EQB just dropped their Q3 2025 financial results, and it’s a mixed bag! Despite facing some serious market headwinds, they’re still boosting dividends. Plus, there are big changes in leadership. What does this mean for the future of banking in Canada?
EQB Inc. has released its Q3 2025 financial results, revealing a complex performance characterized by both resilience and significant challenges within the Canadian Banking landscape. While the company announced a noteworthy 17% year-over-year Dividend Growth, the period was also marked by a dip in adjusted net income and revenue, underscoring the persistent pressures of an unfavorable macroeconomic environment and a fluctuating Real Estate Market.
The Q3 Earnings Report indicated adjusted net income reached $80.3 million, a 32% decrease year-over-year, alongside a 5% decline in adjusted revenue to $310 million. Despite these reductions, non-interest revenue contributed a respectable 18% to the total, demonstrating diverse income streams. Adjusted net interest income also saw a 6% decline, with net interest margin at 1.95%, reflecting the broader financial headwinds impacting EQB Financials.
A primary factor in the quarter’s performance was the challenging Real Estate Market and ongoing macroeconomic uncertainty, which led to higher credit provisions. EQB’s provision for credit losses surged to $34.0 million in Q3, attributed to delayed resolutions and weaker market values of secured assets. This necessitated a corresponding adjustment in earnings expectations for the remainder of fiscal year 2025, highlighting the need for cautious financial navigation.
Amidst these financial dynamics, EQB announced pivotal Executive Leadership appointments designed to steer the company into its next growth phase. Chadwick Westlake assumed the role of President and CEO, bringing a renewed strategic focus. Anilisa Sainani was appointed SVP and Chief Financial Officer, while David Wilkes stepped into the new role of SVP and Chief Strategy & Growth Officer, signaling a commitment to a bold growth agenda.
Despite the overall challenging quarter, EQ Bank, the company’s digital arm, showcased robust momentum. It attracted 26,000 new customers, boosting its total to 586,000, representing a 21% year-over-year increase. Demand deposit growth accelerated significantly, reaching $9.7 billion, and the EQ Bank Card achieved a milestone of $1 billion in funds loaded, solidifying its position as a preferred choice in Canadian Banking for innovative solutions.
The company’s lending portfolios also demonstrated resilience. Personal Lending benefited from strong uninsured single-family origination growth, with uninsured loans under management growing 8% year-over-year to $24.4 billion. Decumulation lending, including reverse mortgages, surged by 41% year-over-year. Commercial Banking maintained leadership in insured multi-unit residential lending, with CMHC-insured LUM growing 30% year-over-year to $31.4 billion, reflecting steady demand in major Canadian cities.
EQB reinforced its commitment to shareholders through a 17% year-over-year Dividend Growth to $0.55 per common share. This increase, payable on September 30, 2025, is supported by the bank’s diligent capital generation and allocation structure. Despite elevated provisions for credit losses and increased business investment, the bank maintains strong capital and liquidity, strategically deploying capital for optimal risk-adjusted returns across its portfolios.
Looking ahead, the new leadership team expressed confidence in EQB’s ability to build momentum and capitalize on future opportunities. Chadwick Westlake highlighted the company’s long-standing commitment to innovation and delivering value for Canadians, while David Wilkes acknowledged the short-term earnings adjustments but reaffirmed consistency in medium-term targets, signaling a strategic focus on sustainable Dividend Growth and enhanced shareholder returns within the competitive Canadian Banking sector.
