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/Mis Actual Consensu

s s

Estimate

Q2 Miss C$2.07 C$2.58

Adjusted (10

EPS Analysts

)

Q2 Net C$73.36

Income mln

Q2 Net C$250.04

Interest mln

Income

Q2 C$33.97

Credit mln

Loss

Provisio

n

Q2 C$101.21

Pretax mln

Profit

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 ( EQGPF ) is C$110.50, about 8% above its August 27 closing price of C$101.65

Press Release:

(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.)