Stock Name: ETC
Amount: CAD 0.12
Announcement Date: 28/02/2012
Record Date: 13/03/2012
Dividend Detail:
TORONTO, Feb. 28, 2012 /CNW/ - Equitable Group Inc. (TSX: ETC and ETC.PR.A) ("Equitable" or the "Company") today reported its financial results
for the three and 12 months ended December 31, 2011, including solid
earnings performance on strong growth in its conventional single family
mortgage portfolio.
ANNUAL RESULTS
Diluted earnings per share ("EPS") increased 11.5% to $3.88 compared to
$3.48 in 2010;
Adjusted EPS, excluding a third quarter 2011 operational provision (the
"provision") was $4.15 compared to $3.83 in 2010;
Adjusted net income was $62.7 million, or $66.3 million excluding the
provision, compared to $61.1 million in 2010;
Net interest income was $133.8 million, 11.5% higher than the $119.9
million achieved in 2010, with net interest margin ("NIM") at 2.5% on
non-securitized assets and 0.5% on securitized assets;
Total mortgage assets were a record $9.6 billion at year end, up 16.5%
from December 31, 2010;
Conventional mortgage principal increased 22.9% year over year to $4.3
billion, inclusive of a 33.4% increase in single family mortgage
principal;
Mortgage production increased 15.3% to $2.8 billion, inclusive of record
conventional single family mortgage production of $1.2 billion (20.6%
higher than in 2010);
Return on equity ("ROE") was 16.5% (16.6% on an adjusted basis, 17.5%
excluding the provision) compared to 17.0% (18.6% adjusted) in 2010;
Productivity ratio on a taxable equivalent basis ("TEB") was 32.4%
(28.8% excluding the provision) compared to 26.1% in 2010;
Equitable Trust's year-end total capital ratio was 15.8% (including its
collective allowance);
Book value per share of $25.18 grew 13.0% from $22.28 at December 31,
2010;
Equitable declared $0.45 in dividends per common share in 2011, up 12.5%
from $0.40 in 2010, reflecting increases the Board announced in the
first and third quarters of 2011.
"Equitable achieved exactly what we set out to do in 2011," said Andrew
Moor, President and Chief Executive Officer, "grow our conventional
mortgage book with emphasis on single family, expand our national
presence, deliver excellent customer service, sustain credit quality
and translate these advancements into solid earnings for our
shareholders. It is clear to us that our current strategy, including
the alignment realized between our mortgage production activities and
our goal of optimizing risk-adjusted returns, will serve our
shareholders very well going forward."
DIVIDEND DECLARATIONS
The Company's Board of Directors declared a quarterly common share
dividend of $0.12 per share, payable on April 4, 2012, to common
shareholders of record at the close of business on March 15, 2012. This
amount is consistent with the dividend of $0.12 per share declared in
the previous quarter, and on an annualized basis represents a 6.7%
increase over the dividends declared in 2011. The Board also declared a
quarterly dividend in the amount of $0.453125 per preferred share,
payable on March 31, 2012, to preferred shareholders of record at the
close of business on March 15, 2012.
FOURTH QUARTER RESULTS
Equitable's results in the fourth quarter were strong and demonstrated
the fundamental operating strength of the business, particularly in the
single family residential mortgage segment. Results in the quarter
were fuelled by growth in the Company's mortgage book combined with its
stable NIM.
Consistent with its annual results, comparatives to 2010 were impacted
by several non-recurring items that augmented the Company's performance
in Q4 of the prior year, the majority of which are only visible under
new IFRS accounting standards. Specifically, Q4 2010 benefitted from a
lower effective tax rate, $4.1 million of higher than normal prepayment
charge income from two discharged mortgages, and $5.8 million of fair
value gains on derivatives.
In the fourth quarter:
Diluted EPS was $1.07 compared to $0.82 in the third quarter of 2011 and
$1.54 in the fourth quarter of 2010;
Adjusted EPS on a diluted basis was $1.10 compared to $0.84 in the third
quarter and $1.28 in the fourth quarter a year ago;
Adjusted net income was $17.5 million compared to $13.6 million in the
third quarter of 2011, and $20.1 million in the fourth quarter of 2010;
Adjusted net income available to common shareholders was $16.6 million
compared to $12.7 million in the third quarter and $23.2 million in the
fourth quarter a year ago;
Net interest income was $35.3 million (1.4% NIM) compared to $34.8
million (1.4% NIM) in the third quarter of 2011 and $32.8 million (1.6%
NIM) in the fourth quarter a year ago, and was higher in 2011 even with
the $4.3 million of additional prepayment income in 2010, which is
included in net interest income;
Adjusted ROE was 17.4% compared to 14.0% in the third quarter of 2011
(17.3% excluding the provision) and 23.8% in the fourth quarter of
2010;
Productivity ratio - TEB was 29.7% compared to 42.8% in the third
quarter of 2011 (29.2% excluding the provision) and 25.2% in the fourth
quarter of 2010.
In commenting on fourth quarter performance, Mr. Moor said: "This was a
solid finish to a record year, and our strong and growing mortgage book
provide Equitable with very positive momentum for 2012."
CONVENTIONAL MORTGAGE PORTFOLIO
Single Family Lending Services mortgage principal amounted to a record
$2.1 billion at year end, 33.4% higher than at the end of 2010 on
growth in production in each quarter of 2011. During the fourth
quarter, this business line originated $345.6 million of conventional
mortgages, 19.7% higher than in the fourth quarter of 2010;
Commercial Mortgage - Broker Services conventional mortgage principal at
year end was a record $1.0 billion, 20.8% higher than at the end of
2010, as it originated $72.2 million in the fourth quarter compared to
$67.2 million in the same quarter of 2010;
Commercial Lending Services conventional mortgage principal at year end
was $1.2 billion, 9.3% higher than at the end of 2010, as it originated
$120.3 million of conventional mortgages in the fourth quarter compared
to $37.4 million in Q4 2010.
Overall, conventional mortgage principal outstanding amounted to 44.7%
of total mortgage principal at year end, compared to 42.5% at year-end
2010.
SECURITIZED MORTGAGES
During the fourth quarter of 2011, production of CMHC-insured mortgages
amounted to $105.6 million compared to $246.2 million in the fourth
quarter of 2010, consistent with the Company's plan to substantially
reduce securitization activity in line with its emphasis on
conventional mortgage asset growth. At the end of the year, securitized
mortgage assets represented 55.3% of mortgage principal outstanding
($5.3 billion) compared to 57.5% ($4.7 billion) at year-end 2010.
CREDIT QUALITY
Equitable sustained its track record of low realized loan losses during
2011 and in the fourth quarter saw improvements in key credit metrics:
Mortgage principal in arrears 90 days or more was 0.22% compared to
0.46% at December 31, 2010;
Net impaired mortgages were 0.24% of total mortgage principal at
year-end 2011, compared to 0.42% at year-end 2010.
Management remains comfortable that provisions taken to date adequately
provide for the risk of loss.
REGIONAL DIVERSIFICATION
Over the past five years, while remaining focused on its core niches,
the Company has increased its presence in western Canada and Quebec to
complement its solid leadership position in other urban Canadian
markets. As a result, 58.3% of the Company's mortgages were secured on
properties located in Ontario, 14.9% were located in Alberta, 13.1% of
were located in Quebec, 5.8% in British Columbia, 1.5% were located in
Manitoba, and the balance in other selected regions of Canada.
LOOKING AHEAD
"Industry forecasts suggest that Canadian real estate prices will be
stable in 2012," said Mr. Moor, "nonetheless we are prepared for the
possibility of a soft landing for the market as a result of our
proactive, risk-sensitive lending practices. In the context of our own
outlook, we intend to continue prudently growing conventional mortgage
production in chosen markets over the coming year. Combined with our
already sizeable mortgage portfolio balances, and the activities taken
to strengthen our business, we are confident in our ability to grow
earnings, maintain our strong capital position and keep our credit
metrics well within an acceptable range. On balance, our outlook is
very positive and we will continue to position Equitable as the lender
of choice for Canada's mortgage broker community, business-for-self
Canadians and newcomers to our country."
In commenting on interest rate margins, Equitable's Vice President and
Chief Financial Officer Tim Wilson said: "Our expectation is that the
Company's net interest margin will remain stable in 2012, reflecting
Bank of Canada policy decisions that appear to favour a hold-the-line
approach to rates and steady funding markets. Our NIM outlook also
takes into account the fact that we intend to maintain liquidity at
approximately the same levels as in 2011. While this marginally dampens
NIM growth, it ensures we are well-positioned to manage any unforeseen
events in Canadian and international capital markets."
ADJUSTING FOR ACCOUNTING CHANGES
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 reflects conversion from previous Canadian Generally
Accepted Accounting Principles ("GAAP") to IFRS. In addition to being
affected by differences in the method of accounting for securitized
assets, the restatement of the Company's financial results from
previous Canadian GAAP to IFRS is affected by differences in the method
of accounting for the related derivatives that are within its
securitization activities, including the activities it undertakes to
hedge interest rate risk associated with mortgage commitments and
mortgages issued but awaiting securitization, as well as the interest
rate risk associated with the respective securitization liabilities. In
order to help readers, the Company analyzes its 2011 performance by
comparing it to 2010 on an adjusted basis, which removes gains and
losses associated with unmatched derivative measurement accounting.
Adjusted figures are non-GAAP financial measures and do not remove the
operational provision taken in the third quarter. Non-GAAP measures are
not calculated in accordance with GAAP, are not defined by GAAP, and do
not have standardized meanings that would ensure consistency and
comparability between companies using these measures. For further
information on Non-GAAP measures used in this report can be found under
the Non-GAAP Financial Measures section of the Company's Management's
Discussion and Analysis for the three months and year ended December
31, 2011.
Q4 CONFERENCE CALL
The Company will hold its fourth quarter conference call and webcast at
10:00 a.m. ET Wednesday February 29, 2012. To access the call live,
please dial in five minutes prior to 416-644-3414. To access a
listen-only version of the webcast, please log on to www.equitabletrust.com under Investor Relations.
A replay of the call will be available until March 7, 2012 and it can be
accessed by dialing 416-640-1917 and entering passcode 4508034 followed
by the number sign. Alternatively, the call will be archived on the
Company's website for three months.
CONSOLIDATED FINANCIAL STATEMENTS | | | | | | |||
| | | | | | | | |
CONSOLIDATED BALANCE SHEETS | | | | | | | | |
($ THOUSANDS) | | | | | | | | |
| | | | | | | | |
| December 31, 2011 | | December 31, 2010 | January 1, 2010 | ||||
| | | | | | | ||
Assets | | | | | | | | |
Cash and cash equivalents | $ | 170,845 | | $ | 155,242 | $ | 389,170 | |
Restricted cash | | 83,156 | | | 86,570 | | 25,372 | |
Investments | | 400,307 | | | 413,330 | | 302,292 | |
Mortgages receivable | | 4,262,147 | | | 3,468,507 | | 2,763,020 | |
Mortgages receivable - securitized | | 5,314,940 | | | 4,748,794 | | 4,137,247 | |
Other assets | | 25,618 | | | 11,686 | | 15,191 | |
| $ | 10,257,013 | | $ | 8,884,129 | $ | 7,632,292 | |
| | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | |
Liabilities: | | | | | | | | |
| Deposits | $ | 4,627,904 | | $ | 3,878,853 | $ | 3,332,319 |
| Securitization liabilities | | 5,100,921 | | | 4,531,680 | | 3,885,187 |
| Deferred tax liabilities | | 7,790 | | | 7,086 | | 5,191 |
| Other liabilities | | 28,587 | | | 19,884 | | 14,959 |
| Bank term loans | | 12,500 | | | 12,500 | | 27,500 |
| Subordinated debentures | | 52,671 | | | 52,671 | | 37,671 |
| | 9,830,373 | | | 8,502,674 | | 7,302,827 | |
| | | | | | | | |
Shareholders' equity: | | | | | | | | |
| Preferred shares | | 48,494 | | | 48,494 | | 48,494 |
| Common shares | | 129,771 | | | 128,068 | | 127,336 |
| Contributed surplus | | 4,718 | | | 3,935 | | 3,267 |
| Retained earnings | | 254,006 | | | 202,187 | | 155,890 |
| Accumulated other comprehensive loss | | (10,349) | | | (1,229) | | (5,522) |
| | 426,640 | | | 381,455 | | 329,465 | |
| | | | | | | | |
| $ | 10,257,013 | | $ | 8,884,129 | $ | 7,632,292 | |
| | | | | | | | |
CONSOLIDATED STATEMENTS OF INCOME | | | | | | |
($ THOUSANDS, EXCEPT PER SHARE AMOUNTS) | | | | | | |
. | | | | | | |
Years ended December 31 | 2011 | | 2010 | |||
| | | | | | |
Interest income: | | | | | | |
| Mortgages | $ | 206,987 | | $ | 178,114 |
| Mortgages - securitized | | 213,604 | | | 199,980 |
| Investments | | 10,307 | | | 8,683 |
| Other | | 4,403 | | | 3,235 |
| | 435,301 | | | 390,012 | |
Interest expense: | | | | | | |
| Deposits | | 115,314 | | | 96,462 |
| Securitization liabilities | | 181,694 | | | 168,796 |
| Bank term loans | | 812 | | | 2,059 |
| Subordinated debentures | | 3,493 | | | 2,626 |
| Other | | 217 | | | 120 |
| | 301,530 | | | 270,063 | |
Net interest income | | 133,771 | | | 119,949 | |
Provision for credit losses | | 7,183 | | | 9,748 | |
Net interest income after provision for credit losses | | 126,588 | | | 110,201 | |
Other income: | | | | | | |
| Fees and other income | | 3,545 | | | 3,003 |
| Net gain on investments | | 144 | | | 230 |
| | 3,689 | | | 3,233 | |
Net interest and other income | | 130,277 | | | 113,434 | |
Non-interest expenses: | | | | | | |
| Compensation and benefits | | 22,856 | | | 18,632 |
| Other | | 22,858 | | | 14,918 |
| | 45,714 | | | 33,550 | |
Income before income taxes and fair value loss | | 84,563 | | | 79,884 | |
Fair value loss on derivative financial instruments - securitization activities | | (648) | | | (7,544) | |
Income before income taxes | | 83,915 | | | 72,340 | |
Income taxes: | | | | | | |
| Current | | 21,026 | | | 16,004 |
| Deferred | | 703 | | | 443 |
| | 21,729 | | | 16,447 | |
Net income | $ | 62,186 | | $ | 55,893 | |
| | | | | | |
Earnings per share: | | | | | | |
| Basic | $ | 3.91 | | $ | 3.50 |
| Diluted | $ | 3.88 | | $ | 3.48 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | | | | | |
($ THOUSANDS) | | | | | |
| | | | | |
Years ended December 31 | 2011 | | 2010 | ||
| | | | | |
Net income | $ | 62,186 | | $ | 55,893 |
| | | | | |
Other comprehensive (loss) income: | | | | | |
| | | | | |
Available for sale investments: | | | | | |
Net unrealized gains from change in fair value | | 1,470 | | | 4,854 |
Reclassification of net (gains) losses to income | | (385) | | | 1,328 |
| | 1,085 | | | 6,182 |
Income tax expense | | (304) | | | (1,889) |
| | 781 | | | 4,293 |
| | | | | |
Cash flow hedges: | | | | | |
Net unrealized losses from change in fair value | | (13,684) | | | - |
Reclassification of net gains to income | | (77) | | | - |
| | (13,761) | | | - |
Income tax recovery | | 3,860 | | | - |
| | (9,901) | | | - |
Total other comprehensive (loss) income | | (9,120) | | | 4,293 |
Total comprehensive income | $ | 53,066 | | $ | 60,186 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||
($ THOUSANDS) | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2011 | | | | | Preferred shares | | | | Common shares | | | | Contributed surplus | | | | Retained earnings | | | | Accumulated other comprehensive income (loss) | | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of year | | | | $ | 48,494 | | | $ | 128,068 | | | $ | 3,935 | | | $ | 202,187 | | | $ | (1,229) | | | $ | 381,455 | |
Net income | | | | | - | | | | - | | | | - | | | | 62,186 | | | | - | | | | 62,186 | |
Other comprehensive loss, net of tax | | | | | - | | | | - | | | | - | | | | - | | | | (9,120) | | | | (9,120) | |
Contributions from reinvestment of dividends | | | | | - | | | | 582 | | | | - | | | | - | | | | - | | | | 582 | |
Contributions from exercise of stock options | | | | | - | | | | 943 | | | | - | | | | - | | | | - | | | | 943 | |
Dividends: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred shares | | | | | - | | | | - | | | | - | | | | (3,625) | | | | - | | | | (3,625) |
| Common shares | | | | | - | | | | - | | | | - | | | | (6,742) | | | | - | | | | (6,742) |
Stock-based compensation | | | | | - | | | | - | | | | 961 | | | | - | | | | - | | | | 961 | |
Transfer relating to the exercise of stock options | | | | | - | | | | 178 | | | | (178) | | | | - | | | | - | | | | - | |
Balance, end of year | | | | $ | 48,494 | | | $ | 129,771 | | | $ | 4,718 | | | $ | 254,006 | | | $ | (10,349) | | | $ | 426,640 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
2010 | | | | | Preferred shares | | | | Common shares | | | | Contributed surplus | | | | Retained earnings | | | | Accumulated other comprehensive income (loss) | | | | Total | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of year | | | | $ | 48,494 | | | $ | 127,336 | | | $ | 3,267 | | | $ | 155,890 | | | $ | (5,522) | | | $ | 329,465 | |
Net income | | | | | - | | | | - | | | | - | | | | 55,893 | | | | - | | | | 55,893 | |
Other comprehensive income, net of tax | | | | | - | | | | - | | | | - | | | | - | | | | 4,293 | | | | 4,293 | |
Contributions from reinvestment of dividends | | | | | - | | | | 357 | | | | - | | | | - | | | | - | | | | 357 | |
Contributions from exercise of stock options | | | | | - | | | | 318 | | | | - | | | | - | | | | - | | | | 318 | |
Dividends: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Preferred shares | | | | | - | | | | - | | | | - | | | | (3,625) | | | | - | | | | (3,625) |
| Common shares | | | | | - | | | | - | | | | - | | | | (5,971) | | | | - | | | | (5,971) |
Stock-based compensation | | | | | - | | | | - | | | | 725 | | | | - | | | | - | | | | 725 | |
Transfer relating to the exercise of stock options | | | | | - | | | | 57 | | | | (57) | | | | - | | | | - | | | | - | |
Balance, end of year | | | | $ | 48,494 | | | $ | 128,068 | | | $ | 3,935 | | | $ | 202,187 | | | $ | (1,229) | | | $ | 381,455 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
($ THOUSANDS) | | | | | | |
| | | | | | |
Years ended December 31 | 2011 | | 2010 | |||
CASH FLOWS FROM OPERATING ACTIVITIES | | | | | | |
Net income for the year | $ | 62,186 | | $ | 55,893 | |
Adjustments to determine cash flows relating to operating activities: | | | | | | |
| Financial instruments at fair value through income | | 2,857 | | | 1,875 |
| Depreciation of capital assets | | 712 | | | 609 |
| Provision for credit losses | | 7,183 | | | 9,748 |
| Net (gain) loss on sale or redemption of investments | | (144) | | | 2,504 |
| Income taxes | | 21,729 | | | 16,447 |
| Income taxes paid | | (18,280) | | | (16,329) |
| Stock-based compensation | | 961 | | | 725 |
| Amortization of premiums/discounts on investments | | 3,273 | | | 1,980 |
| Net increase in mortgages receivable | | (1,363,900) | | | (1,326,268) |
| Net increase in deposits | | 749,051 | | | 546,534 |
| Net change in securitization liability | | 569,241 | | | 646,493 |
| Net interest income, excluding non-cash items | | (176,923) | | | (151,571) |
| Interest paid | | (264,312) | | | (237,976) |
| Other assets | | (28,756) | | | (417) |
| Other liabilities | | 5,981 | | | 5,701 |
| Interest received | | 431,207 | | | 380,042 |
| Dividends received | | 10,028 | | | 9,505 |
Cash flows from (used in) operating activities | | 12,094 | | | (54,505) | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | | | | |
| Repayment of bank term loan | | - | | | (15,000) |
| Issuance of subordinated debentures | | - | | | 20,000 |
| Redemption of subordinated debentures | | - | | | (5,000) |
| Dividends paid on preferred shares | | (3,625) | | | (3,625) |
| Dividends paid on common shares | | (5,853) | | | (5,610) |
| Proceeds from issuance of common shares | | 943 | | | 318 |
Cash flows used in financing activities | | (8,535) | | | (8,917) | |
CASH FLOWS FROM INVESTING ACTIVITIES | | | | | | |
| Purchase of investments | | (138,934) | | | (524,988) |
| Proceeds on sale or redemption of investments | | 105,730 | | | 371,777 |
| Net change in Canada Housing Trust re-investment accounts | | (20,762) | | | (10,381) |
| Purchase of investments under reverse repurchase agreements | | (191,343) | | | (364,189) |
| Proceeds on sale or redemption of investments purchased under reverse repurchase agreements | | 256,284 | | | 419,002 |
| Change in restricted cash | | 3,414 | | | (61,198) |
| Purchase of capital assets | | (2,345) | | | (529) |
Cash flows from (used in) investing activities | | 12,044 | | | (170,506) | |
Net increase (decrease) in cash and cash equivalents | | 15,603 | | | (233,928) | |
Cash and cash equivalents, beginning of year | | 155,242 | | | 389,170 | |
Cash and cash equivalents, end of year | $ | 170,845 | | $ | 155,242 | |
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 ("GICs"). 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 common and preferred 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 entitled "Annual
Results", "Fourth Quarter Results", "Securitized Mortgages", "Credit
Quality", "Looking Ahead" and "Adjusting For Accounting Changes", of
this report, 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 performance
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", "should",
"might" or "will be taken", "occur", 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 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, 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 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.
The Company's continuous disclosure materials, including interim
filings, annual Management's Discussion and Analysis and Consolidated
Financial Statements, Annual Information Form, Notice of Annual Meeting
of Shareholders and Proxy Circular are available on the Company's
website at www.equitabletrust.com and on SEDAR at www.sedar.com.
For further information:
Tim Wilson
Vice President and Chief Financial Officer
416-515-7000
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