Would you be worried about slowing growth?
EPS of $2.96 beat estimates of $2.9 and revenues of $327.24M beat estimates of $321.78M. Its ROE was 15.2% for the quarter, and sales grew 15% year-over-year. Its net interest margin expanded slightly on the year, and its AUM grew by 16%. Customer growth was strong, and management noted although there has been moderating effects of higher rates on the real estate market, EQB saw sequential earnings growth, an ROE above its 15% target, and continued customer growth. Its valuation remains attractive at 8X forward earnings, and EQB raised its dividend by 4%.
These were similar results to the larger Canadian banks, albeit slightly stronger. Most large Canadian banks saw an increase in provision for loan losses, whereas, EQB saw a slight decrease year-over-year, and naturally, EQB has a stronger growth profile. We are comfortable with its growth profile, and the somewhat weak year-over-year numbers can partially be explained by its change in fiscal year end, resulting in a different comparable period from the prior year. We would be happy with these results.