Banking giant reveals third-quarter earnings amid a stormy economy
EQB Inc. released financial results for the three months ended July 31, 2025, reporting a decline in net income amid an “unfavourable macroeconomic landscape” and ongoing pressure in Canadian real estate markets. Despite these challenges, the company announced a 17% year-over-year increase in its common share dividend.
Adjusted net income was $80.3 million, down 32% from the same period last year. The decline was attributed to higher credit provisions, or funds set aside to cover potential loan losses. The company said this trend lowered expectations for the remainder of the fiscal year.
Despite weaker earnings, EQB reported continued expansion at its digital bank, EQ Bank. The customer base grew to 586,000, up 21% year-over-year. Demand deposits also rose to $9.7 billion, driven by the popularity of the bank’s Notice Savings Account and payroll deposits.
The EQ Bank Card, a no-fee prepaid card, reached $1 billion in funds loaded, highlighting its popularity among Canadians for both domestic and international use, a news release highlighted.
The third quarter brought major leadership changes following the death of former president and CEO Andrew Moor. Chadwick Westlake assumed the role of president and CEO on Aug. 25, 2025. Marlene Lenarduzzi, who served as interim president and CEO, returned to her role as chief risk officer. David Wilkes was appointed senior vice-president and chief strategy and growth officer, a newly created position.
“This was a difficult quarter for EQB as we mourned the loss of Andrew Moor. Turning to performance, while not unique to EQB, macroeconomic uncertainty and housing market conditions in Canada continued to weigh on credit performance and interest income,” said Lenarduzzi.
“However, the resilience of our business model was underscored by clear loan book growth and expanding EQ Bank customer engagement. Our balance sheet is strong, and we are positioned for growth with Chadwick Westlake's appointment as our next chapter begins.”
“We have charted our own course for over 50 years by focusing on the long term, innovating with purpose and delivering for Canadians in ways that matter,” Westlake said in the release. “That commitment remains unchanged.”
EQB’s lending portfolios demonstrated resilience, with uninsured single-family loan originations rising 30% year-over-year. Decumulation lending, which includes reverse mortgages, grew 41% to $2.7 billion, reflecting continued demand for flexible solutions supporting older Canadians.
In commercial banking, EQB maintained its focus on multi-unit residential lending, with more than 80% of loans insured under CMHC programs. This portfolio grew 30% to $31.4 billion, supported by steady demand for rental apartment construction.
EQB shares, traded on the Toronto Stock Exchange, closed at $82.37, up 9% from a year earlier.
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