EQB reports first quarter 2026 results

TORONTO, Feb. 25, 2026

Planned acquisition of PC Financial progressing with strong momentum

• EQB formally filed its applications with the Office of the Superintendent of Financial Institutions (OSFI) and the Competition Bureau of Canada in January 2026
• EQB established its Integration Management Office to prepare for integration, achieve strategic benefits of the acquisition, including revenue and expense synergies, and deliver value to Canadians in the long-term

Efficiency ratio improvement reflects disciplined expense management

• Proactive strategic restructuring program in Q4 2025 delivered significant cost benefits, contributing to 9% q/q and 1% y/y decline in adjusted expenses, respectively (reported down 39% q/q and 1% y/y); this was achieved while EQB continued to actively invest in technology, innovation and new capabilities as well as higher premises costs reflecting the new Toronto headquarters
• EQB's adjusted efficiency ratio for Q1 improved to 49.1% (reported 51.6%), down from 53.6% in Q4 2025, demonstrating meaningful execution against its low-50% efficiency ratio target for 2026

Delivered positive LUM growth despite dynamic operating environment

• Commercial lending loans under management (LUM) grew 3% q/q and 19% y/y, the latter driven by solid results in insured multi-unit residential mortgages as demand for CMHC-insured construction loans and the securitization market remained strong
• Personal lending LUM was flat q/q and declined 2% y/y, driven by the strategic decision to decelerate growth in insured single-family due to lower margins; excluding insured single-family, personal lending LUM was up 1% q/q and 7% y/y driven by growth in the single-family uninsured and decumulation portfolios. The decumulation lending portfolio grew 5% q/q and 30% y/y as EQ continued to capture market share in this rapidly growing segment

EQ Bank welcomed new retail and business customers at an attractive rate

• EQ Bank added 26,000 new retail and business customers in Q1 who will benefit from its expanding shelf of everyday banking products and continued enhancements to the Business Banking platform, including the upcoming prepaid Business Card
• EQ Bank deposits grew to $9.94 billion in Q1 (flat q/q and +10% y/y), increasing to 27% of total deposit principal (up 41 bps y/y); growth was supported by continued adoption across its everyday banking offerings including the Personal Account and Business Banking platform, with the Notice Savings Account standing out as a differentiated savings solution for customers seeking more flexibility and value
• EQ Bank products received industry recognition as customers' products of choice including Best Savings Account in Canada from moneyGenius and Best Online Bank Account from Milesopedia

Prudent provisioning materially improved PCLs in line with robust risk management approach

• EQB's provision for credit losses (PCL) declined 28% q/q, reflecting lower performing provisions partially offset by higher impaired provisions; lower performing was driven by a more moderate build as Q4 2025 reflected deterioration in forward-looking macroeconomic indicators, while higher impaired provisions were largely related to one commercial borrower group, partially offset by lower provisions in equipment finance given a strategic shift to higher quality assets
• Adjusted PCL was up 186% y/y (reported 109% y/y), primarily reflecting higher impaired provisions in the commercial and personal lending portfolios
• Credit performance in Q1 reflected ongoing macroeconomic pressure expected to continue through H1 2026, with prudent provisions demonstrating continued discipline across EQB's risk management framework
• The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 43 bps, compared to 28 bps at Q1 2025

Dividend increase and share buybacks reflect balanced approach to capital deployment to drive sustainable, long-term shareholder value

• EQB declared a dividend of $0.59 per common share payable on March 31, 2026, to shareholders of record as of March 13, 2026, representing 4% and 16% increases from the dividends paid in December 2025 and March 2025, respectively
• As part of its capital management strategy and to drive attractive returns for shareholders, EQB renewed its Normal Course Issuer Bid (NCIB) and established an Automatic Securities Purchase Plan (ASPP) in January 2026, the latter of which allows the repurchase of common shares under the NCIB during restricted trading periods; in Q1, 1,066,890 common shares were repurchased

"While we expect operating environment headwinds to persist through the first half of the year, we delivered strong first quarter performance with meaningful expense improvement and continued strategic investment in high‑impact growth areas. Importantly, we also delivered stable margins and maintained our disciplined approach to lending, anchored in our robust risk management framework," said Anilisa Sainani, CFO. "We are pleased with our results and positive momentum towards our efficiency guidance in the low-50% range and 12% ROE objective for fiscal 2026. We remain focused on executing against our priorities and positioning the business to successfully capitalize on our significant opportunities ahead."

Analyst conference call and webcast: 10:30 a.m. ET on February 26, 2026
EQB's Chadwick Westlake, President and CEO, Anilisa Sainani, CFO, and Marlene Lenarduzzi, CRO, will host EQB's quarterly earnings call and webcast. The webcast with accompanying slides will be available at eqb.investorroom.com. To access the conference call with operator assistance, dial 416-945-7677 or 888-699-1199 five minutes prior to the start time.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated balance sheets (unaudited)

Consolidated statements of income (unaudited)

Consolidated statements of comprehensive income (unaudited)

Consolidated statements of changes in equity (unaudited)  

About EQB Inc. 
EQB Inc. (TSX: EQB) is a leading digital financial services company with $142 billion in combined assets under management and administration (as at January 31, 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 800,000 customers and more than six million credit union members through its businesses. Through its digital EQ Bank platform (eqbank.ca) its customers have named it one of Canada's top banks on the Forbes World's Best Banks list since 2021. 

Please visit eqb.investorroom.com for more details. 

Investor contact: 
Lemar Persaud
VP and Head of IR
investor_enquiry@eqb.com 

Media contact: 
Maggie Hall 
Director, PR & Communications
maggie.hall@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 expectation, statements with respect to EQB's intention to renew and/or make share repurchases under its NCIB, 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", "intends", "scheduled", "planned", "estimates", "forecasts", "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", "might" or "will be taken", "occur" or "be achieved", 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 and regulatory approvals, EQB's ability to successfully integrate acquired business, the timing and expected benefits of such transactions, statements relating to the expected impact of the Acquisition (as defined herein), 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; retention of PC Financial management and employees and the 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 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 statements with respect to the completion of transactions that are subject to customary closing conditions and regulatory approvals, EQB's ability to successfully integrate acquired businesses, the timing and expected benefits of such transactions, 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 Q1 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 mortgage business, a continuation of the current level of economic uncertainty that affects real estate market conditions, 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.

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:

Q1 2026

• $5.8 million PC Financial acquisition and integration-related costs; and
• $2.0 million Concentra Bank and ACM acquisitions-related intangible asset amortization.

Q4 2025

• $21.8 million decrease in net interest income due to non-recurring fair value adjustments on covered bonds and interest on securitizations;
• $92.0 million restructuring, severance and impairment charges, of which $12.8 million reflects impairments on non-operating assets related to the equipment financing business and $79.2 million of restructuring charges including goodwill and intangible asset impairments and severance provisions;
• $8.7 million non-recurring transaction fees;
• $6.5 million professional fees related to the announced agreement to acquire PC Financial; and
• $2.0 million Concentra Bank and ACM acquisition related intangible asset amortization.

Q1 2025

• $2.8 million new office lease related expenses prior to occupancy,
• $1.8 million non-recurring operational effectiveness expenses and acquisition and integration-related costs,
• $2.0 million Concentra Bank and ACM acquisition related intangible asset amortization, and
• $5.0 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.

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.
• Net interest margin (NIM): this profitability measure is calculated on an annualized basis by dividing net interest income by the average total interest earning assets for the period.
• 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.