EQB reports first quarter 2026 results
Executive Summary
- EQB Inc. reported Q1 2026 adjusted diluted EPS of $2.26, a 48% quarter‑over‑quarter increase and a 24% year‑over‑year decline versus the prior period’s $2.77.
- Adjusted net income rose 34% QoQ to $85.2 M; revenue was flat QoQ at $306.8 M but down 5% YoY.
- The bank declared a higher dividend of $0.59 per share and repurchased 1,066,890 common shares under its NCIB/ASPP program.
Key Details
- Financial Performance (Adjusted):
- Diluted EPS: $2.26 (+48% QoQ, –24% YoY)
- Net income: $85.2 M (+34% QoQ, –27% YoY)
- Pre‑provision‑pre‑tax income (PPPT): $156.2 M (+9% QoQ, –8% YoY)
- Adjusted ROE: 11.1% (+360 bps QoQ, –410 bps YoY)
- Adjusted revenue: $306.8 M (flat QoQ, –5% YoY)
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Adjusted efficiency ratio: 49.1% (down from 51.6% prior quarter)
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Capital & Liquidity:
- CET1 ratio: 13.6%; total capital ratio: 16.0%
- Book value per share: $81.75 (+1% QoQ, +3% YoY)
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Total AUM+AUA: $142 B (+3% QoQ, +8% YoY)
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Dividends & Share Repurchases:
- Dividend declared: $0.59 per common share (payable March 31, 2026).
- NCIB renewed; Automatic Securities Purchase Plan launched Jan 2026.
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Shares repurchased Q1: 1,066,890 (total repurchase to date 1,080,? M)
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Lending Activity:
- Commercial LUM grew 3% QoQ and 19% YoY, driven by insured multi‑unit residential mortgages.
- Personal LUM flat QoQ, down 2% YoY (excluding insured single‑family).
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Decumulation portfolio up 5% QoQ and 30% YoY.
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Deposit & Customer Growth:
- EQ Bank deposits: $9.94 B (flat QoQ, +10% YoY), representing 27% of total deposit principal.
- New retail/business customers added: 26,000 in Q1.
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Total EQ Bank customers: 633,000 (+4% QoQ, +18% YoY).
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Credit Quality:
- Provision for credit losses (PCL) down 28% QoQ; net allowances 43 bps of loan assets.
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Adjusted PCL up 186% YoY due to higher impaired provisions in commercial/personal portfolios.
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Acquisition Progress – PC Financial:
- Applications filed with OSFI and Competition Bureau (Jan 2026).
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Integration Management Office established; focus on revenue/expense synergies.
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Operational Highlights:
- Expense reduction program delivered 9% QoQ decline in adjusted expenses.
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Technology & innovation investments continued despite higher premises costs for new Toronto headquarters.
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Management Commentary:
- CEO Chadwick Westlake emphasized strategic focus, efficiency gains, and momentum on the PC Financial acquisition.
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CFO Anilisa Sainani highlighted strong Q1 performance amid macro‑headwinds and reaffirmed guidance toward low‑50% efficiency ratio and 12% ROE target for FY 2026.
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Conference Call:
- Analyst call scheduled for 10:30 a.m. ET, Feb 26 2026 (dial‑in details provided).
Notable Quotes
“We strengthened execution across our core franchise, expanded loans under management, significantly improved efficiency and maintained prudent credit provisioning,” – Chadwick Westlake, President & CEO.
“We delivered strong first quarter performance with meaningful expense improvement… we remain focused on executing against our priorities and positioning the business to successfully capitalize on significant opportunities ahead.” – Anilisa Sainani, CFO.