Slide 1: EQB Inc. Q4 2024 Results
EQB Inc. Q4 2024 Results December 5, 2024 TSX: EQB
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 as well as statements with respect to EQB’s intention to renew and/or make share repurchases under i
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 onward, from prior fiscal periods ending December 31. With this change, EQB’s reporting cycle is now consistent with Canada’s publicly traded banks. Within this presentation, the 12-month fiscal 2024 period is pres
Slide 4: Andrew Moor, President & Chief Executive Officer
Andrew Moor President & Chief Executive Officer
Slide 5: FY2024 Financial Highlights
FY2024 Financial Highlights Return on Equity 15.0% adjusted | 13.8% reported Revenue Positive trending in key $1,264MM adjusted | $1,255MM reported growth areas, and revenue surpasses a billion dollars for the first time in EQB’s 54-year history Quarterly Dividend $0.49 declared per common share | +
Slide 6: PCLs and GILs: appropriately reserved, expect significant improvement in Equipment Financing
PCLs and GILs: appropriately reserved, expect significant improvement in Equipment Financing portfolio in FY2025 Provision for Credit Losses ($MM = millions) Total Gross Impaired Loans ($MM) Personal (excl. consumer lending) Commercial (excl. equipment financing) Commercial excl. equipment financing
Slide 7: Personal and Commercial Banking: total loans under management growth of 9% within guidance
Personal and Commercial Banking: total loans under management growth of 9% within guidance Loans Under Management (LUM) ($ billions) +9% +1% 66.9 67.9 65.5 63.9 • Insured multi-unit residential loans (+8% Q/Q; 62.4 +30% Y/Y to $26.1B), underscores the Bank’s long-standing leadership and unique capab
Slide 8: EQ Bank: relentless innovation to better serve customers
EQ Bank: relentless innovation to better serve customers, drive change in Canadian Banking to enrich people’s lives • Notice Savings Account: five months after launch, balances reached almost $900 million, as customers credit this first-of-its-kind account for joining EQ Bank • EQ Bank surpassed $9.
Slide 9: 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
Slide 10: Chadwick Westlake, Chief Financial Officer
Chadwick Westlake Chief Financial Officer
Slide 11: Financial Overview: record annual earnings of $438 million
Financial Overview: record annual earnings of $438 million despite higher credit provisioning in Equipment Financing In $MM, unless otherwise noted and Adjusted1 Reported except for per share amounts (unaudited) Q4/24 QQ / YY FY24 YY Q4/24 QQ / YY FY24 YY Return on Equity 13.1% (2.8%) / (3.4%) 15.0%
Slide 12: Net Interest Income surpassed $1 billion for the first time in Fiscal Year 2024
Net Interest Income surpassed $1 billion for the first time in Fiscal Year 2024, with margins expanding 10 bps Y/Y Net Interest Income ($MM) Net Interest Margin (%) Adjusted1 Reported Adjusted1 Reported Adjusted1 / Reported Adjusted1 / Reported FY24: $1,059MM / $1,050MM FY24: 2.07% / 2.05% FY23: $83
Slide 13: Personal and Commercial Banking: total loans under management up 1% Q/Q and 9% Y/Y to $68 billion
Personal and Commercial Banking: total loans under management up 1% Q/Q and 9% Y/Y to $68 billion Loans Under Management (LUM) ($ billions) Personal Banking Commercial Banking 32.4 32.7 32.8 32.5 32.2 35.6 34.4 5% 5% 5% 6% 32.7 3% 3% 3% 3% 7% 3% 3% 3% 3% 31.2 3% 4% 4% 30.0 4% 5% 3% 5% 4% 4% 5% 7% 5%
Slide 14: Funding: strength in wholesale funding channels and strong momentum at EQ Bank
Funding: continue to see strength in wholesale funding channels and strong momentum at EQ Bank Total Deposit Principal ($B) Corporation & Institutional Covered Bonds Credit Union Brokered Term Brokered HISAs / Partnerships Deposit Notes EQ Bank +5% +1% Total deposit principal +1% Q/Q 33.6 and +5% Y/
Slide 15: Non-Interest Revenue: representing 16% of total revenue in FY24
Non-Interest Revenue: representing 16% of total revenue in FY24, with average monthly NIR up 55% compared to FY23 Non-Interest Revenue (NIR) NIR as a % of total revenue Non-Interest Revenue ($MM) Q4/23 Q3/24 Q4/24 Fees and other income 18.5 22.6 21.3 Adjusted1 Reported Gains (losses) on strategic in
Slide 16: Non-Interest Expenses: strategic long-term investments to build our franchise
Non-Interest Expenses: strategic long-term investments to build our franchise Non-interest expenses ($MM) Efficiency ratio (%) Adjusted1 Adjusted1 Non-recurring/one-time items Reported Adjusted1 / Reported FY24: 45.2% / 47.3% FY23: 44.0% / 44.6% 181.2 Y/Y: +120 bps / +270 bps 8.2 150.4 150.6 153.6 4
Slide 17: Looking ahead to a 15%+ ROE in Fiscal Year 2025
Looking ahead to a 15%+ ROE in Fiscal Year 2025 1 Loans Under Management expected to grow in the 8-12% range Benefits of lower interest rate environment to drive meaningful pick up in 2 originations across lending portfolios and a better net interest income trajectory Continued robust pipeline for i
Slide 18: Final Thoughts
Final Thoughts 18 18
Slide 19: Investor Relations contacts
Mike Rizvanovic Maggie Hall Managing Director Director Investor Relations PR and Communications eqb.investorroom.com eqb.investorroom.com investor_enquiry@eqb.com