EQB reports fourth quarter and fiscal 2025 results

Core Insights - EQB Inc. reported a challenging fiscal year 2025, leading to a one-time restructuring program costing $92 million pre-tax, aimed at improving cost structure and operational efficiency [1][2][3] - The company announced the acquisition of PC Financial and a strategic partnership with Loblaw, which are expected to enhance growth and market position [1][2] - EQ Bank, a subsidiary of EQB, has become a leading banking brand in Canada, nearing $10 billion in deposits, with a significant increase in customer base [1][2] Financial Performance - Adjusted diluted EPS for Q4 was $1.53, down 39% year-over-year, and for FY25 it was $8.90, down 19% year-over-year [1][2] - Adjusted net income for Q4 was $63.5 million, a decrease of 37% year-over-year, and for FY25 it was $354.2 million, down 19% year-over-year [1][2] - Adjusted revenue for Q4 was $308.1 million, down 4% year-over-year, and for FY25 it was $1.26 billion, down 1% year-over-year [1][2] Operational Highlights - Total assets under management and administration (AUM + AUA) reached $138 billion, reflecting a 1% quarter-over-quarter and 9% year-over-year increase [1][2] - Loans under management (LUM) grew by 10% year-over-year, with commercial banking loans increasing by 20% year-over-year [1][2] - EQ Bank's customer base increased to 607,000, with deposits growing to nearly $10 billion, marking a 10% year-over-year increase [1][2] Strategic Initiatives - The company executed a strategic restructuring program to enhance efficiency, resulting in a 50.9% adjusted efficiency ratio for 2025, up 5.7% year-over-year [1][2] - EQB declared a dividend of $0.57 per common share, representing a 16% increase from the previous year [1][2] - The company plans to focus on growth, expense management, and strong risk management practices in fiscal 2026 [1][2]