EQB Inc. Downgraded to Market Perform at Raymond James Following Q3 Results

EQB Inc. was downgraded to Market Perform from Outperform at Raymond James following Q3 results. The downgrade reflects the company's disappointing earnings and revenue, which fell short of expectations.

Title: Raymond James Downgrades EQB Inc. to Market Perform Amidst Q3 Disappointments

Raymond James Financial Inc. (RJF) has downgraded EQB Inc. (TSX: EQB) from an "Outperform" rating to "Market Perform" following the release of EQB's Q3 2025 earnings report. The downgrade reflects EQB's underwhelming financial performance, which fell short of market expectations [1].

EQB reported adjusted net income of $80.3 million for the quarter, a 32% year-over-year (y/y) decline and a 15% quarter-over-quarter (q/q) decrease. Adjusted revenue stood at $310 million, representing a 5% y/y and 2% q/q reduction. The company's adjusted net interest income (NII) also declined, dropping by 6% y/y and 2% q/q to $254 million. The adjusted net interest margin (NIM) decreased by 14 basis points (bps) y/y and 25 bps q/q to 1.95% [2].

The company's total assets under management (AUM) and assets under administration (AUA) increased by 9% y/y and 2% q/q to $137 billion. EQ Bank customers grew by 21% y/y and 5% q/q to 586,000. The book value per share increased by 9% y/y and 2% q/q to $82.37. EQB declared common share dividends of $0.55 per share, up 17% y/y and 4% q/q [2].

EQB's interim President and CEO, Marlene Lenarduzzi, attributed the disappointing performance to macroeconomic uncertainty and housing market conditions in Canada, which negatively impacted credit performance and interest income. The company's earnings for the first nine months of 2025 also showed a decline, with adjusted diluted EPS decreasing by 14% y/y to $7.36 [2].

Raymond James' downgrade reflects the market's concerns about EQB's ability to navigate the challenging macroeconomic environment and the potential impact on its earnings and revenue growth. The company will need to demonstrate significant improvements in its financial performance to regain investor confidence and potentially secure a higher rating from analysts [1].

References:
[1] https://www.marketbeat.com/instant-alerts/filing-quantitative-investment-management-llc-buys-6236-shares-of-raymond-james-financial-inc-rjf-2025-08-25/
[2] https://finance.yahoo.com/news/eqb-releases-q3-2025-financial-211500772.html