Slide 1: EQB Inc. Q3 2024 Results
EQB Inc. Q3 2024 Results August 29, 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 onward, from 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 compar
Slide 4: Andrew Moor, President & Chief Executive Officer
Andrew Moor President & Chief Executive Officer
Slide 5: Financial Highlights
Financial Highlights Revenue As of Q3 2024 $327MM +3% Q/Q | +15% Y/Y Pre-Provision Pre-Tax Income $182MM adjusted | $177MM reported Record Q3 revenue with Diluted Earnings per Share ROE continuing ahead of 15%+ target $2.96 adjusted | $2.84 reported Return on Equity 15.9% adjusted | 15.2% reported D
Slide 6: Gross Impaired Loans: well-reserved to manage credit losses
Gross Impaired Loans: well-reserved to manage credit losses that may arise from impaired loans Total Gross Impaired Loans ($MM = millions) Commercial excl. equipment financing Consumer lending Personal excl. consumer lending Gross impaired loans ratio Commercial (excl. equipment financing) Equipment
Slide 7: Innovation: ongoing development of products and services
Innovation: ongoing development of products and services to deliver better value for customers • Notice Savings Accounts: in the initial 9- week launch, 1 in 5 of all new EQ Bank customers opened a Notice Savings Account on the same day they began banking with us • Second Chance / Deuxième Chance ca
Slide 8: Outlook: completion of five-year dividend increase plan
Outlook: successful completion of our five-year plan to increase the common share dividend by 20-25% per annum Annual Dividends Paid per Common Share1 $1.74 $1.50 +22% CAGR $1.21 $0.74 $0.74 $0.65 2019 2020 2021 2022 2023 FY24 • Delivered on our five-year plan to increase the common shared dividend
Slide 9: Chadwick Westlake, Chief Financial Officer
Chadwick Westlake Chief Financial Officer
Slide 10: Financial Results: record earnings
Financial Results: record earnings that reflect growth in net interest income, LUM and higher non-interest revenue Adjusted Reported In $MM, unless otherwise noted and except for per share amounts Q3/24 Q/Q Y/Y Q3/24 Q/Q Y/Y Return on Equity 15.9% 0.0% -2.4% 15.2% 0.1% -5.6% Diluted Earnings per Sha
Slide 11: PCL and ACL: expecting a constructive set-up for F2025
PCL and ACL: expecting a constructive set-up for F2025 Provision for Credit Losses ($MM) Net Allowance for Credit Losses2 ($MM) PCL ratio - adjusted ACL ratio (Net of cash reserves) PCL ratio - reported Stage 1 & 2 (Performing) Stage 1 & 2 (Performing) Stage 3 (Impaired) Stage 3 (Impaired) Cash rese
Slide 12: Net Interest Margin and Loans
Net Interest Margin and Loans: expected margin expansion was sustained; total LUM trending well to expectations Net Interest Income and Margin Loans under Management ($B) Net Interest Margin Net Interest Income +11% +2% $346MM -2bps Q/Q as expected due to fewer business days in the quarter in Q2 vs.
Slide 13: Funding: expanding EQ Bank franchise value
Funding: expanding EQ Bank franchise value through continued strong growth in deposits and customer base Total Deposit Principal ($B) +3% -3% 33.6 31.8 31.6 31.8 5% 32.7 Corporation & Institutional EQ Bank 5% 4% 5% 5% 7% Brokered HISAs / Partnerships • EQ Bank customers increased to 5% 5% 8% 5% 5% C
Slide 14: Non-Interest Revenue: record quarter
Non-Interest Revenue: record quarter for non-interest revenue, reaching $56 million or 17% of total revenue Non-Interest Revenue (NIR) NIR as a % of total revenue Non-Interest Revenue ($MM) Q2/23 Q2/24 Q3/24 Fees and other income 14.5 20.6 22.6 Adjusted1 Includes a gain associated with a Gains (loss
Slide 15: Non-Interest Expenses: continuing to invest in growth
Non-Interest Expenses: continuing to invest in growth initiatives that will benefit our long-term franchise value Non-interest expenses ($MM) Efficiency ratio (%) Adjusted1 Adjusted1 Integration costs & one-time items Reported 181.2 8.2 47.5 150.4 150.6 46.7 45.8 46.0 139.5 7.3 4.9 +2% 127.0 5.5 5.1
Slide 16: Final Thoughts…
Final Thoughts… Business mix and increasing 1 diversification across assets, funding and revenue translating Reaffirmed and otherwise refined 2 guidance for final quarter of 2024 FY2025 guidance to be provided 3 alongside Q4/24 earnings 16 16
Slide 17: 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