Investors pin hopes on Canada's mid-sized EQ Bank after blockbuster 2023

EQB

02/01/2024 11:00

By Nivedita Balu
       TORONTO, Jan 2 (Reuters) - In a tough year for Canadian
banks, shares in mid-sized lender EQB Inc  EQB.TO  jumped more
than 50% on solid earnings growth, making it the best-performing
banking stock in 2023, with investors expecting more gains this
year.
    The Toronto-based digital bank has no physical branches,
which has helped keep costs under check while many of the bigger
institutions had to cut jobs as they grappled with an inflated
cost base. 
    EQ Bank, Canada's seventh-largest bank, grew its adjusted
net income last fiscal year by 11.2% while the big banks
recorded between 0.7% growth and a 23% fall in earnings.
        EQ's non-interest expenses rose 15.5% while at the top
three banks they rose over 20%. CIBC 
 (Reporting by Nivedita Balu in Toronto; Editing by Mark Porter)
 ((Nivedita.Balu@thomsonreuters.com; X: @niveditabalu;))