Toronto-based Equitable Group Inc. says earnings were up in the third quarter (Q3) but profit growth was tempered by the need to shore up liquidity through funding facilities from Canada’s major banks.
The company says net income came in at $37.9 million or $2.21 per diluted share for the quarter ending Sept. 30, up from $35.2 million or $2.16 per share for the same period last year.
Equitable says earnings were, however, reduced by 42¢ per share in Q3 because of actions it took in Q2 to address liquidity issues.
The company says those actions included securing a two-year, $2-billion funding facility from Canada’s six largest banks, and insuring and securitizing an $892-million portfolio of existing residential mortgages to protect itself during what it says was a period of funding market volatility.
Equitable says deposit principal was $10.5 billion at the end of the quarter, up 14% from a year earlier and up 5% from the end of June.
The company says it is Canada’s ninth largest independent schedule I bank, running branchless operations including its EQ Bank digital banking arm which provides services to more than 43,000 Canadians.