EQB delivers record quarterly earnings and a 6% dividend increase.

TORONTO: EQB Inc. (TSX: EQB) (TSX: EQB.PR.C) today reported record quarterly earnings for the three months ended March 31, 2023. This period reflected the first full quarter of results from Equitable Bank's recent acquisition of Concentra Bank, consistent risk-managed organic lending growth and credit performance, strong and diverse funding sources with resilient deposits, liquidity well above regulatory guidelines, expanding margins and capital. With this performance, EQB announced another common share dividend increase - and reaffirmed its previous earnings guidance for 2023.

Adjusted Q1 2023 ROE1 16.9% (reported 16.5%) ahead of 15%+ guidance

Adjusted Q1 2023 net income1 $101.7MM (+10% y/y and q/q), reported $99.5MM (+13% y/y or +117% q/q), supported by net interest margin expanding 5bps q/q to 1.92%

Adjusted Q1 diluted EPS1 $2.62 (-1% y/y or +7% q/q), reported $2.56 (+2% y/y or +115% q/q), impacted y/y by the 3,266,000 additional common shares in Q4 2022 as part of the Concentra Bank acquisition

Common share dividends declared $0.37 per share for Q1 2023, +28% y/y or +6% q/q

EQ Bank recognized as the Best Bank in Canada for the 3rd consecutive year on the Forbes 2023 list of the World's Best Banks. Customer growth in Q1 +26% y/y to 336,457 with $8.1 billion in deposits (+12% y/y) and customer engagement up to 51%

Total AUM + AUA2 $104.8 billion +2% q/q. $52 billion of on-balance sheet assets +1% q/q and +39% y/y; 50% of total loans under management are insured

Liquid assets2 7.5% of total assets, with a Liquidity Coverage Ratio (LCR) well in excess of the regulatory minimum of 100% which has remained consistent q/q. Nearly 95% of the Bank's deposits are either term or insured

Total capital ratio 15.5% with CET1 at 14.0%

Book Value Per Share $64.47, +12% y/y and +3% q/q, relative to guidance of +12%-15% for 2023

"We are proud to start 2023 with adjusted earnings exceeding $100 million for the first time. During a volatile economic period and credit performance that was superior to our bank peers, achieving adjusted ROE at nearly 17% reminds us of the strength, agility and consistency of our franchise and excellent work by our Challenger team. What excites us is that while creating great value for our shareholders we are driving change in Canadian banking that enriches people's lives. Our EQ Bank card is the latest example. Launched in January, it's already been used by customers travelling in 115 countries, helping them to save serious...