EQB delivers 12% y/y earnings growth, increases dividend 5% q/q and 20% y/y, with assets under management and administration climbing 16% to $119 billion

TORONTO, Feb. 28, 2024 /PRNewswire/ – EQB Inc. (TSX: EQB) (TSX: EQB.PR.C) today reported earnings for the three months ended January 31, 2024, that reflected strong and resilient first quarter performance driven by growth in loans under management, margin expansion, higher non-interest revenue, EQ Bank customer growth and continued effective risk management. EQB also announced a 20% y/y common share dividend increase and reaffirmed its previous earnings guidance for 2024 anchored in the ongoing achievement of greater than 15% ROE.

EQB changed its fiscal year in 2023 to end October 31, resulting in a one-time 10-month transition year and a four-month final quarter of 2023. As a result, the comparisons below are shown year-over-year from December 31, 2022, as the most similar and comparable three-month period (“y/y”). Note the current period includes the acquisition of a majority interest of ACM Advisors that closed on December 14, 2023, and the comparative period includes the acquisition of Concentra Bank that closed on November 1, 2022 – both within quarters for partial results.

  • Adjusted ROE1 Q1 15.6% (reported Q1 15.0%)
  • Total AUM + AUA2 $119 billion, +7% q/q, +16% y/y
  • Revenue $299 million, +27% y/y
  • Adjusted Net income $108 million, +17% y/y (reported $104 million, +128% y/y)
  • Adjusted diluted EPS1 Q1 $2.76, +12% y/y (reported Q1 $2.66, +124% y/y)
  • Book value per share $71.33, +1% q/q, +14% y/y
  • Common share dividends $0.42 per share, +5% q/q, +20% y/y
  • Net interest margin (NIM) 2.01%, +1 bps q/q, +16 bps y/y
  • EQ Bank customer growth +6% q/q and 38% y/y to over 426,000 customers
  • Total capital ratio 15.4% with CET1 of 14.2%; Equitable Bank’s Liquidity Coverage Ratio well in excess of the regulatory minimum of 100%3

“EQB delivered first quarter results consistent with our long-term value creation approach with ROE above 15%. This performance is particularly encouraging in the context of the slow housing market in the face of Bank of Canada monetary tightening,” said Andrew Moor, president and CEO, EQB. “Moreover, Canadians are increasingly embracing our Challenger Bank approach to business. EQ Bank, our award-winning digital bank, is attracting new customers at an accelerated daily pace aided by the launch of our national “Second Chance” campaign. The campaign is getting people to ask why so many of us still bank with our first-ever financial institution when we celebrate choice and have changed providers to get a better deal in so many other categories. Brought to life by Eugene and Dan Levy in English Canada and Diane Lavallée and Laurence Leboeuf in Québec, “Second Chance” is a key element of building our brand value, and I am thrilled by its success so far.”

1 Adjusted 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 the Concentra Bank and ACM acquisition and integration related costs. For additional information and a reconciliation of reported results to adjusted results, see the “Non-GAAP financial measures and ratios” section.

2 These are non-GAAP measures, see the “Non-GAAP financial measures and ratios” section.

3 At January 31, 2024, Equitable Bank’s liquid assets held for regulatory purposes was $3.7 billion, surpassing the Bank’s minimum required policy liquidity. For additional information, see EQB’s Management’s Discussion & Analysis.

EQ Bank customers +38% y/y with deposits of $8.3 billion

  • EQ Bank customer base grew +6% q/q and +38% y/y to 426,000. EQ Bank launched its “Second Chance” campaign across English Canada on January 4, and “Deuxième chance” across Québec on February 6, encouraging Canadians to move on from their first-ever bank accounts to EQ Bank/Banque EQ’s Personal Account that combines the best features of chequing with no fees and high interest
  • EQ Bank will continue to challenge the status quo by launching Canada’s first all-digital Small Business banking services to help business owners save and earn more through an easy, secure and differentiated experience

Personal Banking loans under management +1% q/q to $32.7 billion with strong retention

  • Single family portfolio increased to $30.2 billion as at January 31, 2024, as customer retention increased while new originations moderated as a result of a slower housing market caused by Bank of Canada interest rate increases since 2022. Single family uninsured +2% q/q and +4% y/y.
  • Decumulation lending assets (including reverse mortgages and insurance lending) +9% q/q and +55% y/y to $1.6 billion, with growth accelerating as a result of successful consumer advertising that bolstered public awareness, strong broker service and value to the borrower

Commercial Banking loans under management +1.3 billion q/q to $31.2 billion

  • The Bank continues to prioritize multi-unit residential lending in major cities across the country with more than 70% of its total commercial loans under management (“LUM”) insured through various CMHC programs. Insured multi-unit residential LUM +6% q/q and +34% y/y to $21.1 billion
  • The Canadian commercial office real estate market continues to experience significant economic challenges; however, as part of the Bank’s risk appetite, only ~1% of the Bank’s loan assets are associated with offices, and those balances declined in the first quarter. Equitable Bank’s office lending is mostly restricted to properties located in major urban centres and to smaller buildings, for example those with professional service providers

Provisions in first quarter reflect credit risk at this point in the cycle

  • The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 22 bps at January 31, 2024, compared to 22 bps at October 31, 2023, and 18 bps at December 31, 2022
  • Provision for credit losses (PCL) of $15.5 million in Q1 reflecting the impacts of both future expected losses driven by macroeconomic forecasts and loss modelling, and increased provisions of $17.3 million associated with Stage 3, two-thirds of which was driven by the equipment financing business. Net impaired loans increased to 94 bps of total loan assets at January 31, 2024, +18 bps from October 31, 2023, and +66 bps from December 31, 2022

Stable, diversified and growing funding with more than 95% term or insured

  • Equitable Bank increased total deposits in Q1 to $31.8 billion, +1% q/q and +3% y/y
  • Equitable Bank holds $3.7 billion in liquid assets for regulatory purposes. Liquid assets cover 63% of all demand deposits with sufficient contingency funding available to cover the balance
  • Equitable Bank’s new Bearer Deposit Note (BDN) program continues to add funding diversification. Since being launched in Q4, it has now grown to nearly $500 million in funding

EQB increases common share dividend

  • EQB’s Board of Directors declared a dividend of $0.42 per common share payable on March 28, 2024, to shareholders of record as of March 15, 2024, representing a 5% increase from the dividend paid in December 2023 and 20% above the payment made in February 2023. EQB’s Board of Directors amended the Dividend Reinvestment Program (DRIP) to remove the 2% discount
  • The Board also declared a quarterly dividend of $0.373063 per preferred share, payable on March 28, 2024, to shareholders of record at the close of business March 15, 2024
  • For the purposes of the Income Tax Act (Canada) and any similar provincial legislation, dividends declared are eligible dividends, unless otherwise indicated

“This is an important time for EQB as we consistently build our business, which expanded to include ACM Advisors in the first quarter, providing access to an attractive wealth management market niche,” said Chadwick Westlake, CFO, EQB. “We delivered on our commitment to allocate capital and manage risk in order to consistently generate greater than 15% ROE. Notwithstanding the challenging economic backdrop, our strategy and growing diversification resulted in solid execution. We continue to believe the second half of 2024 will be even stronger, and based on this and Q1 results, we are reaffirming our 2024 guidance. It’s a standout time for EQB, and our distinct approach to creating value and enriching lives.”

Analyst conference call and webcast: 10:00 a.m. Eastern February 29, 2024
EQB’s Andrew Moor, president and CEO, Chadwick Westlake, CFO, and Marlene Lenarduzzi, CRO, will host the company’s first quarter conference call and webcast. The listen-only webcast with accompanying slides will be available at: eqb.investorroom.com. To access the conference call with operator assistance, dial 416-764-8609 five minutes prior to the start time.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated balance sheet (unaudited)





($000s) As at

January 31, 2024

October 31, 2023

December 31, 2022

Assets:




Cash and cash equivalents

543,759

549,474

495,106

Restricted cash

662,759

767,195

737,656

Securities purchased under reverse repurchase agreements

805,612

908,833

200,432

Investments

2,025,978

2,120,645

2,289,618

Loans – Personal

32,680,816

32,390,527

31,996,950

Loans – Commercial

15,111,488

14,970,604

14,513,265

Securitization retained interests

607,822

559,271

373,455

Deferred tax assets

14,871

14,230

Other assets

645,770

652,675

538,475

Total assets

53,098,875

52,933,454

51,144,957

Liabilities and Shareholders’ Equity




Liabilities:




Deposits

32,245,509

31,996,450

31,051,813

Securitization liabilities

15,389,417

14,501,161

15,023,627

Obligations under repurchase agreements

482,574

1,128,238

665,307

Deferred tax liabilities

141,543

128,436

72,675

Funding facilities

1,332,903

1,731,587

1,239,704

Other liabilities

589,879

602,039

556,876

Total liabilities

50,181,825

50,087,911

48,610,002

Shareholders’ equity:




Preferred shares

181,411

181,411

181,411

Common shares

489,944

471,014

462,561

Contributed (deficit) surplus

(23,055)

12,795

11,445

Retained earnings

2,272,116

2,185,480

1,870,100

Accumulated other comprehensive (loss) income

(15,826)

(5,157)

9,438


2,904,590

2,845,543

2,534,955

Non-controlling interests

12,460

Total equity

2,917,050

2,845,543

2,534,955

Total liabilities and equity

53,098,875

52,933,454

51,144,957

Consolidated statement of income (unaudited)




($000s, except per share amounts) Three-month period ended

January 31, 2024

December 31, 2022

Interest income:



Loans – Personal

468,954

327,596

Loans – Commercial

262,881

218,428

Investments

17,876

10,754

Other

22,099

19,298


771,810

576,076

Interest expense:



Deposits

358,562

244,413

Securitization liabilities

127,253

93,163

Funding facilities

15,283

11,008

Other

14,702

9,167


515,800

357,751

Net interest income

256,010

218,325

Non-interest revenue:



Fees and other income

16,615

10,503

Net gains (losses) on loans and investments

4,993

(5,213)

Gain on sale and income from retained interests

19,409

9,247

Net gains on securitization activities and derivatives

1,745

1,845


42,762

16,382

Revenue

298,772

234,707

Provision for credit losses

15,535

26,796

Revenue after provision for credit losses

283,237

207,911

Non-interest expenses:



Compensation and benefits

65,369

64,999

Other

74,116

74,181


139,485

139,180

Income before income taxes

143,752

68,731

Income taxes:



Current

38,534

22,154

Deferred

836

758


39,370

22,912

Net income

104,382

45,819

Dividends on preferred shares

2,357

2,305

Net income available to common shareholders and non-controlling interests

102,025

43,514

Net income attributable to:



Common shareholders

101,875

43,514

Non-controlling interests

150


102,025

43,514

Earnings per share:



Basic

2.68

1.20

Diluted

2.66

1.19

Consolidated statement of comprehensive income (unaudited)




($000s) Three-month period ended

January 31, 2024

December 31, 2022

Net income

104,382

45,819

Other comprehensive income – items that will be reclassified subsequently to income:



Debt instruments at Fair Value through Other Comprehensive Income:



Reclassification of losses from AOCI on sale of investments

(113)

Net unrealized gains (losses) from change in fair value

41,561

(1,788)

Reclassification of net (gains) losses to income

(35,714)

3,985

Other comprehensive income – items that will not be reclassified subsequently to income:



Equity instruments designated at Fair Value through Other Comprehensive Income:



Reclassification of gains from AOCI on sale of investments

604

Net unrealized losses from change in fair value

(1,580)

(1,543)

Reclassification of net losses to retained earnings

798


4,154

2,056

Income tax expense

(1,143)

(185)


3,011

1,871

Cash flow hedges:



Net unrealized (losses) gains from change in fair value

(12,230)

5,050

Reclassification of net gains to income

(6,694)

(1,396)


(18,924)

3,654

Income tax recovery (expense)

5,161

(958)


(13,763)

2,696

Total other comprehensive (loss) income

(10,752)

4,567

Total comprehensive income

93,630

50,386

Total comprehensive income attributable to:



Common shareholders

93,480

50,386

Non-controlling interests

150


93,630

50,386

Consolidated statement of changes in shareholders’ equity (unaudited)



($000s)

January 31, 2024


Preferred

Shares

Common

Shares

Contributed

Surplus/

(deficit)

Retained

Earnings

Accumulated other

comprehensive income (loss)





Cash

Flow

Hedges

Financial

Instruments

at FVOCI

Total

Attributable

to equity

holders

Non-

controlling

interests

Total


Balance, beginning of period

181,411

471,014

12,795

2,185,480

43,618

(48,775)

(5,157)

2,845,543

2,845,543


Non-controlling interests on

acquisition

12,310

12,310


Net Income

104,232

104,232

150

104,382


Transfer of AOCI losses to

income

83

83

83

83


Other comprehensive loss,

net of tax

(13,763)

3,011

(10,752)

(10,752)

(10,752)


Common shares issued

11,000

11,000

11,000


Exercise of stock options

6,958

6,958

6,958


Dividends:












Preferred shares

(2,357)

(2,357)

(2,357)


Common shares

(15,239)

(15,239)

(15,239)


Share tender rights

(35,891)

(35,891)

(35,891)


Stock-based compensation

1,013

1,013

1,013


Transfer relating to the

exercise of stock options

972

(972)


Balance, end of period

181,411

489,944

(23,055)

2,272,116

29,855

(45,681)

(15,826)

2,904,590

12,460

2,917,050




($000s)

December 31, 2022


Preferred

Shares

Common

Shares

Contributed

Surplus

Retained

Earnings

Accumulated other

comprehensive income (loss)





Cash

Flow

Hedges

Financial

Instruments

at FVOCI

Total

Attributable

to equity

holders

Non-

controlling

interests

 

 

Total


Balance, beginning of period

70,424

236,368

10,908

1,839,561

39,320

(34,928)

4,392

2,161,653

2,161,653


Net Income

45,819

45,819

45,819


Realized gain on sale of

financial instruments

(588)

(588)

(588)


Transfer of AOCI losses to

retained earnings

446

446

446

446


Investment elimination on

acquisition

33

33

33

33


Other comprehensive loss, net

of tax

2,696

1,871

4,567

4,567

4,567


Common shares issued

223,112

223,112

223,112


Exercise of stock options

3,433

3,433

3,433


Dividend payout from principal

(655)

(655)

(655)


Dividends:












Preferred shares

(2,305)

(2,305)

(2,305)


Common shares

(12,387)

(12,387)

(12,387)


Stock-based compensation

840

840

840


Transfer relating to the

exercise of stock options

303

(303)


Shares on acquisition

110,987

110,987

110,987


Balance, end of period

181,411

462,561

11,445

1,870,100

42,016

(32,578)

9,438

2,534,955

2,534,955


Consolidated statement of cash flows (unaudited)




($000s) Three-month period ended

January 31, 2024

December 31, 2022

CASH FLOWS FROM OPERATING ACTIVITIES



Net income

104,382

45,819

Adjustments for non-cash items in net income:



Financial instruments at fair value through income

16,537

(8,202)

Amortization of premiums/discount on investments

3,130

274

Amortization of capital assets and intangible costs

11,441

19,130

Provision for credit losses

15,535

26,796

Securitization gains

(14,516)

(7,197)

Stock-based compensation

1,013

840

Income taxes

39,370

22,912

Securitization retained interests

27,933

15,197

Changes in operating assets and liabilities:



Restricted cash

104,436

(107,948)

Securities purchased under reverse repurchase agreements

103,221

549,640

Loans receivable, net of securitizations

(492,116)

(1,138,391)

Other assets

(1,326)

176,042

Deposits

201,362

417,239

Securitization liabilities

883,231

680,398

Obligations under repurchase agreements

(645,664)

(83,574)

Funding facilities

(398,684)

85,314

Subscription receipts

(232,018)

Other liabilities

(5,962)

(136,172)

Income taxes paid

(26,112)

(30,909)

Cash flows (used in) from operating activities

(72,789)

295,190

CASH FLOWS FROM FINANCING ACTIVITIES



    Proceeds from issuance of common shares

17,958

225,890

    Term loan facility

275,000

    Dividends paid on preferred shares

(2,357)

(2,304)

    Dividends paid on common shares

(15,239)

(12,387)

Cash flows from financing activities

362

486,199

CASH FLOWS FROM INVESTING ACTIVITIES



Purchase of investments

(336,419)

(518,429)

Acquisition of subsidiary

(75,528)

(495,369)

Proceeds on sale or redemption of investments

465,401

281,762

Net change in Canada Housing Trust re-investment accounts

18,005

177,457

Purchase of capital assets and system development costs

(4,747)

(30,703)

Cash flows from (used in) investing activities

66,712

(585,282)

Net (decrease) increase in cash and cash equivalents

(5,715)

196,107

Cash and cash equivalents, beginning of period

549,474

298,999

Cash and cash equivalents, end of period

543,759

495,106

Cash flows from operating activities include:



Interest received

688,329

514,579

Interest paid

(371,620)

(143,439)

Dividends received

549

1,045

About EQB Inc.
EQB Inc. (TSX: EQB and EQB.PR.C) is a leading digital financial services company with $119 billion in combined assets under management and administration (as at January 31, 2024). 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 607,000 customers and more than six million credit union members through its businesses. Through its digital EQ Bank platform (eqbank.ca), its customers have named it the best bank in Canada on the Forbes World’s Best Banks list since 2021.

Please visit eqb.investorroom.com for more details.

Investor contact:

Sandie Douville

VP, Investor Relations & ESG Strategy

[email protected]

Media contact:

Maggie Hall

Director, PR & Communications  

[email protected] 

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”, “planned”, “estimates”, “forecasts”, “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”, “might” or “will be taken”, “occur” or “be achieved”, or other similar expressions of future or conditional verbs. 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, legislative and regulatory developments, changes in accounting standards, the nature of our customers and rates of default, and competition as well as those factors discussed under the heading “Risk Management” in the MD&A and in EQB’s documents filed on SEDAR at www.sedar.com. 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 mortgage business, a continuation of the current level of economic uncertainty that affects real estate market conditions, 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

In addition to GAAP prescribed measures, this news release references certain non-GAAP measures, including adjusted financial results, that we believe provide useful information to investors regarding EQB’s financial condition and results of operations. Readers are cautioned that non-GAAP measures often do not have any standardized meaning, and therefore, are unlikely to be comparable to similar measures presented by other companies.

Adjustments listed below are presented on a pre-tax basis:

Q1 2024 (three months)

  • $2.1 million acquisition and integration-related costs associated with Concentra and ACM, and
  • $3.4 million intangible asset amortization.

Q4 2023 (fourth months)

  • $7.0 million acquisition and integration-related costs associated with Concentra and ACM, and
  • $1.2 million intangible asset amortization.

Q4 2022 (three months)

  • $2.2 million interest earned on the escrow account where the proceeds of the subscription receipts are held;
  • $36.9 million of acquisition and integration related costs;
  • $19.0 million provision credit for credit losses recorded on purchased loan portfolios;
  • $3.3 million net fair value related amortization recorded for November and December 2022;
  • $0.7 million reversal of interest expenses paid to subscription receipt holders; and
  • $5.6 million tax expenses true-up due to increase in tax rate.

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



Reconciliation of reported and adjusted financial results

As at or for the quarter ended

($000, except share and per share amounts)

Three months

31-Jan-24

Fourth months

31-Oct-23

Three months

31-Dec-22

Reported results




Net interest income

256,010

345,783

218,325

Non-interest revenue

42,762

49,503

16,382

Revenue

298,773

395,286

234,707

Non-interest expense

139,485

181,165

139,180

Pre-provision pre-tax income

159,287

214,121

95,527

Provision for credit loss

15,535

19,566

26,796

Income tax expense

39,370

53,409

22,912

Net income

104,382

141,146

45,819

Net income available to common shareholders

101,875

138,797

43,514

Adjustments




Net interest income – earned on the escrow account

(2,220)

Net interest income – fair value amortization/adjustments

3,324

Net interest income – paid to subscription receipt holders

(654)

Non-interest revenue – fair value amortization/adjustments

(65)

Non-interest expenses – acquisition-related costs

(2,053)

(6,972)

(36,921)

Non-interest expenses – intangible asset amortization

(3,398)

(1,181)

Provision for credit loss – purchased loans

(19,020)

Pre-tax adjustments

5,451

8,153

56,326

Income tax expense – tax impact on above adjustments

1,483

2,264

15,271

Income tax expense – 2022 tax rate adjustment

(5,621)

Post-tax adjustments

3,968

5,889

46,676

Adjusted results




Net interest income

256,010

345,783

218,775

Non-interest revenue

42,762

49,503

16,317

Revenue

298,772

395,286

235,092

Non-interest expense

134,034

173,012

102,259

Pre-provision pre-tax income

164,738

222,274

132,833

Provision for credit loss

15,535

19,566

7,776

Income tax expenses

40,853

55,673

32,562

Net income

108,350

147,035

92,495

Net income available to common shareholders

105,719

144,686

90,190

Diluted earnings per share




Weighted average diluted common shares outstanding

38,344,339

38,117,929

36,632,711

Diluted earnings per share – reported

2.66

3.64

1.19

Diluted earnings per share adjusted

2.76

3.80

2.46

Diluted earnings per share – adjustment impact

0.10

0.16

1.27

Other non-GAAP financial measures and ratios:

  • 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.
  • Liquid assets: is a measure of EQB’s cash or assets that can be readily converted into cash, which are held for the purposes of funding loans, deposit maturities, and the ability to collect other receivables and settle other obligations.
  • 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.
  • Net interest margin (NIM): this profitability measure is calculated on an annualized basis by dividing net interest income by the average total interest earning assets for the period.
  • 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 and adding their associated allowance for credit losses.

SOURCE EQB Inc.


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