Q2 2025 EQB Inc Earnings Call Transcript
Key Points
- EQB Inc (EQGPF) reported strong loan originations and market share gains in Q2, particularly in single-family residential and CMHC insured multi-unit lending.
- The company experienced significant growth in its EQ Bank customer base, with deposits reaching $9.4 billion, up 4% quarter-over-quarter.
- Uninsured single-family loan application volumes increased by 17% year-over-year in May, indicating strong demand.
- The company maintained a strong capital position with a total capital ratio of 15.6%, reflecting organic capital generation.
- EQB Inc (EQGPF) is focused on innovation and digital banking, with plans to expand its challenger bank services and deepen customer relationships.
- The company reported a lower return on equity (ROE) of 11.9% for the quarter, falling short of its target of over 15%.
- Provisions for credit losses (PCLs) increased significantly to $29 million, driven by macroeconomic uncertainties and elevated credit losses.
- Gross impaired loans (GILs) increased by 8% from January, with slower resolution activities contributing to the rise.
- The company faced challenges in its securitization business, with lower earnings compared to Q1, impacting overall financial performance.
- Economic uncertainty, including tariff-related volatility, continues to pose risks to the company's credit environment and financial outlook.
Welcome to EQB's earnings call for the second quarter of 2025. This call is being recorded on Thursday, May 29, 2025. (Operator Instructions).
It is now my pleasure to turn the call over to Maggie Hall. Director of Public Relations and Communications. Please go ahead.
Thank you, Jenny, and good morning, everyone. Your host today are Andrew Moor, President and Chief Executive Officer; Marlene Lenarduzzi, Chief Risk Officer; and David Wilkes, Vice President and Head of Finance. For those on the phone lines only, we encourage you to also log on to our webcast and view our presentation, which may be referenced during your 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.
With that, I will turn it over to Andrew.
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