Slide 1: EQB Inc. Q2 2023 Results
EQB Inc. Q2 2023 Results August 2, 2023 TSX: EQB | EQB.PR.C We believe this image is a powerful expression of our commitment to challenge the status quo in Canadian banking. We believe the confidence depicted is synonymous with EQB’s bold ambition to drive change that enriches people’s lives. Our ap
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: Andrew Moor, President & CEO
Andrew Moor President & CEO
Slide 4: Best-ever quarterly earnings reflect long-term execution
Best-ever quarterly earnings reflect long-term execution Adjusted Reported Quarterly Earnings $115.5MM $130.9MM Return on Equity 18.3% 20.8% Assets under Management & Assets under $108B Administration 4
Slide 5: EQB outperforms for shareholders and customers
EQB outperforms for shareholders and customers Best 10-yr Total Shareholder Return Serving More and of TSX and S&P500 listed Banks1 More Canadians2 16.3% Morgan Stanley 15.6% National Bank 14.8% JP Morgan RBC 11.7% 14.1% 543,000+ TD 11.5% BMO 11.2% Regions Financial Corp 10.5% Bank of America 10.1%
Slide 6: Maintaining strong positions amid market headwinds
Maintaining strong positions amid market headwinds ($ billions) Personal Commercial Total Deposit Principal Conventional Lending Conventional Lending +3% 30.8 31.3 31.8 +3% 20.8 21.1 21.4 +5% 9.2 9.3 9.6 Q4 2022 Q1 2023 Q2 2023 Q4 2022 Q1 2023 Q2 2023 Q4 2022 Q1 2023 Q2 2023 6
Slide 7: EQ Bank innovations deliver more value to Canadians
EQ Bank innovations deliver more value to Canadians Mobile wallet for EQ Card Canada's first all-digital FHSA 7
Slide 8: Chadwick Westlake, CFO
Forbes BuED) WORLD'S Chadwick BEST BANKS Westlake POWERED «eum C [E O
Slide 9: Reported results: Performing ahead of guidance despite the market
Reported results: Performing ahead of guidance despite the market $ millions, unless otherwise noted Q2 2023 Q/Q Y/Y and except for per share amounts Reported Change Change ROE 20.8% 4.3% 9.2% Loans Under Management ($B) $60.0 3% 41% Highlights Net Interest Margin (NIM) 1.99% 4bps 19bps • ROE YTD is
Slide 10: Adjusted results: Performing ahead of guidance despite the market
Adjusted results: Performing ahead of guidance despite the market $ millions, unless otherwise noted Q2 2023 Q/Q Y/Y and except for per share amounts Adjusted1 Change Change ROE 18.3% 1.4% 6.2% Loans Under Management ($B) $60.0 3% 41% Highlights Net Interest Margin (NIM) 1.99% 7bps 18bps • ROE YTD i
Slide 11: NIM expanding with lending business mix, funding diversification and Treasury management
NIM expanding with lending business mix, funding diversification and Treasury management Net Interest Margin (NIM) Net Interest Income Percent $MM +51% y/y 1.99% 1.95% +5% q/q 1.93% 300 1.86% 250 241 252 218 1.83% 1.81% 1.85% 200 186 167 1.81% 142 151 156 162 1.80% 150 134 1.77% 100 50 0 Q1 Q2 Q3 Q4
Slide 12: Continued benefit of lower deposit beta with EQ Bank everyday savings+ accounts
Continued benefit of lower deposit beta with EQ Bank everyday savings+ accounts + customer engagement Total deposit principal $B Total deposit principal +35% +35% y/y 31.3 31.8 • EQ Bank deposits +8.1% 30.8 Brokered HISA/Partnerships y/y, +1.3% q/q to $8.2B Covered Bonds Deposit Notes • Equitable Ba
Slide 13: Well provisioned with net ACL ratio +1bps q/q
Well provisioned with net ACL ratio +1bps q/q Equipment Financing Commercial Consumer Lending Personal (excl. consumer lending) Provision for Credit Losses Net allowance for Credit Losses $MM 26.8 $MM 95.4 87.0 82.7 69.3 66.2 13.0 62.9 56.8 55.2 52.1 48.9 47.9 51.6 7.8 6.2 5.2 5.4 0.1 -0.8 -0.1 -2.4
Slide 14: Updated and increased guidance
Updated and increased guidance Adjusted measures Actual Results Original Guidance3 Updated Guidance3 Guidance for 2023 Financial measures YTD June 2023 2023 12-month 2023 12-month 10-month period to Reflects YTD y/y Reflects annual y/y Reflect annual y/y October 31, 2023 Return on Equity (ROE)1 17.5
Slide 15: Final Thoughts
Final Thoughts • Best quarter ever • Increased our guidance for 2023 • Continued momentum for our challenger story • Delivering best long-term shareholder return
Slide 16: A note about the cover
A note about the cover: The photo selected is meant to be a powerful expression of our commitment to challenge the status quo in Canadian banking. We believe the confidence depicted is synonymous with EQB’s bold ambition to drive change. Our approach provides a unique perspective within the market w