Slide 1: EQB Inc. Q1 2023 Results
EQB Inc. Q1 2023 Results May 3, 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 appro
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: A multi-milestone quarter
A multi-milestone quarter 515,000+ Direct customer relationships Over $100 million Q1 earnings – a new record 16.9% Return-on-Equity 4
Slide 5: Well-managed exposure amid market uncertainty
Well-managed exposure amid market uncertainty $51.8B <1% Total Bank Assets Office Lending 5
Slide 6: Prudent Liquidity Management
Prudent Liquidity Management $32.4B ~95% Total Term and/or deposits insured deposits 6
Slide 7: Maintaining 2023 portfolio guidance
Maintaining 2023 portfolio guidance Single family residential loan principal Commercial loan principal $B, uninsured mortgages $B (excludes multi-family residential) +33% y/y +37% y/y +1% q/q +1% q/q 18.9 19.2 9.2 9.3 15.7 8.0 14.5 15.4 7.4 13.4 6.4 6.8 12.3 5.6 6.0 11.0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q
Slide 8: Canada's Best Bank helping more Canadians with their everyday banking needs
Canada's Best Bank helping more Canadians with their everyday banking needs $8.1B ~336,000 40,000+ Mobile Wallet Total deposits Customers Customers with Aim to launch in +12% y/y +26% y/y EQ Bank Card Summer 2023 EQ Bank Deposits $B +44% CAGR 7.6 7.6 7.9 8.1 6.9 7.0 7.3 6.5 5.8 4.3 4.6 3.3 2.7 Q1 Q2
Slide 9: Chadwick Westlake, CFO
Chadwick Westlake CFO
Slide 10: Margin expansion and record-breaking earnings
Margin expansion and record-breaking earnings Change Q1 2023 In $MM, unless otherwise noted and except for per share amounts Adjusted1 Q/Q Y/Y ROE 16.9% 1.0% (2.3%) Highlights Conventional Loans ($B) $30.4 1% 41% • ROE for Q1 2023 was 16.9%, NIM 1.92% 0.05% 0.05% ahead of 2023 guidance Net Interest
Slide 11: Growing yields, optimizing cost of funds delivers margin expansion
Growing yields, optimizing cost of funds delivers margin expansion Net Interest Margin (NIM) Net Interest Income Percent $MM 1.94% +45% y/y 1.92% +8% q/q 1.87% 250 237 1.83% 1.87% 219 1.81% 200 187 1.81% 1.81% 163 168 151 156 150 134 142 1.77% 100 50 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 12: Increasing benefits from funding diversification and lower deposit beta
Increasing benefits from funding diversification and lower deposit beta Total deposit principal $B +21% CAGR 30.8 31.3 Brokered HISA/Partnerships Covered Bonds Total deposit principal +42% y/y Deposit Notes • EQ Bank deposits +12% y/y, +2% q/q to Credit Union $8.1B; EQ bank term deposits +67% y/y, +
Slide 13: Well-provisioned with net allowance for credit losses
Well-provisioned with net allowance for credit losses +1bps q/q to 19bps as % of lending assets Equipment Leases Commercial Consumer Lending Personal (excl. consumer lending) Provision for Credit Losses Allowance for Credit Losses, net of cash reserves $MM $MM 26.8 87.0 82.7 73.7 69.3 66.2 62.9 56.8
Slide 14: Early positive signs from Concentra integration
Early positive signs from Concentra integration Non-Interest Expenses $MM Other +18% q/q Marketing & Corporate 120.3 Product Costs Tech & Systems 103.5 Compensation & Benefits Q1 efficiency ratio increased from 43.5% to 45.4% with the full three- 78.9 month contribution of Concentra 75.6 67.4 69.7 6
Slide 15: Affirming our 2023 guidance – on-track through Q1
Affirming our 2023 guidance – on-track through Q1 YTD 2023 2023 Guidance1 Financial measures Reflects annual y/y Results Return on Equity (ROE) 16.9% 15%+ Pre-Provision Pre-Tax Income Growth (PPPT) 8.7% q/q 25%-35% Diluted EPS Growth 6.5% q/q 10-15% Dividend Growth 6.1% q/q 20%-25% BVPS Growth 2.9%
Slide 16: Final Thoughts
Final Thoughts • Leading Challenger Bank approach delivers all-time record earnings • Guidance confirmed • Integration performing to plan • Structural and cultural advantages translating to fortress balance sheet
Slide 17: 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 the Bank’s bold ambition to drive change. Our approach provides a unique perspective within the mar
Slide 18: Appendix: Selected Financial Highlights
Appendix: Selected Financial Highlights Q1 2023 Diluted EPS NIM NII $MM ROE Adjusted1 $2.62 1.92% u $237 16.9% -1% y/y +7% q/q +0.05% y/y +0.05% q/q +45% y/y +8% q/q -2.3% y/y +1.0% q/q Reported $2.56 1.95% $241 16.5% +2% y/y +115% q/q +0.09% y/y +0.10% q/q +48% y/y +10% q/q -1.8% y/y +8.8% q/q 1. A