Digital financial services firm EQB Q3 adjusted EPS misses estimates

EQB

27/08/2025 22:26

Overview

Adjusted EPS for Q3 missed consensus, per LSEG data

Company increases dividend by 17% y/y

Outlook

Company reduces earnings expectations for remainder of fiscal 2025

Result Drivers

MACROECONOMIC PRESSURE - EQB cites unfavorable macroeconomic conditions and real estate market pressures as factors impacting Q3 earnings, leading to higher credit provisions

LOAN GROWTH - Despite challenges, EQB reports growth in loans under management, with strong performance in uninsured single-family originations and CMHC-insured multi-unit residential lending

CUSTOMER ENGAGEMENT - EQ Bank's customer base grew by 21% y/y, driven by new product offerings and increased deposit growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Adjusted EPS
Miss
C$2.07
C$2.58 (10 Analysts)
Q2 Net Income
C$73.36 mln
Q2 Net Interest Income
C$250.04 mln
Q2 Credit Loss Provision
C$33.97 mln
Q2 Pretax Profit
C$101.21 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "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$110.50, about 8% above its August 27 closing price of C$101.65

Press Release: ID:nCNWW90QWa

(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.)