Slide 1: EQB Inc. Q2 2025 Results
EQB Inc. Q2 2025 Results TSX: EQB May 29, 2025
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, growth objectives. Such forward looking information is presented for the purpose of assisting the holders of EQB Inc.,
Slide 3: Andrew Moor, President & Chief Executive Officer
Andrew Moor President & Chief Executive Officer
Slide 4: Strong fundamentals support confidence in value creation
Strong fundamentals support confidence in value creation We remain confident in the fundamental capacity to generate 15%+ ROEs over the medium term • Strongest capital position in our history Q2 results shaped by the backdrop of • Market-leading franchises in single- unusual market and family lendin
Slide 5: Q2 2025 Financial Highlights
Return on Equity 11.9% adjusted | 11.4% reported Q2 2025 Diluted Earnings per Share Financial $2.31 adjusted | $2.21 reported Highlights Quarterly Dividend $0.53 declared per common share | +18% Y/Y Adjusted measures and ratios are Non-GAAP measures. For additional information, see adjustments to fi
Slide 6: Personal and Commercial Banking: total loans under management growth of 9% Y/Y
Personal and Commercial Banking: total loans under management growth of 9% Y/Y Loans Under Management (LUM) ($B) +9% +3% 71.5 69.3 66.9 67.9 65.5 • Insured multi-unit residential loans under management (+6% Q/Q; +29% Y/Y to $29.1B), underscores the Bank’s long-standing leadership and 39.0 unique cap
Slide 7: Marlene Lenarduzzi, Chief Risk Officer
Marlene Lenarduzzi Chief Risk Officer
Slide 8: Risk overview: scenario modeling gives confidence Equitable is prepared for a range of outcomes
Risk overview: scenario modeling gives confidence Equitable is prepared for a range of outcomes Canada Unemployment Rate1 (%) Canada Real GDP1 (CAD $T) Range of alternative scenarios Range of alternative scenarios Base scenario Base scenario 14 2,800 2.8 12 2,700 2.7 2,600 2.6 10 2,500 2.5 8 2,400 2
Slide 9: Gross Impaired Loans: Formations decreased (4bps) Q/Q
Gross Impaired Loans: Formations decreased (4bps) Q/Q with positive movement in both Personal and Commercial Gross Impaired Loan (GIL) formations ($MM) Impaired formations (bps) Personal lending 400 Commercial lending Equipment financing 65 60 350 55 Commercial (excl. equipment financing) 55 49 • GI
Slide 10: PCLs: Lending PCLs elevated in current credit environment with expectation of return to normal levels
PCLs: Lending PCLs elevated in current credit environment with expectation of return to normal levels Provision for Credit Losses1 ($MM) Equipment financing Consumer lending Personal (excl. consumer lending) PCL ratio Performing (Stage 1 and 2) Commercial (excl. equipment financing) • $5.8MM in repo
Slide 11: Risk management
Risk 1 Prudent Loan-To-Value ratios management Tighter underwriting criteria in certain 2 geographies Continued focus on 3 Borrower credit-worthiness high credit-quality originations Ongoing management of impaired 4 instances 5 Strengthening Bennington business 11
Slide 12: David Wilkes, VP, Head of Finance
David Wilkes VP, Head of Finance
Slide 13: Financial Overview: ROE of 11.9% and EPS of $2.31 amid market volatility
Financial Overview: ROE of 11.9% (-3.3% Q/Q) and EPS of $2.31 (-22% Q/Q) amid market volatility Adjusted Reported In $MM, except for per share amounts Q2/25 Q/Q Y/Y Q2/25 Q/Q Y/Y Net Interest Income $271.1 3% 1% $271.1 3% 1% Non-Interest Revenue $44.9 (24%) (9%) $44.9 (24%) (9%) Total Revenue $316.0
Slide 14: Capital ratios: strong organic capital generation with total capital of 15.6%
Capital ratios: strong organic capital generation with total capital of 15.6% (+10bps Q/Q) Capital Ratios (%) Tier 2 Tier 1 CET1 16.6% 0.5% 10 bps • Total capital ratio remains well above regulatory 15.6% 15.6% minimums and above management target of +15% 15.5% 15.3% 1.4% 0.6% 0.6% • Q2 capital acti
Slide 15: Net Interest Income: NII +3% Q/Q and +1% Y/Y; NIM expansion
Net Interest Income: NII +3% Q/Q and +1% Y/Y; NIM expansion from lending portfolio growth and prepayments Net Interest Income ($MM) Net Interest Margin (%) Adjusted1 Adjusted1 Reported Reported $271 $271 $271 $271 2.20% $267 $267 $265 $263 $263 2.11% 2.09% $256 2.07% 2.07% 2.00% In the quarter net i
Slide 16: Non-Interest Revenue: consistent results after a record Q1 2025
Non-Interest Revenue: consistent results including fee- based and securitization businesses after a record Q1 2025 Non-Interest Revenue (% of total revenue) Adjusted1 Reported Non-Interest Revenue ($MM) Q4/24 Q1/25 Q2/25 18% 18% 18% 18% Fees and other income 21.3 22.9 22.7 17% 17% Gains (losses) on
Slide 17: Non-Interest Expenses: continued investment while managing expense growth
Non-Interest Expenses: continued investment in innovation and capabilities while managing expense growth Non-Interest Expenses ($MM) Efficiency Ratio (%) Non-recurring/amortization of intangibles Reported Adjusted expenses1 Adjusted1 159.3 161.2 150.4 150.6 153.6 5.3 49.4 51.0 6.5 +2% 4.9 5.1 49.1 7
Slide 18: Personal and Commercial Banking: Total loans under management up 3% Q/Q and 9% Y/Y
Personal and Commercial Banking: Total loans under management up 3% Q/Q and 9% Y/Y to $71.5 billion Loans Under Management (LUM) ($B) Personal Banking Commercial Banking +0.7% 32.8 32.5 32.2 32.2 32.5 39.0 5% 37.0 3% 6% 7% 7% 8% 35.6 3% 3% 3% 34.4 3% 4% 3% 3% 3% 32.7 3% 3% 3% 3% 4% 5% 3% 4% 4% 5% 4%
Slide 19: Funding: deposit growth +1% Q/Q and +3% Y/Y
Funding: deposit growth +1% Q/Q and +3% Y/Y Total Deposit Principal ($B) +3% +1% 34.0 34.4 33.6 33.2 32.7 5% Brokered HISA/Partner 5% 5% 5% 5% 6% 6% Covered Bonds 7% 8% 6% 5% Deposit Notes • Strategic growth in deposit principal 5% 6% 5% 3% (+1% Q/Q and 3% Y/Y) 7% 7% 8% Credit Union 7% 7% • EQ Bank
Slide 20: EQ Bank: building on momentum in customer growth and engagement
EQ Bank: building on momentum in customer growth and engagement, with sharpened focus and new leadership • New leadership: with Dan Broten, an experienced Equitable Bank executive, named to lead EQ Bank in the new role of SVP and Head of EQ Bank; Janet Lin named as Chief Information Officer of Equit
Slide 21: Final Thoughts…
Final Thoughts… Continued momentum in EQ Bank with 1 deeper customer relationships and increased scale Strong single family uninsured loan portfolio 2 growth and good picture for CMHC construction and term loans Appropriate provisioning while we move to a 3 more constructive credit environment Stron
Slide 22: David Wilkes and Maggie Hall contacts
David Wilkes Maggie Hall VP & Head of Finance Director PR and Communications eqb.investorroom.com eqb.investorroom.com investor_enquiry@eqb.com
Slide 23: Growth guidance reflects EQB's ongoing value creation model and growth strategy
Growth guidance reflects EQB’s ongoing value creation model and growth strategy EQB’s core performance measures (adjusted1) Medium-term guidance Return on Equity (ROE)1 15 – 17% Pre-Provision Pre-Tax Income (PPPT)1 Growth Rate 12 – 15% Diluted EPS1 Growth Rate 12 – 15% Dividend Growth Rate ~15% Book