EQB reports fourth quarter and fiscal 2025 results
Executive Summary
- EQB Inc. reported FY 2025 adjusted diluted EPS of $8.90 (‑19% YoY) and adjusted net income of $354.2 M (‑19% YoY), with a $92 M pre‑tax restructuring charge in Q4.
- Adjusted ROE improved to 11.3% for the year, while the efficiency ratio fell to 50.9%, indicating better cost control.
- The company declared a higher common share dividend of $0.57 per share and repurchased ~1.02 M shares under its NCIB; it also announced an acquisition of PC Financial and a strategic partnership with Loblaw.
Key Details
- Financial Performance (Adjusted)
- Q4 Adjusted Diluted EPS: $1.53 (‑39% YoY) vs. reported $(0.25).
- FY 2025 Adjusted Diluted EPS: $8.90 (‑19% YoY) vs. reported $6.65.
- Adjusted Net Income Q4: $63.5 M (‑37% YoY); FY 2025: $354.2 M (‑19% YoY).
- Adjusted PPPT Q4: $143.1 M (‑17% YoY); FY 2025: $617.7 M (‑11% YoY).
- Adjusted ROE Q4: 7.5%; FY 2025: 11.3% (reported 8.5%).
-
Adjusted Revenue Q4: $308.1 M (‑4% YoY); FY 2025: $1.26 B (‑1% YoY).
-
Restructuring Charge
-
Total pre‑tax charge of $92 M in Q4, comprising $22.7 M severance and $69.3 M non‑operating asset impairments.
-
Capital & Liquidity
- CET1 ratio: 13.3%; total capital ratio: 15.8%.
- Book value per share increased 5% YoY to $81.31.
-
Total AUM/AUA: $138 B (+9% YoY).
-
Lending Activity
- Loans under management grew 10% YoY; Commercial LUM +20% YoY, with >80% insured.
-
Personal unsecured portfolio up 4% YoY; reverse‑mortgage/insurance lending +36% YoY to $2.9 B.
-
EQ Bank Highlights
- Deposits near $10 B (up 10% YoY); customers 607,000 (+18% YoY).
- Launched Business Banking platform in Q4; received strong market reception.
-
Named top banking brand in Canada and North America by The Banker.
-
Dividend & Share Repurchase
- Declared common share dividend $0.57 per share (payable Dec 31, 2025), a 16% increase YoY.
-
Purchased/cancelled 1,023,748 shares under NCIB; intends to renew NCIB in FY 26.
-
Strategic Transactions
-
Announced acquisition of PC Financial and strategic partnership with Loblaw (subject to regulatory approvals).
-
Provisioning & Credit Quality
- Adjusted provision for credit losses FY 2025: $132 M (reported $137 M).
-
Net allowance for credit losses: 41 bps of total loan assets (up from 32 bps Q4 2024).
-
Conference Call
- Management call scheduled for Dec 4, 2025 at 10:30 a.m. ET; webcast available at eqb.investorroom.com.
Notable Quotes
“Fiscal 2025 was a difficult year… the one‑time restructuring program… significantly improves our cost structure and creates a foundation for better efficiency, operating leverage and ROE.” – Chadwick Westlake, President & CEO
“Our three financial priorities for fiscal 2026: drive growth, thoughtfully manage expenses and maintain strong risk management practices.” – Anilisa Sainani, CFO