Equitable Group ( (EQGPF) ) has released its Q4 earnings. Here is a breakdown of the information Equitable Group presented to its investors.
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Equitable Group, operating as EQB Inc., is a prominent digital financial services company in Canada, known for its innovative banking solutions and wealth management services. The company is recognized as Canada’s Challenger Bank, offering a range of personal and commercial banking services through its digital platform, EQ Bank.
In its latest earnings report for the fourth quarter and fiscal year 2025, EQB Inc. highlighted a challenging year marked by a significant restructuring program aimed at enhancing efficiency and operating leverage. The company reported a diluted EPS of $1.53 for Q4, a decrease of 39% year-over-year, and a return on equity of 7.5%. Despite these challenges, EQB declared a common share dividend of $0.57, reflecting a 16% increase year-over-year.
Key financial metrics from the report include an adjusted net income of $63.5 million for Q4, down 37% from the previous year, and a total assets under management of $138 billion, up 9% year-over-year. The company also announced the acquisition of PC Financial and a strategic partnership with Loblaw, which are expected to strengthen its market position. EQB’s commercial banking sector showed robust growth with loans under management increasing by 20% year-over-year, driven by a strong insured multi-unit residential portfolio.
The company also reported an increase in EQ Bank deposits, closing the year at nearly $10 billion, with a customer base of 607,000, up 18% year-over-year. The launch of a new Business Banking platform was well-received, further enhancing EQB’s digital offerings. Despite macroeconomic headwinds, EQB maintained a strong capital position with a CET1 ratio of 13.3% and a total capital ratio of 15.8%.
Looking ahead, EQB’s management is focused on driving growth, managing expenses prudently, and maintaining strong risk management practices. The company aims to leverage its recent strategic acquisitions and partnerships to expand its market share and deliver lasting value to its stakeholders.