Equitable Group Inc. reported that its financial results for the first quarter of 2007, ended March 31, set new records for net income and earnings per share on substantial growth in assets.

During Q1, the firm’s assets expanded 35.7% to $2.87 billion from $2.11 billion a year earlier. Its net income increased 37% to $8 million from $5.8 million a year earlier. Diluted earnings per share advanced 34.7% to $0.66 compared to $0.49 a year ago.

Return on average equity increased to 21.1% compared to 18.6% a year earlier. Mortgage originations grew 12.6% to $664.2 million from $589.9 million last year.

The company’s board declared a dividend in the amount of $0.10 per share payable July 4 to shareholders of record at the close of business June 15.

“Equitable performed very well in the first quarter achieving outstanding results based on substantial growth in assets,” said Andrew Moor, president and CEO. “This performance reflects continued demand in Canada’s real estate market for residential and commercial mortgage financing as well as Equitable’s ongoing attention to business fundamentals. Our focus on efficiency, productivity and disciplined lending has once again delivered meaningful value to our shareholders.”

“From an earnings perspective, total interest revenue increased 38.4% to a record $40.4 million while our net interest margin remained at a very strong 2.4% in the first quarter. This is a key highlight, as is the fact that despite overall expense increases related to growth in staffing.”

Year-over-year growth in the company’s mortgage portfolio was registered in most of its niches:

– Single family dwelling mortgages increased 17.4% to $797 million.
– Commercial mortgages increased 44.7% to $488.9 million.
– Conventional mortgages held for sale increased by more than 3.4 times to $350.9 million.
– Construction loans increased 37.0% to $93.5 million.

Multi-unit residential mortgages and CMHC insured mortgages both decreased year-over-year (by 1.0% to $533.6 million and by 26.0% to $31.3 million respectively) due to the discharge of certain multi-unit residential mortgages and the earlier securitization of CMHC insured mortgages.

Said Stephen Coffey, senior vice president and CFO: “These indicators continue to reflect the benefits of a strong economy and our disciplined lending practices, which have allowed us to build a good quality portfolio that is well diversified by mortgage niche.”

As a result, the firm believes that based on its first-quarter performance, it has established a solid foundation to achieve its growth and profit objectives for the entire year.

“Although it’s still early going, and some analysts continue to forecast a soft landing for the real estate market sometime in 2007, activity levels so far in the second quarter are strong and we continue to position ourselves to take advantage of these conditions through our disciplined niche lending practices,” said Moor.