EQB announces strategic restructuring program that will impact Q4 2025 reported results

• Restructuring costs  of approximately $67 million ($85 million pre-tax) include workforce reductions of approximately 8% and impairment charges
• Impact on Equitable Bank's CET1 ratio expected to be approximately 10bps

TORONTO, Oct. 22, 2025 /PRNewswire/ - EQB Inc. (TSX: EQB) today announces that its fourth quarter results will be impacted and adjusted for certain notable items as it positions to return to efficiency as a competitive advantage for Canada's Challenger Bank™. This strategic restructuring program places refreshed discipline on capital allocation to return to EQB's historically leading return on equity (ROE) performance amongst peers.

The program items relate to:

• Restructuring charge and severance provision of approximately $15 million ($20 million pre-tax), reflecting workforce reductions related to streamlining focus on top growth priorities and opportunities to improve processes
• Impairment charges of approximately $52 million ($65 million pre-tax), including $28 million of intangible assets reflecting prioritization of high-return initiatives and streamlining operations, and $24 million relating to the equipment financing business primarily driven by market conditions

The program's workforce reduction activities will be substantially complete by the end of Q4 2025.

"We are executing a future-focused plan that concentrates capital and talent where we have leading opportunities for growth and competitive advantage as Canada's Challenger Bank," said Chadwick Westlake, President and CEO. "These decisive, yet difficult, decisions focus our efforts and improve productivity to drive positive operating leverage and an improved efficiency ratio as we capture the profitable opportunities ahead and generate strong ROE.

"We sincerely thank those who are departing for their valued contributions. Their talents helped shape a remarkable institution, and we wish them every success in the future. As we evolve with our market opportunities as Canada's growth bank, we look forward to sharing more on our multi-year strategy within fiscal 2026. This strategy is grounded in reigniting our core franchise, advancing our diversification and product initiatives, particularly in EQ Bank, and enabling world class capability and efficiency – all of which are supported by today's changes."

Further details, including the final restructuring charge, will be provided with fiscal 2025 results on December 3, 2025.

About EQB Inc. 

EQB Inc. (TSX: EQB) is a leading digital financial services company with $137 billion in combined assets under management and administration (as at July 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 over 761,000 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.  

Investor contact:  
Lemar Persaud 
VP and Head of Investor Relations
[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, 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. 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, and competition as well as those factors discussed under the heading "Risk Management" in EQB's Q3 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. 

SOURCE EQB Inc.