Canadian bank EQB falls after cutting annual profit outlook, lingering credit issues

EQB

29/08/2024 15:38

** Shares of Canadian bank EQB  EQB.TO  fall as much as
4.3%, last down 2.6% at C$94.06
    ** After market close on Wednesday, EQB forecast annual
profit per share between C$11.50 and C$11.75, lower than its
prior expectation of C$11.75 and C$12.25
    ** Scotiabank analyst Meny Grauman says the real test will
be fiscal 2025 outlook, which will come in Q4
    ** Cormark Securities says there is a risk that the
trajectory for lower credit losses could be slower than
anticipated given EQB's exposure to Canadian trucking firm Pride
Group, which filed for bankruptcy protection in March 
    ** EQB's transportation and equipment financing business has
exposure to Pride Group 
    ** Meanwhile, EQB's Q3 adjusted EPS of C$2.96 ($2.20) beat
analysts' expectation of C$2.89 - LSEG data
    ** Cormark Securities says increased macroeconomic
uncertainty could result in softer share price performance over
the short term
    ** As of last close, EQB shares up 10.8% YTD

($1 = 1.3481 Canadian dollars)

 (Reporting by Arasu Kannagi Basil in Bengaluru)
 ((ArasuKannagi.Basil@thomsonreuters.com;))