Slide 1: EQB Inc. Q2 2024 Results
EQB Inc. Q2 2024 Results May 30, 2024 TSX: EQB | EQB.PR.C
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Certain forward-looking statements may be made in this presentation, including statements regarding possible future business, financing and growth objectives. Such forward looking information is presented for the purpose of assisting the holders of EQB In
Slide 3: Change of EQB's fiscal year
Change of EQB’s fiscal year EQB changed its fiscal year to end on October 31 for 2023 onwards, compared to prior fiscal periods ending December 31. With this change, EQB’s reporting cycle is now consistent with Canada’s publicly traded banks. Quarterly comparison periods throughout fiscal 2024 will
Slide 4: Andrew Moor, President & Chief Executive Officer
Andrew Moor President & Chief Executive Officer
Slide 5: Financial Highlights
Financial Highlights As of Q2 2024 Revenue $317MM +6% Q/Q | +20% Y/Y Pre-Provision Pre-Tax Income $174MM adjusted1 | $166MM reported EQB Inc. delivered record revenue and pre-provision Net Income pre-tax income (PPPT), with $111MM adjusted1 | $106MM reported ROE well above 15% Return on Equity 15.9%
Slide 6: Gross Impaired Loans: positive resolutions in commercial, partly offset by personal & equipment financing
Gross Impaired Loans: positive resolutions in commercial, partly offset by personal & equipment financing formations Total Gross Impaired Loans ($MM = millions) Gross impaired loans ratio Consumer lending Equipment financing Commercial (excl. equipment financing) Personal excl. consumer lending Comm
Slide 7: Personal and Commercial Banking: Portfolio highlights
Personal and Commercial Banking: Portfolio highlights Loans Under Management (LUM) ($ billions) Personal Banking – Decumulation only Commercial Banking +57% 32.7 31.2 30.0 1.7 27.7 1.6 26.0 7% 1.5 9% 9% 12% 10% 11% 1.2 11% 11% 1.1 11% +35% 11% 68% 69% 67% 64% 65% Q1/23 Q2/23 Q4/23 Q1/24 Q2/24 Q1/23
Slide 8: EQ Bank: strong customer growth and introduction of Notice Savings Account and Small Business Banking
EQ Bank: strong customer growth and introduction of Notice Savings Account and Small Business Banking EQ Bank Customers (‘000s) +36% 457 426 401 368 336 Q1/23 Q2/23 Q4/23 Q1/24 Q2/24 • Launch of an innovative Notice Savings Account, allowing customers to earn higher rates on savings with the option
Slide 9: Chadwick Westlake, Chief Financial Officer
Chadwick Westlake Chief Financial Officer
Slide 10: Financial Results Overview: Record quarterly revenue with strong margin expansion
Financial Results Overview: Record quarterly revenue with strong margin expansion Adjusted1 Reported In $MM, unless otherwise noted and except for per share amounts Q2/24 Q/Q Y/Y Q2/24 Q/Q Y/Y Return on Equity 15.9% 0.3% (1.0%) 15.1% 0.1% (1.4%) Diluted Earnings per Share ($) $2.81 2% 7% $2.67 0.4%
Slide 11: Net Interest Margin: Expansion from increasing yields on personal portfolio and funding diversification
Net Interest Margin: Expansion from increasing yields on personal portfolio and continued funding diversification Net Interest Income ($MM) Net Interest Margin (%) Adjusted1 Adjusted1 Reported 2.15% Reported 2.11 2.10% 2.05% 2.00 2.01 346 346 1.99 2.00% 1.95 1.95% 1.90% 1.92 267 267 252 252 256 256
Slide 12: Funding: Over $1 billion in new funding from wholesale programs and strong EQ Bank deposit momentum
Funding: Over $1 billion in new funding from wholesale programs and strong EQ Bank deposit momentum Total Deposit Principal ($B) Corporation & Institutional Credit Union Brokered HISAs / Partnerships EQ Bank Covered Bonds Brokered Term Deposit Notes +7% +6% 33.6 31.3 31.8 31.6 31.8 5% Total Deposit
Slide 13: Non-Interest Revenue: 16% of total revenue with a strategic focus on growing beyond multi-year target
Non-Interest Revenue: 16% of total revenue with a strategic focus on growing beyond multi-year target of 12-15% Non-Interest Revenue (NIR) NIR as a % of total revenue Non-Interest Revenue ($MM) Q1/23 Q1/24 Q2/24 Fees and other income 13.9 16.6 20.6 Adjusted1 Includes a gain associated with a strateg
Slide 14: PCL and ACL: Appropriately provisioned
PCL and ACL: Appropriately provisioned Provision for Credit Losses ($MM) Net Allowance for Credit Losses1 ($MM) ACL ratio (Net of cash reserves) PCL ratio Stage 1 & 2 (Performing) Q1/24 included a one-time $7.3 Stage 1 & 2 (Performing) million PCL benefit in the Stage 3 (Impaired) Stage 3 (Impaired)
Slide 15: Non-Interest Expenses: Thoughtful expense management and investing in long-term franchise value
Non-Interest Expenses: Thoughtful expense management and investing in long-term franchise value Non-interest expenses ($MM) Efficiency ratio (%) Adjusted1 Adjusted1 Integration costs & one-time items Reported 181.2 8.2 47.2 47.5 150.4 46.7 139.5 7.3 45.8 126.5 127.0 5.5 +7% 45.2 6.3 5.1 45.4 42.8 44
Slide 16: Final Thoughts
Final Thoughts… Our diversification in sources of 1 revenue and funding is translating into strong revenue growth Delivering 15%+ ROE continues to 2 be our priority Confident in executing our strategy and delivering strong results with a 3 constructive outlook for second half of 2024 16 16
Slide 17: David Lee, Maggie Hall – Investor Relations contacts
David Lee Maggie Hall Associate Director Director Investor Relations PR and Communications eqb.investorroom.com eqb.investorroom.com investor_enquiry@eqb.com