EQB (EQB) 23rd NBF Annual Financial Service Conference summary

Strategic positioning and brand development

• Cemented status as Canada's seventh-largest bank, distinguishing itself from peers.

• EQ Bank franchise experiencing strong deposit growth and increased brand recognition through targeted advertising and new product offerings.

• Enhanced foreign exchange capabilities and competitive USD trading rates are attracting customers.

Capital management and future plans

• Maintains a strong capital position with a 14.2% CET1 ratio, aiming for over 15% total capital.

• Plans to adjust capital stack, reducing CET1 to 12% and increasing Additional Tier 1 and Tier 2 capital, freeing up about CAD 400 million for deployment over 2–3 years.

• Capital may be allocated to loan growth, new business lines like credit cards and wealth, or returned to shareholders if not deployed organically.

• Transitioning to AIRB approach for more efficient capital structure, with full application expected in a couple of years.

Mortgage and lending portfolio trends

• Experiencing unexpectedly strong mortgage application flows despite economic uncertainty.

• Focused on self-employed borrowers, considered adaptable to economic shifts.

• Insured mortgage portfolio is being managed for optimal spread; not planning to exit but to maintain capability and selectively grow when market conditions are favorable.

• Reverse mortgage portfolio is small but growing, serving primarily lifestyle and aging-in-place needs, with a no negative equity guarantee.