Growth arrives even amidst market challenges
EQB Inc. has revealed impressive financial results for the first quarter ending January 31, 2024, showing notable growth in earnings, dividends, and assets.
The company reported a 12% increase in earnings compared to the previous year, along with a 5% increase in dividends from the previous quarter and a substantial 20% increase from the same period last year. Assets under management and administration also experienced significant growth, climbing by 16% to reach a total of $119 billion.
"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," EQB president Andrew Moor said.
Among the highlights, EQB achieved an adjusted return on equity (ROE) of 15.6% for the quarter. Total assets under management and administration surged to $119 billion, while revenue soared by 27% year-over-year to $299 million. Adjusted net income rose to $108 million, marking a notable 17% increase from the previous year.
Additionally, adjusted diluted earnings per share (EPS) reached $2.76 for the first quarter, reflecting a solid 12% growth compared to the same period last year.
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EQ Bank experienced sizeable customer growth, with its customer base expanding by 6% quarter over quarter and seeing n impressive 38% year-over-year increase to over 426,000 customers. Customer deposits surged to $8.3 billion, showcasing noteworthy growth compared to the previous year.
EQ Bank's success was further underscored by the launch of its "Second Chance" campaign, aimed at encouraging Canadians to switch to its Personal Account, offering enhanced features and benefits.
In the commercial banking sector, EQB saw a $1.3 billion increase in loans under management, reaching a total of $31.2 billion. The company's stable funding base continued to grow, with total deposits reaching $31.8 billion, up by 1% quarter-over-quarter and 3% year-over-year. EQB holds $3.7 billion in liquid assets for regulatory purposes, ensuring sufficient contingency funding.
With resilient growth across key metrics, Moor believes EQB remains well-positioned for further success in the financial landscape.
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