EQB (EQB) RBC Capital Markets Canadian Bank CEO Conference summary

Strategic priorities and growth outlook

• Focus on reigniting the core franchise, optimizing capabilities, and completing the challenger bank's potential, including the PC Financial acquisition.

• Targeting high single to low double-digit growth in loans under management and mid-single-digit revenue growth for 2026.

• Committed to returning to 15%+ ROE and improving efficiency to below 50%, with expense growth kept in line with revenue.

• Expecting 12%-15% EPS growth and ROE of 12%+ in 2026, with further growth beyond.

• Operating leverage is a paramount priority, with expenses managed tightly to support earnings growth.

Revenue, expenses, and efficiency

• Revenue growth will be driven by core lending, especially in CMHC-insured multi-family, reverse mortgages, and single-family uninsured segments.

• Net interest margin expected to remain stable around 2.01%, with non-interest revenue supported by insured multi lending.

• Efficiency ratio aims to improve from 54% to the high 40s by late next year, with further gains expected as integration progresses.

• Cost synergies from the PC Financial deal estimated at CAD 30 million, with further upside from cross-sell and funding efficiency.

• Expense control is emphasized, with a CAD 45 million improvement expected in 2026.

Credit quality and risk management

• Credit reserves have been reviewed loan by loan, with a conservative posture and strong coverage ratios.

• PCL ratio expected to improve in 2026, with sequential improvement through the year.

• Equipment finance business has shifted to higher quality, more prime lending, reducing its share of PCL and improving stability.

• No systemic issues identified in the mortgage portfolio; losses remain isolated to specific 2022 GTA suburb vintages.

• The bank maintains one of the lowest PCL ratios among peers and is prepared for a more stressed environment if needed.