EQB (EQB) Q3 2024 earnings summary

Executive summary

• Combined assets under management and administration reached $125.4B as of July 31, 2024, positioning the bank as Canada's seventh largest by assets.

• Achieved record quarterly revenue and earnings, with adjusted ROE at 15.9% and EPS growth; customer base expanded over 6% sequentially and 32% year-over-year, nearing 500,000.

• Launched innovative products, including the Notice Savings Account and expanded small business banking, driving brand awareness and deposit growth.

• Dividend increased 24% year-over-year, fulfilling a five-year commitment to shareholders; DRIP suspended due to strong capital position.

• Leveraged technology and a digital platform to serve over 670,000 customers and six million credit union members.

Financial highlights

• Q3 2024 revenue was $395M, up from $327M in Q2 2024 and $313M in Q2 2023.

• Net income for Q3 2024 was $147M, compared to $117.2M in Q2 2024 and $141M in Q2 2023.

• Book value per common share increased to $75.67 in Q3 2024 from $73.73 in Q2 2024.

• Non-interest revenue hit a record $56M, up 13% sequentially and 70% year-over-year, driven by gains on sale from multi-unit residential securitization and fee-based income.

• Market capitalization stood at $3.7B as of August 27, 2024, with a closing share price of $96.37.

Outlook and guidance

• Reaffirmed guidance for ROE above 15% for the fiscal year and loan growth of 8%-12%; EPS for 2024 expected between $11.50 and $11.75, with book value growth of 11%-13%.

• New medium-term guidance, including for dividends, to be provided with Q4 results.

• Management anticipates more pronounced asset growth in fiscal 2025 as monetary policy normalizes and housing demand persists.

• Maintains a Canada-only focus with nearly 100% of loans secured and 55% insured.

• Continues to prioritize innovation, digital expansion, and ESG leadership, including carbon neutrality and Scope 3 emissions disclosure.