EQB (EQB) Q3 2026 earnings summary

Executive summary

• Completed the acquisition and integration of PC Financial, expanding reach to over 4 million customers and establishing a strategic partnership with Loblaw and the PC Optimum loyalty program.

• Only one month of PC Financial results included in Q3, contributing CAD 10 million in net income and significantly boosting revenue and diversification.

• Integration is ahead of expectations, with $15 million in annualized cost synergies realized in the first month and on track for $30 million pre-tax annual synergy target.

• Launched major marketing initiatives, including the Grand Scan contest and EQ Bank pop-up stores in Loblaws, to drive customer engagement.

• Welcomed over 300 new colleagues from PC Financial, strengthening leadership and technology teams.

Financial highlights

• Adjusted revenue up 30% quarter-over-quarter and 27% year-over-year to $393.0 million, driven by PC Financial acquisition.

• Adjusted diluted EPS up 4% q/q to $2.12; adjusted ROE at 10.3% and ROTCE at 11.1%.

• Net interest margin rose 44 bps y/y to 2.41%, aided by higher-yielding PC Financial credit cards.

• Non-interest revenue increased 77% q/q and 55% y/y, driven by credit card and insurance fee income from PC Financial.

• Adjusted non-interest expenses increased 19% y/y and 32% q/q, reflecting integration and growth investments.

• CET1 ratio strong at 13.4%; dividend increased 3% q/q and 15% y/y to $0.63 per share.

Outlook and guidance

• Fiscal 2026 ROE expected to improve further, with ROTCE in the 12% range as progress continues toward medium-term targets.

• LUM growth outlook for 2026 reaffirmed at high single to low double digits, now expected at the upper end of the range.

• Q4 will reflect the first full quarter of PC Financial contribution and further synergy realization.

• Revenue synergies expected from cross-selling and new product offerings to PC and EQ customer bases.

• Ongoing macro and geopolitical uncertainty could impact results, but proactive provisioning and capital flexibility maintained.