Slide 1: EQB Inc. Q1 2024 Results
EQB Inc. Q1 2024 Results February 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 has changed its fiscal year to end on October 31 for 2023 onwards, compared to 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 w
Slide 4: Andrew Moor, President & Chief Executive Officer
Andrew Moor President & Chief Executive Officer
Slide 5: Reflection: 20-year anniversary as a publicly listed company
Reflection: March 18, 2024, marks EQB’s 20-year anniversary as a publicly listed company Total Shareholder Return (TSR)1 : +1,025% TSR CAGR 1 : +13% March 18, 2004 March 18, 2024 EQB’s initial public 20-years since IPO offering (IPO) On track to achieve the best 20-year total shareholder return of a
Slide 6: Launch of EQ Bank's "Second Chance" marketing campaign
It’s Time: Launch of EQ Bank’s "Second Chance" marketing campaign in January 2024 "Second Chance" campaign launch • EQ Bank’s survey on Canadians revealed a significant disconnect in awareness about fees paid and interest earned • The survey also found that, despite widespread feelings of dissatisfa
Slide 7: Personal and Commercial Banking: Portfolio highlights
Personal and Commercial Banking: Portfolio highlights Loans Under Management ($B) Personal Banking – Decumulation Commercial Banking +55% 31.2 30.0 3% 27.7 4% 4% 1.6 26.0 5% 5% 25.0 4% 5% 1.5 4% 5% 9% 4% 5% 5% 9% 5% 5% 10% 11% 1.2 5% 11% 1.1 11% 12% 11% 1.0 11% 10% +34% 67% 68% 64% 65% 63% Q4/22 Q1/
Slide 8: Credit: Comments and outlook
Credit: Comments and outlook Equipment Financing Business as a % of total LUM and PCL Equipment Financing Business Other Business Lines $63.9 Billion 2% $15.5 Million • Equipment financing business accounts for approximately 2% of the Bank’s total loans under management • Loans are priced at a wider
Slide 9: ACM Advisors: Majority interest acquisition in Q1
ACM Advisors: Majority interest acquisition in Q1 ✓ ACM marks EQB’s entry into wealth and alternative asset management in asset classes we understand well ✓ New source of non-interest revenue for EQB and performing to plan ✓ Goal of doubling this business over the next five years ✓ New opportunity t
Slide 10: Chadwick Westlake, Chief Financial Officer
Chadwick Westlake Chief Financial Officer
Slide 11: Financial Results Overview: Performing to guidance
Financial Results Overview: Performing to guidance Adjusted1 Reported In $MM, unless otherwise noted and except for per share amounts Q1/24 Q/Q Y/Y Q1/24 Q/Q Y/Y ROE 15.6% (0.9%) (0.3%) 15.0% (0.8%) 7.3% Diluted EPS ($) $2.76 n.m. 12% $2.66 n.m. 124% Book Value Per Share2 ($) 71.33 1% 14% 71.33 1% 1
Slide 12: Net Interest Margin: Expansion from funding diversification
Net Interest Margin: Expansion from funding diversification and increasing yields on conventional loans in Commercial Net Interest Income ($MM) Net Interest Margin (%) Adjusted1 Adjusted1 Reported Reported 2.01% 2.00% +17% 1.99% 346 346 1.95% 252 252 256 256 237 241 219 218 1.92% 1.87% 1.85% 4 month
Slide 13: Funding: Diversified sources of funding matched against loan maturities
Funding: Diversified sources of funding matched against loan maturities; 95% of deposits are either term or insured Total Deposit Principal ($B) Corporation & Institutional Credit Union Brokered HISAs / Partnerships EQ Bank Covered Bonds Brokered Term Deposit Notes +3.0% Total Deposits Principal +0.
Slide 14: Non-Interest Revenue: Growing well, on track for 12-15% by 2027
Non-Interest Revenue: Growing well and on track to represent 12-15% of total revenue by 2027 Non-Interest Revenue Non-interest revenue as a % of total revenue Non-Interest Revenue ($MM) Q1/24 Fees and other income 16.6 Includes a gain associated Gains (losses) on strategic investments (0.3) Adjusted
Slide 15: PCL and ACL: Appropriately provisioned
PCL and ACL: Appropriately provisioned Provision for Credit Losses ($MM) Net Allowance for Credit Losses1 ($MM) PCL ratio Stage 1 & 2 (Performing) Stage 3 (Impaired) ACL ratio (Net of cash reserves) Stage 3 (Impaired) Stage 1 & 2 (Performing) Cash reserves Adjusted PCL ratio 7 bps (excl. accounting
Slide 16: Non-Interest Expenses: Thoughtful expense management
Non-Interest Expenses: Thoughtful expense management and investing in long-term franchise value Non-interest expenses ($MM) Efficiency ratio (%) Integration costs & one-time items Efficiency - adjusted1 Adjusted1 Efficiency - reported Includes roughly $37MM in integration +0.2% 59.3% related costs a
Slide 17: Reaffirming 2024 Guidance
Reaffirming 2024 Guidance EQB’s key adjusted1 financial metrics F24 Guidance2 Return on equity (ROE) 15%+ Pre-Provision Pre-Tax Income (PPPT) $660 - 700 million Diluted EPS $11.75 - 12.25 / share Dividend 20 - 25% BVPS 13 - 15% CET1 13%+ Core portfolio metrics Total Loans Under Management On and off
Slide 18: Final Thoughts
Final Thoughts… 1 Increased brand awareness for 2024 2 Continued momentum for our Challenger story 3 Delivering best long-term shareholder return 18 18
Slide 19: Investor Relations contacts
Sandie Douville David Lee Maggie Hall Vice President Associate Director Director Investor Relations & Investor Relations PR and Communications ESG Strategy https://eqb.investorroom.com/ investor_enquiry@eqb.com