Q3 2025 EQB Inc Earnings Call Transcript
Key Points
- Loans under management increased 3% sequentially and 10% year over year to approximately $74 billion.
- EQ Bank added 26,000 new customers, a gain of 21% year over year, with deposits increasing to $9.7 billion.
- Commercial Banking capitalized on leadership in lending to the insured multi-unit residential market, with loans under management growing 8% sequentially and 30% year over year.
- The de-cumulation lending portfolio reached a record of $2.7 billion, up 8% sequentially and 41% year over year.
- EQB's capital position remains strong, with total capital at 15.7% and CET1 at 13.3%, exceeding regulatory minimums.
- Revenue and earnings performance for the quarter was below expectations, resulting in a year-to-date ROE of 12.4%.
- Headwinds in credit persisted, with a $10 million increase in provisions on performing loans due to a negative macroeconomic outlook.
- Net income for the quarter was $80.3 million, down 15% from Q2 and 32% year over year.
- Net interest income declined 6% quarter over quarter, impacted by mix shifts in the lending portfolio and higher liquidity portfolio.
- The efficiency ratio increased to 53% in the quarter, above the historical operating range.
Welcome to EQB earnings call for the third quarter of 2025. This call is being recorded on Thursday, August 28, 2025, (Operator Instructions) It is now my pleasure to turn the call over to Lemar Persaud, Vice President and Head of Investor Relations. Please go ahead.
Thank you, Joanna, and good morning, everyone. I'm excited to be sitting on this side of the call after following Canada's Challenger Bank and the financial services sector for several years. Your host for today's Q3 results call are Vincenza Sera, Chair of the Board of EQB, the newly appointed President and CEO, Chadwick Westlake; Marlene Lenarduzzi, Chief Risk Officer; who served as Interim President and CEO during the quarter and David Wilkes, SVP, Chief Strategy and Growth Officer.
As announced yesterday, our new CFO, who joined us as of today and Anilisa Sainani is also here with us in the room. For those on the phone lines only, we encourage you to also log into our webcast and view our quarterly presentation,
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