EQB reports third quarter 2026 results including one month of results from PC Financial and announces dividend increase

TORONTO, Aug. 26, 2026 /PRNewswire/ -- EQB Inc. (TSX: EQB) today reported earnings for the third quarter and nine months ended July 31, 2026, including one month of results from the acquisition of President's Choice Bank ("PC Bank"), PC^® Financial Insurance Agency Inc., PC^® Financial Insurance Broker Inc. and certain affiliated entities of PC Bank (collectively, "PC Financial").

• Adjusted diluted EPS¹: $2.12, +4% q/q and +2% y/y (reported -$3.39)
• Adjusted PPPT¹: $196.2 million, +28% q/q and +36% y/y (reported $135.1 million)
• Adjusted ROE¹: 10.3%, +10 bps q/q and +20 bps y/y (reported -16.2%)
• Adjusted ROTCE¹: 11.1%, +40 bps q/q and +50 bps y/y (reported -17.1%)
• Adjusted revenue¹: $393.0 million, +30% q/q and +27% y/y (reported $391.3 million)
• Book value per share: $86.86, +7% q/q and +5% y/y
• Common share dividends declared: $0.63 per share, +3% q/q and +15% y/y
• Capital: CET1 ratio of 13.4% and total capital ratio of 16.6%

"With the closing of PC Financial on Canada Day, EQB has structurally shifted in customer reach, products, revenue mix and growth potential. The integration is progressing to plan, and we now meet millions of Canadians where they already are, including at the grocery aisle, at the pump, and across everyday spending moments," said Chadwick Westlake, President and CEO, EQB. "Underneath the transaction, earnings were impacted by elevated performing and impaired provisions that reflect the continued pressure many Canadians are facing. Despite a housing market that has yet to turn, our core businesses performed well, and we made great progress growing market share and loans under management. The earnings power of the combined business will become more visible in Q4, and we will set out the path to our 2027 and medium-term return objectives at our Investor Day in December."

Closed PC Financial, positioning EQB to realize the benefits of integration, scale and synergies

• Transformational acquisition expands EQB's reach to more than 4 million directly served customers, establishes EQB as the exclusive financial services partner of the PC Optimum™ loyalty program and its more than 18 million active members, and elevates EQB's assets under management and administration¹ to $151 billion
• Credit card and recurring PC insurance fee income meaningfully adds to EQB's revenue and brings diversification, contributing to 30% q/q and 27% y/y revenue growth, while increasing non-interest revenue to 19% of total revenue despite Q3/26 including only one month of PC Financial results
• Integration execution remains well underway with $15 million in annualized cost savings to date; on track toward a $30 million pre-tax annual run-rate synergy target

Significantly increased retail deposit customers with the completed acquisition of PC Financial

• Direct retail deposits increased to $10.8 billion in Q3 (+8% q/q and +11% y/y) driven by the addition of PC Bank direct retail deposits, which further diversified EQB's funding base.  Direct retail deposits represented 29% of total deposit principal (up 155 bps q/q)
• With a combined customer base of over 4 million, establishes a solid foundation to grow the deposit base

Delivered growth in loans under management¹ against a difficult operating environment

• Personal LUM¹ increased 14% q/q and 11% y/y, reflecting the acquired credit card portfolio, momentum in the fast-growing decumulation segment and uninsured residential lending origination market share gains in Ontario, partially offset by a deliberate slowdown in lower risk-adjusted return segments including single-family insured mortgages
• Personal LUM¹, excluding insured single-family mortgages, increased 19% q/q and 23% y/y
• Commercial LUM¹ increased 2% q/q and 12% y/y, driven by strong growth in construction loans (predominantly insured) and continued strength in CMHC insured multi-unit residential mortgages

Expanding and diversifying revenue sources with PC Financial

• Net interest income (NII) increased 22% q/q and y/y, reflecting an increase in net interest margin (NIM)¹ of 33 bps to 2.41% and a modest 2% increase in average interest earning assets. NIM¹ expanded due to the addition of the higher yielding credit cards associated with the acquisition of PC Financial and related fair value marks. NIM¹ on the Personal and Commercial lending portfolios remained relatively stable
• Adjusted non-interest revenue (NIR)¹ increased 77% q/q and 55% y/y, reflecting a diversification of revenue, including credit card fee income (net of loyalty costs), insurance, and the accretion of fair value marks. These increases were partially offset by lower securitization gains
• Reported total revenue increased 29% q/q and 28% y/y

Higher provisions reflect acquired credit cards and real estate market conditions

• Reported provisions for credit losses (PCL) were up $258 million, primarily reflecting Day 1 PCL of $219 million on the acquired credit card portfolio
• Adjusted PCL¹ reflects provisions relating to credit card activity in the month of July and increases in residential and commercial lending portfolios driven by softer real estate market conditions and equipment lease defaults
• Total gross impaired loans increased 4% q/q as new formations outpaced resolutions, primarily reflecting extended workout timelines. Total formations decreased $39 million or 16% q/q, with lower formations in Commercial partially offset by a modest increase in Personal residential lending portfolios
• The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets¹ of 95 bps, compared to 46 bps at Q2/26, primarily reflecting the addition of an unsecured lending portfolio  

Expense discipline remains strong

• EQB's adjusted efficiency ratio¹ increased 70 bps q/q to 50.1% (reported 65.5%) and remains on track against its low-50% efficiency ratio target for 2026
• Adjusted expenses¹ increased 32% q/q and 19% y/y reflecting the inclusion of one month of PC Financial and disciplined expense management
• Reported expenses increased 40% q/q and 50% y/y, reflecting PC Financial, integration-related costs, acquisition-related intangible asset amortization, and impairment charges

Capital strength supported dividend increase and buyback activity

• EQB declared a dividend of $0.63 per common share payable on September 29, 2026, to shareholders of record as of September 15, 2026, representing +3% and +15% increases from the dividends paid in June 2026 and September 2025, respectively
• In connection with the acquisition of PC Financial, EQB issued 7.2 million common shares on July 1, 2026. In Q3/26, EQB purchased and cancelled 147,589 common shares through its Normal Course Issuer Bid (NCIB) (2,441,213 repurchased year-to-date), supporting attractive return of capital for shareholders

"In Q3, we continued to execute with discipline: maintaining a strong efficiency ratio, expanding net interest margins, and proactively provisioning for credit losses," said Anilisa Sainani, CFO. "The closing of PC Financial represents a meaningful evolution in our business model, adding new revenue streams, enhancing earnings diversification, and reducing our reliance on housing and spread related income. Together, these changes strengthen the resilience of our earnings profile and position EQB for continued growth."

Analyst conference call and webcast: 10:30 a.m. ET on August 27, 2026

EQB's Chadwick Westlake, President and CEO, Anilisa Sainani, CFO, and Puneesh Arora, CRO, will host EQB's quarterly earnings call and webcast. The webcast with accompanying slides will be available at eqb.investorroom.com. To access the conference call with operator assistance, dial 416-945-7677 five minutes prior to the start time.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

About EQB Inc.  

EQB Inc. (TSX: EQB) is a leading Canadian financial services company with approximately $151 billion in combined assets under management and administration. It is the parent company of Equitable Bank, the country's seventh largest Schedule I bank by assets, which operates EQ Bank, Canada's Challenger Bank™.

Our purpose is to remake banking so every Canadian gets ahead, every day. Since 1970, we have built thoughtful financial solutions that serve more than 4 million customers, turning everyday moments into meaningful progress. As the exclusive financial partner of Loblaw Companies Limited's PC Optimum™ loyalty program – one of Canada's largest loyalty programs with more than 18 million members – EQ Bank's financial solutions are deeply embedded into the daily lives of Canadians.

We provide personal and commercial banking services to Canadian households and businesses through everyday banking, tailored lending and connected payments, while fueling competition and choice in Canadian banking. Through our subsidiaries, we also offer home and auto insurance, estate and trust services, credit union solutions and alternative asset management.

To learn more, visit eqb.investorroom.com and eqbank.ca, or connect with us on Instagram, Facebook or LinkedIn.

Investor contact: 
Lemar Persaud
SVP, IR and Enterprise Performance Management
[email protected] 

Media contact: 
Danielle Mason
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 expectations 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", "scheduled", "guidance", "planned", "estimates", "forecasts", "outlook", "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", "should", "might" or "will be taken", "occur", "be achieved", "will likely" or other similar expressions of future or conditional verbs. These statements include, but are not limited to, statements with respect to EQB's ability to successfully integrate an acquired business, including but not limited to EQB's announced acquisition of PC Financial¹ from Loblaw Companies Limited (the Acquisition), entering into the related commercial arrangement and future communications and disclosures regarding the Acquisition, the timing and expected benefits of such transactions, statements relating to the expected impact of the Acquisition, the anticipated benefits of the Acquisition, including the expected impact on EQB's size, operations, capabilities, growth drivers and opportunities, activities, attributes, profile, business services portfolio and loans, revenue and assets mix, market position, profitability, performance, and strategy; the expected impact of the Acquisition on EQB's financial performance; expectations regarding EQB's business model, plans and strategy, the maintenance of CET1 ratio and changes in adjusted EPS; strategic fit and complementarity of PC Financial and Equitable Bank; anticipated synergies and estimated transaction and integration costs and the timing of incurrence thereof, as well as EQB's financial performance objectives, vision and strategic goals, the economic and market review and outlook, the regulatory environment in which we operate, the outlook and priorities for each of its business lines, the expected impact on PC Financial customers and employees, the risk environment including liquidity and funding risk, and statements by EQB representatives.

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 EQB's customers and rates of default, the integration of PC Financial and the realization of the anticipated benefits and synergies of the Acquisition in the timeframe anticipated, including impact and accretion in various financial metrics; the ability to retain management and key employees of PC Financial;  and competition as well as those factors discussed under the heading "Risk Management" in EQB's Q3 2026 Management's Discussion and Analysis (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 loan business, a continuation of the current level of economic uncertainty that affects real estate market conditions including, without limitation, 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.

Non-Generally Accepted Accounting Principles (GAAP) Financial Measures and Ratios

To enable readers to better assess trends in underlying business performance and increase consistency with the reporting regimens used by other leading Canadian financial institutions, EQB provides adjusted results in parallel with reported measures. Adjusted results are non-GAAP financial measures that enable readers to assess underlying business results and trends. Adjustments listed below are presented on a pre-tax basis:

Q3 2026

• $37.42 million PC Financial acquisition and integration-related costs;
• $22.00 million intangible asset amortization and impairments related to acquisitions;
• $1.71 million business exit costs⁽¹⁾; and
• $219.06 million initial provisions for credit losses associated with acquired PC Financial credit cards.

Q2 2026

• $17.75 million business exit costs⁽¹⁾;
• $13.84 million PC Financial acquisition and integration-related costs; and
• $1.97 million acquisitions-related intangible asset amortization.

Q3 2025

• $4.04 million fair value adjustment on a covered bond maturity;
• $2.59 million accelerated long-term incentive expense following the former CEO's passing;
• $0.86 million new office lease related expenses; and
• $1.97 million acquisitions-related intangible asset amortization.

YTD 2026

• $57.10 million PC Financial acquisition and integration-related costs;
• $25.93 million intangible asset amortization and impairments related to acquisitions;
• $19.46 million business exit costs⁽¹⁾; and
• $219.06 million initial provisions for credit losses associated with acquired PC Financial credit cards.

YTD 2025

• $4.04 million fair value adjustment on a covered bond maturity;
• $5.91 million acquisitions-related intangible asset amortization;
• $7.01 million new office lease related expenses prior to occupancy;
• $2.59 million accelerated long-term incentive expense following the former CEO's passing;
• $1.78 million non-recurring operational effectiveness expenses and ACM and Concentra Bank acquisition and integration-related costs; and
• $5.02 million provision for credit losses associated with an equipment financing purchase facility.

The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results.

Return on tangible common equity (ROTCE)

Effective Q3 2026, EQB began reporting Return on Tangible common equity (ROTCE), a non-GAAP financial measure that reflects the return generated on tangible common equity. Management uses ROTCE, together with other financial measures, to assess how efficiently EQB generates earnings from the tangible capital available to support its business. Following the acquisition of PC Financial, which increased goodwill and intangible assets, ROTCE provides readers with a useful additional perspective on EQB's underlying profitability, capital efficiency and comparability.

The table below presents the computation of ROTCE and a reconciliation to the most directly comparable GAAP measures. 

Other non-GAAP financial measures and ratios:

• Adjusted efficiency ratio: derived by dividing adjusted non-interest expenses by adjusted revenue. A lower adjusted efficiency ratio reflects a more efficient cost structure.
• Adjusted return on equity (ROE): calculated on an annualized basis and defined as adjusted net income available to common shareholders as a percentage of weighted average common shareholders' equity outstanding during the period.
• Adjusted return on Tangible common equity (ROTCE): calculated on an annualized basis and defined as adjusted net income available to common shareholders as a percentage of average Tangible common equity outstanding during the period.
• Assets under administration (AUA): is the sum of (1) assets over which EQB's subsidiaries have been named as trustee, custodian, executor, administrator, or other similar role; (2) loans held by credit unions for which EQB's subsidiaries act as servicer.
• Assets under management (AUM): is the sum of total balance sheet assets, loan principal derecognized but still managed by EQB, and assets managed on behalf on investors.
• Loans under management (LUM): is the sum of loan principal reported on the consolidated balance sheet and loan principal derecognized but still managed by EQB.
• Net interest margin (NIM): is calculated on an annualized basis by dividing net interest income by the average total interest earning assets for the period.
• Pre-provision pre-tax income (PPPT): is the difference between revenue and non-interest expenses.
• Return on Tangible common equity (ROTCE): calculated on an annualized basis and is defined as net income available to common shareholders, excluding the amortization and write-down of acquisition-related intangible assets other than software, as a percentage of average Tangible common equity outstanding during the period.
• Tangible common equity: calculated as common shareholders' equity less goodwill and acquisition-related intangible assets other than software, net of deferred tax.
• Total loan assets: calculated on a gross basis (prior to Allowance for Credit Losses) as the sum of both Loans – Personal and Loans – Commercial on the balance sheet.

SOURCE EQB Inc.

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