05:31 PM EDT, 05/29/2024 (MT Newswires) -- EQB (EQB.TO) after trade Wednesday reported adjusted earnings and revenue for its new fiscal second-quarter period, while lifting its dividend and saying it has "momentum for strong performance in the second half of the year" and has "high confidence in the quality of its credit book."

The bank holding company in December switched its reporting period from calendar quarters to fiscal quarters to align with the reporting periods of other large Canadian banks. As a result, the comparisons were shown year-over-year from the first quarter ending March 31, 2023, as the most similar and comparable three-month period.

According to EQB it reported record revenue and pre-provision, pre-tax earnings for the three and six months ended April 30, reflecting growth in revenue from margin expansion and higher non-interest revenue including a full quarter of results from ACM Advisors, increasing loans under management and EQ Bank customers and deposits.

EQB reported a net reduction in total Gross Impaired Loans (GILs) from the first quarter driven by a 22% reduction in commercial banking GILs.

Among highlights for the fiscal second quarter compared to first quarter of 2024 and 2023: adjusted diluted EPS was $2.81, up 2% quarter over quarter, and up 7% year of year. Revenue was $317 million, up 6% quarter over quarter and up 20% over the prior year.

EQB's board declared a dividend of $0.45 per common share payable June 28 to shareholders of record on June 14, a 7% increase from the dividend paid in March 2024 and 22% above the payment made in June 2023.

"The first half of 2024 has been trending to our expectations with strong revenue, earnings growth and ROE well-above target at nearly 16% year-to-date. This reflects how the EQB business model is positioned to perform across economic cycles. We have momentum for strong performance in the second half of the year and have high confidence in the quality of our credit book. We are continuing to invest in growing the long-term value of our Challenger franchise and are pleased to be rewarding our shareholders with another consecutive dividend increase," chief financial officer Chadwick Westlake said in a release.

The company's shares closed down $1.83 to $78.83 on the Toronto Stock Exchange.