"Fiscal 2025 was a difficult year for EQB. We responded by announcing a one-time restructuring program in the fourth quarter which drove a charge of $92 million pre-tax. This significantly improves our cost structure and creates a foundation for better efficiency, operating leverage and ROE," said Chadwick Westlake, President and CEO. "Our new leadership team is focused on growing our core franchise, rapidly accelerating our Challenger Bank products and expanding our capabilities for the benefit of all Canadians. The transformative announcement of the acquisition of PC Financial and strategic partnership with Loblaw adds further strength to our outlook and complements the many great organic opportunities we have as a diversified Canadian lender and owner of EQ Bank, the top banking brand in Canada now nearing $10 billion in deposits. With our strong talent, capital and technology, combined with prudent and disciplined risk and cost management, our goal is to deliver lasting value for our stakeholders as a customer-first disruptor."
Adjusted diluted EPS1: Q4 $1.53 (-39% y/y) and FY25 $8.90 (-19% y/y) (reported Q4 ($0.25) and FY25 $6.65)
Adjusted net income1: Q4 $63.5 million (-37% y/y) and FY25 $354.2 million (-19% y/y) (reported Q4 ($4.8 million) and FY25 $266.6 million)
Adjusted PPPT2: Q4 $143.1 million (-17% y/y) and FY25 $617.7 million (-11% y/y) (reported Q4 $55.6 million and FY25 $508.9 million)
Adjusted ROE1: Q4 7.5% and FY25 11.3% (reported Q4 (1.2%) and FY25 8.5%)
Adjusted revenue1: Q4 $308.1 million (-4% y/y) and FY25 $1.26 billion (-1% y/y) (reported Q4 $317.1 million and FY25 $1.26 billion)
Adjusted net interest margin (NIM)1,3: Q4 2.01% and FY25 2.07%, (-8 bps y/y) (reported Q4 2.17% and FY25 2.11%)
Book value per share: $81.31, +5% y/y
Total AUM + AUA3: $138 billion, +1% q/q +9% y/y
EQ Bank customers: 607,000, +4% q/q and +18% y/y
Common share dividends declared: $0.57 per share, +4% q/q and +16% y/y
Capital: CET1 ratio of 13.3% and total capital ratio of 15.8%
Strong lending growth with loans under management (LUM) up 10% y/y
In Commercial Banking, total LUM grew +20% y/y, reflecting and highlighting strength in the insured multi-unit residential portfolio, resilience of the insured lending platform and market leading position. The strong risk profile of this portfolio was retained with more than 80% of total LUM being insured under CMHC programs
In Personal Banking, the single-family uninsured portfolio grew +4% y/y as healthy customer retention and renewal rates offset the impact of steady, but subdued, origination levels in a less active housing market. The decumulation lending portfolio (reverse mortgages and insurance lending) grew +36% y/y to $2.9 billion, with market share gains supported by demographic trends including the movement to age in place
EQ Bank: deposits increased to nearly $10 billion and welcomed 21,000 new retail and business customers in Q4, +18% y/y
EQ Bank deposits accelerated in FY25, closing the year at nearly $10 billion ($9.9 billion, +10% y/y) now with 607,000 total customers, +18% y/y. Deposit growth was generated by continued demand for EQ Bank's innovative products such as its Notice Savings Account, payroll deposit program and new Business Banking platform that fundamentally improves competitive choice in banking
Business Banking platform was launched in Q4 with a healthy product release pipeline. The platform was enthusiastically received by small business customers drawn to a differentiated, all-digital offering that provides greater value
EQ Bank named top banking brand in Canada and North American by Financial Times' leading magazine on international finance, The Banker, for its compelling brand story, momentum and likelihood of growing market share
Prudent provisioning accounts for current macroeconomic headwinds
EQB's adjusted provision for credit losses (PCL) was $132 million in FY25 (reported $137 million) as higher impairments and performing allowances in the personal and commercial portfolios were driven by weaker housing market and uncertainty associated with GDP and unemployment versus a year ago. This was partly offset by lower equipment financing PCL
The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 41 bps, compared to 32 bps at Q4 2024. The increase was across all segments and driven by prudent provisioning against the performing loan book considering elevated macroeconomic uncertainty
Expense growth and operating leverage proactively addressed by decisive Q4 restructuring program
Executed strategic restructuring and streamlining program to enhance flexibility, improve efficiency and align costs to high-impact initiatives where EQB can generate strong ROE and growth
Final restructuring, severance and impairment charges totalled $92 million pre-tax, composed of $22.7 million in severance costs and $69.3 million in non-operating asset impairment charges
EQB's adjusted efficiency ratio for 2025 was 50.9%, +5.7% y/y (reported 59.7%, +12.4% y/y)
Dividend increase, share buybacks reflect disciplined approach to returning capital to shareholders
EQB declared a dividend of $0.57 per common share payable on December 31, 2025, to shareholders of record as of December 15, 2025, representing a 16% increase from the dividend paid in December 2024 and a 4% increase from the dividend paid in September 2025
EQB purchased and cancelled 1,023,748 common shares through its active Normal Course Issue Bid (NCIB) and intends to renew its NCIB in FY26 to support attractive return of capital for shareholders4
"EQB has three financial priorities for fiscal 2026: drive growth, thoughtfully manage expenses and maintain strong risk management practices," said Anilisa Sainani, CFO. "Recent targeted actions to manage expense growth along with prudent credit provisioning create the foundation to deliver on these priorities. Core business growth will come from disciplined organic initiatives to expand our lending market share positions and serve our EQB customers, both retail and business, with differentiated digital products. We expect to significantly bolster these organic growth opportunities with the announcement to acquire PC Financial and strategic partnership with Loblaw. In all our actions, we are committed to creating shareholder value."
Analyst conference call and webcast: 10:30 a.m. ET on December 4, 2025
EQB's Chadwick Westlake, President and CEO, Anilisa Sainani, CFO, and Marlene Lenarduzzi, CRO, will host EQB's annual earnings call and webcast. The listen-only 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.
1 Adjusted measures and ratios are Non-Generally Accepted Accounting Principles (GAAP) measures and ratios. Adjusted measures and ratios are calculated in the same manner as reported measures and ratios, except that financial information included in the calculation of adjusted measures and ratios is adjusted to exclude the impact of one-time acquisition and integration related costs, and certain items which management determines would have a significant impact on a reader's assessment of business performance. For additional information and a reconciliation of reported results to adjusted results, see the "Non-GAAP financial measures and ratios" section.
2 PPPT represents pre-provision-pre-tax income, a non-GAAP measure of financial performance.
3 These are non-GAAP measures, see the "Non-GAAP financial measures and ratios" section.
4 Subject to regulatory approvals.
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheets
($000s) As at
October 31, 2025
October 31, 2024
Assets:
Cash and cash equivalents
717,253
591,641
Restricted cash
1,326,684
971,987
Securities purchased under reverse repurchase agreements
1,604,165
1,260,118
Investments
1,645,864
1,627,314
Loans
Loans, Personal
31,857,508
32,325,379
Loans, Commercial
14,581,966
14,872,960
Allowance for credit losses
(206,801)
(164,421)
46,232,673
47,033,918
Securitization retained interests
1,028,623
813,719
Deferred tax assets
36,429
36,104
Other assets
Derivative financial instruments
242,799
260,678
Intangible assets
148,623
198,640
Goodwill
92,545
110,580
Investment in associate
49,884
50,046
Other
368,179
279,176
902,030
899,120
Total assets
53,493,721
53,233,921
Liabilities and Equity
Liabilities:
Deposits
36,616,511
33,739,612
Securitization liabilities
11,197,477
14,594,304
Obligations under repurchase agreements
104,568
-
Deferred tax liabilities
199,151
177,933
Funding facilities
1,454,087
946,956
Other liabilities
Derivative financial instruments
94,742
121,727
Other
615,386
515,204
710,128
636,931
Total liabilities
50,281,922
50,095,736
Equity:
Common shares
503,060
505,876
Other equity instruments
147,360
147,440
Contributed deficit
(15,014)
(17,374)
Retained earnings
2,566,475
2,483,309
Accumulated other comprehensive income
1,684
8,555
Total shareholders' equity
3,203,565
3,127,806
Non-controlling interests
8,234
10,379
Total equity
3,211,799
3,138,185
Total liabilities and equity
53,493,721
53,233,921
Consolidated statements of income
($000s, except per share amounts) Year ended
2025
2024
Interest income:
Loans, Personal
1,858,271
1,945,011
Loans, Commercial
881,675
1,019,682
Investments(1)
85,550
89,834
Other
98,804
108,082
2,924,300
3,162,609
Interest expense:
Deposits
1,320,094
1,490,075
Securitization liabilities(1)
476,955
523,069
Funding facilities
31,023
50,940
Other
2,537
25,364
1,830,609
2,089,448
Net interest income(1)
1,093,691
1,073,161
Non-interest revenue:
Fees and other income
79,241
81,087
Net gains on loans and investments
14,616
20,279
Gain on sale from securitization activities(1)
62,161
66,348
Net gains on hedging and derivatives
12,092
14,567
168,110
182,281
Revenue
1,261,801
1,255,442
Provision for credit losses
137,431
107,013
Revenue after provision for credit losses
1,124,370
1,148,429
Non-interest expenses:
Compensation and benefits
326,776
272,346
Product costs
146,506
89,046
Technology and system costs
97,729
82,374
Marketing and corporate expenses
90,895
77,849
Regulatory, legal and professional fees
62,312
55,631
Premises
28,653
16,853
752,871
594,099
Income before income taxes
371,499
554,330
Income taxes
104,891
152,658
Net income
266,608
401,672
Dividends on preferred shares
-
8,140
Distribution to LRCN holders
8,820
2,586
Net income available to common shareholders and non-controlling interests
257,788
390,946
Net income attributable to:
Common shareholders
256,475
389,836
Non-controlling interests
1,313
1,110
257,788
390,946
Earnings per share:
Basic
6.70
10.19
Diluted
6.56
10.11
(1)
Effective November 1, 2024, interest income earned on securitized retained interests is reported in Interest income, Investments and interest expense incurred on servicing liabilities is reported in Interest expense, Securitization liabilities. Previously, these amounts were included in Non-interest revenue. Prior period comparative figures have been updated to conform to current period presentation.
Consolidated statements of comprehensive income
($000s) Year ended
2025
2024
Net income
266,608
401,672
Other comprehensive income, items that will be reclassified subsequently to income
Debt instruments at Fair Value through Other Comprehensive Income:
Net change in gains on fair value
18,385
68,127
Provision for credit losses recognized to income
400
-
Reclassification of net gains to income
(10,532)
(54,147)
Other comprehensive income, items that will not be reclassified subsequently to income:
Equity instruments designated at Fair Value through Other Comprehensive Income:
Net change in gains on fair value
868
1,176
Reclassification of net (gains) losses to retained earnings
(868)
248
8,253
15,404
Income tax expense
(2,197)
(4,063)
6,056
