EQB releases Q2 results marked by continued loan growth as dividend increases 18% y/y and total AUM and AUA climb to $134 billion

EQB Inc. (TSX: EQB) today reported earnings for the three and six months ended April 30, 2025, that reflected diversified, high-quality growth in loans under management, higher net interest income and core non-revenue from fees and multi-unit securitization, offset by credit provisions driven by the macroeconomic environment.

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Q2 2025 highlights compared to Q2 2024:

— Adjusted ROE1 11.9% (reported 11.4%)

— Adjusted diluted EPS1$2.31, -18% y/y, -22% q/q (reported $2.21, -17% y/y, -20% q/q)

— Book value per share$80.99, +10% y/y, +2% q/q

— Revenue$316.0 million, -0.2% y/y, -2% q/q with non-interest revenue contributing 14% of total

— Adjusted PPPT1,3$160.1 million, -8% y/y, -6% q/q (reported $154.8 million, -7% y/y, -5% q/q)

— Adjusted net income1$94.2 million, -15% y/y, -19% q/q (reported $90.3 million, -15% y/y, -16% q/q)

— Net interest margin (NIM)2:2.20%, +9 bps y/y, +13 bps q/q

— Net interest income (NII):$271.1 million, +1% y/y, +3% q/q

— TotalAUM + AUA2$134 billion, +8% y/y, +2% q/q

— EQ Bankcustomers, +23% y/y, +4% q/q to 560,000

— Common share dividends declared$0.53 per share, +4% q/q, +18% y/y

YTD 2025 (six months) highlights compared to YTD 2024:

— Adjusted ROE113.6% (reported 12.8%)

— Adjusted diluted EPS1$5.29, -5% y/y (reported $4.98, -7% y/y)

— Adjusted net income1$ 210.4 million, -4% y/y (reported $198.0 million, -6% y/y)

— Total capital ratio15.6% and CET1 ratio of 13.2%

“Amid economic uncertainty globally and in Canada, EQB experienced one of our strongest quarters for uninsured single family loan originations, and we are pleased with notable increases in EQ Bank customers and deposits as we continued to flex our Challenger Bank muscles,” said Andrew Moor, president and CEO. “Our fundamentals remain resilient despite credit provisions made necessary by tariff-driven changes in the economy and the residual impactof higher interest rates on certain borrowers. Our uncompromising focus on customer service and innovation that enriches people's lives, disciplined capital allocation to diversified market segments, dynamic risk management approach and proven loan resolution capabilities support our expectations of continued shareholder value creation in the second half of 2025 and positive outlook for 2026.”

EQ Bank welcomes 24,000 new customers, bringing total to 560,000 +23% y/y, 4% q/q

— TheEQ Bank Notice Savings Account, an innovative and powerful alternative toGICs and traditional savings vehicles, continued to drive customer and deposit growth as it nears one year in market, bolstered by its Québécois debut as Banque EQ meets new demand for Challenger Bank offerings

— Increase in payroll customers continued to confirmEQ Bank's position as bank of choice and go-to source for innovative and valuable savings and spending options

— Strong customer response to recently refreshed CAD/USD foreign exchange rates within the no-fee, high interest US Dollar Account and the broader suite of international banking solutions including cost-effective global transfers with Wise and on-the-go spending with the EQ Bank Card

— Experienced Equitable Bank executive, DanBroten, recently named to lead strategy, product, marketing and digital delivery in the new role of SVP and Head of EQ Bank, while Janet Lin, SVP and Chief Information Officer, will advance culture of innovation and technological excellence at Equitable Bank

Residential Lending portfolio benefits from one of the strongest periods of originations and retention

— Consistent with Q1 momentum, single-family uninsured originations grew +28% y/y as application volumes translated into high-quality asset growth, supported by renewed market activity compared to a year ago and gains in share in the mortgage broker channel; Equitable Bank's approach to credit and risk management is rigorous, demonstrated by conservative average LTV for single-family uninsured loans of 63% and credit scores consistent at 711

— Portfolio balances grew +4% y/y, +2% q/q to $20.6 billion on new originations and exceptional renewal rates on responsive customer service

— Decumulation lending (including reverse mortgages and insurance lending) reached $2.5 billion +45% y/y, +8% q/q; momentum reflected broker support, value to borrowers of choosing Equitable Bank's differentiated solutions and continued expansion of the available market as Canadians retire and realize the advantages of converting real asset-based equity into funds to live in place

Commercial Banking portfolio driven by insured lending for multi-unit residential properties

— EQB continued to prioritize insured lending for multi-unit residential properties in major cities across the country with over 80% of total commercial LUM insured through various CMHC programs

— CMHC-insured multi-unit residential LUM grew +29% y/y, +6% q/q to $29.1billion, while the commercial portfolio's uninsured businesses also delivered healthy growth despite subdued market conditions

— EQB's insured commercial construction lending grew +31% y/y, +10% q/q to$3.3 billion, driven by both new originations and construction draws on existing commitments

Provisions reflect change in macroeconomic environment, new formation rate slowing

— EQB's provision for credit losses (PCL)of$30.2 million was split almost equally across each of its business lines and reflects the impacts of evolving macroeconomic forecasts, expected credit loss modelling and Stage 3 provisions of$24.5 million, 1%y/y, 77% q/q

— Net impaired loans increased by $58.5 million in Q2 to $741.5 million, or 156bps of total loan assets compared to 147 bps at Q1, 132 bps at Q4 2024 and 92 bps at Q2 2024; the increase, despite slowing formations, was driven by two newly impaired commercial loans and a decelerating pace of resolution

— The Bank is appropriately reserved for credit losses with net allowances as a percentage of total loan assets of 29bps, compared to 28 bps at Q1 2025 and 23 bps at Q2 2024; the increase in net allowance rate was across all segments and driven by a deterioration in forecasts for GDP and employment as a result of economic uncertainty related to tariffs and their potential impact

— Focus remains on de-risking the equipment financing portfolio in light of challenges in the long-haul transportation market; reflectingEQB's risk appetite and a new management approach, exposure to long-haul transportation is down to 33% from Q1 while higher-quality prime leases now account for 51% of the portfolio

EQB increases common share dividend, buys back shares and reaffirms capital management guidance

— EQB's Board of Directors declared a dividend of$0.53 per common share payable onJune 30, 2025, to shareholders of record as ofJune 13, 2025, representing a 4% increase from the dividend paid inMarch 2025and 18% above the payment made inJune 2024

— As part of management's plan to continually optimize its capital structure to support strategic objectives and maintain strong overall capital levels, the Bank also completed a $200 million subordinated debt issuance toEQB, bringing Equitable Bank's Total Capital Ratio to 15.6%; this is consistent with the Bank's intention to operate above 15% Total Capital with expectations that up to 300 bps of Total Capital could be contributed by Alternative Tier 1 and Tier 2 capital in 2027 onward and CET1 guidance for 2025 reaffirmed at 13%+

— Equitable Bank's consistent organic capital generation and strength in CET1 enabled it to make a $200 million dividend to parentEQB in Q2; inclusive of dividends and the semi-annual $4.4 million payment to holders of the Bank's Limited Recourse Capital Notes, the Bank's CET1 ratio was 13.2%

— In Q2,EQB repurchased 271,117 common shares through its NCIB, which allows for the repurchase and cancellation of up to 2,300,000 common shares or 8.4% of the public float of common shares outstanding at January 2, 2025

EQ Bank Tower unveiled, marking new chapter for Canada's Challenger Bank

— New Toronto-based national headquarters opened subsequent to quarter end, bringing talented employees together for more effective collaboration supported by sustainable design and intentional use of Canadian furniture and fittings

“In the second quarter, we responded to an increasingly volatile environment by focusing on unique, high-quality market opportunities that are available to Canada's Challenger Bank by growing our uninsured and insured loan portfolios in a risk-managed way and adding strength and depth to our cost-effective funding sources,” said David Wilkes, VP and head of finance. “Recent strength in loan originations will benefit future revenue while gains from insured multi-unit securitizations are expected to contribute to performance in the second half of fiscal 2025. By focusing on our fundamentals, which are strong, and investing through the business cycle, we are well-positioned to navigate uncertain economic conditions, target growth opportunities and sustain EQB's long track record as an industry performance leader.”

Analyst conference call and webcast: 10:30 a.m. ET May 29, 2025

EQB's Andrew Moor, president and CEO, Marlene Lenarduzzi, CRO, and David Wilkes, VP and head of finance, will host EQB's second quarter earnings call and webcast. The listen-only webcast with accompanying slides will be available at eqb.investorrom.com. To access the conference call with operator assistance, dial 416-945-7677 five minutes prior to the start time.

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 one-time acquisition and integration related costs, and certain 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.2 These are non-GAAP measures, see the “Non-GAAP financial measures and ratios” section.3 PPPT represents pre-provision-pre-tax income, a non-GAAP measure of financial performance.

INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Consolidated balancesheet (unaudited)

($000s) As at April 30, 2025 October 31, 2024 April 30, 2024Assets:Cash and cash equivalents 500,747 591,641 657,219Restricted cash 996,591 971,987 783,148Securities purchased under reverse repurchase agreements 2,100,037 1,260,118 1,399,955Investments 1,450,879 1,627,314 1,817,916Loans – Personal 32,524,324 32,273,551 32,823,421Loans – Commercial 14,703,818 14,760,367 15,085,481Securitization retained interests 919,910 813,719 663,593Deferred tax assets 20,874 36,104 14,921Other assets 1,088,160 899,120 694,542Total assets 54,305,340 53,233,921 53,940,196Liabilities and Shareholders' EquityLiabilities:Deposits 35,036,491 33,739,612 34,123,703Securitization liabilities 13,548,609 14,594,304 15,181,341Obligations under repurchase agreements 84,092 – -Deferred tax liabilities 190,905 177,933 148,549Funding facilities 1,410,370 946,956 839,841Other liabilities 776,711 636,931 630,954Total liabilities 51,047,178 50,095,736 50,924,388Shareholders' Equity:Preferred shares – – 181,411Common shares 510,973 505,876 495,707Other equity instruments 147,360 147,440 -Contributed deficit (19,177) (17,374) (24,811)Retained earnings 2,607,001 2,483,309 2,359,116Accumulated other comprehensive income (loss) 2,344 8,555 (7,804)Total equity attributable to equity holders of EQB 3,248,501 3,127,806 3,003,619Non-controlling interests 9,661 10,379 12,189Total equity 3,258,162 3,138,185 3,015,808Total liabilities and shareholders' equity 54,305,340 53,233,921 53,940,196

Consolidated statement of income (unaudited)

Three months ended Six months ended($000s, except per share amounts) April 30, 2025 April 30, 2024 April 30, 2025 April 30, 2024Interest income:Loans – Personal 461,337 482,299 942,707 951,253Loans – Commercial 211,991 257,842 434,108 520,723Investments 12,258 16,879 25,658 34,755Other 19,912 27,209 45,282 49,308 705,498 784,229 1,447,755 1,556,039Interest expense:Deposits 317,391 366,002 665,200 724,564Securitization liabilities 112,213 131,776 237,645 259,029Funding facilities 4,765 13,521 10,312 28,804Other 70 5,592 153 20,294 434,439 516,891 913,310 1,032,691Net interest income 271,059 267,338 534,445 523,348Non-interest revenue:Fees and other income 22,713 20,564 45,633 37,179Net gains on loans and investments 1,029 7,129 3,333 12,122Gain on sale and income from retained interests 20,090 23,177 44,962 42,586Net gains (losses) on securitization activities and 1,059 (1,548) 10,212 197derivatives 44,891 49,322 104,140 92,084Revenue 315,950 316,660 638,585 615,432Provision for credit losses 30,234 22,217 48,912 37,752Revenue after provision for credit losses 285,716 294,443 589,673 577,680Non-interest expenses:Compensation and benefits 74,280 66,961 150,214 132,330Other 86,910 83,459 170,231 157,575 161,190 150,420 320,445 289,905Income before income taxes 124,526 144,023 269,228 287,775Income taxes:Current 26,218 32,734 42,957 71,268Deferred 8,016 5,573 28,269 6,409 34,234 38,307 71,226 77,677Net income 90,292 105,716 198,002 210,098Dividends on preferred shares – 2,346 – 4,703Distribution to LRCN holders 4,410 – 4,410 -Net income available to common shareholders and non- 85,882 103,370 193,592 205,395controlling interestsNet income attributable to:Common shareholders 85,533 103,041 192,935 204,916Non-controlling interests 349 329 657 479 85,882 103,370 193,592 205,395Earnings per share:Basic 2.23 2.70 5.02 5.38Diluted 2.21 2.67 4.98 5.33

Consolidated statement of comprehensive income (unaudited)

Three months ended Six months ended($000s) April 30, 2025 April 30, 2024 April 30, 2025 April 30, 2024Netincome 90,292 105,716 198,002 210,098Other comprehensive income – items that will bereclassified subsequently to income:Debt instruments at Fair Value through OtherComprehensive Income:Net change in gains (losses) on fair value 3,587 (16,240) 16,027 25,321Reclassification of net (gains) losses to income (1,523) 17,187 (11,589) (18,640)Other comprehensive income – items that will not bereclassified subsequently to income:Equity instruments designated at Fair Value throughOther Comprehensive Income:Net change in (losses) gains on fair value (203) 3,132 868 1,552Reclassification of net gains to retained earnings (490) – (868) – 1,371 4,079 4,438 8,233Income tax expense (372) (1,090) (1,289) (2,233) 999 2,989 3,149 6,000Cash flow hedges:Net change in unrealized (losses) gains on fair value (8,979) 11,961 (13,189) (269)Reclassification of net gains to income (5,937) (5,070) (9,361) (11,764) (14,916) 6,891 (22,550) (12,033)Income tax recovery (expense) 4,049 (1,879) 6,080 3,282 (10,867) 5,012 (16,470) (8,751)Total other comprehensive (loss) income (9,868) 8,001 (13,321) (2,751)Total comprehensive income 80,424 113,717 184,681 207,347Total comprehensive income attributable to:Common shareholders 75,665 111,042 179,614 202,165Other equity and preferred shareholders 4,410 2,346 4,410 4,703Non-controlling interests 349 329 657 479 80,424 113,717 184,681 207,347

Consolidated statementofchangesinshareholders'equity (unaudited)

($000s) Three-month period ended April 30, 2025 Common Other equity Contributed Retained Accumulated other Shares instruments Deficit Earnings comprehensive income (loss) Cash Flow Financial Total Attributable Non- Total Hedges Instruments to equity controlling at FVOCI holders interestsBalance, beginning of period 506,160 147,360 (17,437) 2,564,315 16,014 (4,814) 11,200 3,211,598 9,838 3,221,436Net Income – – – 89,943 – – – 89,943 349 90,292Realized loss on sale of shares, – – – (659) – – – (659) – (659)net of taxTransfer of AOCI losses to – – – – – 1,012 1,012 1,012 – 1,012retained earnings, net of taxOther comprehensive loss, net – – – – (10,867) 999 (9,868) (9,868) – (9,868)of taxExercise of stock options 6,677 – – – – – – 6,677 – 6,677Common shares repurchased (3,465) – – (22,600) – – – (26,065) – (26,065)and cancelledLimited recourse capital note – – – (4,410) – – – (4,410) – (4,410)distributions, net of taxDividends:Common shares – – – (19,588) – – – (19,588) (526) (20,114)Put option – non-controlling – – (1,203) – – – – (1,203) – (1,203)interestStock-based compensation – – 1,064 – – – – 1,064 – 1,064Transfer relating to the 1,601 – (1,601) – – – – – – -exercise of stock optionsBalance, end of period 510,973 147,360 (19,177) 2,607,001 5,147 (2,803) 2,344 3,248,501 9,661 3,258,162($000s) Three-month period ended April 30, 2024 Preferred Common Contributed Retained Accumulated other Shares Shares deficit Earnings comprehensive income (loss) Cash Financial Total Attributable Non- Total Flow Instruments to equity controlling at FVOCI Hedges at FVOCI holders interestsBalance, beginning of period 181,411 489,944 (23,055) 2,272,116 29,855 (45,681) (15,826) 2,904,590 12,460 2,917,050Net Income – – – 105,387 – – – 105,387 329 105,716Transfer of AOCI losses to – – – – – 21 21 21 – 21income, net of taxOther comprehensive income, – – – – 5,012 2,989 8,001 8,001 – 8,001net of taxExercise of stock options – 4,881 – – – – – 4,881 – 4,881Dividends:Preferred shares – – – (2,346) – – – (2,346) – (2,346)Common shares – – – (16,041) – – – (16,041) (600) (16,641)Put option – non-controlling – – (1,974) – – – – (1,974) – (1,974)interestStock-based compensation – – 1,100 – – – – 1,100 – 1,100Transfer relating to the exercise of – 882 (882) – – – – – – -stock optionsBalance, end of period 181,411 495,707 (24,811) 2,359,116 34,867 (42,671) (7,804) 3,003,619 12,189 3,015,808($000s) Six month period ended April 30, 2025 Common Shares Other equity Contributed Retained Accumulated other instruments Deficit Earnings comprehensive income (loss) Cash Flow Financial Total Attributable Non Total Hedges Instruments to equity controlling at FVOCI holders interestsBalance, beginning of period 505,876 147,440 (17,374) 2,483,309 21,617 (13,062) 8,555 3,127,806 10,379 3,138,185Net Income – – – 197,345 – – – 197,345 657 198,002Realized loss on sale of shares, – – – (6,377) – – – (6,377) – (6,377)net of taxTransfer of AOCI losses to – – – – – 7,016 7,016 7,016 – 7,016retained earnings, net of taxTransfer of AOCI losses to – – – – – 94 94 94 – 94income, net of taxOther comprehensive loss, net – – – – (16,470) 3,149 (13,321) (13,321) – (13,321)of taxExercise of stock options 7,137 – – – – – – 7,137 – 7,137Common shares repurchased (3,740) – – (24,432) – – – (28,172) – (28,172)and cancelledIssuance costs, net of tax – (80) – – – – – (80) (80)Limited recourse capital note – – – (4,410) – – – (4,410) – (4,410)distributions, net of taxDividends:Common shares – – – (38,434) – – – (38,434) (1,375) (39,809)Put option – non-controlling – – (2,334) – – – – (2,334) – (2,334)interestStock-based compensation – – 2,231 – – – – 2,231 – 2,231Transfer relating to the exercise 1,700 – (1,700) – – – – – – -of stock optionsBalance, end of period 510,973 147,360 (19,177) 2,607,001 5,147 (2,803) 2,344 3,248,501 9,661 3,258,162($000s) Six-month period ended April 30, 2024 Preferred Common Contributed Retained Accumulated other Shares Shares Surplus/ Earnings comprehensive income (loss) (deficit) Cash Financial Total Attributable Non- Total Flow Instruments to equity controlling Hedges at FVOCI holders interestsBalance, beginning of period 181,411 471,014 12,795 2,185,480 43,618 (48,775) (5,157) 2,845,543 – 2,845,543Non-controlling interest on – – – – – – – – 12,310 12,310acquisitionNet Income – – – 209,619 – – – 209,619 479 210,098Transfer of AOCI losses to – – – – – 104 104 104 – 104income, net of taxOther comprehensive income, – – – – (8,751) 6,000 (2,751) (2,751) – (2,751)net of taxCommon share issued – 11,000 – – – – – 11,000 – 11,000Exercise of stock options – 11,839 – – – – – 11,839 – 11,839Dividends:Preferred shares – – – (4,703) – – – (4,703) – (4,703)Common shares – – – (31,280) – – – (31,280) (600) (31,880)Put option – non-controlling – – (37,865) – – – – (37,865) – (37,865)interestStock-based compensation – – 2,113 – – – – 2,113 – 2,113Transfer relating to the exercise – 1,854 (1,854) – – – – – – -of stock optionsBalance, end of period 181,411 495,707 (24,811) 2,359,116 34,867 (42,671) (7,804) 3,003,619 12,189 3,015,808

Consolidated statementofcashflows (unaudited)

Three months ended Six months ended($000s) April 30, 2025 April 30, 2024 April 30, 2025 April 30, 2024CASHFLOWSFROMOPERATINGACTIVITIESNetincome 90,292 105,716 198,002 210,098Adjustmentsfornon-cashitemsinnetincome:Financial instruments at fair value through income (157,852) (5,177) (178,350) 11,360Amortization of premiums/discount (2,753) (34,159) (5,583) (31,029)Amortization of capital and intangible costs 17,571 11,679 32,394 23,120Provision for credit losses 30,234 22,217 48,912 37,752Securitizationgains (13,010) (17,486) (30,626) (32,002)Stock-based compensation 1,064 1,100 2,231 2,113Income taxes 34,234 38,307 71,226 77,677Securitizationretainedinterests 41,741 30,701 81,698 58,634Changes in operating assets and liabilities:Restricted cash (179,566) (120,389) (24,604) (15,953)Securities purchased under reverse repurchase agreements (300,023) (594,342) (839,919) (491,122)Loans receivable, net of securitizations (891,443) (222,907) (266,146) (715,022)Other assets 21,821 (7,205) 81 (8,531)Deposits 406,679 1,887,780 1,255,415 2,089,142Securitizationliabilities (174,739) (205,820) (1,067,985) 677,411Obligations under repurchase agreements 84,092 (482,574) 84,092 (1,128,238)Funding facilities 641,557 (493,062) 463,414 (891,746)Other liabilities 13,726 47,598 65,399 41,636Incometaxespaid (28,528) (23,962) (67,759) (50,074)Cashflows used in operatingactivities (364,903) (61,985) (178,108) (134,774)CASHFLOWSFROMFINANCINGACTIVITIESProceedsfromissuanceofcommonshares 6,677 4,881 7,137 22,839Common share repurchased and cancelled (26,065) (28,172)Limited recourse capital notes – – (80) -Distribution to other equity holders (4,410) – (4,410) -Dividendspaidonpreferredshares – (2,346) – (4,703)Dividendspaidoncommonshares (20,114) (16,041) (39,809) (31,280)Cashflows used infinancingactivities (43,912) (13,506) (65,334) (13,144)CASHFLOWS FROMINVESTINGACTIVITIESPurchase of investments (12,689) (8,004) (16,419) (344,423)Acquisition of subsidiary – 45 – (75,483)Proceeds on sale or redemption of investments 128,107 191,245 159,473 656,646Net change in Canada Housing Trust re-investment accounts 11,623 28,954 53,032 46,959Purchase of capital assets and system development costs (27,495) (23,289) (43,538) (28,036)Cashflows frominvestingactivities 99,546 188,951 152,548 255,663Net(decrease) increase incashandcashequivalents (309,269) 113,460 (90,894) 107,745Cashandcashequivalents,beginningofperiod 810,016 543,759 591,641 549,474Cashandcashequivalents,endofperiod 500,747 657,219 500,747 657,219Supplemental statement of cash flows disclosures:Interestreceived 668,744 846,075 1,378,441 1,534,404Interestpaid (410,679) (443,052) (827,115) (814,672)Dividendsreceived 132 564 350 1,113

About EQB Inc.

EQB Inc. (TSX: EQB) is a leading digital financial services company with $134 billion in combined assets under management and administration (as at April 30, 2025). It offers banking services through Equitable Bank, a wholly owned subsidiary and Canada's seventh largest bank by assets, and wealth management through ACM Advisors, a majority owned subsidiary specializing in alternative assets. As Canada's Challenger Bank™, Equitable Bank has a clear mission to drive change in Canadian banking to enrich people's lives. It leverages technology to deliver exceptional personal and commercial banking experiences and services to over 742,000 customers and more than six million credit union members through its businesses. Through its digital EQ Bank platform (eqbank.ca) its customers have named it one of Canada's top banks on the Forbes World's Best Banks list since 2021.

Please visit eqb.investorroom.com for more details.

Investor contact: David Wilkes VP and Head of Finance investor_enquiry@eqb.com

Media contact: Maggie Hall Director, PR & Communications maggie.hall@eqb.com

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 expectation, statements with respect to EQB's intention to renew and/or make share repurchases under its NCIB, 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”, “intends”, “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 including, without limitation global geopolitical risk, uncertainty arising from ongoing United States/Canada tariff concerns and related impacts, business acquisition, 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 EQB's Q2 MD&A and in EQB's documents filed on SEDAR+ at www.sedarplus.ca. 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.

Adjustments listed below are presented on a pre-tax basis:

Q2 2025

— $3.4 million new office lease related expenses prior to occupancy, and

— $2.0 million intangible asset amortization.

Q1 2025

— $2.8 million new office lease related expenses prior to occupancy,

— $1.8 million non-recurring operational effectiveness expenses and acquisition and integration-related costs,

— $2.0 million intangible asset amortization, and

— $5.0 million provision for credit losses associated with an equipment financing purchase facility.

Q2 2024

— $5.7 million non-recurring operational effectiveness expenses and acquisition and integration-related costs; and

— $1.6 million intangible asset amortization.

The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results (unaudited).

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-Apr-25 31-Jan-25 30-Apr-24 30-Apr-25 30-Apr-24Reported resultsNet interest income 271,059 263,386 267,338 534,445 523,348Non-interest revenue 44,891 59,249 49,322 104,140 92,084Revenue 315,950 322,635 316,660 638,585 615,432Non-interest expense 161,190 159,255 150,420 320,445 289,905Pre-provision pre-tax income(3) 154,760 163,380 166,240 318,140 325,527Provision for credit loss 30,234 18,678 22,217 48,912 37,752Income tax expense 34,234 36,992 38,307 71,226 77,677Net income 90,292 107,710 105,716 198,002 210,098Net income available to common shareholders 85,533 107,402 103,041 192,935 204,916AdjustmentsNon-interest expenses – new office lease related expenses (3,363) (2,789) – (6,152) -Non-interest expenses – non-recurring operational – (1,782) (5,710) (1,782) (7,763)effectiveness and acquisition-related costs(1)Non-interest expenses – intangible asset amortization (1,969) (1,969) (1,599) (3,938) (4,997)Provision for credit loss – equipment financing – (5,018) – (5,018) -Pre-tax adjustments 5,332 11,558 7,309 16,890 12,760Income tax expense – tax impact on above adjustments(2) 1,414 3,039 1,983 4,453 3,466Post-tax adjustments – net income 3,918 8,519 5,326 12,437 9,294Adjustments attributed to minority interests (259) (261) (190) (520) (314)Post-tax adjustments – net income to common shareholders 3,659 8,258 5,136 11,917 8,980Adjusted resultsNet interest income 271,059 263,386 267,338 534,445 523,348Non-interest revenue 44,891 59,249 49,322 104,140 92,084Revenue 315,950 322,635 316,660 638,585 615,432Non-interest expense 155,858 152,715 143,111 308,573 277,145Pre-provision pre-tax income(3) 160,092 169,920 173,549 330,012 338,287Provision for credit loss 30,234 13,660 22,217 43,894 37,752Income tax expenses 35,649 40,030 40,290 75,679 81,143Net income 94,209 116,230 111,042 210,439 219,392Net income available to common shareholders 89,190 115,662 108,177 204,852 213,896Diluted earnings per shareWeighted average diluted common shares outstanding 38,662,002 38,781,523 38,522,025 38,725,80838,434,002Diluted earnings per share – reported 2.21 2.77 2.67 4.98 5.33Diluted earnings per share – adjusted 2.31 2.98 2.81 5.29 5.57Diluted earnings per share – adjustment impact 0.10 0.21 0.14 0.31 0.24(1) Includes non-recurring operational effectiveness and acquisition and integration-related costs associated with Concentra Bank and ACM.(2) Income tax expense associated with non-GAAP adjustment was calculated based on the statutory tax rate applicable for that period.(3) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section.

Other non-GAAP financial measures and ratios:

— Adjusted return on equity (ROE)is calculated on an annualized basis and is defined as adjusted net income available to common shareholders as a percentage of weighted average common shareholders' equity (reported) outstanding during the period.

— Assets under administration (AUA):is sum of (1) assets over which EQB's subsidiaries have been named as trustee, custodian, executor, administrator, or other similar role; (2) loans held by credit unions for which EQB's subsidiaries act as servicer.

— Assets under management (AUM):is the sum of total balance sheet assets, loan principal derecognized but still managed by EQB, and assets managed on behalf on investors.

— Loans under management (LUM):is the sum of loan principal reported on the consolidated balance sheet and loan principal derecognized but still managed by EQB.

— Net interest margin (NIM):this profitability measure is calculated on an annualized basis by dividing net interest income by the average total interest earning assets for the period.

— Pre-provision pre-tax income (PPPT):this is the difference between revenue and non-interest expenses.

— Total loan assets:this is calculated on a gross basis (prior to allowance for credit losses) as the sum of both Loans – Personal and Loans – Commercial on the balance sheet and adding their associated allowance for credit losses.

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SOURCE EQB Inc.

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