Canadian lender EQB falls as Q1 profit misses, brokerage downgrades

EQB

29/02/2024 16:58

** Shares of Canadian lender EQB Inc  EQB.TO  fall 9.4% to
C$85.94
    ** Co after market on Wednesday reported Q1 profit adjusted
EPS of C$2.76, missing analyst expectations of C$2.83, according
to LSEG data
    ** National Bank of Canada downgrades EQB's rating to
'sector perform' from 'outperform'; Lowers PT to C$95 from C$98
    ** Brokerage says it is reducing estimates to reflect higher
provisions for credit losses and expenses 
    ** "We have to consider the broader credit picture that
includes another spike in impairments " - NBC
    ** Net impaired loans increased to 94 basis points of total
loan assets in the quarter, reflecting an increase of 18 basis
points sequentially 
    ** "We believe the focus of investor attention will be on
the rise in impaired loans," analysts at Raymond James write in
note 
    ** Stock down 1.5% YTD; It surged ~53.8% in 2023 

 (Reporting by Manya Saini in Bengaluru)
 ((Manya.Saini@thomsonreuters.com))