March 2018 1 Forward-Looking Statements Certain forward-looking - PowerPoint PPT Presentation

Forth Quarter 2017 March 2018 1

Forward-Looking Statements Certain forward-looking statements may be made in this presentation, including statements regarding possible future business, financing and growth objectives. Investors are cautioned that such forward- looking statements involve risks and uncertainties detailed from time to time in the Company’s periodic reports filed with Canadian regulatory authorities. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. Equitable Group Inc. does not undertake to update any forward-looking statements, oral or written, made by itself or on its behalf except in accordance with applicable securities laws. www.eqbank.ca 2

Company Overview 3

Investment Thesis 1 Well positioned as a challenger bank 2 Structural business model advantages 3 Disciplined and proven value creation processes 4 Track record of consistent performance 4

Company Overview Who We Are Our Vision • Become Canada’s leading challenger bank… • 9 th largest investable Schedule I bank in Canada by assets • …by providing the best customer service experience of any • Proven lending and deposit-taking capabilities bank in Canada • 45+ year track record • Nurturing a distinctive culture that engages our employees • 120 th most profitable company in Canada (Globe & Mail, 2016) • Delivering a long-term Return on Equity above 15% and maintaining strong capital ratios Diversified Business Earnings Momentum Mortgages Under Management ($Bn) Earnings Per Share ($) Single Family 13% CAGR Commercial Securitization Financing 10.9 10.3 8.0 9.39 8.49 6.1 3.0 7.73 5.6 2.8 6.53 5.82 2.2 5.11 2.3 9.3 2.4 7.9 6.4 5.4 4.1 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 5

Canada’s Challenger Bank™ 6

Have Been Successfully Evolving the Business INCREASING GEOGRAPHIC COVERAGE AND PRODUCT BREADTH Implemented new large bank Became a truly sponsored national funding facility Increased focus Converted alternative SFR Launched PATH on Alternative Equitable Trust lender, with IPO of Home Plan Single Family Opened to Equitable Issued first entry into Equitable Group business Bank Deposit Note Quebec market product Montreal Office 2013 2014 2016 1970 2004 2006 2010 2015 2017 2008 Equitable Trust Opened Began to Issue Launched Implemented Launched Launched EQ Incorporated Calgary Office MBS and Alternative two new funding brokered HISA Bank, our first Single Family facilities Participate in account direct-to- CMB business in consumer Quebec Opened business Introduced a Vancouver HELOC Office Entered Prime Single Family business Long History as a Regulated Canadian Financial Institution 7

Equitable’s Long-Term Value Creation Equation Book Value Per Share ($) Generate an ROE in the Mid to High Teens 17% CAGR Grow Assets at Rates Grow Capital by In-Line With Capital Retaining the Growth, if Majority of Earnings Opportunities and Reinvesting in Meet or Exceed Our 64.57 the Business ROE Targets 54.96 46.57 40.90 35.14 29.83 Pay Out a Consistently Growing 2012 2013 2014 2015 2016 2017 Dividend to Our Shareholders 8

Disciplined Capital Management • History of Consistent Dividend Growth • Capital Management Framework Strong capital base has allowed us to pursue our 13% CAGR growth objectives while returning capital to shareholders Maintain target CET1 and leverage ratios Capital Deployment Find attractive assets within existing markets; deploy to highest ROE opportunities first 0.95 0.84 0.76 0.68 Consistently grow dividends 0.60 0.52 Invest in growth and diversification initiatives that meet return thresholds 2012 2013 2014 2015 2016 2017 9

Balance sheet strength • Strong Regulatory Capital Position • Diversified Funding Sources • Higher CET1 and Total Capital ratios than any of the eight largest Deposit Notes, 1% publicly traded Canadian Banks… $22.8 Bn total MBS, 14% – …even though we use the standardized approach to risk weight our assets • 91% of regulatory capital in high-quality common equity Brokered Term GICs, 37% Resilient Liquidity Position • $2.0 Bn backstop funding facility from big-6 Canadian Banks • Liquidity portfolio of $1.4 Bn or 6.8% of total assets CMB Program, 34% – 93% is cash held at big-6 Canadian banks or in government guaranteed accounts/instruments • LCR well in excess of regulatory minimum EQ Bank Savings • 100% of securities investments are preferred shares rated P-3(mid) Account, 7% Bank or higher, with 42% rated P2(low) or higher Brokered Facilities, 4% HISAs, 4% 10

Our Digital Strategy 11

Equitable is embracing FinTech Be Invested Be Open Be Collaborative 12

Digital simplicity, absent of legacy infrastructure, enables innovation State-of-the-Art Banking Systems and Central Data Depository Account Opening Now More Automated For Quick Approval With Full FINTRAC Compliance 13

What our customers are saying about us “All things being equal I prefer the EQ experience. Using EQ I’ve grown to hate the ‘Tangerine two - step’ (transfer from savings to chequing and then pay bill) almost as much as I used to hate the 1-day delay transferring from PCF savings to chequing.” “IMO, EQ is better in this respect since they don’t play games with timing of deposits, starting balances, ‘new money’, etc. Every dollar of every customer earns the same 2%. That’s the fairest by far.” “EQ > Tangerine > PCF in my personal experience.” 14

Canadians have responded well to our innovative digital banking platform EQ Bank Deposit Principal Balances ($Bn) First Marketing campaign (January 2016) 1.6 1.6 1.3 1.2 1.1 1.0 1.0 0.8 0.1 2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4 15

Our Recent Performance 16

2017 Performance Highlights Objectives Results  Grow by providing superior Grew assets by 9% to $20.6 billion  Completed development of PATH Home Plan TM , an equity release solution that launched in early service, competitive products and cost-efficient operations 2018 and diversifies our product suite  Increased our deposit balances by $1.3 billion or 14% to $11 billion from $9.7 billion a year ago  Awarded 6th place in Financial IT’s 2017 ranking of the top digital banks globally Build our capabilities and  Received Canada’s Best Employer Platinum Award for 2018 by AON for the second consecutive year brand  Completed our IFRS 9 program and implemented it on January 1, 2018  Delivered EPS of $9.39, 11% higher than in the preceding year even with $1.11 of costs related to Consistently create successfully managing through a liquidity event  shareholder value Produced an ROE of 15.8%  Declared common share dividends that were 13% higher than in 2016  Recorded a provision for credit losses of $1.5 million or 1 bp of average loan balances  Maintain a low risk profile Reported a CET1 Ratio of 14.8%, which remained ahead of regulatory minimums, our own internal targets, and most competitive benchmarks 17

Continued high returns 18.7 17.9 18.1 17.9 17.4 17.0 17.0 16.9 16.6 16.5 16.5 16.1 15.8 15.5 14.5 14.5 13.8 13.7 12.1 10.7 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 (1) Canadian Banks EQB Includes eight largest publicly traded Canadian Banks Source: company filings, Bloomberg, Equitable analysis 18

Liquidity and funding position has been stable Total Liquid Assets Deposit Principal Balances ($ billion) ($ billion) 11.0 1.6 10.5 1.5 1.5 10.0 9.9 1.3 9.7 1.2 9.2 9.0 1.0 1.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2016 2016 2016 2017 2017 2017 2017 2016 2016 2016 2017 2017 2017 2017 Liquidity Coverage Ratio Well Above 100% Deposits Diversified and Growing 19

A strong risk management framework and low loss levels Actual Credit Loss Rates, Selected Canadian Banks 0.6% 0.5% 0.4% 0.3% Industry Comparators 1 0.2% 0.1% EQB 0.0% 07 08 09 10 11 12 13 14 15 16 17 Minimal Credit Losses and Strong Relative Performance Highlight Portfolio Quality Notes: 1 Industry Comparator group represents eight largest publicly traded Canadian banks Source: company filings, Bloomberg, Equitable analysis 20

Branchless operating model yields higher productivity and efficiency 2017 Revenue per Employee ($000s/Employee) 2017 Efficiency Ratios (%) 1,282 69.2 64.2 58.8 55.9 53.6 53.6 53.9 46.4 36.8 520 492 438 362 354 305 306 267 LB NB BNS CWB CIBC TD BMO RBC EQB EQB CWB TD RBC BNS NB CIBC BMO LB Source: company filings, Equitable analysis 21

Valuation Metrics vs. Other Canadian FIs Price to Forward Earnings 2017E Return on Equity 14 20% 12 16% 10 12% 8 6 8% 4 4% 2 - 0% RY CWB TD BMO BNS NA CM HCG LB EQB NA RY CM TD BNS EQB BMO CWB LB HCG Price to Book vs. Forward ROE Price to Q4 2017 Book 2.50 2.5 Price / Book Multiple 2.0 2.00 1.5 1.50 1.0 EQB 1.00 0.5 0.50 0.0 6% 9% 12% 15% 18% RY NA TD CM BNS BMO CWB EQB LB HCG Source: Bloomberg, Equitable analysis 22

Looking Forward 23