EQB reports second quarter 2026 results and announces expected July 1, 2026 closing of PC Financial

EQB Inc

EQB reports second quarter 2026 results and announces expected July 1, 2026 closing of PC Financial

May 27 2026 22:05 BST

Diluted EPS

Q2 Adjusted¹

$2.03

(10%) q/q, (12%) y/y

Return on equity

Q2 Adjusted¹

10.2%

(90 bps) q/q,
(170 bps) y/y

PPPT ²

Q2 Adjusted¹

$153.1MM

(2%) q/q, (4%) y/y

Total PCL

Q2 Adjusted¹

$45.4MM

+16% q/q, +50% y/y

CET1 ratio

13.6%

Total capital ratio

17.1%

Q2 Reported

$1.29

(39%) q/q, (42%) y/y

Q2 Reported

6.5%

(390 bps) q/q,
(490 bps) y/y

Q2 Reported

$119.5

(19%) q/q, (23%) y/y

Q2 Reported

$45.4MM

+16% q/q, +50% y/y

Common share
dividend declared

$0.61/share

+3% q/q, 15% y/y

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

EQB Inc. Logo

Adjusted diluted EPS ¹: $2.03, (10%) q/q and (12%) y/y (reported $1.29)
Adjusted net income ¹: $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 ROE ¹: 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.

¹Adjusted measures and ratios are Non-Generally Accepted Accounting Principles (GAAP) measures and ratios. Adjusted measures and ratios are calculated in the same manner as reported measures and ratios, except that financial information included in the calculation of adjusted measures and ratios is adjusted to exclude the impact of one-time acquisition and integration related costs, and certain items which management determines would have a significant impact on a reader's assessment of business performance. For additional information and a reconciliation of reported results to adjusted results, see the "Non-GAAP financial measures and ratios" section of the Second Quarter 2026 MD&A.

²PPPT represents pre-provision-pre-tax income, a non-GAAP measure of financial performance.

³On December 3, 2025, EQB and Loblaw entered into a definitive agreement pursuant to which EQB will acquire PC Financial, which is comprised of President's Choice Bank ("PC Bank"), PC® Financial Insurance Agency Inc., PC® Financial Insurance Brokers Inc. and certain other affiliated entities of PC Bank. In connection with the closing of the acquisition, EQB will enter into a long-term strategic relationship with Loblaw pursuant to a commercial agreement to become the exclusive financial partner of the PC Optimum™ loyalty program.

⁴Reported standalone measures for PC Financial as of September 2025, unless otherwise stated.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

Consolidated balance sheets (unaudited)

($000s) As at	April 30, 2026	October 31, 2025	April 30, 2025
Assets:
Cash and cash equivalents	603,233	717,253	500,747
Restricted cash	1,142,653	1,326,684	996,591
Securities purchased under reverse repurchase agreements	2,150,035	1,604,165	2,100,037
Investments	1,378,885	1,645,864	1,450,879
Loans
Loans – Personal	31,532,206	31,857,508	32,587,415
Loans – Commercial	13,536,145	14,581,966	14,794,655
Allowance for credit losses	(227,869)	(206,801)	(153,928)
	44,840,482	46,232,673	47,228,142
Securitization retained interests	1,108,002	1,028,623	919,910
Deferred tax assets	30,453	36,429	20,874
Other assets
Derivative financial instruments	223,790	242,799	379,210
Intangible assets	152,528	148,623	193,479
Goodwill	92,545	92,545	110,580
Investment in associate	52,888	49,884	49,839
Other	433,956	368,179	355,052
	955,707	902,030	1,088,160
Total assets	52,209,450	53,493,721	54,305,340
Liabilities and Equity
Liabilities:
Deposits	36,633,069	36,616,511	35,036,491
Securitization liabilities	10,635,017	11,197,477	13,548,609
Obligations under repurchase agreements	50,493	104,568	84,092
Deferred tax liabilities	216,232	199,151	190,905
Funding facilities	686,300	1,454,087	1,410,370
Other liabilities
Derivative financial instruments	80,966	94,742	164,815
Other	668,193	615,386	611,896
	749,159	710,128	776,711
Total liabilities	48,970,270	50,281,922	51,047,178
Equity:
Common shares	483,598	503,060	510,973
Other equity instruments	345,105	147,360	147,360
Contributed deficit	(17,341)	(15,014)	(19,177)
Retained earnings	2,420,049	2,566,475	2,607,001
Accumulated other comprehensive income	116	1,684	2,344
Total shareholders' equity	3,231,527	3,203,565	3,248,501
Non-controlling interests	7,653	8,234	9,661
Total equity	3,239,180	3,211,799	3,258,162
Total liabilities and equity	52,209,450	53,493,721	54,305,340

Consolidated statements of income (unaudited)

	Three months ended		Six months ended
($000s, except per share amounts)	April 30, 2026	April 30, 2025	April 30, 2026	April 30, 2025
Interest income:
Loans – Personal	424,111	461,337	861,352	942,707
Loans – Commercial	194,696	211,991	398,222	434,108
Investment	21,039	19,332	42,208	40,124
Other	25,631	19,912	50,134	45,282
	665,477	712,572	1,351,916	1,462,221
Interest expense:
Deposits	294,038	317,391	603,271	665,200
Securitization liabilities	101,901	112,206	205,836	237,774
Funding facilities	5,374	4,765	11,844	10,312
Other	3,432	70	6,793	153
	404,745	434,432	827,744	913,439
Net interest income	260,732	278,140	524,172	548,782
Non-interest revenue:
Fees and other income	26,216	22,713	52,646	45,633
Net gains on loans and investments	2,118	1,029	2,082	3,333
Gain on sale from securitization activities	14,152	13,009	30,290	30,625
Net (losses) gains on hedging and derivatives	(854)	1,059	(32)	10,212
	41,632	37,810	84,986	89,803
Revenue	302,364	315,950	609,158	638,585
Provision for credit losses	45,351	30,234	84,479	48,912
Revenue after provision for credit losses	257,013	285,716	524,679	589,673
Non-interest expenses:
Compensation and benefits	73,325	74,280	144,447	150,214
Product costs	24,317	25,297	48,655	48,659
Technology and system costs	21,234	22,450	43,129	45,982
Marketing and corporate expenses	32,438	19,231	48,223	36,313
Regulatory and legal and professional fees	22,838	12,744	39,825	25,618
Premises	8,706	7,188	16,942	13,659
	182,858	161,190	341,221	320,445
Income before income taxes	74,155	124,526	183,458	269,228
Income taxes	22,839	34,234	52,611	71,226
Net income	51,316	90,292	130,847	198,002
Distribution to LRCN holders	4,410	4,410	4,410	4,410
Net income available to common shareholders and non-controlling interests	46,906	85,882	126,437	193,592
Net income attributable to:
Common shareholders	46,571	85,533	125,787	192,935
Non-controlling interests	335	349	650	657
	46,906	85,882	126,437	193,592
Earnings per share:
Basic	1.30	2.23	3.44	5.02
Diluted	1.29	2.21	3.42	4.98

Consolidated statements of comprehensive income (unaudited)

	Three months ended		Six months ended
($000s)	April 30, 2026	April 30, 2025	April 30, 2026	April 30, 2025
Net income	51,316	90,292	130,847	198,002
Other comprehensive income – items that will be reclassified subsequently to income:
Debt instruments at Fair Value through Other Comprehensive Income:
Net change in (losses) gains on fair value	(1,583)	3,587	(6,504)	16,027
Recovery of credit losses recognized to income	(81)	-	(193)	-
Reclassification of net (gains) losses to income	(1,577)	(1,523)	7,347	(11,589)
Other comprehensive income – items that will not be reclassified subsequently to income:
Equity instruments designated at Fair Value through Other Comprehensive Income:
Net change in gains (losses) on fair value	1,503	(203)	1,503	868
Reclassification of net gains to retained earnings	-	(490)	-	(868)
	(1,738)	1,371	2,153	4,438
Income tax recovery (expense)	438	(372)	(663)	(1,289)
	(1,300)	999	1,490	3,149
Cash flow hedges:
Net change in unrealized (losses) gains on fair value	(8,058)	(8,979)	2,017	(13,189)
Reclassification of net losses (gains) to income	2,610	(5,937)	(6,140)	(9,361)
	(5,448)	(14,916)	(4,123)	(22,550)
Income tax recovery	1,475	4,049	1,110	6,080
	(3,973)	(10,867)	(3,013)	(16,470)
Total other comprehensive loss	(5,273)	(9,868)	(1,523)	(13,321)
Total comprehensive income	46,043	80,424	129,324	184,681
Total comprehensive income attributable to:
Common shareholders	41,298	75,665	124,264	179,614
Other equity	4,410	4,410	4,410	4,410
Non-controlling interests	335	349	650	657
	46,043	80,424	129,324	184,681

Consolidated statements of changes in equity (unaudited)

($000s) Three-month period ended					April 30, 2026
	Common Shares		Contributed Deficit	Retained Earnings		Accumulated other comprehensive income (loss)
	Common Shares	Other equity instruments	Contributed Deficit	Retained Earnings		Cash Flow Hedges	Financial Instruments at FVOCI	Total	Attributable to equity holders	Non- controlling interests	Total
Balance, beginning of period	494,610	147,360	(16,284)	2,507,738		2,657	2,747	5,404	3,138,828	7,780	3,146,608
Net Income	-	-	-	50,981		-	-	-	50,981	335	51,316
Transfer of AOCI gains to income, net of tax	-	-	-	-		-	(15)	(15)	(15)	-	(15)
Other comprehensive loss, net of tax	-	-	-	-		(3,973)	(1,300)	(5,273)	(5,273)	-	(5,273)
Exercise of stock options	4,068	-	-	-		-	-	-	4,068	-	4,068
Common shares repurchased and cancelled, net of tax	(16,008)	-	-	(128,938)		-	-	-	(144,946)	-	(144,946)
Automatic Share purchase obligation	-	-	-	15,652		-	-	-	15,652	-	15,652
Limited resource capital notes issued	-	200,000	-	-		-	-	-	200,000	-	200,000
Limited resource capital notes issuance costs, net of tax	-	(2,255)	-	-		-	-	-	(2,255)	-	(2,255)
Limited resource capital notes distributions	-	-	-	(4,410)		-	-	-	(4,410)	-	(4,410)
Dividends:
Common shares	-	-	-	(20,974)		-	-	-	(20,974)	(462)	(21,436)
Put option – non-controlling interest	-	-	(1,033)	-		-	-	-	(1,033)	-	(1,033)
Stock-based compensation	-	-	904	-		-	-	-	904	-	904
Transfer relating to the exercise of stock options	928	-	(928)	-		-	-	-	-	-	-
Balance, end of period	483,598	345,105	(17,341)	2,420,049		(1,316)	1,432	116	3,231,527	7,653	3,239,180

($000s) Three-month period ended					April 30, 2025
	Common Shares		Contributed Deficit	Retained Earnings		Accumulated other comprehensive income (loss)
	Common Shares	Other equity instruments	Contributed Deficit	Retained Earnings		Cash Flow Hedges	Financial Instruments at FVOCI	Total	Attributable to equity holders	Non- controlling interests	Total
Balance, beginning of period	506,160	147,360	(17,437)	2,564,315		16,014	(4,814)	11,200	3,211,598	9,838	3,221,436
Net Income	-	-	-	89,943		-	-	-	89,943	349	90,292
Realized loss on sale of shares, net of tax	-	-	-	(659)		-	-	-	(659)	-	(659)
Transfer of AOCI gains to retained earnings, net of tax	-	-	-	-		-	1,012	1,012	1,012	-	1,012
Other comprehensive loss, net of tax	-	-	-	-		(10,867)	999	(9,868)	(9,868)	-	(9,868)
Exercise of stock options	6,677	-	-	-		-	-	-	6,677	-	6,677
Common shares repurchased and cancelled, net of taxes	(3,465)	-	-	(22,600)		-	-	-	(26,065)	-	(26,065)
Limited recourse capital note distributions, net of tax	-	-	-	(4,410)		-	-	-	(4,410)	-	(4,410)
Dividends:
Common shares	-	-	-	(19,588)		-	-	-	(19,588)	(526)	(20,114)
Put option – non-controlling interest	-	-	(1,203)	-		-	-	-	(1,203)	-	(1,203)
Stock-based compensation	-	-	1,064	-		-	-	-	1,064	-	1,064
Transfer relating to the exercise of stock options	1,601	-	(1,601)	-		-	-	-	-	-	-
Balance, end of period	510,973	147,360	(19,177)	2,607,001		5,147	(2,803)	2,344	3,248,501	9,661	3,258,162

($000s) Six-month period ended			April 30, 2026
	Common Shares			Contributed Deficit	Retained Earnings	Accumulated other comprehensive income (loss)
	Common Shares	Other equity instruments		Contributed Deficit	Retained Earnings	Cash Flow Hedges	Financial Instruments at FVOCI	Total	Attributable to equity holders	Non- controlling interests	Total
Balance, beginning of period	503,060	147,360		(15,014)	2,566,475	1,697	(13)	1,684	3,203,565	8,234	3,211,799
Net Income	-	-		-	130,197	-	-	-	130,197	650	130,847
Transfer of AOCI gains to income, net of tax	-	-		-	-	-	(45)	(45)	(45)	-	(45)
Other comprehensive loss, net of tax	-	-		-	-	(3,013)	1,490	(1,523)	(1,523)	-	(1,523)
Exercise of stock options	8,381	-		-	-	-	-	-	8,381	-	8,381
Common shares repurchased and cancelled	(29,850)	-		-	(225,954)	-	-	-	(255,804)	-	(255,804)
Automatic share purchase obligation	-	-		-	(4,034)	-	-	-	(4,034)	-	(4,034)
Limited recourse capital notes issued		200,000		-	-	-	-	-	200,000	-	200,000
Issuance costs, net of tax	-	(2,255)		-	-	-	-	-	(2,255)		(2,255)
Limited recourse capital note distributions, net of tax	-	-		-	(4,410)	-	-	-	(4,410)	-	(4,410)
Dividends:
Common shares	-	-		-	(42,225)	-	-	-	(42,225)	(1,231)	(43,456)
Put option – non-controlling interest	-	-		(1,910)	-	-	-	-	(1,910)	-	(1,910)
Stock-based compensation	-	-		1,590	-	-	-	-	1,590	-	1,590
Transfer relating to the exercise of stock options	2,007	-		(2,007)	-	-	-	-	-	-	-
Balance, end of period	483,598	345,105		(17,341)	2,420,049	(1,316)	1,432	116	3,231,527	7,653	3,239,180

($000s) Six-month period ended			April 30, 2025
	Common Shares			Contributed Surplus (Deficit)	Retained Earnings	Accumulated other comprehensive income (loss)
	Common Shares	Other equity instruments		Contributed Surplus (Deficit)	Retained Earnings	Cash Flow Hedges	Financial Instruments at FVOCI	Total	Attributable to equity holders	Non- controlling interests	Total
Balance, beginning of period	505,876	147,440		(17,374)	2,483,309	21,617	(13,062)	8,555	3,127,806	10,379	3,138,185
Net Income	-	-		-	197,345	-	-	-	197,345	657	198,002
Realized loss on sale of shares, net of tax	-	-		-	(6,377)	-	-	-	(6,377)	-	(6,377)
Transfer of AOCI losses to retained earnings, net of tax	-	-		-	-	-	7,016	7,016	7,016	-	7,016
Transfer of AOCI losses to income, net of tax	-	-		-	-	-	94	94	94	-	94
Other comprehensive loss, net of tax	-	-		-	-	(16,470)	3,149	(13,321)	(13,321)	-	(13,321)
Exercise of stock options	7,137	-		-	-	-	-	-	7,137	-	7,137
Common shares repurchased and cancelled	(3,740)	-		-	(24,432)	-	-	-	(28,172)	-	(28,172)
Issuance costs, net of tax	-	(80)		-	-	-	-	-	(80)		(80)
Limited recourse capital note distributions, net of tax	-	-		-	(4,410)	-	-	-	(4,410)	-	(4,410)
Dividends:
Common shares	-	-		-	(38,434)	-	-	-	(38,434)	(1,375)	(39,809)
Put option – non-controlling interest	-	-		(2,334)	-	-	-	-	(2,334)	-	(2,334)
Stock-based compensation	-	-		2,231	-	-	-	-	2,231	-	2,231
Transfer relating to the exercise of stock options	1,700	-		(1,700)	-	-	-	-	-	-	-
Balance, end of period	510,973	147,360		(19,177)	2,607,001	5,147	(2,803)	2,344	3,248,501	9,661	3,258,162

Consolidated statements of cash flows (unaudited)

	Three months ended		Six months ended
($000s)	April 30, 2026	April 30, 2025	April 30, 2026	April 30, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	51,316	90,292	130,847	198,002
Adjustments for non-cash items in net income:
Financial instruments at fair value through income	(24,832)	(157,852)	(31,133)	(178,350)
Amortization of premiums/discounts	(1,960)	(2,753)	(4,557)	(5,583)
Amortization of capital and intangible assets	15,520	17,571	30,461	32,394
Provision for credit losses	45,351	30,234	84,479	48,912
Securitization gains	(14,152)	(13,010)	(30,290)	(30,626)
Stock-based compensation	904	1,064	1,590	2,231
Income taxes	22,839	34,234	52,611	71,226
Securitization retained interests	53,142	41,741	103,329	81,698
Changes in operating assets and liabilities:
Restricted cash	(259,115)	(179,566)	184,031	(24,604)
Securities purchased under reverse repurchase agreements	148,767	(300,023)	(545,870)	(839,919)
Loans receivable, net of securitizations	431,049	(891,443)	1,148,059	(266,146)
Other assets	(4,263)	21,821	(35,015)	81
Deposits	(819,516)	406,679	73,125	1,255,415
Securitization liabilities	(292,507)	(174,739)	(572,872)	(1,067,985)
Obligations under repurchase agreements	21,137	84,092	(54,075)	84,092
Funding facilities	109,649	641,557	(767,787)	463,414
Other liabilities	15,553	13,726	59,477	65,399
Income taxes paid	(26,246)	(28,528)	(58,614)	(67,759)
Cash flows used in operating activities	(527,364)	(364,903)	(232,204)	(178,108)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common shares	4,068	6,677	8,381	7,137
Common share repurchased	(144,946)	(26,065)	(255,804)	(28,172)
Limited recourse capital notes	197,745	-	197,745	(80)
Distribution to other equity holders	(4,410)	(4,410)	(4,410)	(4,410)
Dividends paid on common shares	(21,436)	(20,114)	(43,456)	(39,809)
Cash flows from (used in) financing activities	31,021	(43,912)	(97,544)	(65,334)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments	(560,758)	(12,689)	(597,182)	(16,419)
Proceeds on sale or redemption of investments	791,526	128,107	868,709	159,473
Investments in associate	-	-	(3,598)	-
Net change in Canada Housing Trust re-investment accounts	-	11,623	-	53,032
Purchase of capital assets and system development costs	(20,827)	(27,495)	(52,201)	(43,538)
Cash flows from investing activities	209,941	99,546	215,728	152,548
Net decrease in cash and cash equivalents	(286,402)	(309,269)	(114,020)	(90,894)
Cash and cash equivalents, beginning of period	889,635	810,016	717,253	591,641
Cash and cash equivalents, end of period	603,233	500,747	603,233	500,747
Supplemental statement of cash flows disclosures:
Cash flows from operating activities include:
Interest received	631,139	668,744	1,313,551	1,378,441
Interest paid	(343,304)	(410,679)	(697,318)	(827,115)
Dividends received	-	132	-	350

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.

¹ On December 3, 2025, EQB and Loblaw Companies Ltd. (Loblaw) entered into a definitive agreement pursuant to which EQB will acquire PC Financial, which is comprised of President's Choice Bank (PC Bank), PC® Financial Insurance Agency Inc., PC® Financial Insurance Brokers Inc. and certain other affiliated entities of PC^® Bank. In connection with the closing of the acquisition, EQB will enter into a long-term strategic relationship with Loblaw pursuant to a commercial agreement to become the exclusive financial partner of Loblaw and its the PC Optimum™ loyalty program.

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.

Reconciliation of reported and adjusted financial results	For the three months ended			For the six months ended
($000s, except share and per share amounts)	30-Apr-26	31-Jan-26	30-Apr-25	30-Apr-26	30-Apr-25
Reported results
Net interest income⁽¹⁾	260,732	263,440	278,140	524,172	548,782
Non-interest revenue⁽¹⁾	41,632	43,354	37,810	84,986	89,803
Revenue	302,364	306,794	315,950	609,158	638,585
Non-interest expense	182,858	158,363	161,190	341,221	320,445
Pre-provision pre-tax income⁽²⁾	119,506	148,431	154,760	267,937	318,140
Provision for credit loss	45,351	39,128	30,234	84,479	48,912
Income taxes	22,839	29,772	34,234	52,611	71,226
Net income	51,316	79,531	90,292	130,847	198,002
Net income attributable to common shareholders	46,571	79,216	85,533	125,787	192,935
Adjustments
Non-interest expenses – Business exit costs	(17,753)	-	-	(17,753)	-
Non-interest expenses – PC Financial acquisition and integration-related costs	(13,839)	(5,837)	-	(19,676)	-
Non-interest expenses – Concentra Bank and ACM acquisitions-related intangible asset amortization	(1,969)	(1,969)	(1,969)	(3,938)	(3,938)
Non-interest expenses – new office lease related costs	-	-	(3,363)	-	(6,152)
Non-interest expenses – non-recurring operational effectiveness and acquisition-related costs	-	-	-	-	(1,782)
Provision for credit loss – equipment financing	-	-	-	-	(5,018)
Impact on net income before taxes from adjustments	33,561	7,806	5,332	41,367	16,890
Income taxes – tax impact on above adjustments⁽³⁾	6,568	2,103	1,414	8,671	4,453
Post-tax adjustments – net income	26,993	5,703	3,918	32,696	12,437
Adjustments attributed to minority interests	(228)	(229)	(259)	(457)	(520)
Post-tax adjustments – net income to common shareholders	26,765	5,474	3,659	32,239	11,917
Adjusted results
Net interest income⁽¹⁾	260,732	263,440	278,140	524,172	548,782
Non-interest revenue⁽¹⁾	41,632	43,354	37,810	84,986	89,803
Revenue	302,364	306,794	315,950	609,158	638,585
Non-interest expense	149,297	150,557	155,858	299,854	308,573
Pre-provision pre-tax income⁽²⁾	153,067	156,237	160,092	309,304	330,012
Provision for credit loss	45,351	39,128	30,234	84,479	43,894
Income taxes	29,407	31,875	35,649	61,282	75,679
Net income	78,309	85,234	94,209	163,543	210,439
Net income attributable to common shareholders	73,336	84,690	89,190	158,026	204,852
Diluted earnings per share
Weighted average diluted common shares outstanding	36,055,643	37,465,645	38,662,002	36,772,330	38,725,808
Diluted earnings per share – reported	1.29	2.11	2.21	3.42	4.98
Diluted earnings per share – adjusted	2.03	2.26	2.31	4.30	5.29
Diluted earnings per share – adjustment impact	0.74	0.15	0.10	0.88	0.31

(1) Effective November 1, 2024, interest income earned from retained interests and interest expense incurred on servicing liabilities are reclassed from Non-interest revenue to Net interest income. Prior period comparative figures have been updated to conform to current period presentation.

(2) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section of this MD&A.

(3) Income tax expense associated with non-GAAP adjustment was calculated based on the statutory tax rate applicable for that period.

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.

Company Announcements

EQB reports second quarter 2026 results and announces expected July 1, 2026 closing of PC Financial