EQB launches restructuring program
Impairments include $24M from equipment financing business
EQB announced a restructuring program that will affect its fourth quarter results as the company focuses on restoring efficiency and strengthening returns.
The initiative includes restructuring costs of about $85 million pre-tax and includes cutting headcount by about 8% and impairment charges, according to an Oct. 22 EQB release. Job cuts are expected to be completed by the end of the quarter.
The charges include $15 million, or $20 million pre-tax, for severance related to streamlining operations and $52 million, or $65 million pre-tax, in impairments, with $28 million from intangible assets and $24 million from the equipment financing business.
The program refocuses capital and talent on high-growth opportunities, improves productivity and returns to leading return-on-equity performance among Canadian banks, according to the release. EQB, the parent of Equitable Bank, manages $137 billion in combined assets and serves more than 761,000 customers nationwide through its digital platforms and commercial banking services.
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