Diluted EPS Return on PPPT
equity (2) Total PCL CET1 ratio
Q2 Adjusted(1) Q2 Adjusted(1) Q2 Adjusted(1) Q2 Adjusted(1) 13.6%
$2.03 10.2%
$153.1MM
$45.4MM
(10%) q/q, (12%) y/y (90 bps) q/q, (2%) q/q, (4%) +16% q/q, +50% Total capital
y/y y/y ratio
(170 bps) y/y
17.1%
Q2 Reported Q2 Reported Q2 Reported Q2 Reported Common share
dividend
declared
$1.29 6.5% $119.5
$45.4MM
$0.61/share
(39%) q/q, (42%) y/y (390 bps) q/q, (19%) q/q, (23%) +16% q/q, +50%
y/y y/y
(490 bps) y/y +3% q/q, 15% y/
y
TORONTO, May 27, 2026 /PRNewswire/ - EQB Inc. (TSX: EQB) today reported earnings for the second quarter and six months ended April 30, 2026.
- Adjusted diluted EPS1: $2.03, (10%) q/q and (12%) y/y (reported $1.29)
- Adjusted net income1: $78.3 million, (8%) q/q and (17%) y/y (reported $51.3 million)
- Adjusted PPPT1,2: $153.1 million, (2%) q/q and (4%) y/y (reported $119.5 million)
- Adjusted ROE1: 10.2%, (90 bps) q/q and (170 bps) y/y (reported 6.5%)
- Revenue: $302.4 million, (1%) q/q and (4%) y/y (reported $302.4 million)
- Book value per share: $81.46, flat q/q and +1% y/y
- EQ Bankcustomers: 659,000, +4% q/q and +18% y/y
- Common share dividends declared: $0.61 per share, +3% q/q and +15% y/y
- Capital: CET1 ratio of 13.6% and total capital ratio of 17.1%
"The second quarter reflected solid performance during a persistently uncertain economic environment and our team performed well against this backdrop, continuing to demonstrate operating discipline, renewed focus, and financial resilience," said Chadwick Westlake, President and CEO. "As we look ahead to the second half of the year, our business will meaningfully shift with the anticipated July 1 close of our PC Financial transaction - positioning us to serve millions of Canadians as a challenger at scale. Through a new loyalty-linked banking ecosystem, we will provide Canadians with better value, better products, more rewards and new channels, putting real choice and control back into their hands and giving every Canadian the opportunity to get ahead, every day."
PC Financial acquisition accelerating rapidly, set to close July 1, 2026
- EQB secured final approval for the acquisition of PC Financial3 (the "Acquisition") from Loblaw Companies Limited ("Loblaw") from the Minister of Finance and National Revenue on May 5, marking a significant regulatory milestone and unlocking the next phase of growth. EQB is set to expand its customer base to 3.3 million Canadians4, add approximately $5.8 billion in assets4 and $800 million in direct retail deposits4
- Acquisition cements EQB as the Challenger in Canadian banking by adding a top payments product, scales customer base by >4x4, nearly doubles revenue4 with a 4x increase in non-interest revenue4, and subsequent to close, will become exclusive financial services partner of Loblaw, which brings access to Canada's #1 leading loyalty program PC Optimum™.
- The Acquisition is expected to close on July 1, 2026, subject to customary closing conditions
Continued expense discipline positioning EQB to deliver efficiency improvements
- Positive impacts of pacing discretionary spending and other items, including a favourable capital tax benefit, partially offset by targeted investments in growth initiatives and higher staff costs, led to a decline of 1% q/q and 4% y/y adjusted expenses1
- Reported expenses were up 15% q/q and 13% y/y and included $33.6MM of business exit costs, reflecting actions to reposition and streamline EQB's business mix, acquisition and integration-related expenses tied to the upcoming close of the PC Financial acquisition, and amortization of Concentra Bank and ACM acquisition-related intangible assets
- EQB's adjusted efficiency ratio1 in Q2 was up by 30 bps to 49.4% (reported 60.5%), remaining on track against its low-50% adjusted efficiency ratio target for 2026, excluding the impacts of PC Financial
Prudent provisioning levels maintained amid ongoing macroeconomic pressures
- EQB's provision for credit losses (PCL) were up +16% q/q, reflecting higher performing and impaired provisions
- Higher performing provisions reflects increased delinquencies and elevated macroeconomic uncertainty while the increase in impaired provisions reflects higher personal and commercial PCLs due to increased defaults and deterioration in the commercial and residential real estate markets
- Total gross impaired loans increased 8% q/q. Personal balances were modestly higher, driven by a continued subdued residential real estate market, while the increase in commercial was largely attributable to a single insured exposure, partly offset by improvement in the uninsured portfolio
- The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 46 bps, compared to 29 bps at Q2 2025
Sustained loans under management growth despite an uncertain operating environment
- Commercial lending loans under management (LUM)1 grew 4% q/q and 17% y/y, driven by continued momentum in the insured multi-unit residential mortgages
- Personal lending LUM declined 1% q/q and 3% y/y due to declines in insured single-family mortgages, in line with our strategy to optimize returns while maintaining a targeted origination approach for insured volumes
- Excluding insured single-family, personal lending LUM was up 1% q/q and 5% y/y despite a slower Canadian housing market; the decumulation lending portfolio grew 5% q/q and 26% y/y and continued to capture market share in this rapidly growing segment
EQ Bank surpassed $10 billion in deposit balances, adding 26,000 new retail and business customers
- EQ Bank deposits grew to $10.02 billion in Q2 (+1% q/q and +7% y/y) as customers continued to embrace innovative products including our attractive Personal and no-fee Business Accounts; EQ Bank deposits represented 28% of total deposit principal (up 88bps q/q)
- EQ Bank added 26,000 new retail and business customers in Q2 (+4% q/q and +18% y/y) who will have access to a growing suite of personal and business banking products that provide more value on their hard-earned dollars, including the prepaid Business Card
- EQ Bank products received industry recognition as customers' products of choice including Best Prepaid Card from creditcardGenius and Best Chequing Account from MoneySense and NerdWallet Canada
Capital supported dividend increase and buyback activity; strong demand for LRCN issuance
- EQB declared a dividend of $0.61 per common share payable on June 30, 2026 to shareholders of record as of June 15, 2026, representing +3% and +15% increases from the dividends paid in March 2026 and June 2025, respectively
- EQB purchased and cancelled 1,226,734 common shares through its active Normal Course Issuer Bid (NCIB) (2,293,624 repurchased year-to-date), supporting attractive return of capital for shareholders
- EQB issued its second series of LRCNs on April 27, 2026, with the order book oversubscribed by ~4x
"Q2 reflected disciplined execution, with strong cost management, prudent credit provisioning and continued growth in loans under management," said Anilisa Sainani, CFO. "Against a more difficult economic environment, we remained focused on performance and the evolution of EQB's business model with a strong balance sheet and clear momentum as we approach the close of the PC Financial acquisition in July."
Analyst conference call and webcast: 10:30 a.m. ET on May 28, 2026
EQB's Chadwick Westlake, President and CEO, Anilisa Sainani, CFO, and Marlene Lenarduzzi, CRO, will host EQB's quarterly earnings call and webcast. Also joining for the Q&A portion of the call will be Darren Lorimer, EVP Commercial Banking and Daniel Rethazy, EVP Personal Banking. The webcast with accompanying slides will be available at eqb.investorroom.com. To access the conference call with operator assistance, dial 416-945-7677 five minutes prior to the start time.
1 Adjusted measures and ratios are Non-Generally Accepted Accounting Principles (GAAP) measures and ratios. Adjusted measures and ratios are calculated in the same manner as reported measures and ratios, except that financial information included in the calculation of adjusted measures and ratios is adjusted to exclude the impact of one-time acquisition and integration related costs, and
certain items which management determines would have a significant impact on a reader's assessment of business performance. For additional information and a reconciliation of reported results to adjusted results, see the "Non-GAAP financial measures and ratios" section of the Second Quarter 2026 MD&A.
2 PPPT represents pre-provision-pre-tax income, a non-GAAP measure of financial performance.
3 On December 3, 2025, EQB and Loblaw entered into a definitive agreement pursuant to which EQB will acquire PC Financial, which is comprised of President's Choice Bank ("PC Bank"), PC(R) Financial Insurance Agency Inc., PC(R) Financial Insurance Brokers Inc. and certain other affiliated entities of PC Bank. In connection with the closing of the acquisition, EQB will enter into a long-term
strategic relationship with Loblaw pursuant to a commercial agreement to become the exclusive financial partner of the PC Optimum(TM) loyalty program.
4 Reported standalone measures for PC Financial as of September 2025, unless otherwise stated.
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
Consolidated balance sheets (unaudited)
($000s) As at April 30, October 31, April 30,
2026 2025 2025
Assets:
Cash and cash equivalents 603,233 717,253 500,747
Restricted cash 1,142,653 1,326,684 996,591
Securities purchased under reverse repurchase agreements 2,150,035 1,604,165 2,100,037
Investments 1,378,885 1,645,864 1,450,879
Loans
Loans - Personal 31,532,206 31,857,508 32,587,415
Loans - Commercial 13,536,145 14,581,966 14,794,655
Allowance for credit losses (227,869) (206,801) (153,928)
44,840,482 46,232,673 47,228,142
Securitization retained interests 1,108,002 1,028,623 919,910
Deferred tax assets 30,453 36,429 20,874
Other assets
Derivative financial instruments 223,790 242,799 379,210
Intangible assets 152,528 148,623 193,479
Goodwill 92,545 92,545 110,580
Investment in associate 52,888 49,884 49,839
Other 433,956 368,179 355,052
955,707 902,030 1,088,160
Total assets 52,209,450 53,493,721 54,305,340
Liabilities and Equity
Liabilities:
Deposits 36,633,069 36,616,511 35,036,491
Securitization liabilities 10,635,017 11,197,477 13,548,609
Obligations under repurchase agreements 50,493 104,568 84,092
Deferred tax liabilities 216,232 199,151 190,905
Funding facilities 686,300 1,454,087 1,410,370
Other liabilities
Derivative financial instruments 80,966 94,742 164,815
Other 668,193 615,386 611,896
749,159 710,128 776,711
Total liabilities 48,970,270 50,281,922 51,047,178
Equity:
Common shares 483,598 503,060 510,973
Other equity instruments 345,105 147,360 147,360
Contributed deficit (17,341) (15,014) (19,177)
Retained earnings 2,420,049 2,566,475 2,607,001
Accumulated other comprehensive income 116 1,684 2,344
Total shareholders' equity 3,231,527 3,203,565 3,248,501
Non-controlling interests 7,653 8,234 9,661
Total equity 3,239,180 3,211,799 3,258,162
Total liabilities and equity 52,209,450 53,493,721 54,305,340
Consolidated statements of income (unaudited)
Three months ended Six months ended
($000s, except per share amounts) April 30, April 30, April 30, April 30,
2026 2025 2026 2025
Interest income:
Loans - Personal 424,111 461,337 861,352 942,707
Loans - Commercial 194,696 211,991 398,222 434,108
Investment 21,039 19,332 42,208 40,124
Other 25,631 19,912 50,134 45,282
665,477 712,572 1,351,916 1,462,221
Interest expense:
Deposits 294,038 317,391 603,271 665,200
Securitization liabilities 101,901 112,206 205,836 237,774
Funding facilities 5,374 4,765 11,844 10,312
Other 3,432 70 6,793 153
404,745 434,432 827,744 913,439
Net interest income 260,732 278,140 524,172 548,782
Non-interest revenue:
Fees and other income 26,216 22,713 52,646 45,633
Net gains on loans and investments 2,118 1,029 2,082 3,333
Gain on sale from securitization activities 14,152 13,009 30,290 30,625
Net (losses) gains on hedging and derivatives (854) 1,059 (32) 10,212
41,632 37,810 84,986 89,803
Revenue 302,364 315,950 609,158 638,585
Provision for credit losses 45,351 30,234 84,479 48,912
Revenue after provision for credit losses 257,013 285,716 524,679 589,673
Non-interest expenses:
Compensation and benefits 73,325 74,280 144,447 150,214
Product costs 24,317 25,297 48,655 48,659
Technology and system costs 21,234 22,450 43,129 45,982
Marketing and corporate expenses 32,438 19,231 48,223 36,313
Regulatory and legal and professional fees 22,838 12,744 39,825 25,618
Premises 8,706 7,188 16,942 13,659
182,858 161,190 341,221 320,445
Income before income taxes 74,155 124,526 183,458 269,228
Income taxes 22,839 34,234 52,611 71,226
Net income 51,316 90,292 130,847 198,002
Distribution to LRCN holders 4,410 4,410 4,410 4,410
Net income available to common shareholders and non-controlling interests 46,906 85,882 126,437 193,592
Net income attributable to:
Common shareholders 46,571 85,533 125,787 192,935
Non-controlling interests 335 349 650 657
46,906 85,882 126,437 193,592
Earnings per share:
Basic 1.30 2.23 3.44 5.02
Diluted 1.29 2.21 3.42 4.98
Consolidated statements of comprehensive income (unaudited)
Three months ended Six months ended
($000s) April 30, April 30, April 30, April 30,
2026 2025 2026 2025
Net income 51,316 90,292 130,847 198,002
Other comprehensive income - items that will be reclassified subsequently to income:
Debt instruments at Fair Value through Other Comprehensive Income:
Net change in (losses) gains on fair value (1,583) 3,587 (6,504) 16,027
Recovery of credit losses recognized to income (81) (193)
Reclassification of net (gains) losses to income (1,577) (1,523) 7,347 (11,589)
Other comprehensive income - items that will not be reclassified subsequently to income:
Equity instruments designated at Fair Value through Other Comprehensive Income:
Net change in gains (losses) on fair value 1,503 (203) 1,503 868
Reclassification of net gains to retained earnings (490) (868)
(1,738) 1,371 2,153 4,438
Income tax recovery (expense) 438 (372) (663) (1,289)
(1,300) 999 1,490 3,149
Cash flow hedges:
Net change in unrealized (losses) gains on fair value (8,058) (8,979) 2,017 (13,189)
Reclassification of net losses (gains) to income 2,610 (5,937) (6,140) (9,361)
(5,448) (14,916) (4,123) (22,550)
Income tax recovery 1,475 4,049 1,110 6,080
(3,973) (10,867) (3,013) (16,470)
Total other comprehensive loss (5,273) (9,868) (1,523) (13,321)
Total comprehensive income 46,043 80,424 129,324 184,681
Total comprehensive income attributable to:
Common shareholders 41,298 75,665 124,264 179,614
Other equity 4,410 4,410 4,410 4,410
Non-controlling interests 335 349 650 657
46,043 80,424 129,324 184,681
Consolidated statements of changes in equity (unaudited)
($000s) Three-month period ended
April 30, 2026
Common Contributed Retained Accumulated other
Shares Deficit Earnings comprehensive income
(loss)
Other equity Cash Financial Total Attributable Non- Total
instruments Flow Instruments to equity controlling
Hedges at FVOCI holders interests
Balance, beginning of period 494,610 147,360 (16,284) 2,507,738 2,657 2,747 5,404 3,138,828 7,780 3,146,608
Net Income 50,981 50,981 335 51,316
Transfer of AOCI gains to income, net of tax (15) (15) (15) (15)
Other comprehensive loss, net of tax (3,973) (1,300) (5,273) (5,273) (5,273)
Exercise of stock options 4,068 4,068 4,068
Common shares repurchased and cancelled, net of tax (16,008) (128,938) (144,946) (144,946)
Automatic Share purchase obligation 15,652 15,652 15,652
Limited resource capital notes issued 200,000 200,000 200,000
Limited resource capital notes issuance costs, net of tax (2,255) (2,255) (2,255)
Limited resource capital notes distributions (4,410) (4,410) (4,410)
Dividends:
Common shares (20,974) (20,974) (462) (21,436)
Put option - non-controlling interest (1,033) (1,033) (1,033)
Stock-based compensation 904 904 904
Transfer relating to the exercise of stock options 928 (928)
Balance, end of period 483,598 345,105 (17,341) 2,420,049 (1,316) 1,432 116 3,231,527 7,653 3,239,180
($000s) Three-month period ended
April 30, 2025
Common Contributed Retained Accumulated other comprehensive income
(loss)
Shares Deficit Earnings
Cash Financial Total Attributable Non- Total
Flow Instruments to equity controlling
Other equity instruments Hedges at FVOCI holders interests
Balance, beginning of period 506,160 147,360 (17,437) 2,564,315 16,014 (4,814) 11,200 3,211,598 9,838 3,221,436
Net Income 89,943 89,943 349 90,292
Realized loss on sale of shares, net of tax (659) (659) (659)
Transfer of AOCI gains to retained earnings, net of tax 1,012 1,012 1,012 1,012
Other comprehensive loss, net of tax (10,867) 999 (9,868) (9,868) (9,868)
Exercise of stock options 6,677 6,677 6,677
Common shares repurchased and cancelled, net of taxes (3,465) (22,600) (26,065) (26,065)
Limited recourse capital note distributions, net of tax (4,410) (4,410) (4,410)
Dividends:
Common shares (19,588) (19,588) (526) (20,114)
Put option - non-controlling interest (1,203) (1,203) (1,203)
Stock-based compensation 1,064 1,064 1,064
Transfer relating to the exercise of stock options 1,601 (1,601)
Balance, end of period 510,973 147,360 (19,177) 2,607,001 5,147 (2,803) 2,344 3,248,501 9,661 3,258,162
($000s) Six-month period ended
April 30, 2026
Common Contributed Retained
Shares Deficit Earnings Accumulated other
comprehensive income (loss)
Other equity instruments Cash Flow
Hedges Financial Total Attributable Non- Total
Instruments at to equity controlling
FVOCI holders interests
Balance, beginning of period 503,060 147,360 (15,014) 2,566,475 1,697 (13) 1,684 3,203,565 8,234 3,211,799
Net Income 130,197 130,197 650 130,847
Transfer of AOCI gains to income, net of tax (45) (45) (45) (45)
Other comprehensive loss, net of tax (3,013) 1,490 (1,523) (1,523) (1,523)
Exercise of stock options 8,381 8,381 8,381
Common shares repurchased and cancelled (29,850) (225,954) (255,804) (255,804)
Automatic share purchase obligation (4,034) (4,034) (4,034)
Limited recourse capital notes issued 200,000 200,000 200,000
Issuance costs, net of tax (2,255) (2,255) (2,255)
Limited recourse capital note distributions, net of tax (4,410) (4,410) (4,410)
Dividends:
Common shares (42,225) (42,225) (1,231) (43,456)
Put option - non-controlling interest (1,910) (1,910) (1,910)
Stock-based compensation 1,590 1,590 1,590
Transfer relating to the exercise of stock options 2,007 (2,007)
Balance, end of period 483,598 345,105 (17,341) 2,420,049 (1,316) 1,432 116 3,231,527 7,653 3,239,180
($000s) Six-month period ended
April 30, 2025
Common Contributed Retained
Shares Surplus Earnings
Accumulated other
(Deficit) comprehensive income (loss)
Other equity instruments Cash Flow
Hedges Financial Total Attributable Non- Total
Instruments at to equity controlling
FVOCI holders interests
Balance, beginning of period 505,876 147,440 (17,374) 2,483,309 21,617 (13,062) 8,555 3,127,806 10,379 3,138,185
Net Income 197,345 197,345 657 198,002
Realized loss on sale of shares, (6,377) (6,377) (6,377)
net of tax
Transfer of AOCI losses to retained earnings, net of tax 7,016 7,016 7,016 7,016
Transfer of AOCI losses to income, net of tax 94 94 94 94
Other comprehensive loss, net of tax (16,470) 3,149 (13,321) (13,321) (13,321)
Exercise of stock options 7,137 7,137 7,137
Common shares repurchased and cancelled (3,740) (24,432) (28,172) (28,172)
Issuance costs, net of tax (80) (80) (80)
Limited recourse capital note distributions, net of tax (4,410) (4,410) (4,410)
Dividends:
Common shares (38,434) (38,434) (1,375) (39,809)
Put option - non-controlling interest (2,334) (2,334) (2,334)
Stock-based compensation 2,231 2,231 2,231
Transfer relating to the exercise of stock options 1,700 (1,700)
Balance, end of period 510,973 147,360 (19,177) 2,607,001 5,147 (2,803) 2,344 3,248,501 9,661 3,258,162
Consolidated statements of cash flows (unaudited)
Three months ended Six months ended
($000s) April 30, April 30, April 30, April 30,
2026 2025 2026 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income 51,316 90,292 130,847 198,002
Adjustments for non-cash items in net income:
Financial instruments at fair value through income (24,832) (157,852) (31,133) (178,350)
Amortization of premiums/discounts (1,960) (2,753) (4,557) (5,583)
Amortization of capital and intangible assets 15,520 17,571 30,461 32,394
Provision for credit losses 45,351 30,234 84,479 48,912
Securitization gains (14,152) (13,010) (30,290) (30,626)
Stock-based compensation 904 1,064 1,590 2,231
Income taxes 22,839 34,234 52,611 71,226
Securitization retained interests 53,142 41,741 103,329 81,698
Changes in operating assets and liabilities:
Restricted cash (259,115) (179,566) 184,031 (24,604)
Securities purchased under reverse repurchase agreements 148,767 (300,023) (545,870) (839,919)
Loans receivable, net of securitizations 431,049 (891,443) 1,148,059 (266,146)
Other assets (4,263) 21,821 (35,015) 81
Deposits (819,516) 406,679 73,125 1,255,415
Securitization liabilities (292,507) (174,739) (572,872) (1,067,985)
Obligations under repurchase agreements 21,137 84,092 (54,075) 84,092
Funding facilities 109,649 641,557 (767,787) 463,414
Other liabilities 15,553 13,726 59,477 65,399
Income taxes paid (26,246) (28,528) (58,614) (67,759)
Cash flows used in operating activities (527,364) (364,903) (232,204) (178,108)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common shares 4,068 6,677 8,381 7,137
Common share repurchased (144,946) (26,065) (255,804) (28,172)
Limited recourse capital notes 197,745 197,745 (80)
Distribution to other equity holders (4,410) (4,410) (4,410) (4,410)
Dividends paid on common shares (21,436) (20,114) (43,456) (39,809)
Cash flows from (used in) financing activities 31,021 (43,912) (97,544) (65,334)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments (560,758) (12,689) (597,182) (16,419)
Proceeds on sale or redemption of investments 791,526 128,107 868,709 159,473
Investments in associate (3,598)
Net change in Canada Housing Trust re-investment accounts 11,623 53,032
Purchase of capital assets and system development costs (20,827) (27,495) (52,201) (43,538)
Cash flows from investing activities 209,941 99,546 215,728 152,548
Net decrease in cash and cash equivalents (286,402) (309,269) (114,020) (90,894)
Cash and cash equivalents, beginning of period 889,635 810,016 717,253 591,641
Cash and cash equivalents, end of period 603,233 500,747 603,233 500,747
Supplemental statement of cash flows disclosures:
Cash flows from operating activities include:
Interest received 631,139 668,744 1,313,551 1,378,441
Interest paid (343,304) (410,679) (697,318) (827,115)
Dividends received 132 350
About EQB Inc.
EQB Inc. (TSX: EQB) is a leading digital financial services company with $144 billion in combined assets under management and administration (as at April 30, 2026). It offers banking services through Equitable Bank, a wholly owned subsidiary and Canada's seventh largest bank by assets, and wealth management through ACM Advisors, a majority owned subsidiary specializing in alternative assets. As Canada's Challenger Bank™, Equitable Bank has a clear mission to drive change in Canadian banking to enrich people's lives. It leverages technology to deliver exceptional personal and commercial banking experiences and services to over 827,000 customers and more than six million credit union members through its businesses.
Please visit eqb.investorroom.com for more details.?
Investor contact:?
Lemar Persaud
VP and Head of IR
investor_enquiry@eqb.com?
Media contact:
Danielle Mason
Director, PR & Communications
press@eqb.com
Cautionary Note Regarding Forward-Looking Statements
Statements made by EQB in the sections of this news release, in other filings with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws (forward- looking statements). These statements include, but are not limited to, statements about EQB's objectives, strategies and initiatives, financial performance expectations and other statements made herein, whether with respect to EQB's businesses or the Canadian economy. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "guidance", "planned", "estimates", "forecasts", "outlook", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur", "be achieved", "will likely" or other similar expressions of future or conditional verbs. These statements include, but are not limited to, statements with respect to the completion of transactions that are subject to customary closing conditions, EQB's ability to successfully integrate an acquired business, including but not limited to EQB's previously announced acquisition of PC Financial1 from Loblaw Companies Limited (the Acquisition), entering into the related commercial arrangement and future communications and disclosures regarding the Acquisition, the timing and expected benefits of such transactions, statements relating to the expected impact of the Acquisition, the anticipated benefits of the Acquisition, including the expected impact on EQB's size, operations, capabilities, growth drivers and opportunities, activities, attributes, profile, business services portfolio and loans, revenue and assets mix, market position, profitability, performance, and strategy; the expected impact of the Acquisition on EQB's financial performance; expectations regarding EQB's business model, plans and strategy, the maintenance of CET1 ratio and changes in adjusted EPS; strategic fit and complementarity of PC Financial and Equitable Bank; anticipated synergies and estimated transaction and integration costs and the timing of incurrence thereof, as well as EQB's financial performance objectives, vision and strategic goals, the economic and market review and outlook, the regulatory environment in which we operate, the outlook and priorities for each of its business lines, the expected impact on PC Financial customers and employees, the risk environment including liquidity and funding risk, and statements by EQB representatives.
Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of EQB to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions including, without limitation global geopolitical risk, uncertainty arising from ongoing United States/Canada tariff concerns and related impacts, business acquisition, legislative and regulatory developments, changes in accounting standards, the nature of EQB's customers and rates of default, the successful and timely approval of the Acquisition, the integration of PC Financial and the realization of the anticipated benefits and synergies of the Acquisition in the timeframe anticipated, including impact and accretion in various financial metrics; the ability to retain management and key employees of PC Financial; and competition as well as those factors discussed under the heading "Risk Management" in EQB's Q2 2026 Management's Discussion and Analysis (MD&A) and in EQB's documents filed on SEDAR+ at www.sedarplus.ca.
All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate, and liquidity conditions affecting EQB and the Canadian economy. Although EQB believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by EQB in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its loan business, a continuation of the current level of economic uncertainty that affects real estate market conditions including, without limitation, continued acceptance of its products in the marketplace, as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. EQB does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
(1) On December 3, 2025, EQB and Loblaw Companies Ltd. (Loblaw) entered into a definitive agreement pursuant to which EQB will acquire PC Financial, which is comprised of President's Choice Bank (PC Bank), PC(R) Financial Insurance Agency Inc., PC(R) Financial Insurance Brokers Inc. and certain other affiliated entities of PC(R) Bank. In connection with the closing of the acquisition, EQB
will enter into a long-term strategic relationship with Loblaw pursuant to a commercial agreement to become the exclusive financial partner of Loblaw and its the PC Optimum(TM) loyalty program.
Non-Generally Accepted Accounting Principles (GAAP) Financial Measures and Ratios
To enable readers to better assess trends in underlying business performance and increase consistency with the reporting regimens used by other leading Canadian financial institutions, EQB provides adjusted results in parallel with reported measures. Adjusted results are non-GAAP financial measures that enable readers to assess underlying business results and trends. Adjustments listed below are presented on a pre-tax basis:
Q2 2026
- $17.75 million business exit costs;
- $13.84 million PC Financial acquisition and integration-related costs; and
- $1.97 million Concentra Bank and ACM acquisitions-related intangible asset amortization.
Q1 2026
- $5.84 million PC Financial acquisition and integration-related costs; and
- $1.97 million Concentra Bank and ACM acquisitions-related intangible asset amortization.
Q2 2025
- $1.97 million Concentra Bank and ACM acquisitions-related intangible asset amortization; and
- $3.36 million new office lease related expenses prior to occupancy.
YTD 2026
- $17.75 million business exit costs;
- $19.68 million PC Financial acquisition and integration-related costs; and
- $3.94 million Concentra Bank and ACM acquisitions-related intangible asset amortization.
YTD 2025
- $3.94 million Concentra Bank and ACM acquisitions-related intangible asset amortization;
- $6.15 million new office lease related expenses prior to occupancy;
- $1.78 million non-recurring operational effectiveness expenses and Concentra Bank and ACM acquisition and integration-related costs; and
- $5.02 million provision for credit losses associated with an equipment financing purchase facility.
The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results.
Reconciliation of reported and adjusted financial results For the three months ended For the six months
ended
($000s, except share and per share amounts) 30-Apr- 31-Jan- 30-Apr-
26 26 25 30-Apr-26 30-Apr-25
Reported results
Net interest income(1) 260,732 263,440 278,140 524,172 548,782
Non-interest revenue(1) 41,632 43,354 37,810 84,986 89,803
Revenue 302,364 306,794 315,950 609,158 638,585
Non-interest expense 182,858 158,363 161,190 341,221 320,445
Pre-provision pre-tax income(2) 119,506 148,431 154,760 267,937 318,140
Provision for credit loss 45,351 39,128 30,234 84,479 48,912
Income taxes 22,839 29,772 34,234 52,611 71,226
Net income 51,316 79,531 90,292 130,847 198,002
Net income attributable to common shareholders 46,571 79,216 85,533 125,787 192,935
Adjustments
Non-interest expenses - Business exit costs (17,753) (17,753)
Non-interest expenses - PC Financial acquisition and integration-related costs (13,839) (5,837) (19,676)
Non-interest expenses - Concentra Bank and ACM acquisitions-related intangible asset amortization (1,969) (1,969) (1,969) (3,938) (3,938)
Non-interest expenses - new office lease related costs (3,363) (6,152)
Non-interest expenses - non-recurring operational effectiveness and acquisition-related costs (1,782)
Provision for credit loss - equipment financing (5,018)
Impact on net income before taxes from adjustments 33,561 7,806 5,332 41,367 16,890
Income taxes - tax impact on above adjustments(3) 6,568 2,103 1,414 8,671 4,453
Post-tax adjustments - net income 26,993 5,703 3,918 32,696 12,437
Adjustments attributed to minority interests (228) (229) (259) (457) (520)
Post-tax adjustments - net income to common shareholders 26,765 5,474 3,659 32,239 11,917
Adjusted results
Net interest income(1) 260,732 263,440 278,140 524,172 548,782
Non-interest revenue(1) 41,632 43,354 37,810 84,986 89,803
Revenue 302,364 306,794 315,950 609,158 638,585
Non-interest expense 149,297 150,557 155,858 299,854 308,573
Pre-provision pre-tax income(2) 153,067 156,237 160,092 309,304 330,012
Provision for credit loss 45,351 39,128 30,234 84,479 43,894
Income taxes 29,407 31,875 35,649 61,282 75,679
Net income 78,309 85,234 94,209 163,543 210,439
Net income attributable to common shareholders 73,336 84,690 89,190 158,026 204,852
Diluted earnings per share
Weighted average diluted common shares outstanding 36,055,643 37,465,645 38,662,002 36,772,330 38,725,808
Diluted earnings per share - reported 1.29 2.11 2.21 3.42 4.98
Diluted earnings per share - adjusted 2.03 2.26 2.31 4.30 5.29
Diluted earnings per share - adjustment impact 0.74 0.15 0.10 0.88 0.31
(1) Effective November 1, 2024, interest income earned from retained interests and interest expense incurred on servicing liabilities are reclassed from Non-interest revenue to Net interest income. Prior period comparative figures have been updated to conform to current period presentation.
(2) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section of this MD&A.
(3) Income tax expense associated with non-GAAP adjustment was calculated based on the statutory tax rate applicable for that period.
Other non-GAAP financial measures and ratios:
- Adjusted efficiency ratio: it is derived by dividing adjusted non-interest expenses by adjusted revenue. A lower adjusted efficiency ratio reflects a more efficient cost structure
- Adjusted return on equity (ROE) is calculated on an annualized basis and is defined as adjusted net income available to common shareholders as a percentage of weighted average common shareholders' equity (reported) outstanding during the period.
- Assets under administration (AUA): is sum of (1) assets over which EQB's subsidiaries have been named as trustee, custodian, executor, administrator, or other similar role; (2) loans held by credit unions for which EQB's subsidiaries act as servicer.
- Assets under management (AUM): is the sum of total balance sheet assets, loan principal derecognized but still managed by EQB, and assets managed on behalf on investors.
- Loans under management (LUM): is the sum of loan principal reported on the consolidated balance sheet and loan principal derecognized but still managed by EQB.
- Pre-provision pre-tax income (PPPT): this is the difference between revenue and non-interest expenses.
- Total loan assets: this is calculated on a gross basis (prior to allowance for credit losses) as the sum of both Loans - Personal and Loans - Commercial on the balance sheet.
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SOURCE EQB Inc.
