Slide 1: EQB Inc. Q1 2025 Results
EQB Inc. Q1 2025 Results TSX: EQB February 26, 2025 1
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: Andrew Moor, President & Chief Executive Officer
Andrew Moor President & Chief Executive Officer 3
Slide 4: Q1 2025 Financial Highlights
Q1 2025 Financial Highlights Return on Equity 15.2% adjusted | 14.1% reported Milestone adjusted EPS, Diluted Earnings per Share starting 2025 confident in $2.98 adjusted | $2.77 reported EQB’s growth opportunities Quarterly Dividend $0.51 declared per common share | +21% Y/Y Adjusted measures and r
Slide 5: Impaired Loans: well-reserved to manage through the current credit cycle
Impaired Loans: well-reserved to manage through the current credit cycle Total Net Impaired Loans ($MM = millions) Commercial excl. equipment financing Consumer lending Commercial (excl. equipment financing) Personal excl. consumer lending Net impaired loans ratio Equipment financing Gross impaired
Slide 6: Personal and Commercial Banking: total loans under management growth of 8%
Personal and Commercial Banking: total loans under management growth of 8% Loans Under Management (LUM) ($ billions) +8% +2% 67.9 69.3 65.5 66.9 63.9 • Insured multi-unit residential loans under management (+5% Q/Q; +30% Y/Y to $27.5B), 37.0 underscores the Bank’s long-standing leadership 32.7 34.4
Slide 7: 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 • EQ Bank ended Q1 with 536 thousand customers, +26% Y/Y • Notice Savings Account: now available in Quebec, an innovative choice for savings distinct from GICs and regular demand accou
Slide 8: Chadwick Westlake, Chief Financial Officer
Chadwick Westlake Chief Financial Officer 8
Slide 9: Financial Overview: starting Fiscal 2025 on point with EPS of $2.98
Financial Overview: starting Fiscal 2025 on point with EPS of $2.98 (+19% Q/Q) and ROE of 15.2% Adjusted Reported In $MM, unless otherwise noted and except for per share amounts Q1/25 Q/Q Y/Y Q1/25 Q/Q Y/Y Return on Equity 15.2% 2.1% (0.4%) 14.1% 3.9% (0.9%) Diluted Earnings per Share ($) $2.98 19%
Slide 10: PCLs: Our PCL outlook remains constructive despite uncertainty
PCLs: Our PCL outlook remains constructive despite the uncertainty of potential tariffs and macro conditions Provision for Credit Losses ($MM = millions) Equipment financing Commercial (excl. equipment financing) Personal (excl. consumer lending) Consumer lending PCL ratio Performing (Stage 1 and 2)
Slide 11: Net Interest Income: Stable net interest margins and expecting further NII growth
Net Interest Income: Stable net interest margins and expecting further NII growth driven by the spring market Net Interest Income ($MM) Net Interest Margin (%) Adjusted1 Reported Adjusted1 Reported $271 $271 $267 $267 $265 $263 $263 2.11% 2.09% $256 $256 $256 2.07% 2.07% 2.01% 2.00% In the quarter n
Slide 12: Non-Interest Revenue: a record result in Q1 2025 at $59MM
Non-Interest Revenue: a record result in Q1 2025 at $59MM, growing nearly 40% Y/Y Non-Interest Revenue (NIR) NIR as a % of total revenue Non-Interest Revenue ($MM) Q1/24 Q4/24 Q1/25 Fees and other income 16.6 21.3 22.9 Adjusted1 Reported Gains (losses) on strategic investments (0.3) 1.7 1.9 Net gain
Slide 13: 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 159.3 150.4 150.6 153.6 6.5 139.5 4.9 5.1 +3% 49.1 7.3 49.4 5.5 47.5 46.7 46.0 47.3 46.2 44.9 45.2 44.5 145.7 148.5
Slide 14: Personal and Commercial Banking: Total loans under management up 2% Q/Q
Personal and Commercial Banking: Total loans under management up 2% Q/Q and 8% Y/Y to $69 billion Loans Under Management (LUM) ($ billions) Personal Banking Commercial Banking 32.7 32.8 32.5 32.2 32.2 37.0 35.6 3% 5% 5% 6% 7% 34.4 3% 3% 3% 7% 32.7 3% 3% 3% 3% 3% 3% 4% 31.2 3% 4% 4% 5% 3% 4% 5% 5% 4%
Slide 15: Funding: Positive trends within the mix of term and demand deposits
Funding: Positive trends within the mix of term and demand deposits Total Deposit Principal ($B) Corporation & Institutional Covered Bonds Credit Union Brokered Term Brokered HISAs / Partnerships Deposit Notes EQ Bank +7% +3% 33.6 34.0 32.7 33.2 31.8 5% Total deposit principal +3% Q/Q 5% 5% 5% 6% an
Slide 16: Capital ratios: Adjusting our targets with a focus on total capital above 15%
Capital ratios: Adjusting our targets with a focus on maintaining total capital above 15% Capital Ratios Tier 2 Tier 1 CET1 16.6% 0.5% 15.6% 15.5% • We have always run our total capital ratio well 15.4% 15.3% 0.6% 0.5% 1.4% 0.6% 0.6% above regulatory minimums – a prudent 0.6% 0.7% 0.7% 0.8% practice
Slide 17: Final Thoughts…
Final Thoughts… A strong improvement in our credit 1 performance Continued strength in lending volumes in our high-growth segments and clear 2 signs of improvement across other key loan categories Further progress in our revenue 3 diversification strategy Our robust excess capital position 4 provide
Slide 18: Investor Relations and PR contacts
Mike Rizvanovic Maggie Hall Managing Director Director Investor Relations PR and Communications eqb.investorroom.com eqb.investorroom.com investor_enquiry@eqb.com
Slide 19: 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