EQB reports fourth quarter and fiscal 2025 results

EQB reports fourth quarter and fiscal 2025 results PR Newswire TORONTO, Dec. 3, 2025 TORONTO, Dec. 3, 2025 /PRNewswire/ - EQB Inc. (TSX: EQB) today reported financial results for the fourth quarter and the fiscal year ended October 31, 2025. "Fiscal 2025 was a difficult year for EQB. We responded by announcing a one-time restructuring program in the fourth quarter which drove a charge of $92 million pre-tax. This significantly improves our cost structure and creates a foundation for better efficiency, operating leverage and ROE," said Chadwick Westlake, President and CEO. "Our new leadership team is focused on growing our core franchise, rapidly accelerating our Challenger Bank products and expanding our capabilities for the benefit of all Canadians. The transformative announcement of the acquisition of PC Financial and strategic partnership with Loblaw adds further strength to our outlook and complements the many great organic opportunities we have as a diversified Canadian lender and owner of EQ Bank, the top banking brand in Canada now nearing $10 billion in deposits. With our strong talent, capital and technology, combined with prudent and disciplined risk and cost management, our goal is to deliver lasting value for our stakeholders as a customer-first disruptor."     Adjusted diluted EPS1: Q4 $1.53 (-39% y/y) and FY25 $8.90 (-19% y/y) (reported Q4 ($0.25) and FY25 $6.65) Adjusted net income1: Q4 $63.5 million (-37% y/y) and FY25 $354.2 million (-19% y/y) (reported Q4 ($4.8 million) and FY25 $266.6 million) Adjusted PPPT2: Q4 $143.1 million (-17% y/y) and FY25 $617.7 million (-11% y/y) (reported Q4 $55.6 million and FY25 $508.9 million) Adjusted ROE1: Q4 7.5% and FY25 11.3% (reported Q4 (1.2%) and FY25 8.5%) Adjusted revenue1: Q4 $308.1 million (-4% y/y) and FY25 $1.26 billion (-1% y/y) (reported Q4 $317.1 million and FY25 $1.26 billion) Adjusted net interest margin (NIM)1,3: Q4 2.01% and FY25 2.07%, (-8 bps y/y) (reported Q4 2.17% and FY25 2.11%) Book value per share:$81.31, +5% y/y Total AUM + AUA3:$138 billion, +1% q/q +9% y/y EQ Bankcustomers: 607,000, +4% q/q and +18% y/y Common share dividends declared:$0.57 per share, +4% q/q and +16% y/y Capital: CET1 ratio of 13.3% and total capital ratio of 15.8% Strong lending growth with loans under management (LUM) up 10% y/y    In Commercial Banking, total LUM grew +20% y/y, reflecting and highlighting strength in the insured multi-unit residential portfolio, resilience of the insured lending platform and market leading position. The strong risk profile of this portfolio was retained with more than 80% of total LUM being insured under CMHC programs In Personal Banking, the single-family uninsured portfolio grew +4% y/y as healthy customer retention and renewal rates offset the impact of steady, but subdued, origination levels in a less active housing market. The decumulation lending portfolio (reverse mortgages and insurance lending) grew +36% y/y to $2.9 billion, with market share gains supported by demographic trends including the movement to age in place EQ Bank: deposits increased to nearly $10 billion and welcomed 21,000 new retail and business customers in Q4, +18% y/y EQ Bank deposits accelerated in FY25, closing the year at nearly $10 billion ($9.9 billion, +10% y/y) now with 607,000 total customers, +18% y/y. Deposit growth was generated by continued demand for EQ Bank's innovative products such as its Notice Savings Account, payroll deposit program and new Business Banking platform that fundamentally improves competitive choice in banking Business Banking platform was launched in Q4 with a healthy product release pipeline. The platform was enthusiastically received by small business customers drawn to a differentiated, all-digital offering that provides greater value EQ Bank named top banking brand in Canada and North American by Financial Times' leading magazine on international finance, The Banker, for its compelling brand story, momentum and likelihood of growing market share Prudent provisioning accounts for current macroeconomic headwinds  EQB's adjusted provision for credit losses (PCL) was $132 million in FY25 (reported $137 million) as higher impairments and performing allowances in the personal and commercial portfolios were driven by weaker housing market and uncertainty associated with GDP and unemployment versus a year ago. This was partly offset by lower equipment financing PCL The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 41 bps, compared to 32 bps at Q4 2024. The increase was across all segments and driven by prudent provisioning against the performing loan book considering elevated macroeconomic uncertainty Expense growth and operating leverage proactively addressed by decisive Q4 restructuring program Executed strategic restructuring and streamlining program to enhance flexibility, improve efficiency and align costs to high-impact initiatives where EQB can generate strong ROE and growth Final restructuring, severance and impairment charges totalled $92 million pre-tax, composed of $22.7 million in severance costs and $69.3 million in non-operating asset impairment charges EQB's adjusted efficiency ratio for 2025 was 50.9%, +5.7% y/y (reported 59.7%, +12.4% y/y) Dividend increase, share buybacks reflect disciplined approach to returning capital to shareholders EQB declared a dividend of $0.57 per common share payable on December 31, 2025, to shareholders of record as of December 15, 2025, representing a 16% increase from the dividend paid in December 2024 and a 4% increase from the dividend paid in September 2025 EQB purchased and cancelled 1,023,748 common shares through its active Normal Course Issue Bid (NCIB) and intends to renew its NCIB in FY26 to support attractive return of capital for shareholders4 "EQB has three financial priorities for fiscal 2026: drive growth, thoughtfully manage expenses and maintain strong risk management practices," said Anilisa Sainani, CFO. "Recent targeted actions to manage expense growth along with prudent credit provisioning create the foundation to deliver on these priorities. Core business growth will come from disciplined organic initiatives to expand our lending market share positions and serve our EQB customers, both retail and business, with differentiated digital products. We expect to significantly bolster these organic growth opportunities with the announcement to acquire PC Financial and strategic partnership with Loblaw. In all our actions, we are committed to creating shareholder value." Analyst conference call and webcast: 10:30 a.m. ET on December 4, 2025 EQB's Chadwick Westlake, President and CEO, Anilisa Sainani, CFO, and Marlene Lenarduzzi, CRO, will host EQB's annual earnings call and webcast. The listen-only 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. 2 PPPT represents pre-provision-pre-tax income, a non-GAAP measure of financial performance. 3 These are non-GAAP measures, see the "Non-GAAP financial measures and ratios" section. 4 Subject to regulatory approvals. CONSOLIDATED FINANCIAL STATEMENTS Consolidated balance sheets ($000s) As at October 31, 2025  October 31, 2024  Assets:     Cash and cash equivalents 717,253 591,641     Restricted cash 1,326,684 971,987     Securities purchased under reverse repurchase agreements   1,604,165 1,260,118     Investments 1,645,864 1,627,314     Loans      Loans – Personal 31,857,508 32,325,379      Loans – Commercial 14,581,966 14,872,960      Allowance for credit losses (206,801) (164,421) 46,232,673 47,033,918     Securitization retained interests 1,028,623 813,719     Deferred tax assets 36,429 36,104     Other assets       Derivative financial instruments 242,799 260,678       Intangible assets 148,623 198,640       Goodwill 92,545 110,580       Investment in associate 49,884 50,046       Other 368,179 279,176 902,030 899,120 Total assets 53,493,721 53,233,921 Liabilities and Equity Liabilities:     Deposits 36,616,511 33,739,612     Securitization liabilities 11,197,477 14,594,304     Obligations under repurchase agreements 104,568 -     Deferred tax liabilities 199,151 177,933     Funding facilities 1,454,087 946,956     Other liabilities      Derivative financial instruments 94,742 121,727      Other 615,386 515,204 710,128 636,931 Total liabilities 50,281,922 50,095,736 Equity:     Common shares 503,060 505,876     Other equity instruments 147,360 147,440     Contributed deficit (15,014) (17,374)     Retained earnings 2,566,475 2,483,309     Accumulated other comprehensive income 1,684 8,555 Total shareholders' equity 3,203,565 3,127,806 Non-controlling interests 8,234 10,379 Total equity 3,211,799 3,138,185 Total liabilities and equity 53,493,721 53,233,921 Consolidated statements of income ($000s, except per share amounts) Year ended 2025 2024 Interest income:     Loans – Personal 1,858,271 1,945,011     Loans – Commercial 881,675 1,019,682     Investments(1) 85,550 89,834     Other 98,804 108,082 2,924,300 3,162,609 Interest expense:     Deposits 1,320,094 1,490,075     Securitization liabilities(1) 476,955 523,069     Funding facilities 31,023 50,940     Other 2,537 25,364 1,830,609 2,089,448 Net interest income(1) 1,093,691 1,073,161 Non-interest revenue:     Fees and other income 79,241 81,087     Net gains on loans and investments 14,616 20,279     Gain on sale from securitization activities(1) 62,161 66,348     Net gains on hedging and derivatives 12,092 14,567 168,110 182,281 Revenue 1,261,801 1,255,442 Provision for credit losses 137,431 107,013 Revenue after provision for credit losses 1,124,370 1,148,429 Non-interest expenses:     Compensation and benefits 326,776 272,346     Product costs 146,506 89,046     Technology and system costs 97,729 82,374     Marketing and corporate expenses 90,895 77,849     Regulatory, legal and professional fees 62,312 55,631     Premises 28,653 16,853 752,871 594,099 Income before income taxes 371,499 554,330 Income taxes 104,891 152,658 Net income 266,608 401,672 Dividends on preferred shares - 8,140 Distribution to LRCN holders 8,820 2,586 Net income available to common shareholders and non-controlling interests   257,788 390,946 Net income attributable to:     Common shareholders 256,475 389,836     Non-controlling interests 1,313 1,110 257,788 390,946 Earnings per share:     Basic 6.70 10.19     Diluted 6.56 10.11 (1) Effective November 1, 2024, interest income earned on securitized retained interests is reported in Interest income – Investments and interest expense incurred on servicing liabilities is reported in Interest expense – Securitization liabilities. Previously, these amounts were included in Non-interest revenue. Prior period comparative figures have been updated to conform to current period presentation.  Consolidated statements of comprehensive income ($000s) Year ended 2025 2024 Net income 266,608 401,672 Other comprehensive income – items that will be reclassified subsequently to income Debt instruments at Fair Value through Other Comprehensive Income:     Net change in gains on fair value 18,385 68,127     Provision for credit losses recognized to income 400 -     Reclassification of net gains to income (10,532) (54,147) 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 on fair value 868 1,176     Reclassification of net (gains) losses to retained earnings (868) 248 8,253 15,404 Income tax expense (2,197) (4,063) 6,056 11,341 Cash flow hedges:     Net change in unrealized gains (losses) on fair value 5,546 (22,798)     Reclassification of net gains to income (31,952) (7,377) (26,406) (30,175) Income tax recovery 6,486 8,174 (19,920) (22,001) Total other comprehensive loss (13,864) (10,660) Total comprehensive income 252,744 391,012 Total comprehensive income attributable to:     Common shareholders 242,611 379,176     Other equity holders 8,820 10,726     Non-controlling interests 1,313 1,110 252,744 391,012 Consolidated statements of changes in equity 2025 Common Shares Contributed Deficit Retained Earnings Accumulated other comprehensive income (loss)   Other equity instruments Cash Flow Hedges Financial Instruments at FVOCI Total Attributable to equity holders Non- controlling interests Total Balance, beginning of year 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 - - - 265,295 - - - 265,295 1,313 266,608 Realized losses on sale of shares, net of tax - - - (6,377) - - - (6,377) - (6,377) Transfer of AOCI losses to retained earnings, net of tax   - - - - - 6,859 6,859 6,859 - 6,859 Transfer of AOCI losses to income, net of tax - - - - - 134 134 134 - 134 Other comprehensive loss, net of tax - - - - (19,920) 6,056 (13,864) (13,864) - (13,864) Exercise of stock options 8,419 - - - - - - 8,419 - 8,419 Common shares repurchased and cancelled, net of tax (13,204) - - (84,121) - - - (97,325) - (97,325) Issuance cost, net of tax - (80) - - - - - (80) - (80) Limited recourse capital note distributions, net of tax - - - (8,820) - - - (8,820) - (8,820) Common share dividends - - - (79,728) - - - (79,728) (2,299) (82,027) Put option – non-controlling interests - - (4,552) - - - - (4,552) - (4,552) Acquisition of non-controlling interests - - 4,242 (3,083) - - - 1,159 (1,159) - Stock-based compensation - - 4,639 - - - - 4,639 - 4,639 Transfer relating to the exercise of stock options 1,969 - (1,969) - - - - - - - Balance, end of year 503,060 147,360 (15,014) 2,566,475 1,697 (13) 1,684 3,203,565 8,234 3,211,799   ($000s) 2024 Preferred Shares Common Shares Contributed Deficit Retained Earnings Accumulated other comprehensive income (loss)   Other equity instruments Cash Flow Hedges Financial Instruments at FVOCI Total Attributable to equity holders Non- controlling interests Total Balance, beginning of year 181,411 471,014 - 12,795 2,185,480 43,618 (48,775) (5,157) 2,845,543 - 2,845,543 Non-controlling interest on acquisition - - - - - - - - - 10,770 10,770 Net Income - - - - 400,562 - - - 400,562 1,110 401,672 Realized losses on sale of shares, net of tax - - - - (23,056) - - - (23,056) - (23,056) Transfer of AOCI losses to retained earnings, net of tax   - - - - - - 22,875 22,875 22,875 - 22,875 Transfer of AOCI losses to income, net of tax - - - - - - 1,497 1,497 1,497 - 1,497 Other comprehensive loss, net of tax - - - - - (22,001) 11,341 (10,660) (10,660) - (10,660) Common shares issued - 11,000 - - - - - - 11,000 - 11,000 Exercise of stock options - 20,290 - - - - - - 20,290 - 20,290 Redemption of preferred shares (181,411) - - - (2,371) - - - (183,782) - (183,782) Limited recourse capital notes issued - - 150,000 - - - - - 150,000 - 150,000 Issuance cost, net of tax - - (2,560) - - - - - (2,560) - (2,560) Limited recourse capital note distributions, net of tax - - - - (2,586) - - - (2,586) - (2,586) Dividends:     Preferred shares - - - - (8,140) - - - (8,140) - (8,140)     Common shares - - - - (66,580) - - - (66,580) (1,501) (68,081) Put option – non-controlling interests - - - (30,613) - - - - (30,613) - (30,613) Stock-based compensation - - - 4,016 - - - - 4,016 - 4,016 Transfer relating to the exercise of stock options - 3,572 - (3,572) - - - - - - - Balance, end of year - 505,876 147,440 (17,374) 2,483,309 21,617 (13,062) 8,555 3,127,806 10,379 3,138,185 Consolidated statements of cash flows ($000s) Year ended 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Net income 266,608 401,672 Adjustments for non-cash items in net income:     Financial instruments at fair value through income (62,388) 13,152     Amortization of premiums/discount  (9,055) (14,908)     Amortization of capital and intangible assets 67,948 60,036     Provision for credit losses 137,431 107,013     Impairment on intangible assets and goodwill 56,544 -     Securitization gains (62,161) (66,348)     Stock-based compensation 4,639 4,016     Income taxes 104,891 152,658     Securitization retained interests 174,863 129,719 Changes in operating assets and liabilities:     Restricted cash (354,696) (204,792)     Securities purchased under reverse repurchase agreements (344,046) (351,285)     Loans receivable, net of securitizations 435,065 (58,571)     Other assets (13,106) (53,917)     Deposits 2,822,487 1,597,115     Securitization liabilities (3,438,557) 25,422     Obligations under repurchase agreements 104,568 (1,128,238)     Funding facilities 507,132 (784,631)     Other liabilities 81,907 (8,314) Income taxes paid (108,134) (98,042) Cash flows from (used in) from operating activities 371,940 (278,243) CASH FLOWS FROM FINANCING ACTIVITIES     Proceeds from issuance of common shares 8,419 31,290     Common shares repurchased (97,325) -     Redemption of preferred shares - (183,782)     Net proceeds from issuance of limited recourse notes - 147,440     Distributions to other equity holders (8,820) (2,586)     Dividends paid on preferred shares - (8,140)     Dividends paid on common shares (82,027) (66,580) Cash flows used in financing activities (179,753) (82,358) CASH FLOWS FROM INVESTING ACTIVITIES     Purchase of investments (405,136) (351,650)     Proceeds from sale or redemption of investments 374,662 871,021     Acquisition of subsidiary (4,242) (75,483)     Investment in associate - (50,000)     Net change in Canada Housing Trust re-investment accounts   53,032 76,243     Purchase of capital assets and system development costs (84,891) (67,363) Cash flows (used in) from investing activities (66,575) 402,768 Net increase in cash and cash equivalents 125,612 42,167 Cash and cash equivalents, beginning of year 591,641 549,474 Cash and cash equivalents, end of year 717,253 591,641 Supplemental statement of cash flows disclosures Cash flows from operating activities include: Interest received 2,803,950 2,922,693 Interest paid (1,740,308) (1,747,235) Dividends received 350 1,944 About EQB Inc.   EQB Inc. (TSX: EQB) is a leading digital financial services company with $138 billion in combined assets under management and administration (as at October 31, 2025). 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 nearly 780,000 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 or connect with us on LinkedIn. Investor contact:  Lemar Persaud VP and Head of IR [email protected]  Media contact:  Maggie Hall  Director, PR & Communications [email protected] 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 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 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 our 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 Q4 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: 2025 $17.7 million decrease in net interest income due to non-recurring fair value adjustments on covered bonds and interest on securitizations; $92.0 million final restructuring, severance and impairment charges as outlined in the Key corporate events section of this report, 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; $7.9 million Concentra Bank and ACM acquisition related intangible asset amortization; $7.0 million new office lease related costs prior to occupancy; $6.5 million professional fees related to the Acquisition; $2.6 million accelerated long-term incentive expense following the former CEO's passing; $1.8 million non-recurring operational effectiveness expenses and acquisition and integration-related costs; and $5.0 million provision for credit losses associated with an equipment financing purchase facility. 2024 $8.8 million covered bond fair value adjustments; $9.3 million Concentra Bank and ACM acquisition related intangible asset amortization; $2.2 million new office lease related costs prior to occupancy; $11.2 million non-recurring operational effectiveness expenses and acquisition and integration-related costs associated with Concentra and ACM; and $16.1 million provision for credit losses associated with an equipment financing purchase facility; and $1.7 million provision for credit losses due to a one-time change in ECL methodology from five to four economic scenarios and adjusting associated weights. 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 year ended ($000, except share and per share amounts) 31-Oct-25 31-Jul-25 31-Oct-24 31-Oct-25 31-Oct-24 Reported results Net interest income(1) 286,427 258,483 261,762 1,093,691 1,073,161 Non-interest revenue(1) 30,660 47,646 51,010 168,110 182,281 Revenue 317,087 306,129 312,772 1,261,801 1,255,442 Non-interest expense 261,472 170,954 153,625 752,871 594,099 Pre-provision pre-tax income(2) 55,615 135,175 159,147 508,930 661,343 Provision for credit loss 54,551 33,968 47,987 137,431 107,013 Income taxes 5,822 27,843 31,740 104,891 152,658 Net income (4,758) 73,364 79,420 266,608 401,672 Net income available to common shareholders (9,474) 73,014 75,382 256,475 389,836 Adjustments Net interest income – interests and covered bond fair value adjustments (21,784) 4,035 8,804 (17,749) 8,804 Non-interest revenue – non-operating asset impairments (12,809) - - (12,809) - Non-interest expenses – restructuring, severance, and impairments (79,236) - - (79,236) - Non-interest expenses – non-recurring transaction fees (8,706) - - (8,706) - Non-interest expenses – intangible asset amortization (1,969) (1,969) (2,115) (7,876) (9,334) Non-interest expenses – new office lease related costs (15) (857) (2,208) (7,024) (2,208) Non-interest expenses – related to professional fees described above (6,505) - - (6,505) - Non-interest expenses – accelerated incentive expense - (2,594) - (2,594) - Non-interest expenses – non-recurring operational effectiveness and acquisition-related costs(3)   - - (755) (1,782) (11,171) Provision for credit loss – equipment financing - - (16,085) (5,018) (16,085) Provision for credit loss – ECL methodology change and weights - - - - (1,698) Pre-tax adjustments 87,456 9,455 29,967 113,801 49,300 Income taxes – tax impact on above adjustments(4) 19,215 2,561 7,988 26,229 12,997 Post-tax adjustments – net income 68,241 6,894 21,979 87,572 36,303 Adjustments attributed to minority interests (228) (230) (288) (978) (912) Post-tax adjustments – net income to common shareholders 68,013 6,664 21,691 86,594 35,391 Adjusted results Net interest income(1) 264,643 262,518 270,566 1,075,942 1,081,965 Non-interest revenue(1) 43,469 47,646 51,010 180,919 182,281 Revenue 308,112 310,164 321,576 1,256,861 1,264,246 Non-interest expense 165,041 165,534 148,547 639,148 571,386 Pre-provision pre-tax income(2) 143,071 144,630 173,029 617,713 692,860 Provision for credit loss 54,551 33,968 31,902 132,413 89,230 Income taxes 25,037 30,404 39,728 131,120 165,655 Net income 63,483 80,258 101,399 354,181 437,975 Net income available to common shareholders 58,539 79,678 97,073 343,069 425,227 Diluted earnings per share Weighted average diluted common shares outstanding 38,269,352 38,519,991 38,723,974 38,557,364 38,549,300 Diluted earnings per share – reported (0.25) 1.90 1.95 6.65 10.11 Diluted earnings per share – adjusted 1.53 2.07 2.51 8.90 11.03 Diluted earnings per share – adjustment impact 1.78 0.17 0.56 2.25 0.92 (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. (3) Includes non-recurring operational effectiveness and acquisition and integration-related costs associated with Concentra Bank and ACM. (4) 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. 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. View original content to download multimedia:https://www.prnewswire.com/news-releases/eqb-reports-fourth-quarter-and-fiscal-2025-results-302632361.html SOURCE EQB Inc.