EQB Q2 profit tumbles | EQ Bank | Discussion forum

It is pretty clear from that link why EQB's HISA and longer term GIC rates are where they are at. Mortgage underwriting is expected to cool off after a big one year surge and the large increase in deposit accounts and value may be leaving them with too much funds on that side of the ledger.

I've helped them out by moving out most of my HISA cash to brokerage ISA accounts.

It seems to me y'all are reading that wrong. From https://www.prnewswire.com/news-releases/eqb-reports-continued-strong-lending-growth-and-core-earnings-assets-under-management-up-to-45-8-billion-increases-dividend-301602957.html net interest margins are strong and increasing. Profitability in the primary business is increasingly nicely, net of taking some additional credit loss provisions, BUT they expect much lower growth the 2nd half of this year. Hence I suspect having to manage deposit account growth.

I am not an EQB shareholder so have not digested the results in detail but in skimming over it, I see some potential for a stock investment.

The main business of raising deposits and lending is profitable.

Looks like they made some market value adjustments to some investments:

• Severe capital market volatility led to mark-to-market losses of $8.7 million on EQB's strategic investment portfolio. This portfolio was conceived and constructed to enable EQB's subsidiary, Equitable Bank to gain exposure to innovative business models and early-stage technologies that are accretive to Equitable Bank's position as Canada's Challenger Bank
• EQB expects volatility to continue in the second half of 2022, but this does not reflect the underlying strategic value of these investments

Probably invested capital into some startup fintech companies and needed to adjust the valuations closer to current market valuations.

AltaRed said

EQB is a strong advocate of Open Banking as part of its "Challenger Bank" persona. It stands to reason some of this early stage and innovative fintech technology will be written down from time to time. If anything, it is a positive sign EQB is putting its money where its mouth is and being supposedly realistic about valuations.

The early posts in this thread appear to be only looking at EQB from a depositor perspective rather than EQB as a company. I think I will take a harder look at this company from a shareholder perspective.  

From this time last year, EQB's stock is Down ~ 28%. This just might be a
good entry point ❗

➡ https://www.google.com/finance/quote/EQB:TSE

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Dean

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Today's take on EQB by TD Securities . . .

➡ https://tdsecurities.bluematrix.com/sellside/EmailDocViewer?encrypt=2666eded-e6be-4bfb-ac38-05ec3cc3eece&mime=SHORTPDF&co=tdsecurities&id=replaceme@bluematrix.com&source=mail

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REFINITIV Stock Reports gives EQB a '10' . . .

➡ https://marketsandresearch.td.com/tdwca/Reports/Report?documentKey=1581-A9ADE-75I4K29MKNR9VIQMOERA2LNV1T

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Dean