Canada's EQB Q2 adjusted EPS, revenue fall

EQB

27/05/2026 22:18

Overview
Canada digital bank's fiscal Q2 adjusted EPS fell 12% yr/yr to C$2.03
Fiscal Q2 revenue declined 4% yr/yr to C$302.4 mln
Company expects PC Financial acquisition to close July 1, expanding customer base and revenue

Outlook
EQB expects PC Financial acquisition to close July 1, 2026, expanding customer base to 3.3 mln
Company anticipates nearly doubling revenue and 4x increase in non-interest revenue post-acquisition
EQB maintains low-50% adjusted efficiency ratio target for 2026, excluding PC Financial impacts

Result Drivers
COST MANAGEMENT - Adjusted expenses declined due to reduced discretionary spending and a capital tax benefit, partly offset by targeted investments and higher staff costs
CREDIT LOSS PROVISIONS - Provision for credit losses rose 16% q/q due to higher delinquencies and defaults, with increases in both performing and impaired provisions amid macroeconomic uncertainty and a subdued real estate market
LOAN AND DEPOSIT TRENDS - Commercial lending grew, driven by insured multi-unit residential mortgages, while personal lending declined due to strategic reductions in insured single-family mortgages; EQ Bank deposits and customer numbers continued to rise

Company press release: ID:nPn4Nlvzma

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
 
C$2.03
 
Q2 Net Interest Income
 
C$260.73 mln
 
Q2 Credit Loss Provision
 
C$45.35 mln
 
Q2 Pretax Profit
 
C$74.16 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy."
Wall Street's median 12-month price target for EQB Inc is C$127.00, about 8.3% above its May 26 closing price of C$117.32
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)