Canada NewsWire
TORONTO, Aug. 1, 2023
TORONTO, Aug. 1, 2023 /CNW/ - EQB Inc. (TSX: EQB) (TSX: EQB.PR.C) today reported record earnings for the three and six months ended June 30, 2023. This performance reflects portfolio growth, sequential margin expansion, higher non-interest revenue, efficiency improvement as annualized Concentra Bank integration cost saving targets were realized ahead of plan, and a one-time benefit from a strategic investment. Due to the strong year-to-date performance, EQB increased and updated relative 12-month earnings guidance, including raising diluted EPS guidance to +18-22% from +10-15%. See additional detail in EQB's Q2 Management's Discussion and Analysis (MD&A).
Second quarter 2023 compared to second quarter 2022:
Year-to-Date 2023 compared to Year-to-Date 2022:
"By consistently applying our Challenger Bank philosophy, Equitable delivered record-breaking EPS and an ROE performance that exceeded our own industry-leading long-term average. These are meaningful accomplishments that allowed us to increase earnings guidance. At a time when Canadians need more and better value from the banking industry, Equitable Bank is providing it. Whether it's our no-fee, high interest EQ Bank digital services, our recently launched fully digital First Home Savings Account or the loans we make to build much-needed affordable housing, we are living our social purpose and in return rewarding our investors. Significant growth in our customer base, strong customer engagement and our plans to continue to bring innovation to the market give me well-founded confidence that we are set to thrive in the years ahead," said Andrew Moor, President and Chief Executive Officer.
First half of 2023 performance trending ahead of 2023 guidance on record Q2 results
EQ Bank customers +31% y/y and deposits +9% y/y
Personal Banking assets +35% y/y to $32.3 billion
Commercial Banking assets +25% y/y to $15.1 billion
Credit quality indicators reflect prudence in a higher interest rate environment
Diversification and stability of funding sources generating consistent high liquidity
Second full quarter of Concentra Bank earnings, annualized cost synergy targets achieved
EQB announces an increase in common share dividend for Q2 2023
"EQB's standout performance relative to guidance and bank peers reflects our consistent long-term approach to allocating capital and generating leading ROE, anchored in exceptional credit, liquidity and capital management. This remains a dynamic time globally for banks, but with our deeply customer-focused challenger operating model and performance year-to-date, we have conviction in our increased 2023 guidance and look forward to starting our new fiscal year on November 1st with improved comparability of EQB to peers," said Chadwick Westlake, EQB's Chief Financial Officer.
1. Adjusted measures and ratios are Non-Generally Accepted Accounting Principles (GAAP) measures and ratios. Adjusted measures and ratios are calculated in the same manner as reported measures and ratios, except that financial information included in the calculation of adjusted measures and ratios is adjusted to exclude the impact of the Concentra Bank acquisition and integration related costs, and other non-recurring items which management determines would have a significant impact on a reader's assessment of business performance. For additional information and a reconciliation of reported results to adjusted results, see the "Non-GAAP financial measures and ratios" section. |
Analyst conference call and webcast: 8:30 a.m. ET Eastern August 2, 2023
EQB will host its second-quarter conference call and webcast on Wednesday August 2, 2023. To access the call with operator assistance, dial (416) 764-8609 five minutes prior to the start time. Or to join without operator assistance, you may register your phone number up to 15 minutes in advance of start time to receive an automatic call-back connection to the conference at: click to register here.
Call archive
A replay of the conference call with the accompanying slides will be archived on EQB's Investor Relations website: click here to visit the site.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Consolidated balance sheet (unaudited)
($000s) | June 30, 2023 | December 31, 2022 | June 30, 2022 |
Assets: | |||
Cash and cash equivalents | 373,492 | 495,106 | 539,509 |
Restricted cash | 870,247 | 737,656 | 557,283 |
Securities purchased under reverse repurchase agreements | 1,208,930 | 200,432 | 420,009 |
Investments | 2,235,530 | 2,289,618 | 1,097,004 |
Loans – Personal | 32,333,611 | 31,996,950 | 24,122,303 |
Loans – Commercial | 15,103,519 | 14,513,265 | 12,123,469 |
Securitization retained interests | 474,542 | 373,455 | 227,013 |
Deferred tax assets | 14,392 | - | - |
Other assets | 704,440 | 538,475 | 331,168 |
53,318,703 | 51,144,957 | 39,417,758 | |
Liabilities and shareholders' equity | |||
Liabilities: | |||
Deposits | 32,137,347 | 31,051,813 | 23,708,958 |
Securitization liabilities | 15,397,103 | 15,023,627 | 11,366,847 |
Obligations under repurchase agreements | 875,718 | 665,307 | 814,494 |
Deferred tax liabilities | 106,723 | 72,675 | 64,180 |
Funding facilities | 1,487,008 | 1,239,704 | 711,380 |
Subscription receipts | - | - | 230,821 |
Other liabilities | 594,952 | 556,876 | 426,527 |
50,598,851 | 48,610,002 | 37,323,207 | |
Shareholders' equity: | |||
Preferred shares | 181,411 | 181,411 | 70,424 |
Common shares | 466,711 | 462,561 | 234,372 |
Contributed surplus | 12,668 | 11,445 | 10,106 |
Retained earnings | 2,065,478 | 1,870,100 | 1,773,658 |
Accumulated other comprehensive (loss) income | (6,416) | 9,438 | 5,991 |
2,719,852 | 2,534,955 | 2,094,551 | |
53,318,703 | 51,144,957 | 39,417,758 |
Consolidated statement of income (unaudited)
($000s, except per share amounts) | Three months ended | Six months ended | ||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |
Interest income: | ||||
Loans – Personal | 420,578 | 190,830 | 812,394 | 364,610 |
Loans – Commercial | 256,731 | 133,540 | 498,499 | 249,286 |
Investments | 18,856 | 3,351 | 40,749 | 7,206 |
Other | 21,083 | 5,558 | 38,435 | 8,417 |
717,248 | 333,279 | 1,390,077 | 629,519 | |
Interest expense: | ||||
Deposits | 322,503 | 110,413 | 615,734 | 194,885 |
Securitization liabilities | 118,416 | 53,741 | 236,590 | 103,031 |
Funding facilities | 11,891 | 2,468 | 19,809 | 2,774 |
Other | 12,739 | - | 25,448 | - |
465,549 | 166,622 | 897,581 | 300,690 | |
Net interest income | 251,699 | 166,657 | 492,496 | 328,829 |
Non-interest income: | ||||
Fees and other income | 14,489 | 7,866 | 28,387 | 13,899 |
Net gains (losses) on loans and investments | 29,659 | (16,839) | 26,359 | (12,041) |
Gains on sale and income from retained interests | 16,104 | 6,445 | 30,436 | 21,060 |
Net gains on securitization activities and derivatives | 596 | - | 2,700 | - |
60,848 | (2,528) | 87,882 | 22,918 | |
Revenue | 312,547 | 164,129 | 580,378 | 351,747 |
Provision for credit losses | 13,042 | 5,233 | 19,290 | 5,108 |
Revenue after provision for credit losses | 299,505 | 158,896 | 561,088 | 346,639 |
Non-interest expenses: | ||||
Compensation and benefits | 59,707 | 40,067 | 118,069 | 76,839 |
Other | 67,323 | 38,209 | 135,509 | 76,370 |
127,030 | 78,276 | 253,578 | 153,209 | |
Income before income taxes | 172,475 | 80,620 | 307,510 | 193,430 |
Income taxes: | ||||
Current | 26,612 | 22,091 | 55,263 | 45,607 |
Deferred | 14,938 | (307) | 21,803 | 1,040 |
41,550 | 21,784 | 77,066 | 46,647 | |
Net income | 130,925 | 58,836 | 230,444 | 146,783 |
Dividends on preferred shares | 2,331 | 1,086 | 4,649 | 2,175 |
Net income available to common shareholders | 128,594 | 57,750 | 225,795 | 144,608 |
Earnings per share: | ||||
Basic | 3.41 | 1.69 | 6.00 | 4.24 |
Diluted | 3.39 | 1.67 | 5.95 | 4.19 |
Consolidated statement of comprehensive income (unaudited)
($000s) | Three months ended | Six months ended | |||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | ||
Net income | 130,925 | 58,836 | 230,444 | 146,783 | |
Other comprehensive income – items that will be reclassified subsequently to income: | |||||
Debt instruments at Fair Value through Other Comprehensive Income: | |||||
Reclassification of losses from AOCI on sale of investment | - | (926) | - | (926) | |
Net unrealized losses from change in fair value | (31,474) | (8,011) | (17,584) | (29,380) | |
Reclassification of net losses to income | 32,302 | 2,729 | 21,180 | 5,006 | |
Other comprehensive income – items that will not be reclassified subsequently to income: | |||||
Equity instruments designated at Fair Value through Other Comprehensive Income: | |||||
Net unrealized losses from change in fair value | (30,989) | (5,278) | (31,782) | (6,703) | |
Reclassification of net losses to retained earnings | 4,936 | 1,836 | 4,914 | 3,045 | |
(25,225) | (9,650) | (23,272) | (28,958) | ||
Income tax recovery | 7,005 | 2,531 | 6,464 | 7,594 | |
(18,220) | (7,119) | (16,808) | (21,364) | ||
Cash flow hedges: | |||||
Net unrealized gains from change in fair value | 28,856 | 19,668 | 13,040 | 45,909 | |
Reclassification of net (gains) losses to income | (11,082) | 1,944 | (11,704) | 2,373 | |
17,774 | 21,612 | 1,336 | 48,282 | ||
Income tax expense | (4,936) | (5,667) | (382) | (12,660) | |
12,838 | 15,945 | 954 | 35,622 | ||
Total other comprehensive (loss) income | (5,382) | 8,826 | (15,854) | 14,258 | |
Total comprehensive income | 125,543 | 67,662 | 214,590 | 161,041 |
Consolidated Statement of Changes in Shareholders' Equity (unaudited)
($000s) Three month period ended | June 30, 2023 | ||||||||
Preferred Shares | Common Shares | Contributed Surplus | Retained Earnings | Accumulated other comprehensive income (loss) | |||||
Cash Flow Hedges | Financial Instruments at FVOCI | Total | Total | ||||||
Balance, beginning of period | 181,411 | 463,862 | 12,002 | 1,954,394 | 30,132 | (31,166) | (1,034) | 2,610,635 | |
Net Income | - | - | - | 130,925 | - | - | - | 130,925 | |
Realized Loss on Sale of investment securities | - | - | - | (3,565) | - | - | - | (3,565) | |
Other comprehensive income, net of tax | - | - | - | - | 12,838 | (18,220) | (5,382) | (5,382) | |
Exercise of stock options | - | 2,707 | - | - | - | - | - | 2,707 | |
Dividends: | |||||||||
Preferred shares | - | - | - | (2,331) | - | - | - | (2,331) | |
Common shares | - | - | - | (13,945) | - | - | - | (13,945) | |
Stock-based compensation | - | - | 808 | - | - | - | - | 808 | |
Transfer relating to the exercise of stock options | - | 142 | (142) | - | - | - | - | - | |
Balance, end of period | 181,411 | 466,711 | 12,668 | 2,065,478 | 42,970 | (49,386) | (6,416) | 2,719,852 | |
($000s) Three month period ended June 30, 2022 | |||||||||
Balance, beginning of period | 70,607 | 232,854 | 9,357 | 1,727,169 | 20,357 | (22,508) | (2,151) | 2,037,836 | |
Net Income | - | - | - | 58,836 | - | - | - | 58,836 | |
Realized Loss on Sale of investment securities | - | - | - | (1,355) | - | (684) | (684) | (2,039) | |
Other comprehensive income, net of tax | - | - | - | - | 15,945 | (7,119) | 8,826 | 8,826 | |
Exercise of stock options | - | 1,463 | - | - | - | - | - | 1,463 | |
Purchase of treasury preferred shares | (183) | - | - | - | - | - | - | (183) | |
Net loss on cancellation of treasury preferred shares | - | - | - | (6) | - | - | - | (6) | |
Dividends: | |||||||||
Preferred shares | - | - | - | (1,086) | - | - | - | (1,086) | |
Common shares | - | - | - | (9,900) | - | - | - | (9,900) | |
Stock-based compensation | - | - | 804 | - | - | - | - | 804 | |
Transfer relating to the exercise of stock options | - | 55 | (55) | - | - | - | - | - | |
Balance, end of period | 70,424 | 234,372 | 10,106 | 1,773,658 | 36,302 | (30,311) | 5,991 | 2,094,551 | |
($000s) Six month period ended | June 30, 2023 | ||||||||
Preferred Shares | Common Shares | Contributed Surplus | Retained Earnings | Accumulated other comprehensive income (loss) | |||||
Cash Flow Hedges | Financial Instruments at FVOCI | Total | Total | ||||||
Balance, beginning of period | 181,411 | 462,561 | 11,445 | 1,870,100 | 42,016 | (32,578) | 9,438 | 2,534,955 | |
Net Income | - | - | - | 230,444 | - | - | - | 230,444 | |
Realized loss on sale of investment securities | - | - | - | (3,294) | - | - | - | (3,294) | |
Other comprehensive income, net of tax | - | - | - | - | 954 | (16,808) | (15,854) | (15,854) | |
Exercise of stock options | - | 6,470 | - | - | - | - | - | 6,470 | |
Share issuance cost, net of tax | - | (2,908) | - | - | - | - | - | (2,908) | |
Dividends: | |||||||||
Preferred shares | - | - | - | (4,649) | - | - | - | (4,649) | |
Common shares | - | - | - | (27,123) | - | - | - | (27,123) | |
Stock-based compensation | - | - | 1,811 | - | - | - | - | 1,811 | |
Transfer relating to the exercise of stock options | - | 588 | (588) | - | - | - | - | - | |
Balance, end of period | 181,411 | 466,711 | 12,668 | 2,065,478 | 42,970 | (49,386) | (6,416) | 2,719,852 | |
($000s) Six month period ended June 30, 2022 | |||||||||
Balance, beginning of period | 70,607 | 230,160 | 8,693 | 1,650,757 | 680 | (8,263) | (7,583) | 1,952,634 | |
Net Income | - | - | - | 146,783 | - | - | - | 146,783 | |
Realized loss on sale of investment securities | - | - | - | (2,251) | - | (684) | (684) | (2,935) | |
Other comprehensive income, net of tax | - | - | - | - | 35,622 | (21,364) | 14,258 | 14,258 | |
Exercise of stock options | - | 3,867 | - | - | - | - | - | 3,867 | |
Purchase of treasury preferred shares | (183) | - | - | - | - | - | - | (183) | |
Net loss on cancellation of treasury preferred shares | - | - | - | (6) | - | - | - | (6) | |
Dividends: | |||||||||
Preferred shares | - | - | - | (2,175) | - | - | - | (2,175) | |
Common shares | - | - | - | (19,450) | - | - | - | (19,450) | |
Stock-based compensation | - | - | 1,758 | - | - | - | - | 1,758 | |
Transfer relating to the exercise of stock options | - | 345 | (345) | - | - | - | - | - | |
Balance, end of period | 70,424 | 234,372 | 10,106 | 1,773,658 | 36,302 | (30,311) | 5,991 | 2,094,551 | |
Consolidated Statement of Cash Flows (unaudited)
($000s) | Three months ended | Six months ended | ||
June 30, 2023 | June 30, 2022 | June 30, 2023 | June 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | 130,925 | 58,836 | 230,444 | 146,783 |
Adjustments for non-cash items in net income: | ||||
Financial instruments at fair value through income | 56,610 | 3,103 | 18,184 | 1,376 |
Amortization of premiums/discount on investments | 2,439 | 330 | 4,223 | 630 |
Amortization of capital assets and intangible costs | 11,919 | 9,211 | 24,163 | 18,044 |
Provision for credit losses | 13,042 | 5,233 | 19,290 | 5,108 |
Securitization gains | (13,690) | (1,620) | (26,435) | (6,248) |
Stock-based compensation | 808 | 804 | 1,811 | 1,758 |
Dividend income earned, not received | (27,964) | - | (27,964) | - |
Income taxes | 41,550 | 21,784 | 77,066 | 46,647 |
Securitization retained interests | 22,055 | 12,742 | 41,912 | 25,160 |
Changes in operating assets and liabilities: | ||||
Restricted cash | (203,717) | (108,652) | (132,591) | (95,119) |
Securities purchased under reverse repurchase agreements | (476,322) | (420,009) | (1,008,498) | 130,021 |
Loans receivable, net of securitizations | (943,719) | (2,000,934) | (997,836) | (3,344,734) |
Other assets | (65,068) | 3,162 | (91,517) | (1,105) |
Deposits | 549,817 | 1,493,378 | 1,053,768 | 2,903,026 |
Securitization liabilities | 89,135 | 401,333 | 373,523 | (227) |
Obligations under repurchase agreements | (28,940) | (65,709) | 210,411 | (562,269) |
Funding facilities | 718,291 | 386,805 | 247,304 | 511,252 |
Subscription receipts | - | 435 | - | 230,821 |
Other liabilities | 57,750 | (33,605) | 6,635 | 13,092 |
Income taxes paid | (34,342) | (28,616) | (81,859) | (93,658) |
Cash flows used in operating activities | (99,421) | (261,989) | (57,966) | (69,642) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Proceeds from issuance of common shares | 2,707 | 1,463 | 3,562 | 3,867 |
Dividends paid on preferred shares | (2,331) | (1,086) | (4,649) | (2,176) |
Dividends paid on common shares | (13,945) | (9,900) | (27,123) | (19,450) |
Cash flows used in financing activities | (13,569) | (9,523) | (28,210) | (17,759) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Purchase of investments | (162,220) | (926) | (709,528) | (58,826) |
Proceeds on sale or redemption of investments | 374,215 | 122,300 | 762,277 | 233,768 |
Net change in Canada Housing Trust re-investment accounts | (58,762) | (21,882) | (67,579) | (295,103) |
Purchase of capital assets and system development costs | (12,372) | (13,752) | (20,608) | (26,180) |
Cash flows from (used in) investing activities | 140,861 | 85,740 | (35,438) | (146,341) |
Net increase (decrease) in cash and cash equivalents | 27,871 | (185,772) | (121,614) | (233,742) |
Cash and cash equivalents, beginning of period | 345,621 | 725,281 | 495,106 | 773,251 |
Cash and cash equivalents, end of period | 373,492 | 539,509 | 373,492 | 539,509 |
Cash flows from operating activities include: | ||||
Interest received | 743,478 | 289,106 | 1,233,302 | 560,154 |
Interest paid | (432,654) | (143,009) | (667,566) | (265,080) |
Dividends received | 1,022 | 899 | 2,063 | 2,170 |
About EQB Inc.
Equitable Bank—Canada's Challenger Bank™—is a wholly owned subsidiary of EQB Inc., which trades on the Toronto Stock Exchange (TSX: EQB) (TSX: EQB.PR.C) and serves more than 543,000 customers. Equitable Bank's wholly owned subsidiary Concentra Bank supports Canadian credit unions and their more than 6 million members. With over $108 billion in combined assets under management and administration, Equitable Bank has a clear mandate to drive change in Canadian banking to enrich people's lives. Founded more than 50 years ago, Canada's Challenger Bank™ provides diversified personal and commercial banking, and through its digital EQ Bank platform (eqbank.ca) has been named the top Schedule I Bank in Canada on the Forbes World's Best Banks 2021, 2022 and 2023 lists. Please visit eqbank.investorroom.com for more details.
Investor contact: | Media contact: |
Cautionary Note Regarding Forward-Looking Statements
Statements made by EQB in the sections of this news release, in other filings with Canadian securities regulators and in other communications include forward-looking statements within the meaning of applicable securities laws (forward-looking statements). These statements include, but are not limited to, statements about EQB's objectives, strategies and initiatives, financial performance expectations and other statements made herein, whether with respect to EQB's businesses or the Canadian economy. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "planned", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved", or other similar expressions of future or conditional verbs. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of EQB to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to capital markets and additional funding requirements, fluctuating interest rates and general economic conditions, legislative and regulatory developments, changes in accounting standards, the nature of our customers and rates of default, and competition as well as those factors discussed under the heading "Risk Management" in the Management's Discussion and Analysis (MD&A) and in EQB's documents filed on SEDAR at www.sedar.com. All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate and liquidity conditions affecting EQB and the Canadian economy. Although EQB believes the assumptions used to make such statements are reasonable at this time and has attempted to identify in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by EQB in making forward-looking statements, including without limitation, assumptions regarding its continued ability to fund its mortgage business, a continuation of the current level of economic uncertainty that affects real estate market conditions, continued acceptance of its products in the marketplace, as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. EQB does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws.
Non-Generally Accepted Accounting Principles (GAAP)
Financial Measures and Ratios
In addition to GAAP prescribed measures, this news release references certain non-GAAP measures, including adjusted financial results, that we believe provide useful information to investors regarding EQB's financial condition and results of operations. Readers are cautioned that non-GAAP measures often do not have any standardized meaning, and therefore, are unlikely to be comparable to similar measures presented by other companies.
Adjusted financial results
To enhance comparability between reporting periods, increase consistency with other financial institutions, and provide the reader with a better understanding of EQB's performance, adjusted results were introduced starting in Q1 2022. Adjusted results are non-GAAP financial measures.
Adjustments impacting current and prior periods:
Adjustments listed below are presented on a pre-tax basis:
(1) The interest expense refers to the dividend equivalent amount paid to subscription receipt holders. The subscription receipt holders are entitled to receive a payment equal to the common share dividend declared multiplied by the number of subscription receipts held on the common share dividend payment date. These subscription receipts were converted into common shares at a 1:1 ratio upon the closing of the Concentra acquisition. |
The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results.
Reconciliation of reported and adjusted financial results | For the three months ended | For the six months ended | ||||
($000, except share and per share amounts) | 30-Jun-23 | 31-Mar-23 | 30-Jun-22 | 30-Jun-23 | 30-Jun-22 | |
Reported results | ||||||
Net interest income | 251,699 | 240,797 | 166,657 | 492,496 | 328,829 | |
Non-interest revenue | 60,848 | 27,034 | (2,528) | 87,882 | 22,918 | |
Revenue | 312,547 | 267,831 | 164,129 | 580,378 | 351,747 | |
Non-interest expense | 127,030 | 126,548 | 78,276 | 253,578 | 153,209 | |
Pre-provision pre-tax income(4) | 185,517 | 141,283 | 85,853 | 326,800 | 198,538 | |
Provision for credit loss (recoveries) | 13,042 | 6,248 | 5,233 | 19,290 | 5,108 | |
Income tax expense | 41,550 | 35,516 | 21,784 | 77,066 | 46,647 | |
Net income | 130,925 | 99,519 | 58,836 | 230,444 | 146,783 | |
Net income available to common shareholders | 128,594 | 97,201 | 57,750 | 225,795 | 144,608 | |
Adjustments | ||||||
Net interest income – fair value amortization/adjustments | - | (4,167) | - | (4,167) | - | |
Net interest income – paid to subscription receipt holders(1) | - | - | 947 | - | 1,861 | |
Non-interest revenue – strategic investment | (27,965) | - | - | (27,965) | - | |
Non-interest revenue – fair value amortization/adjustments | - | 941 | - | 941 | - | |
Non-interest expenses – acquisition-related costs | (3,377) | (4,744) | (2,709) | (8,121) | (7,842) | |
Non-interest expenses – other expenses | (858) | - | - | (858) | - | |
Non-interest expenses – fair value amortization/adjustments | - | (66) | - | (66) | - | |
Non-interest expenses – intangible asset amortization | (885) | (1,476) | - | (2,361) | - | |
Pre-tax adjustments | (22,844) | 3,060 | 3,656 | (19,784) | 9,703 | |
Income tax expense – tax impact on above adjustments(2) | (7,425) | 850 | 958 | (6,575) | 2,542 | |
Post-tax adjustments | (15,419) | 2,210 | 2,698 | (13,209) | 7,161 | |
Adjusted results | ||||||
Net interest income | 251,699 | 236,630 | 167,604 | 488,329 | 330,690 | |
Non-interest revenue | 32,883 | 27,975 | (2,528) | 60,858 | 22,918 | |
Revenue | 284,582 | 264,605 | 165,076 | 549,187 | 353,608 | |
Non-interest expense | 121,910 | 120,262 | 75,567 | 242,172 | 145,367 | |
Pre-provision pre-tax income(3) | 162,672 | 144,343 | 89,509 | 307,015 | 208,241 | |
Provision for credit loss (recoveries) | 13,042 | 6,248 | 5,233 | 19,290 | 5,108 | |
Income tax expenses | 34,124 | 36,366 | 22,742 | 70,490 | 49,189 | |
Net income | 115,506 | 101,729 | 61,534 | 217,235 | 153,944 | |
Net income available to common shareholders | 113,175 | 99,411 | 60,448 | 212,586 | 151,769 | |
Diluted earnings per share | ||||||
Weighted average diluted common shares outstanding | 37,975,115 | 37,910,348 | 34,479,387 | 37,942,911 | 34,512,207 | |
Diluted earnings per share – reported | 3.39 | 2.56 | 1.67 | 5.95 | 4.19 | |
Diluted earnings per share – adjusted | 2.98 | 2.62 | 1.75 | 5.60 | 4.40 | |
Diluted earnings per share – adjustment impact | (0.41) | 0.06 | 0.08 | (0.35) | 0.21 |
(1) The interest expense refers to the dividend equivalent amount paid to subscription receipt holders. The subscription receipt holders are entitled to receive a payment equal to the common share dividend declared multiplied by the number of subscription receipts held on the common share dividend payment date. These subscription receipts were converted into common shares at a 1:1 ratio upon the closing of the Concentra acquisition. |
(2) Income tax expense associated with non-GAAP adjustment was calculated based on the statutory tax rate applicable for that period, taking into account the federal tax rate increase. |
(3) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section. |
Other non-GAAP financial measures and ratios
($000s) | 30-Jun-23 | 31-Mar-23 | Change | 30-Jun-22 | Change |
Total assets on the consolidated balance sheet | 53,318,703 | 51,793,019 | 3 % | 39,417,758 | 35 % |
Loan principal derecognized | 12,591,570 | 11,542,502 | 9 % | 6,349,413 | 98 % |
Assets under management | 65,910,273 | 63,335,521 | 4 % | 45,767,171 | 44 % |
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SOURCE EQB Inc.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2023/01/c2902.html