EQB (EQB) Investor presentation summary

Canadian market and mortgage backdrop

• Canadian 2025 GDP growth had been forecast at 1.9% before tariff threats; estimated trade-war impacts range from 1% to 4% of GDP, while TD assumes ~1.25% over two years if most exports meet USMCA rules.

• Headline CPI inflation was 1.7% YoY in April 2025; the Bank of Canada held its overnight rate at 2.75% on June 4, with market pricing indicating 2–3 further cuts in 2025.

• Household debt-to-income stood at 176%, versus 93% in the US; extended amortizations helped keep household debt-service ratios near 15% despite higher interest payments.

• OSFI B-20 requires income verification and mortgage stress testing; the presentation links Canada's lender-friendly default resolution process to more favorable mortgage loss experience than in the US.

Business and financial profile

• Assets under management and administration were ~ $130B; the franchise reported 742,000 Canadian customers, 55 years of operating history and 15%+ average ROE over the past 10 years.

• Q2 2025 deposits totaled $34.4B, up 1% QoQ and 3% YoY; EQ Bank direct-to-consumer deposits reached $9.4B, up 4% QoQ and 9% YoY, with ~560,000 customers.

• The portfolio is 100% Canadian; 97% of assets are collateralized and 57% of loans under management are government insured.

• Adjusted ROE was 13.6% in H1 2025; 10-year average ROE exceeded 15%, while 10-year CAGR was ~15% for book value per share and ~13% for EPS.

• H1 2025 adjusted non-interest revenue was $104MM; YoY growth was $12.1MM, or 13%, supported by fee-based businesses, multi-unit mortgage securitization and derivative fair-value gains.

Capital and credit risk

• Q2 2025 total capital ratio was 15.6% and CET1 was 13.2%; CET1 guidance remained 13%+ for the balance of FY2025, with total capital above the 15% management target.

• The uninsured single-family residential portfolio had a weighted-average credit score of 711; 57% of loans under management were government insured and almost 100% of the portfolio was collateralized.

• Q2 2025 gross impaired loan formations decreased QoQ, with positive movement in personal and commercial lending; commercial impaired loans rose $43.4MM, mainly from two uninsured mortgage loans.

• Q2 2025 reported provisions for credit losses were $29.0MM; $5.8MM related to performing loans and $23.2MM to impaired loans, with equipment financing contributing 45% of impaired provisions.