#EQB Inc. #Equitable Bank #Canada's Challenger Bank

EQB Inc. Unveils Strategic Restructuring Plan

In a significant move aimed at optimizing its operations, EQB Inc. has announced a comprehensive restructuring program that will affect its financial standings in the fourth quarter of 2025. This initiative is designed to enhance efficiency and solidify EQB's leading position as Canada’s Challenger Bank™.

Financial Implications of the Restructuring

The restructuring program comes with an estimated cost of $67 million (or $85 million on a pre-tax basis). This includes a substantial 8% reduction in workforce as part of the company’s strategy to streamline capital allocation, thus aligning with EQB's historical performance metrics. Specifically, the program comprises the following elements:

• - Workforce Redundancies: The company's decision to reduce its workforce aligns with a proactive approach to focusing on top growth priorities and refining internal processes. The severance and restructuring provisions are estimated to be about $15 million (equivalent to $20 million pre-tax).
• - Impairment Charges: Approximately $52 million (or $65 million pre-tax) will be allocated to impairment charges. This includes $28 million pertaining to intangible assets and $24 million concerning equipment financing, predominantly impacted by current market conditions.

The changes will be implemented effectively by the end of Q4 2025, resulting in a modest anticipated effect on the company's Common Equity Tier 1 (CET1) ratio of about 10 basis points.

Strategic Focus on Growth

Chadwick Westlake, President and CEO of EQB Inc., emphasized the forward-looking nature of their restructuring plan aimed at concentrating resources where growth potential is highest. He articulated, *