Alternative lender says it registered its best ever quarter
Equitable Group has reported record fourth-quarter and annual earnings for the periods ending Dec. 31, 2021, saying that it outperformed several of its ambitious key performance targets.
The fourth quarter, which Equitable described as its “best ever quarter”, saw loan originations rise by 19% to $3.8 billion. Earnings were up by 12% annually to $80.1 million, with diluted earnings per share up by 11% to $2.29.
With its assets under management growing by 17% annually to reach $42 billion as of the end of December, Equitable’s total loan originations for 2021 increased by 39% year over year to $14 billion.
Conventional loans were up by 31% year over year to $21.1 billion, with single-family alternative loans growing by 30% to $14.4 billion, reverse mortgage assets by 325% during the same period to $247 million, and Commercial Finance Group by 22% to $3.9 billion.
The group’s specialized lending business grew by 122% year over year to $646 million, and equipment leasing was up by 31% to $733 million.
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Equitable also reported that its EQ Bank digital platform exceeded all expectations, with the number of customers served growing by 44% annually to 250,000 and the volume of deposits up by 53% to $7 billion, outstripping its 2021 annual growth target in the 30-50% range.
“Over the course of 2021, we gained significant momentum by enhancing the financial services that Canadians rely on every day. Once again, the talented members of the Equitable team punched above their weight to exceed the ambitious growth targets we set by a wide margin,” said Andrew Moor, president and CEO of Equitable Group.
“We leveraged our differentiated service and products for personal and commercial customers, including our EQ Bank fintech capabilities that now serve more than 250,000 Canadians and are creating real change in digital banking.”
Moor pointed to positive economic indicators from the Bank of Canada as a reason for optimism looking ahead to 2022 and beyond.
"While we again started a new year living through temporary pandemic lockdowns, the Bank of Canada recently noted that there is considerable momentum in the economy,” he said. “Based on our read of market conditions and assessment of business prospects, we have a decidedly optimistic outlook.”
