#Canada #Toronto #EQB Inc. #EQ Bank #Chadwick Westlake

EQB Reports Q3 2025 Financial Results

EQB Inc. (TSX: EQB), a key player in the Canadian banking sector, published its financial results for the third quarter of 2025, ending July 31, reflecting important developments and challenges in its operations. Despite an unfavourable macroeconomic environment, EQB has seen encouragement through the consistent growth in loans managed and engaged customers in EQ Bank, marking a significant presence in the digital banking landscape.

Financial Summary

For Q3 2025, the bank reported an adjusted net income of $80.3 million, a decline of 32% year-over-year, and a decrease of 15% compared to the previous quarter. The overall adjusted revenue stood at $310 million, down 5% from the same quarter last year. However, non-interest revenue showed resilience, contributing 18% of total revenue.

The adjusted net interest income recorded was $254 million, declining by 6% year-on-year. Despite this, the total assets under management and administration grew to a remarkable $137 billion, indicating a healthy growth trajectory of 9% year-on-year.

Customer Growth

In a noteworthy achievement, EQ Bank welcomed 26,000 new customers in Q3, boosting its customer base to 586,000. This growth of 21% year-over-year signals consumers’ increasing confidence in the bank's digital services. The management attributes this surge to innovations in banking options, including its popular Notice Savings Account and the EQ Bank Card, which recently surpassed $1 billion in load funds, signifying a strong customer embrace.

Leadership Changes

Amid these operations, EQB has also experienced a notable change in leadership following the passing of Andrew Moor, its former CEO. Marlene Lenarduzzi acted as the interim CEO during this challenging transition period, indicating stability in leadership during pivotal times. The company announced the appointment of Chadwick Westlake as the new President and CEO effective August 25, 2025. In remarks about his new position, Westlake emphasized his commitment to focusing on stakeholder engagement and sharpening the company’s strategy for sustained growth.

Dividend Increase

In a positive move for shareholders, EQB declared a dividend of $0.55 per share, marking an impressive 17% increase from the dividend paid in September 2024. This decision mirrors the board's belief in EQB's strong capital generation capabilities amid economic pressures. David Wilkes, Chief Strategy and Growth Officer, highlighted the company's commitment to delivering growth while navigating the ongoing adverse market conditions.

Challenging Macro Environment

The financial results come against the backdrop of greater market tumult, with rising provisions for credit losses attributed to ongoing macroeconomic uncertainty. In Q3, the bank's provision for credit losses was reported at $34.0 million, reflecting the challenges faced in the real estate market. EQB's management showed cautious optimism, maintaining strength in their balance sheet, which positioned them favorably for future growth despite these external pressures.

Future Outlook

With Chadwick Westlake at the helm, EQB is poised to chart a new course aimed at enhancing competition in Canadian banking. Westlake’s previous experience in strategic leadership and banking operations is seen as a potent asset in navigating the complexities of the financial landscape.

As EQB moves forward, stakeholders and investors can look forward to a clearer growth agenda supported by new executive leadership appointees who are expected to drive the bank towards its long-term goals while ensuring the competitive positioning of EQ Bank in the growing landscape of digital finance.