EQB (EQB) investor relations material

Executive summary

• Achieved a 48% sequential increase in adjusted EPS to CAD 2.26, with adjusted net income up 34% quarter-over-quarter but down 27% year-over-year; ROE rose 360 bps sequentially to 11.1%.

• Loans under management grew 9% year-over-year and 2% sequentially to CAD 75.7 billion, driven by multi-unit residential and personal (uninsured) loans.

• Strategic focus on integrating PC Financial and partnership with Loblaw, expected to transform scale and revenue profile; regulatory filings submitted and Integration Management Office established.

• Customer-centricity, core business improvements, and technology investments underpin momentum toward 2026 financial objectives.

Financial highlights

• Adjusted revenue for Q1 2026 was CAD 306.8 million, down 5% year-over-year and flat sequentially; adjusted NIM was 2.02%, up 1 bp sequentially but down 8 bps year-over-year.

• Net interest income was CAD 263 million, down 3% year-over-year but flat sequentially; non-interest revenue was CAD 43.4 million, down 17% year-over-year and flat sequentially.

• Deposits rose 9% year-over-year and 2% sequentially to CAD 36.9 billion; EQ Bank deposits up 10% year-over-year to CAD 9.94 billion.

• CET1 ratio expanded 30 bps to 13.6%, with total capital ratio at 16.0%.

• Dividend increased 4% to CAD 0.59, and a record 1.1 million shares repurchased in the quarter.

Outlook and guidance

• Efficiency ratio expected to return to low 50s% for the remainder of 2026, with low single-digit expense growth and further improvements in operating leverage.

• Margins anticipated to remain around 2% for 2026, with further expansion possible post-PC Financial closing.

• Loan growth outlook for 2026 is high single-digit to low double-digit, including commercial and reverse mortgages.

• PCL relief expected in the second half of the year, barring further macroeconomic headwinds.

• Management targets a 12% ROE for fiscal 2026.