EQB Inc. reported a fiscal third-quarter 2026 profit miss on Thursday, sending its shares down 9.9% in after-hours trading. The Toronto-based lender posted diluted earnings per share of CAD 2.12, falling short of the CAD 2.24 consensus estimate by CAD 0.12, or 5.4%. Revenue totaled CAD 393 million, exceeding the CAD 373 million forecast by CAD 20 million, or 5.4%.
Net interest income rose 22% year-over-year to CAD 319 million, supported by a 12% increase in loans under management to CAD 82.5 billion. Non-interest revenue surged 55% year-over-year to CAD 73.9 million, while the net interest margin held at 2.41%. The bank’s return on equity improved to 10.3%, up from 6% in the trailing twelve months as of Q2 2026, while the efficiency ratio remained at 50.1%, aligning with management’s target for fiscal 2026.
The results reflect the integration of PC Financial, acquired from Loblaw in July. The deal contributed approximately CAD 10 million in earnings during its first month, excluding purchase price accounting benefits, and achieved 50% of its CAD 30 million annualized cost synergy target. EQB also noted a CAD 219 million day-one provision on acquired credit card receivables, which was excluded from adjusted results.
Chadwick Westlake, president and CEO, described the quarter as a "historic inflection point," emphasizing the bank’s expanded reach following the PC Financial acquisition. "We are now a very different challenger," he said, citing structural advantages from the integration. Anilisa Sainani, CFO, attributed the EPS shortfall to "the continued tough operating environment," which weighed on revenue growth and elevated provisions for credit losses.
EQB’s CET1 ratio stood at 13.4%, down from 13.6% in the prior quarter. Retail deposits accounted for 29% of total funding, up more than two percentage points year-over-year. The bank also reported 93,000 new PC Insurance policies in force during the month.
Shares of EQB fell 9.9% to CAD 124.27 in after-hours trading, extending declines from the prior close of CAD 137.87. The stock has traded between CAD 83.93 and CAD 150.32 over the past 52 weeks.
Management scheduled an investor day for December 7, 2026, at the EQ Bank Tower, with expectations for normalization skewed toward 2027.
