EQB Inc. Reports Q2 Revenue of $44.891 Million, Achieving Success in Digital Financial Services and Banking

EQB Inc. reported Q2 revenue of $44.891 million. The company operates through two main divisions: Personal Banking and Commercial Banking. Personal Banking operates through five business lines, including deposits, single-family residential mortgage loans, and reverse mortgages. Commercial Banking operates through seven business lines, including business enterprise solutions, commercial finance group, and equipment leasing. EQB offers banking services through its subsidiary, Equitable Bank.

EQB Inc. (TSX: EQB) has released its Q2 2025 financial results, showcasing continued growth in loans under management and a robust increase in customer base. The company reported a revenue of $316.0 million, a 0.2% decrease year-over-year (y/y) and a 2% decrease quarter-over-quarter (q/q) [1].

Key highlights from the Q2 2025 results include:

- Adjusted Return on Equity (ROE): 11.9%, an increase of 0.5 percentage points (pp) y/y and 0.5 pp q/q.
- Adjusted Diluted Earnings per Share (EPS): $2.31, down 18% y/y and 22% q/q.
- Book Value per Share: $80.99, up 10% y/y and 2% q/q.
- Total Assets Under Management (AUM) and Assets Under Administration (AUA): $134 billion, an 8% increase y/y and a 2% increase q/q.
- EQ Bank Customers: 560,000, a 23% increase y/y and a 4% increase q/q.
- Common Share Dividend: $0.53 per share, a 4% increase q/q and an 18% increase y/y.
- Net Interest Margin (NIM): 2.20%, an increase of 9 bps y/y and 13 bps q/q.
- Net Interest Income (NII): $271.1 million, a 1% increase y/y and a 3% increase q/q.

EQB's President and CEO, Andrew Moor, commented on the results, stating, "Amid economic uncertainty globally and in Canada, EQB experienced one of our strongest quarters for uninsured single-family loan originations, and we are pleased with notable increases in EQ Bank customers and deposits as we continued to flex our Challenger Bank muscles" [1].

The company's Personal Banking division, operating through five business lines, reported a significant increase in EQ Bank customers and deposits, driven by the EQ Bank Notice Savings Account and innovative foreign exchange solutions [1]. The Commercial Banking division, operating through seven business lines, saw growth in insured multi-unit residential properties and commercial construction lending, with over 80% of total commercial LUM insured through various CMHC programs [1].

EQB's provision for credit losses (PCL) of $30.2 million was split across its business lines, reflecting the impacts of evolving macroeconomic forecasts and expected credit loss modeling [1]. The company's net allowance rate increased to 29 bps, driven by a deterioration in forecasts for GDP and employment due to economic uncertainty related to tariffs [1].

In addition to its financial performance, EQB announced a dividend of $0.53 per common share, a 4% increase from the previous quarter and an 18% increase from the same period last year [1]. The company also completed a $200 million subordinated debt issuance to EQB, bringing the Total Capital Ratio to 15.6% [1].

The article was based on EQB Inc.'s Q2 2025 earnings release [1].

References:
[1] https://www.prnewswire.com/news-releases/eqb-releases-q2-results-marked-by-continued-loan-growth-as-dividend-increases-18-yy-and-total-aum-and-aua-climb-to-134-billion-302467652.html