EQB Inc. posted Q3 2026 adjusted revenue of $393.0 million, a 30% increase from Q2 and 27% higher than the prior year, as the acquisition of PC Financial materially altered its revenue composition. Total revenue reached $425 million, up from $302 million in the prior quarter, while diluted earnings per share fell 5.36% short of consensus at $2.12.
The PC Financial deal, closed on July 1, 2026, expanded EQB’s customer base to more than four million and nearly doubled pro-forma revenue. The transaction added $4.5 billion in credit card loans under management and generated $32 billion in trailing twelve-month purchase volumes. Non-interest income rose 77% year-over-year to $73.9 million, accounting for 23.8% of total revenue compared with 12.2% a year earlier. Net interest income climbed 22% sequentially and year-over-year to $319 million, with the net interest margin expanding 33 basis points to 2.41%, including a 38-basis-point contribution from PC Financial.
EQB’s CET1 ratio declined 20 basis points sequentially to 13.4%, while the total capital ratio stood at 16.6%. The lender raised its quarterly dividend by 3% to $0.63 per share. Return on equity reached 10.3% and return on tangible common equity increased to 11.1%, up 40 basis points from the prior quarter. The efficiency ratio improved to 50.1% from 53.4% a year earlier, though adjusted non-interest expenses rose 32% sequentially and 19% year-over-year to $197 million.
The acquisition introduced a one-time $219 million Day 1 provision excluded from adjusted results, alongside $4.8 billion in risk-weighted assets. EQB offset this by issuing 7.2 million common shares, which added 259 basis points to its CET1 ratio. The lender captured approximately $15 million in annualized pre-tax synergies in the first month post-close, half of its $30 million two-year target.
Credit quality metrics showed a 12-basis-point sequential decline in the gross impaired loan ratio to 13.7%, with total impaired loans at $1.07 billion. Provisions on performing loans totaled $35.2 million, while impaired loan provisions rose 24% sequentially to $48.8 million. Equipment financing provisions jumped 308 basis points to $8.4 million, while personal residential provisions increased by $4.0 million to $17.0 million.
EQB’s total loans under management grew 12% sequentially and 7% year-over-year to $82.5 billion. Retail direct deposits rose 11% year-over-year to $10.8 billion, comprising 29% of total funding, while wholesale funding declined 13% to $4.0 billion. The single-family residential portfolio, totaling $27.0 billion, had an average loan-to-value ratio of 69% and a 90+ days past due rate of 184 basis points.
CEO Chadwick Westlake described the PC Financial acquisition as a "historic inflection point," citing the cloud-native, API-first platform as a structural advantage. CFO Anilisa Sainani noted that the quarter reflected "the continued tough operating environment that resulted in higher PCLs and slower revenue growth." EQB is scheduled to host an investor day on December 7, 2026.
