Q1 2025 EQB Inc Earnings Call Transcript
Key Points
- EQB Inc (EQGPF) reported a strong start to 2025 with milestone quarterly earnings and a return on equity (ROE) of 15.2%.
- The company saw a significant increase in uninsured single-family residential lending, with originations up 23% year-over-year.
- EQB Inc (EQGPF) increased its dividend, reflecting the board's commitment to a 15% annual growth in dividends over the medium term.
- The bank's equipment financing portfolio showed signs of improvement, with provisions for credit losses (PCLs) decreasing significantly from the previous quarter.
- EQ Bank's customer base grew by 26% year-over-year, with a notable increase in customers choosing EQ Bank as their primary bank, contributing to deposit growth.
- The economic and geopolitical environment has shifted, with potential impacts from cross-border tariffs posing risks to the Canadian economy.
- Net impaired commercial loans increased by $68 million during the quarter, with a significant portion associated with a single CMHC insured loan.
- The personal loan book saw an increase in net impaired loans, representing 98 basis points of personal loan assets.
- There is ongoing uncertainty regarding the resolution of impaired commercial real estate loans, with expectations for resolutions to accelerate later in the year.
- The company faces challenges from macroeconomic and geopolitical uncertainties, which could impact credit performance and provisions for credit losses.
Welcome to EQB's earnings call for the first quarter of 2025 on Wednesday, February 26, 2025. (Operator Instructions) It is now my pleasure to turn the call over to Mr. Mike Rizvanovic, Managing Director of Investor Relations for EQB. Thank you. Please go ahead.
Thank you, Enna, and good morning, everyone, and welcome to EQB's Q1 fiscal 2025 earnings call. Your host today will be Andrew Moor, President and Chief Executive Officer; and Chadwick Westlake, Chief Financial Officer. Marlene Lenarduzzi, EQB's Chief Risk Officer, will also be available for the Q&A portion of this call.
For those on the phone lines only, we encourage you to also log on to our webcast to view our presentation, which may be referenced during the prepared remarks. On slide 2 of our presentation, you'll find EQB's caution regarding forward-looking statements as well as the use of non-IFRS measures. All figures referenced today are on an adjusted basis were applicable unless otherwise noted.
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