1

Forth Quarter 2017March 2018

2

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

3

Company Overview

4

Investment Thesis

Structural business model advantages

Disciplined and proven value creation processes

Track record of consistent performance

2

3

4

Well positioned as a challenger bank1

5

Company Overview

• 9th largest investable Schedule I bank in Canada by assets

• Proven lending and deposit-taking capabilities

• 45+ year track record

• 120th most profitable company in Canada

(Globe & Mail, 2016)

Who We Are Our Vision

4.1 5.4 6.4 7.9 9.3 2.4 2.3 2.2

2.8 3.0

5.66.1

8.0

10.310.9

2013 2014 2015 2016 2017

Single Family

Commercial

Securitization Financing

Diversified Business Earnings Momentum

• Become Canada’s leading challenger bank…

• …by providing the best customer service experience of any

bank in Canada

• Nurturing a distinctive culture that engages our employees

• Delivering a long-term Return on Equity above 15% and

maintaining strong capital ratios

Mortgages Under Management ($Bn) Earnings Per Share ($)

5.11 5.82 6.537.73 8.49 9.39

2012 2013 2014 2015 2016 2017

13% CAGR

6

Canada’s Challenger Bank™

7

Launched EQ

Bank, our first

direct-to-

consumer

business

INCREASING GEOGRAPHIC COVERAGE AND PRODUCT BREADTH

Long History as a Regulated Canadian Financial Institution

Have Been Successfully Evolving the Business

2004 2008 2013 2014 2015 2016

IPO of

Equitable Group

Increased focus

on Alternative

Single Family

businessOpened

Montreal Office

Launched

brokered HISA

account

Converted

Equitable Trust

to Equitable

Bank

Issued first

Deposit Note

Implemented

new large bank

sponsored

funding facility

Entered Prime

Single Family

business

Became a truly

national

alternative SFR

lender, with

entry into

Quebec market

Implemented

two new funding

facilities

Opened

Vancouver

Office

1970

Equitable Trust

Incorporated

Introduced a

HELOC

Began to Issue

MBS and

Participate in

CMB

Launched

Alternative

Single Family

business in

Quebec

2006

Opened

Calgary Office

2010 2017

Launched PATH

Home Plan

product

8

Equitable’s Long-Term Value Creation Equation

29.83 35.14

40.90 46.57

54.96 64.57

2012 2013 2014 2015 2016 2017

17% CAGR

Book Value Per Share ($)

Grow Capital by

Retaining the

Majority of Earnings

and Reinvesting in

the Business

Grow Assets at Rates

In-Line With Capital

Growth, if

Opportunities

Meet or Exceed Our

ROE Targets

Generate an ROE in the Mid

to High Teens

Pay Out a Consistently Growing

Dividend to Our Shareholders

9

Disciplined Capital Management

Strong capital base has allowed us to pursue our

growth objectives while returning capital to

shareholders

• Capital Management Framework

0.52 0.60 0.68 0.76 0.840.95

2012 2013 2014 2015 2016 2017

13% CAGR

Maintain target CET1 and leverage ratios

Find attractive assets within existing markets;

deploy to highest ROE opportunities first

Consistently grow dividends

Invest in growth and diversification initiatives that

meet return thresholds

Cap

ital D

ep

loym

en

t

• History of Consistent Dividend Growth

10

Balance sheet strength

• Higher CET1 and Total Capital ratios than any of the eight largest

publicly traded Canadian Banks…

– …even though we use the standardized approach to risk weight

our assets

• 91% of regulatory capital in high-quality common equity

• Strong Regulatory Capital Position • Diversified Funding Sources

• $2.0 Bn backstop funding facility from big-6 Canadian Banks

• Liquidity portfolio of $1.4 Bn or 6.8% of total assets

– 93% is cash held at big-6 Canadian banks or in government

guaranteed accounts/instruments

• LCR well in excess of regulatory minimum

• 100% of securities investments are preferred shares rated P-3(mid)

or higher, with 42% rated P2(low) or higher

Resilient Liquidity Position

Brokered Term GICs,

37%

EQ Bank Savings

Account, 7%Brokered

HISAs, 4%

Bank Facilities, 4%

CMB Program, 34%

MBS, 14%

Deposit Notes, 1% $22.8 Bn total

11

Our Digital Strategy

12

Equitable is embracing FinTech

Be Open Be Collaborative Be Invested

13

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

14

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.”

15

Canadians have responded well to our innovative digital banking platform

0.1

0.81.0 1.0 1.1

1.21.3

1.6 1.6

2015 Q4 2016 Q1 2016 Q2 2016 Q3 2016 Q4 2017 Q1 2017 Q2 2017 Q3 2017 Q4

First Marketing campaign (January 2016)

EQ Bank Deposit Principal Balances ($Bn)

16

Our Recent Performance

17

2017 Performance HighlightsObjectives Results

Grow by providing superior

service, competitive products

and cost-efficient operations

Grew assets by 9% to $20.6 billion

Completed development of PATH Home PlanTM, an equity release solution that launched in early

2018 and diversifies our product suite

Build our capabilities and

brand

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

Received Canada’s Best Employer Platinum Award for 2018 by AON for the second consecutive year

Completed our IFRS 9 program and implemented it on January 1, 2018

Consistently create

shareholder value

Delivered EPS of $9.39, 11% higher than in the preceding year even with $1.11 of costs related to

successfully managing through a liquidity event

Produced an ROE of 15.8%

Declared common share dividends that were 13% higher than in 2016

Maintain a low risk profile

Recorded a provision for credit losses of $1.5 million or 1 bp of average loan balances

Reported a CET1 Ratio of 14.8%, which remained ahead of regulatory minimums, our own internal

targets, and most competitive benchmarks

18

Continued high returns

10.7 12.1 15.5 16.5 17.9 16.1 14.5 13.8 13.7 14.5 16.6 17.0 17.0 16.5

18.7 18.1 17.4 17.9 16.9 15.8

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Canadian Banks EQB(1)

Includes eight largest publicly traded Canadian Banks

Source: company filings, Bloomberg, Equitable analysis

19

Liquidity and funding position has been stable

Deposit Principal Balances($ billion)

Total Liquid Assets($ billion)

Liquidity Coverage Ratio Well Above 100% Deposits Diversified and Growing

1.0 1.0

1.3

1.2

1.61.5 1.5

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

9.0 9.2

9.79.9 10.0

10.5

11.0

Q22016

Q32016

Q42016

Q12017

Q22017

Q32017

Q42017

20

A strong risk management framework and low loss levels

Actual Credit Loss Rates, Selected Canadian Banks

EQB

Industry Comparators1

Minimal Credit Losses and Strong Relative Performance Highlight Portfolio Quality

Notes: 1Industry Comparator group represents eight largest publicly traded Canadian banks

Source: company filings, Bloomberg, Equitable analysis

0.0%

0.1%

0.2%

0.3%

0.4%

0.5%

0.6%

07 08 09 10 11 12 13 14 15 16 17

21

Branchless operating model yields higher productivity and efficiency

2017 Efficiency Ratios (%)2017 Revenue per Employee ($000s/Employee)

Source: company filings, Equitable analysis

267 305 306 354 362

438 492 520

1,282

LB NB BNS CWB CIBC TD BMO RBC EQB

36.8

46.4

53.6 53.6 53.9 55.9 58.8

64.2 69.2

EQB CWB TD RBC BNS NB CIBC BMO LB

22

Valuation Metrics vs. Other Canadian FIs

Price to Forward Earnings

Price to Q4 2017 Book Price to Book vs. Forward ROE

2017E Return on Equity

Source: Bloomberg, Equitable analysis

-

2

4

6

8

10

12

14

RY CWB TD BMO BNS NA CM HCG LB EQB

EQB

0.50

1.00

1.50

2.00

2.50

6% 9% 12% 15% 18%

Pri

ce /

Bo

ok M

ult

iple

0%

4%

8%

12%

16%

20%

NA RY CM TD BNS EQB BMO CWB LB HCG

0.0

0.5

1.0

1.5

2.0

2.5

RY NA TD CM BNS BMO CWB EQB LB HCG

23

Looking Forward

24

Our 2018 objectives build on our capabilities and our market opportunities

Grow our core lending businesses

Launch an equity release solution

Continue building EQ Bank

Pursue AIRB initiative

1

2

4

5

Diversify into adjacent businesses and win on service3

25

Equity Release Product Overview

Target Market

Distribution

Brand

Loan

Parameters

• Homeowners 55 years and older

• Residents of larger urban centers, such as

Toronto or Calgary

• Through Canada’s vibrant mortgage broker

community

• Maximum LTV at origination of 40%

• Term of up to 5 years

• Floating interest rate (based off prime)

• PATH Home Plan branding

• Delivers message of equity release being a

natural part of an overall financial plan

26

Why and Why Now?

Attractive Market

Favorable Competitive Landscape

Diversification Platform

Synergies with Existing Business

• Targets the growing demographic of aging Canadians

• Addresses increasing gap between retirement savings

and needs

• Provides an option for borrowers if recent regulatory

changes reduce availability of traditional mortgage credit

• New asset class but adjacent to existing businesses

• Broader range of products enhances our value

proposition to the broker community

• Leverages existing capabilities and financial strength

• Cash flow from current operations can finance reverse

mortgage investments

• Systems, corporate centre, and funding channels

• Relationships with brokers

• Robust risk management framework

• Only one incumbent regulated player

• Market size will likely make it appealing to only mid-

sized FIs; niche market not addressed by big-6

27

Significant Market Opportunity

Source: 1. Statistics Canada – Projections for Canada, Provinces and Territories

2. Statistics Canada, 2011 National Household survey. Assumes approximately 5.8 million households with borrowers over 60, and a 69%

ownership rate among those households. Average mortgage size is assumed to be $150,000 based on $500,000 house price and 30% LTV

Growing Population 60+ in Canada1

In Millions

Illustrative Market Size2

In $Bn

Penetration rates in other established equity release markets such as Australia, the UK and the U.S. range from 1.2% to 3.5%

$2.7

$6.0

$9.0

$11.9

1% 1.50% 2%

EQB Market Penetration

7.5 7.7 8.0 8.3

9.7

11.1 12.0

12.8

2013 2014 2015 2016 2021 2026 2031 2036

Current Market

Size

As of Dec. 31, 2017

28

Market Developments

Market Dynamics and Opportunities

Regulatory Changes

Competitive Developments

Housing Market

Conditions

Fintech and Consumer Banking

Preferences

29

Recent regulatory proposals create operating uncertainty

OSFI has changed its Underwriting

Guideline B-20

• Interest rate stress test

• Dynamic LTV measurements

• Restrictions on co-lending

• Impact on Equitable currently unclear, though

we expect it to be negative

• Difficult to forecast competitor and consumer

reactions

• Intend to offset some of the effect with higher

commercial asset growth and new products