EQB (EQB) investor relations material

Executive summary

• Q2 2026 marks the final quarter before integrating PC Financial, with the acquisition closing July 1, expected to nearly double revenue and expand the customer base to 3.3 million, adding $5.8 billion in assets.

• Strategic focus on sustainable profitability, prudent risk management, and capital discipline remains unchanged as the business transitions to a national omnipresent brand.

• Integration plans for PC Financial are well advanced, with emphasis on seamless execution and cultural alignment.

• Achieved solid performance and resilience despite macroeconomic headwinds, focusing on competitive strengths and thoughtful capital allocation.

• Exited non-core businesses, including insurance lending and merchant payments, to sharpen focus and allocate capital to high-value areas.

Financial highlights

• Adjusted diluted EPS for Q2 was CAD 2.03, down 10% sequentially and 12% year-over-year; reported EPS was $1.29, down 39% sequentially and 42% year-over-year.

• Adjusted net income was $78.3 million, down 8% sequentially and 17% year-over-year; revenue was $302.4 million, down 1% sequentially and 4% year-over-year.

• Net interest income was CAD 261 million, down 6% year-over-year but stable sequentially; net interest margin rose to 2.08%.

• Non-interest revenue grew 10% year-over-year to CAD 41.6 million, driven by fee-based income and securitization gains.

• Loans under management increased 8% year-over-year to CAD 77.1 billion, led by multi-unit residential mortgages.

• Non-interest expenses declined 4% year-over-year, reflecting restructuring savings and disciplined cost control.

Outlook and guidance

• LUM growth for 2026 expected at the lower end of high single-digit to low double-digit range.

• Net interest margins anticipated to remain above 2% prior to PC Financial benefits.

• Credit normalization expected to be weighted toward late 2026 and into 2027, reflecting ongoing macroeconomic headwinds.

• Post-acquisition, lending mix and growth outlook will evolve with the addition of a scaled credit card portfolio and nearly doubled revenue.

• Management targets a low-50% adjusted efficiency ratio for 2026, excluding PC Financial impacts.