Canada's EQB Q3 adj EPS rises after PC Financial acquisition

EQB

26/08/2026 22:17

Overview
Canada financial services firm's Q3 adjusted revenue rose 27% yr/yr after PC Financial acquisition
Adjusted diluted EPS for Q3 rose 2% yr/yr
Company raised quarterly dividend by 3% from prior quarter

Outlook
EQB expects benefits from PC Financial integration to become more visible in Q4
Company remains on track toward a $30 mln pre-tax annual run-rate synergy target from PC Financial

Result Drivers
PC FINANCIAL ACQUISITION - Acquisition expanded customer base, diversified revenue, and contributed to 27% yr/yr adjusted revenue growth
HIGHER CREDIT LOSS PROVISIONS - Provisions rose sharply due to Day 1 credit card portfolio losses and softer real estate market conditions
EXPENSES ROSE - Expenses increased due to integration and acquisition-related charges, partially offset by expense discipline

Company press release: ID:nCNWXqC7sa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
 
C$2.12
 
Q3 Credit Loss Provision
 
C$302.98 mln
 
Q3 Net Loss
 
C$127.26 mln
 
Q3 Pretax Loss
 
C$167.93 mln
 
Q3 Net Interest Income
 
C$319.17 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "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$142.00, about 5.5% above its August 25 closing price of C$134.60
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 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.)