TORONTO, May 27, 2026 /PRNewswire/ - EQB Inc. (TSX: EQB) today reported earnings for the second quarter and six months ended April 30, 2026.

• Adjusted diluted EPS¹: $2.03, (10%) q/q and (12%) y/y (reported $1.29)
• Adjusted net income¹: $78.3 million, (8%) q/q and (17%) y/y (reported $51.3 million)
• Adjusted PPPT^1,2: $153.1 million, (2%) q/q and (4%) y/y (reported $119.5 million)
• Adjusted ROE¹: 10.2%, (90 bps) q/q and (170 bps) y/y (reported 6.5%)
• Revenue: $302.4 million, (1%) q/q and (4%) y/y (reported $302.4 million)
• Book value per share: $81.46, flat q/q and +1% y/y
• EQ Bank customers: 659,000, +4% q/q and +18% y/y
• Common share dividends declared: $0.61 per share, +3% q/q and +15% y/y
• Capital: CET1 ratio of 13.6% and total capital ratio of 17.1%

"The second quarter reflected solid performance during a persistently uncertain economic environment and our team performed well against this backdrop, continuing to demonstrate operating discipline, renewed focus, and financial resilience," said Chadwick Westlake, President and CEO. "As we look ahead to the second half of the year, our business will meaningfully shift with the anticipated July 1 close of our PC Financial transaction – positioning us to serve millions of Canadians as a challenger at scale. Through a new loyalty-linked banking ecosystem, we will provide Canadians with better value, better products, more rewards and new channels, putting real choice and control back into their hands and giving every Canadian the opportunity to get ahead, every day."

PC Financial acquisition accelerating rapidly, set to close July 1, 2026

• EQB secured final approval for the acquisition of PC Financial³ (the "Acquisition") from Loblaw Companies Limited ("Loblaw") from the Minister of Finance and National Revenue on May 5, marking a significant regulatory milestone and unlocking the next phase of growth. EQB is set to expand its customer base to 3.3 million Canadians⁴, add approximately $5.8 billion in assets⁴ and $800 million in direct retail deposits⁴
• Acquisition cements EQB as the Challenger in Canadian banking by adding a top payments product, scales customer base by >4x⁴, nearly doubles revenue⁴ with a 4x increase in non-interest revenue⁴, and subsequent to close, will become exclusive financial services partner of Loblaw, which brings access to Canada's #1 leading loyalty program PC Optimum™.
• The Acquisition is expected to close on July 1, 2026, subject to customary closing conditions

Continued expense discipline positioning EQB to deliver efficiency improvements

• Positive impacts of pacing discretionary spending and other items, including a favourable capital tax benefit, partially offset by targeted investments in growth initiatives and higher staff costs, led to a decline of 1% q/q and 4% y/y adjusted expenses¹
• Reported expenses were up 15% q/q and 13% y/y and included $33.6MM of business exit costs, reflecting actions to reposition and streamline EQB's business mix, acquisition and integration-related expenses tied to the upcoming close of the PC Financial acquisition, and amortization of Concentra Bank and ACM acquisition-related intangible assets
• EQB's adjusted efficiency ratio¹ in Q2 was up by 30 bps to 49.4% (reported 60.5%), remaining on track against its low-50% adjusted efficiency ratio target for 2026, excluding the impacts of PC Financial

Prudent provisioning levels maintained amid ongoing macroeconomic pressures

• EQB's provision for credit losses (PCL) were up +16% q/q, reflecting higher performing and impaired provisions
• Higher performing provisions reflects increased delinquencies and elevated macroeconomic uncertainty while the increase in impaired provisions reflects higher personal and commercial PCLs due to increased defaults and deterioration in the commercial and residential real estate markets
• Total gross impaired loans increased 8% q/q. Personal balances were modestly higher, driven by a continued subdued residential real estate market, while the increase in commercial was largely attributable to a single insured exposure, partly offset by improvement in the uninsured portfolio
• The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 46 bps, compared to 29 bps at Q2 2025

Sustained loans under management growth despite an uncertain operating environment

• Commercial lending loans under management (LUM)¹ grew 4% q/q and 17% y/y, driven by continued momentum in the insured multi-unit residential mortgages
• Personal lending LUM declined 1% q/q and 3% y/y due to declines in insured single-family mortgages, in line with our strategy to optimize returns while maintaining a targeted origination approach for insured volumes
• Excluding insured single-family, personal lending LUM was up 1% q/q and 5% y/y despite a slower Canadian housing market; the decumulation lending portfolio grew 5% q/q and 26% y/y and continued to capture market share in this rapidly growing segment

EQ Bank surpassed $10 billion in deposit balances, adding 26,000 new retail and business customers

• EQ Bank deposits grew to $10.02 billion in Q2 (+1% q/q and +7% y/y) as customers continued to embrace innovative products including our attractive Personal and no-fee Business Accounts; EQ Bank deposits represented 28% of total deposit principal (up 88bps q/q)
• EQ Bank added 26,000 new retail and business customers in Q2 (+4% q/q and +18% y/y) who will have access to a growing suite of personal and business banking products that provide more value on their hard-earned dollars, including the prepaid Business Card
• EQ Bank products received industry recognition as customers' products of choice including Best Prepaid Card from creditcardGenius and Best Chequing Account from MoneySense and NerdWallet Canada

Capital supported dividend increase and buyback activity; strong demand for LRCN issuance

• EQB declared a dividend of $0.61 per common share payable on June 30, 2026 to shareholders of record as of June 15, 2026, representing +3% and +15% increases from the dividends paid in March 2026 and June 2025, respectively
• EQB purchased and cancelled 1,226,734 common shares through its active Normal Course Issuer Bid (NCIB) (2,293,624 repurchased year-to-date), supporting attractive return of capital for shareholders
• EQB issued its second series of LRCNs on April 27, 2026, with the order book oversubscribed by ~4x

"Q2 reflected disciplined execution, with strong cost management, prudent credit provisioning and continued growth in loans under management," said Anilisa Sainani, CFO. "Against a more difficult economic environment, we remained focused on performance and the evolution of EQB's business model with a strong balance sheet and clear momentum as we approach the close of the PC Financial acquisition in July."

Analyst conference call and webcast: 10:30 a.m. ET on May 28, 2026

EQB's Chadwick Westlake, President and CEO, Anilisa Sainani, CFO, and Marlene Lenarduzzi, CRO, will host EQB's quarterly earnings call and webcast. Also joining for the Q&A portion of the call will be Darren Lorimer, EVP Commercial Banking and Daniel Rethazy, EVP Personal Banking. The webcast with accompanying slides will be available at eqb.investorroom.com. To access the conference call with operator assistance, dial 416-945-7677 five minutes prior to the start time.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Consolidated balance sheets (unaudited)

Consolidated statements of income (unaudited)

Consolidated statements of comprehensive income (unaudited)

Consolidated statements of changes in equity (unaudited)

Consolidated statements of cash flows (unaudited)

About EQB Inc.  
EQB Inc. (TSX: EQB) is a leading digital financial services company with $144 billion in combined assets under management and administration (as at April 30, 2026). It offers banking services through Equitable Bank, a wholly owned subsidiary and Canada's seventh largest bank by assets, and wealth management through ACM Advisors, a majority owned subsidiary specializing in alternative assets. As Canada's Challenger Bank™, Equitable Bank has a clear mission to drive change in Canadian banking to enrich people's lives. It leverages technology to deliver exceptional personal and commercial banking experiences and services to over 827,000 customers and more than six million credit union members through its businesses.

Please visit eqb.investorroom.com for more details. 

Investor contact: 
Lemar Persaud
VP and Head of IR
investor_enquiry@eqb.com 

Media contact: 
Danielle Mason
Director, PR & Communications
press@eqb.com

Cautionary Note Regarding Forward-Looking Statements

Statements made by EQB in the sections of this news release, in other filings with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws (forward- looking statements). These statements include, but are not limited to, statements about EQB's objectives, strategies and initiatives, financial performance expectations and other statements made herein, whether with respect to EQB's businesses or the Canadian economy. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "guidance", "planned", "estimates", "forecasts", "outlook", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur", "be achieved", "will likely" or other similar expressions of future or conditional verbs. These statements include, but are not limited to, statements with respect to the completion of transactions that are subject to customary closing conditions, EQB's ability to successfully integrate an acquired business, including but not limited to EQB's previously announced acquisition of PC Financial¹ from Loblaw Companies Limited (the Acquisition), entering into the related commercial arrangement and future communications and disclosures regarding the Acquisition, the timing and expected benefits of such transactions, statements relating to the expected impact of the Acquisition, the anticipated benefits of the Acquisition, including the expected impact on EQB's size, operations, capabilities, growth drivers and opportunities, activities, attributes, profile, business services portfolio and loans, revenue and assets mix, market position, profitability, performance, and strategy; the expected impact of the Acquisition on EQB's financial performance; expectations regarding EQB's business model, plans and strategy, the maintenance of CET1 ratio and changes in adjusted EPS; strategic fit and complementarity of PC Financial and Equitable Bank; anticipated synergies and estimated transaction and integration costs and the timing of incurrence thereof, as well as EQB's financial performance objectives, vision and strategic goals, the economic and market review and outlook, the regulatory environment in which we operate, the outlook and priorities for each of its business lines, the expected impact on PC Financial customers and employees, the risk environment including liquidity and funding risk, and statements by EQB representatives.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of EQB to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions including, without limitation global geopolitical risk, uncertainty arising from ongoing United States/Canada tariff concerns and related impacts, business acquisition, legislative and regulatory developments, changes in accounting standards, the nature of EQB's customers and rates of default, the successful and timely approval of the Acquisition, the integration of PC Financial and the realization of the anticipated benefits and synergies of the Acquisition in the timeframe anticipated, including impact and accretion in various financial metrics; the ability to retain management and key employees of PC Financial;  and competition as well as those factors discussed under the heading "Risk Management" in EQB's Q2 2026 Management's Discussion and Analysis (MD&A) and in EQB's documents filed on SEDAR+ at www.sedarplus.ca.

All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate, and liquidity conditions affecting EQB and the Canadian economy. Although EQB believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by EQB in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its loan business, a continuation of the current level of economic uncertainty that affects real estate market conditions including, without limitation, continued acceptance of its products in the marketplace, as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. EQB does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.

Non-Generally Accepted Accounting Principles (GAAP) Financial Measures and Ratios

To enable readers to better assess trends in underlying business performance and increase consistency with the reporting regimens used by other leading Canadian financial institutions, EQB provides adjusted results in parallel with reported measures. Adjusted results are non-GAAP financial measures that enable readers to assess underlying business results and trends. Adjustments listed below are presented on a pre-tax basis:

Q2 2026

• $17.75 million business exit costs;
• $13.84 million PC Financial acquisition and integration-related costs; and
• $1.97 million Concentra Bank and ACM acquisitions-related intangible asset amortization.

Q1 2026

• $5.84 million PC Financial acquisition and integration-related costs; and
• $1.97 million Concentra Bank and ACM acquisitions-related intangible asset amortization.

Q2 2025

• $1.97 million Concentra Bank and ACM acquisitions-related intangible asset amortization; and
• $3.36 million new office lease related expenses prior to occupancy.

YTD 2026

• $17.75 million business exit costs;
• $19.68 million PC Financial acquisition and integration-related costs; and
• $3.94 million Concentra Bank and ACM acquisitions-related intangible asset amortization.

YTD 2025

• $3.94 million Concentra Bank and ACM acquisitions-related intangible asset amortization;
• $6.15 million new office lease related expenses prior to occupancy;
• $1.78 million non-recurring operational effectiveness expenses and Concentra Bank and ACM acquisition and integration-related costs; and
• $5.02 million provision for credit losses associated with an equipment financing purchase facility.

The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results.

Other non-GAAP financial measures and ratios:

• Adjusted efficiency ratio: it is derived by dividing adjusted non-interest expenses by adjusted revenue. A lower adjusted efficiency ratio reflects a more efficient cost structure
• Adjusted return on equity (ROE) is calculated on an annualized basis and is defined as adjusted net income available to common shareholders as a percentage of weighted average common shareholders' equity (reported) outstanding during the period.
• Assets under administration (AUA): is sum of (1) assets over which EQB's subsidiaries have been named as trustee, custodian, executor, administrator, or other similar role; (2) loans held by credit unions for which EQB's subsidiaries act as servicer.
• Assets under management (AUM): is the sum of total balance sheet assets, loan principal derecognized but still managed by EQB, and assets managed on behalf on investors.
• Loans under management (LUM): is the sum of loan principal reported on the consolidated balance sheet and loan principal derecognized but still managed by EQB.
• Pre-provision pre-tax income (PPPT): this is the difference between revenue and non-interest expenses.
• Total loan assets: this is calculated on a gross basis (prior to allowance for credit losses) as the sum of both Loans – Personal and Loans – Commercial on the balance sheet.

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SOURCE EQB Inc.