709
	Income taxes			12,326		11,099		33,585		30,758
Changes in operating assets and liabilities:
	Restricted cash			(88,254)		(9,556)		(130,957)		(49,204)
	Securities purchased under reverse repurchase agreements			48,146		38,427		(82,843)		(45,481)
	Mortgages receivable, net of securitizations			(821,327)		(750,250)		(2,381,080)		(1,711,914)
	Other assets			(14,713)		(404)		(14,346)		1,544
	Deposits			120,927		(180,902)		1,058,964		563,116
	Securitization liabilities			450,708		614,357		1,149,236		1,130,016
	Obligations under repurchase agreements			69,290		(4,578)		69,290		110,776
	Bank facilities			228,909		48,198		163,130		97,764
	Other liabilities			4,198		1,158		(13)		(4,177)
Income taxes paid				(2,885)		(7,477)		(14,339)		(26,418)
Securitization retained interests				4,339		2,868		11,342		7,735
Cash flows from (used in) operating activities				45,497		(205,678)		(43,065)		204,944
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid on preferred shares				(1,191)		(1,191)		(3,573)		(3,572)
Dividends paid on common shares				(3,270)		(2,938)		(9,485)		(5,718)
Issue of preferred shares, net of issuance cost				-		-		-		145
Proceeds from issuance of common shares				871		143		1,614		1,082
Cash flows used in financing activities				(3,590)		(3,986)		(11,444)		(8,063)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments				-		(9,653)		(6,783)		(25,089)
Proceeds on sale or redemption of investments				8,997		5,846		32,605		14,651
Net change in Canada Housing Trust re-investment accounts				15		16		64		11,811
Purchase of capital assets and system development costs				(3,368)		(4,944)		(10,955)		(14,799)
Cash flows from (used in) investing activities				5,644		(8,735)		14,931		(13,426)
Net increase (decrease) in cash and cash equivalents				47,551		(218,399)		(39,578)		183,455
Cash and cash equivalents, beginning of period				336,237		631,917		423,366		230,063
Cash and cash equivalents, end of period			$	383,788	$	413,518	$	383,788	$	413,518
Cash flows from operating activities include:
Interest received			$	162,889	$	142,938	$	463,336	$	416,449
Interest paid				(89,638)		(82,410)		(246,382)		(230,378)
Dividends received				1,604		1,670		5,705		11,035

ABOUT EQUITABLE GROUP INC.

Equitable Group Inc. is a growing Canadian financial services business that operates through its wholly-owned subsidiary, Equitable Bank. Equitable Bank is Canada's ninth largest independent Schedule I bank and offers a diverse suite of residential lending, commercial lending and savings solutions to Canadians.  Through its proven branchless approach and customer service focus, Equitable Bank has grown to over $21 billion of Assets Under Management.  Most recently, Equitable Bank launched a digital banking operation, EQ Bank, along with its flagship product the EQ Bank Savings Plus Account.  Equitable Bank currently employs nearly 600 employees across the country, and was named one of Canada's best employers for 2017 by Aon.  For more information about Equitable Bank and its products, please visit equitablebank.ca.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Statements made by the Company in the sections of this news release including those entitled "CEO's Commentary", "Operating Highlights", "Capital", "Strategic Update", "Business Outlook", 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.

NON-GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP") FINANCIAL MEASURES

This news release references certain non-GAAP measures such as ROE, provision for credit loss rate, Capital Ratios, book value per share, Efficiency Ratio, Assets Under Management, and Mortgages Under Management 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 third quarter 2016 Management's Discussion and Analysis provides a detailed description of each non-GAAP measure and should be read in conjunction with this report. The Management's Discussion and Analysis 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 do not have any standardized meaning, and therefore, may not be comparable to similar measures presented by other companies.

SOURCE Equitable Group Inc.

Andrew Moor, President and Chief Executive Officer, 416-515-7000; Tim Wilson, Vice President and Chief Financial Officer, 416-515-7000