Bank funds $4.3bn in multi-unit loans and launches Canada's first social covered bond
Canadian challenger bank EQB Inc. has highlighted major progress on its affordable housing initiatives and social impact lending goals in its latest responsibility report.
The challenger bank said it funded $4.3 billion in multi-unit residential loans last year, supporting the development of 170 properties nationwide. The bank also launched a $735 million social covered bond, marking the first time a Canadian bank has used such an instrument specifically focused on social and affordable housing.
EQB also announced its commitment to invest in the Social and Climate Fund launching in 2025, managed by its alternative asset manager, ACM Advisors. The fund will give institutional investors access to commercial loans aligned with environmental and social impact goals.
"We've made meaningful progress across our priorities this year, including advancing affordable housing, helping more Canadians access financial tools that provide better value, maintaining robust governance standards and operating with a thoughtful approach to climate responsibility – all while continuing to grow with purpose," EQB president and CEO Andrew Moor said in a press release.
The bank’s latest financial results showed it posted net income of $116 million for Q1 2025, up 7% year-over-year. Total assets under management and administration reached $132 billion, marking an 11% annual increase.
Its reverse mortgage and insurance lending business — part of its wealth decumulation strategy — grew 47% year-over-year, reflecting increasing demand among retirees looking to age in place while unlocking equity.
On the residential side, uninsured single-family mortgage originations rose 23% in Q1 2025, as EQB capitalized on lower borrowing costs and stronger homebuying activity heading into the spring market.
In commercial lending, loans under management climbed 18% to reach $37 billion, with multi-unit residential lending up 30% to $27.5 billion, 82% of which is insured through CMHC programs.
Read next: EQB's loan growth drives Q1 2025 earnings, credit reserves climb
Advancing ESG goals
EQB says it reduced its overall emissions profile by 6% year-over-year, excluding emissions from ACM-managed client investments. It also launched its Sustainable Bond Framework, which will guide future Green, Social, and Sustainable Bond issuances. The bank maintains carbon neutrality for Scope 1 and Scope 2 emissions, offsetting 995 tonnes of CO₂ equivalent in the past year.
Employee volunteer hours totalled 2,775 across various charitable initiatives, and the bank extended financial support to mental health services, housing-focused charities, and Indigenous student scholarships. EQB also backed over 180 Canadian artists and 18 arts organizations.
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