TSX:EGB
EQB
Canada's Challenger Bank™
Note: all cover measures for EQB Inc. as at July 31, 2025.

355.4%
10-year
Total shareholder return
$137
Billion
Total assets under management & administration
761,000+
Customers
Served nationally

Drive change in Canadian banking to enrich people's lives.

EQB Inc.
Third Quarter Report
For the three and nine months ended July 31, 2025

Page 2

EQB Overview

Selected financial highlights 3
Overview and outlook 7

Management's Discussion and Analysis (MD&A) 10

Adjustments to financial results 11
Detailed financial summary 13
Risk management 32
Glossary 37
Non-generally accepted accounting principles (GAAP) financial measures and ratios 38

Financial results

Consolidated financial statements (unaudited) 39
Notes to consolidated financial statements 47
Shareholder and corporate information 77

Caution regarding forward-looking statements

Statements made in the sections of this report including those entitled "Overview and outlook", "Provision for credit losses", "Credit portfolio quality", "Liquidity investments", "Capital management", "Risk management", and 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", "guidance", "planned", "estimates", "forecasts", "outlook", "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", "should", "might" or "will be taken", "occur", "be achieved", "will likely" 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 EQB's customers and rates of default, and competition as well as those factors discussed under the heading "Risk Management" herein 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 loan business, a continuation of the current level of economic uncertainty that affects real estate market conditions including, without limitation, 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.

Page 3

Selected financial highlights

Select financial and other highlights		As at or for three months ended				For the nine months ended
	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change	31-Jul-25	31-Jul-24	Change
Adjusted results ($000s)(1)
Net interest income	254,077	271,059	(6%)	271,367	(6%)	788,522	794,715	(1%)
Non-interest revenue	56,087	44,891	25%	55,871	0%	160,227	147,955	8%
Revenue	310,164	315,950	(2%)	327,238	(5%)	948,749	942,670	1%
Non-interest expenses	165,534	155,858	6%	145,694	14%	474,107	422,839	12%
Pre-provision pre-tax income(2)	144,630	160,092	(10%)	181,544	(20%)	474,642	519,831	(9%)
Provision for credit losses	33,968	30,234	12%	19,576	74%	77,862	57,328	36%
Income before income taxes	110,662	129,858	(15%)	161,968	(32%)	396,780	462,503	(14%)
Income tax expense	30,404	35,649	(15%)	44,784	(32%)	106,083	125,927	(16%)
Net income	80,258	94,209	(15%)	117,184	(32%)	290,697	336,576	(14%)
Net income available to common shareholders	79,678	89,190	(11%)	114,258	(30%)	284,530	328,154	(13%)
Earnings per share – diluted ($)	2.07	2.31	(10%)	2.96	(30%)	7.36	8.53	(14%)
Return on equity (%)(3)	10.1	11.9	(1.80)	15.9	(5.8)	12.4	15.7	(3.3)
Efficiency ratio (%)(3)(4)	53.4	49.3	4.1	44.5	8.9	50.0	44.9	5.1
Net interest margin (%)(2)	1.95	2.20	(0.25)	2.09	(0.14)	2.07	2.07	-
Reported results ($000s)
Net interest income	250,042	271,059	(8%)	271,367	(8%)	784,487	794,715	(1%)
Non-interest revenue	56,087	44,891	25%	55,871	0%	160,227	147,955	8%
Revenue	306,129	315,950	(3%)	327,238	(6%)	944,714	942,670	0%
Non-interest expenses	170,954	161,190	6%	150,569	14%	491,399	440,474	12%
Pre-provision pre-tax income(2)	135,175	154,760	(13%)	176,669	(23%)	453,315	502,196	(10%)
Provision for credit losses	33,968	30,234	12%	21,274	60%	82,880	59,026	40%
Income before income taxes	101,207	124,526	(19%)	155,395	(35%)	370,435	443,170	(16%)
Income tax expense	27,843	34,234	(19%)	43,241	(36%)	99,069	120,918	(18%)
Net income	73,364	90,292	(19%)	112,154	(35%)	271,366	322,252	(16%)
Net income available to common shareholders	73,014	85,533	(15%)	109,538	(33%)	265,949	314,454	(15%)
Earnings per share ($) – basic	1.91	2.23	(14%)	2.86	(33%)	6.93	8.24	(16%)
Earnings per share ($) – diluted	1.90	2.21	(14%)	2.84	(33%)	6.88	8.17	(16%)
Return on equity (%)	9.3	11.4	(2.1)	15.2	(5.9)	11.6	15.1	(3.5)
Efficiency ratio (%)	55.8	51.0	4.8	46.0	9.8	52.0	46.7	5.3
Net interest margin (%)(2)	1.92	2.20	(0.28)	2.09	(0.17)	2.06	2.07	(0.01)
Revenue per full time equivalent ($)(3)	154	163	(6%)	177	(13%)	486	515	(6%)
Balance sheet and other information ($ millions)
Total assets	54,562	54,305	0%	54,070	1%
Assets under management(2)	86,638	83,888	3%	78,200	11%
Loans – Personal & Commercial	47,188	47,228	(0.1%)	47,958	(2%)
Loans under management(2)	73,825	71,464	3%	66,878	10%
Assets under administration(2)	50,415	50,097	1%	47,152	7%
Total deposit principal	35,835	34,429	4%	32,710	10%
EQ Bank deposit principal	9,725	9,393	4%	8,890	9%
Total risk-weighted assets(3)	20,073	19,802	1%	19,650	2%

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Select financial and other highlights As at or for the three months ended						For the nine months ended
	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change	31-Jul -25	31-Jul-24	Change
Credit quality (%)
Reported provision for credit losses – rate(3)	0.28	0.25	0.03	0.18	0.10	0.23	0.17	0.06
Net impaired loans as a % of total loan assets	1.64	1.56	0.08	1.09	0.55
Net allowance for credit losses as a % of total loan assets	0.33	0.29	0.04	0.26	0.07
Share information
Common share price – close ($)	102.82	95.31	8%	96.37	7%
Book value per common share ($)(3)	82.37	80.99	2%	75.67	9%
Common shares outstanding (thousands)	38,311	38,292	0%	38,382	(0%)
Common share market capitalization ($ millions)	3,939	3,650	8%	3,699	6%
Common shareholders’ equity ($ millions)	3,156	3,101	2%	2,904	9%
Dividends paid – common share ($)	0.53	0.51	4%	0.45	18%	1.53	1.27	20%
Dividends paid – preferred share – Series 3 ($)	-	-	n.m.	0.37	n.m.	-	0.74	n.m.
Dividend yield – common shares (%)(3)	2.2	2.1	0.1	2.0	0.2	2.0	2.0	-
Capital ratios and leverage ratio (%)(5)
Total capital ratio	15.7	15.6	0.1	16.6	(0.9)
Tier 1 capital ratio	14.1	14.0	0.1	16.1	(2.0)
Common equity tier 1 ratio	13.3	13.2	0.1	14.7	(1.4)
Leverage ratio	4.9	4.8	0.1	5.6	(0.7)
Business information
Employees – average full-time equivalent	1,991	1,941	3%	1,849	8%	1,942	1,831	6%
EQ Bank customers (thousands)	586	560	5%	485	21%

n.m. not meaningful
(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 Adjustments to financial results section, and Non-GAAP financial measures and ratios section of this MD&A.
(2) These are non-GAAP measures, see Non-GAAP financial measures and ratios section of this MD&A.
(3) See Glossary section of this MD&A.
(4) Increases in this ratio reflect reduced efficiencies, whereas decreases reflect improved efficiencies.
(5) Regulatory capital requirements for Equitable Bank are determined in accordance with OSFI's Capital Adequacy Requirements (CAR) Guideline, which is based on the capital standards developed by the Basel Committee on Banking Supervision. Leverage ratio is calculated using OSFI's Leverage Requirements (LR) Guideline. See Glossary section of this MD&A.

Page 5

Selected financial highlights - eight quarters

Select financial highlights

	2025			2024				2023
	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Four months Q4
Adjusted results ($000s)(1)
Net interest income	254,077	271,059	263,386	264,578	271,367	267,338	256,010	345,783
Non-interest revenue	56,087	44,891	59,249	56,998	55,871	49,322	42,762	49,503
Revenue	310,164	315,950	322,635	321,576	327,238	316,660	298,772	395,286
Non-interest expenses	165,534	155,858	152,715	148,547	145,694	143,111	134,034	173,012
Pre-provision pre-tax income(2)	144,630	160,092	169,920	173,029	181,544	173,549	164,738	222,274
Provision for credit losses	33,968	30,234	13,660	31,902	19,576	22,217	15,535	19,566
Income before income taxes	110,662	129,858	156,260	141,127	161,968	151,332	149,203	202,708
Income tax expense	30,404	35,649	40,030	39,728	44,784	40,290	40,853	55,673
Net income	80,258	94,209	116,230	101,399	117,184	111,042	108,350	147,035
Net income available to common shareholders	79,678	89,190	115,662	97,073	114,258	108,177	105,719	144,686
Earnings per share - diluted ($)	2.07	2.31	2.98	2.51	2.96	2.81	2.76	3.80
Return on equity (%)	10.1	11.9	15.2	13.1	15.9	15.9	15.6	16.5
Efficiency ratio (%)	53.4	49.3	47.3	46.2	44.5	45.2	44.9	43.8
Net interest margin (%)(2)	1.95	2.20	2.07	2.07	2.09	2.11	2.01	2.00
Reported results ($000s)
Net interest income	250,042	271,059	263,386	255,774	271,367	267,338	256,010	345,783
Non-interest revenue	56,087	44,891	59,249	56,998	55,871	49,322	42,762	49,503
Revenue	306,129	315,950	322,635	312,772	327,238	316,660	298,772	395,286
Non-interest expenses	170,954	161,190	159,255	153,625	150,569	150,420	139,485	181,165
Pre-provision pre-tax income(2)	135,175	154,760	163,380	159,147	176,669	166,240	159,287	214,121
Provision for credit losses	33,968	30,234	18,678	47,987	21,274	22,217	15,535	19,566
Income before income taxes	101,207	124,526	144,702	111,160	155,395	144,023	143,752	194,555
Income tax expense	27,843	34,234	36,992	31,740	43,241	38,307	39,370	53,409
Net income	73,364	90,292	107,710	79,420	112,154	105,716	104,382	141,146
Net income available to common shareholders	73,014	85,533	107,402	75,382	109,538	103,041	101,875	138,797
Earnings per share ($) - basic	1.91	2.23	2.79	1.96	2.86	2.70	2.68	3.67
Earnings per share ($) - diluted	1.90	2.21	2.77	1.95	2.84	2.67	2.66	3.64
Return on equity (%)	9.3	11.4	14.1	10.2	15.2	15.1	15.0	15.8
Efficiency ratio (%)	55.8	51.0	49.4	49.1	46.0	47.5	46.7	45.8
Net interest margin (%)(2)	1.92	2.20	2.07	2.00	2.09	2.11	2.01	2.00
Revenue per full-time equivalent ($)	154	163	170	167	177	172	165	227
Balance sheet and other information ($ millions)
Total assets	54,562	54,305	53,232	53,234	54,070	53,940	53,099	52,933
Assets under management(2)	86,638	83,888	81,432	79,354	78,200	76,515	74,136	67,932
Loans - Personal & Commercial	47,188	47,228	46,340	47,034	47,958	47,909	47,792	47,361
Loans under management(2)	73,825	71,464	69,257	67,861	66,878	65,525	63,929	62,397
Assets under administration(2)	50,415	50,097	50,237	47,684	47,152	46,974	44,725	43,173
Total deposits principal	35,835	34,429	34,007	33,164	32,710	33,559	31,760	31,577
EQ Bank deposits principal	9,725	9,393	9,024	9,055	8,890	8,653	8,328	8,233
Total risk-weighted assets	20,073	19,802	19,476	19,487	19,650	19,720	20,108	19,809

Page 6

Select financial highlights
	2025			2024				2023
	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Four months Q4
Credit quality (%)
Reported provision for credit losses – rate	0.28	0.25	0.16	0.40	0.18	0.19	0.13	0.12
Net impaired loans as a % of total loan assets	1.64	1.56	1.47	1.32	1.09	0.92	0.94	0.76
Net Allowance for credit losses as a % of total loan assets	0.33	0.29	0.28	0.32	0.26	0.23	0.22	0.22
Share information
Common share price – close ($)	102.82	95.31	108.36	106.82	96.37	83.11	92.32	68.82
Book value per common share ($)	82.37	80.99	79.71	77.51	75.67	73.73	71.33	70.33
Common shares outstanding (thousands)	38,311	38,292	38,443	38,450	38,382	38,276	38,173	37,879
Common shareholders' market capitalization ($ millions)	3,939	3,650	4,166	4,107	3,699	3,181	3,524	2,607
Common shareholders' equity ($ millions)	3,156	3,101	3,064	2,980	2,904	2,822	2,723	2,664
Dividends paid – common share ($)	0.53	0.51	0.49	0.47	0.45	0.42	0.40	0.38
Dividends paid – preferred share – Series 3 ($)	-	-	-	0.37	0.37	0.37	0.37	0.37
Dividend yield – common shares (%)	2.2	2.1	1.8	1.9	2.0	1.9	1.9	2.0
Capital ratios and leverage ratio (%)
Total capital ratio	15.7	15.6	15.5	15.6	16.6	15.3	15.4	15.2
Tier 1 capital ratio	14.1	14.0	14.9	15.0	16.1	14.8	14.8	14.6
Common Equity Tier 1 ratio	13.3	13.2	14.1	14.3	14.7	14.1	14.2	14.0
Leverage ratio	4.9	4.8	5.2	5.3	5.6	5.2	5.4	5.3
Business information
Employees – average full-time equivalent	1,991	1,941	1,896	1,868	1,849	1,836	1,808	1,743
EQ Bank customers (thousands)	586	560	536	513	485	457	426	401

(1) Adjusted measures and ratios are Non-GAAP measures and ratios. For additional information, see Adjustments to financial results section, and Non-GAAP financial measures and ratios section of this MD&A.
(2) These are non-GAAP measures and ratios, see Non-GAAP financial measures and ratios section of this MD&A.

Page 7

Overview and outlook

On June 24, 2025, EQB Inc. (EQB) announced the death of Andrew Moor, President & Chief Executive Officer. EQB mourned the loss of a colleague, visionary leader and fierce advocate for change and innovation in Canadian banking. At the time, EQB's Board of Directors (the Board) had nearly completed its years-long succession process in close collaboration with Mr. Moor as he prepared for his planned retirement. On July 9, 2025, EQB announced the appointment of Chadwick Westlake as President and CEO effective August 25, 2025. On that date, Marlene Lenarduzzi, EQB's interim CEO, returned to her former role as Chief Risk Officer. EQB's stability during the interim period is a testament to the strength of its leadership team and EQB's resiliency. Mr. Westlake brings a deep understanding of banking, years of strategic leadership experience, a proven track record, and a clear vision for EQB's future. He embodies a passion for service and the challenger mindset, and the Board is confident in his ability to create compelling value as he leads EQB into its next chapter of growth and performance as a differentiated financial services company.

In the third quarter, EQB continued to navigate through an uncertain and evolving Canadian economy, generating adjusted revenue(1) of $310 million, adjusted pre-provision pre-tax income (PPPT)(1) of $145 million, adjusted diluted earnings per share (EPS)(1) of $2.07 (reported $1.90) and adjusted return on equity (ROE)(1) 10.1% (reported 9.3%). These results did not meet management's expectations despite growth in EQB's core markets and strong non-interest revenue as earnings were negatively impacted by a decline in net interest income, elevated credit loss provisions reflecting market conditions in Canadian residential housing markets and commercial real estate, and increases in expenses associated with through-cycle investments in its businesses.

After a period of elevated policy rates, Bank of Canada interest rate reductions in 2024 and 2025 began to have a positive impact on activity in EQB's markets, particularly at the start of the fiscal year. As global trade tensions intensified, optimism gave way to a more muted outlook for 2025 as consumer confidence diminished, negatively impacting real estate prices and housing market activity. Despite this backdrop and in keeping with its proactive risk management approach – including focusing on large urban markets with diversified sources of employment – EQB's conventional lending portfolio increased 6.2% year to date and EQB's loans under management (LUM)(2) reached $73.8 billion, up 10% y/y. These increases were due to a combination of strong renewal and origination activity in EQB's residential lending business – leading to a 5% y/y or nearly $1 billion increase in the uninsured single-family portfolio, and growth in the decumulation lending and multi-unit residential insured construction – where EQB helps address the need for purpose-built rental housing. EQB's insured multi-unit residential LUM(2) grew 30% y/y or +$7.3 billion, reflecting continued strength in EQB's multi-unit securitization business.

Summary of drivers of third quarter performance:

Net interest income (NII): Adjusted net interest income(1) was $254 million for the quarter, a decrease of 6% y/y and q/q (reported $250 million, down 8% y/y and q/q). The decline in NII was driven by several factors, most notably the impact of attrition of higher margin loans, increase in average cost EQ Bank demand deposits (as customers add to Notice Savings Account Balances and bring their payroll to EQ Bank), an increase in liquidity portfolio and the in-period impacts of derivatives associated with hedging interest rate risk. Adjusted net interest margin(1) was 1.95% (reported 1.92%), down 14 bps y/y from 2.09% and 25 bps q/q. Decline in NIM for the quarter was impacted by elevated NIM in Q2 associated with one-time benefits as well as fewer days in the quarter.
Funding: The Bank continues to strategically diversify funding sources, including taking advantage of cost-effective wholesale funding. EQB's wholesale funding grew to $4.6 billion, +17% q/q and +30% y/y with its latest covered bond issuance in June raising €500 million (CAD $789 million) and as the quarter closed, it completed its latest deposit note of $300 million. These issuances were significantly oversubscribed and priced at tighter spreads, demonstrating investor confidence in EQB's strong fundamentals and stability. EQ Bank deposits grew to $9.7 billion up 4% q/q and 9% y/y driven by customer growth and increasing use of no-fee, high-interest savings options, including the innovative EQ Bank Notice Savings Account. EQ Bank's demand deposits increased 47% y/y and 9% q/q, an underlying trend that demonstrates the growing cohort of customers using EQ Bank as their everyday bank.

Page 8

Non-interest revenue (NIR): Non-interest revenue was $56.1 million in Q3 (consistent y/y, +25% q/q), contributing 18% of total revenue. This income was driven by ongoing contributions from EQB's fee-based businesses — including ACM Advisors, Concentra Trust and payments businesses — and gains from securitization associated with its multi-unit residential business.
Lending portfolio: EQB grew overall LUM(2) by 10% y/y and 3% q/q to $73.8 billion. Growth was driven by uninsured single-family residential which increased to $20.8 billion (+5% y/y, +1% q/q) as EQB continued to retain a high level of borrowers through renewal and attract new business with origination growth of 30% y/y on differentiated service capabilities while maintaining its risk appetite discipline. Decumulation lending continued to perform well, increasing to $2.7 billion (+41% y/y, +8% q/q). Insured multi-unit lending LUM increased 30% y/y and 8% q/q, while insured commercial construction lending grew to $3.5 billion (+28% y/y, +6% q/q) with new originations and construction draws. See more detail in Total loan principal section of this MD&A.
Impaired loans: Net impaired loans were $775 million, increasing $33.3 million during the quarter to 164 bps of total loan assets, compared to 156 bps last quarter and 109 bps last year. Personal lending accounted for $25.9 million of the increase, primarily associated with uninsured single-family residential mortgages. Commercial lending net impaired loans contributed $4.1 million to the increase in the quarter as the pace of new formations slowed but resolution times continue to lengthen given economic uncertainty. Equipment financing net impaired loans increased by $3.3 million q/q.
Provisions for credit losses (PCL): The PCL for the quarter was $34.0 million, mainly reflecting higher provisions in Personal and Commercial lending. The Stage 1 & 2 allowance rate for uninsured loans increased to 38 bps from 35 bps last quarter reflecting a deterioration in macroeconomic indicators, economic uncertainty inclusive of tariffs, and an increase in commercial early-stage delinquencies of $44 million q/q. The PCL associated with impaired loans and equipment financing was $22.9 million in the quarter, down from $23.2 million in Q2, of which $9.6 million is associated with Personal lending and $6.4 million with Commercial. Equipment financing provisions for impaired leases were $6.9 million in the quarter, down from $10.6 million in Q2. For additional details, please refer to the Provision for Credit Losses section of this MD&A.
Non-interest expenses: Adjusted non-interest expenses(1) in the quarter were $166 million (reported $171 million), an increase of +14% y/y and +6% q/q (reported +14% y/y and +6% q/q). Expense growth was driven by ongoing investments in technology, innovation, and capabilities; product and operations costs associated with a growing EQ Bank customer base; and an increase in premises costs. EQB's adjusted efficiency ratio(1) was 53.4% (reported 55.8%), +8.9% (reported +9.8%) y/y.
Capital: Equitable Bank (the Bank) continues to optimize its capital structure to support its strategic objectives and is committed to maintaining strong capital levels including a Total Capital Ratio above 15%. During the quarter, the Bank continued to deliver strong organic capital generation of $59 million of Common Equity Tier 1 (CET1) Capital. The CET1 Ratio was 13.3%, meeting the Bank's commitment to maintaining its CET1 Capital Ratio above 13% through the end of fiscal 2025, while the Total Capital Ratio was 15.7%.
Dividends: On August 27, 2025, EQB declared a quarterly dividend of $0.55 per common share, representing a 17% increase over dividends declared a year ago and up 4% from last quarter.

(2) These are non-GAAP measures, see Non-GAAP financial measures and ratios section of this MD&A.

Page 9

Outlook

This outlook section contains forward-looking information; readers should refer to the Caution regarding forward-looking statements section herein. Ongoing economic uncertainty, including potential trade disruptions and geopolitical tensions, make it challenging to predict near to medium term impacts to markets in which EQB operates. Despite the challenges experienced in 2025, management continues to believe in the fundamentals of its core businesses, its value creation strategy and structural ability to deliver 15-17% ROE. Certain core performance measures in fiscal 2025 will fall below EQB's medium-term guidance. Although LUM growth and NIM should remain within range, elevated PCLs and investments in new capabilities through the cycle have impacted ROE and diluted EPS, as well as book value per share (BVPS) growth. Management expects 2025 adjusted ROE to be approximately 11.5% while diluted EPS is expected to decline 12-15% y/y. PPPT is expected to decline 10-12% relative to 2024 with negative operating leverage in 2025. BVPS is expected to increase 7-9% y/y and dividend growth will be above guidance as organic capital generation continues to support EQB's growth ambitions.

With a long-term focus on growth and value creation through economic cycles, management remains dedicated to applying its financial and risk management disciplines to create shareholder value while delivering exceptional service.

Loan growth: The EQB will maintain its disciplined, prudent and proactive risk management approach as it continues to grow its lending businesses. Housing markets remain somewhat muted as economic and geopolitical uncertainty weigh on consumer confidence. EQB will continue to leverage its deep expertise in credit and the housing market and focus on urban centres that have diversified and stable labour markets. Recent market share gains in uninsured single family, lower interest rates, less restrictive monetary policy, and continued demand for affordable rental housing in Canada should provide growth opportunities for EQB's uninsured single family, decumulation, insured multi-unit residential and insured construction lending businesses.
Non-interest expenses: EQB prioritizes investing in its businesses through the economic cycle maintaining discipline and flexibility to deliver target returns. EQB will continue to make strategic investments to support growth initiatives, including: i) growing EQ Bank through investments in brand, marketing, product/experience development, and platform; ii) the public launch of EQ Bank's Small Business Account, bringing high-interest, no-fee services for small and medium-sized business customers, and iii) investing in important operational areas such as risk management and compliance capabilities to support EQB's growing scale and complexity.
Credit: The credit environment remains challenged as continued uncertainty in the economic outlook impacts expectations for GDP, unemployment, and real estate prices. Housing activity in general remains muted and housing prices are forecasted to decline over the next 12 months before rising. Resolution times continue to extend with valuation being negatively impacted. Pace of increase in new delinquencies in single family has moderated - as nearly all of EQB's single family portfolio has now renewed during periods of higher interest rates, most customer's next renewal will lead to lower payments positively impacting affordability.
Equitable Bank Regulatory Capital: Equitable Bank is committed to maintaining strong capital levels, well above regulatory minimums. As Equitable Bank continues to optimize its capital structure to support strategic objectives and to maintain strong overall capital levels, management regularly reviews its Total Capital target. Following its Internal Capital Adequacy Assessment Process, the Bank established that it would operate above a Total Capital Ratio of 15% and expects that up to 300 bps of Total Capital could be contributed by Alternative Tier 1 and Tier 2 Capital in 2027 and beyond. The Bank's CET1 guidance remains consistent at 13%+ for the balance of fiscal 2025.
Return of capital: EQB's medium-term guidance on dividends is annual growth of 15%. In January, EQB renewed and expanded its Normal Course Issuer Bid (NCIB), which allows for the repurchase and cancellation of up to 2,300,000 shares. During the nine-months ended July 31, 2025, 292,617 common shares were purchased or cancelled through NCIB, while no purchase or cancellation occurred during the third quarter of fiscal 2025. Use of the NCIB will be opportunistic within EQB's broader capital allocation framework that prioritizes reinvestment in organic growth as the means to deliver ROE of 15%.

Page 10

Management's Discussion and Analysis

For the three and nine months ended July 31, 2025

Management's Discussion and Analysis (MD&A) is provided to enable readers to assess the financial position and the results of the consolidated operations of EQB for the three months (quarter) and nine months ended July 31, 2025. This MD&A should be read in conjunction with EQB's unaudited interim consolidated financial statements as at and for the nine months ended July 31, 2025 and accompanying notes. All amounts are in Canadian dollars. This report, including the information provided herein, is dated as at August 27, 2025.

EQB's continuous disclosure materials, including interim filings, annual MD&A and consolidated financial statements, Annual Information Form, Responsibility Report for Environmental, Social, and Governance (ESG) practices, Management Information Circular, Notice of Annual Meeting of Shareholders and Proxy Circular are available on EQB's website at eqb.investorroom.com and on SEDAR+ at www.sedarplus.ca.

Income statement review:		Accounting standards and policies:
Adjustments to financial results	11	Accounting policy changes	30
Detailed financial summary	13	Critical accounting estimates	30
Balance sheet review:		Responsibilities of management and the board of directors	31
Total loan principal	19	Changes in internal control over Financial reporting	31
Credit portfolio quality	21
Deposits	24	Risk Management	32
Liquidity investments	26	Glossary	37
Off-balance sheet arrangements	27	Non-GAAP financial measures and ratios	38
Related party transactions	27
Capital management	28
Shareholders' equity	29

Page 11

Adjustments to financial results

Adjustments impacting current and prior periods:

To enhance comparability between reporting periods and increase consistency with the reporting regimens used by other leading Canadian financial institutions, EQB provides adjusted results in parallel with reported measures. Adjusted results are non-GAAP financial measures that enable readers to assess underlying business results and trends. Adjustments listed below are presented on a pre-tax basis:

Q3 2025

$4.0 million fair value adjustment on a covered bond maturity;
$2.6 million accelerated long-term incentive expense following the former CEO's passing;
$0.9 million new office lease related expenses; and
$2.0 million intangible asset amortization.

Q2 2025

$3.4 million new office lease related expenses prior to occupancy, and
$2.0 million intangible asset amortization.

Q3 2024

$2.7 million non-recurring operational effectiveness expenses and acquisition and integration-related costs associated with Concentra and ACM;
$2.2 million intangible asset amortization; and
$1.7 million provision for credit losses due to change in ECL methodology from five to four economic scenarios and associated weights.

The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. For additional adjusted measures and information regarding non-GAAP financial measures, please refer to the Non-GAAP financial measures and ratios section of this MD&A.

Reconciliation of reported and adjusted financial results	For the three months ended			For the nine months ended
($000s, except share and per share amounts)	31-Jul-25	30-Apr-25	31-Jul-24	31-Jul -25	31-Jul-24
Reported results
Net interest income	250,042	271,059	271,367	784,487	794,715
Non-interest revenue	56,087	44,891	55,871	160,227	147,955
Revenue	306,129	315,950	327,238	944,714	942,670
Non-interest expense	170,954	161,190	150,569	491,399	440,474
Pre-provision pre-tax income(1)	135,175	154,760	176,669	453,315	502,196
Provision for credit loss	33,968	30,234	21,274	82,880	59,026
Income tax expense	27,843	34,234	43,241	99,069	120,918
Net income	73,364	90,292	112,154	271,366	322,252
Net income available to common shareholders	73,014	85,533	109,538	265,949	314,454
Adjustments
Net interest income - covered bond fair value adjustment	4,035	-	-	4,035	-
Non-interest expenses - accelerated incentive expense	(2,594)	-	-	(2,594)	-
Non-interest expenses - new office lease related expenses	(857)	(3,363)	-	(7,009)	-
Non-interest expenses - non-recurring operational effectiveness and acquisition-related costs(2)	-	-	(2,652)	(1,782)	(10,416)
Non-interest expenses - intangible asset amortization	(1,969)	(1,969)	(2,223)	(5,907)	(7,219)
Provision for credit loss - equipment financing	-	-	-	(5,018)	-
Provision for credit loss - ECL methodology change and weights	-	-	(1,698)	-	(1,698)
Pre-tax adjustments	9,455	5,332	6,573	26,345	19,333
Income tax expense - tax impact on above adjustments(3)	2,561	1,414	1,543	7,014	5,009
Post-tax adjustments - net income	6,894	3,918	5,030	19,331	14,324
Adjustments attributed to minority interests	(230)	(259)	(310)	(750)	(624)
Post-tax adjustments - net income to common shareholders	6,664	3,659	4,720	18,581	13,700
Adjusted results
Net interest income	254,077	271,059	271,367	788,522	794,715
Non-interest revenue	56,087	44,891	55,871	160,227	147,955
Revenue	310,164	315,950	327,238	948,749	942,670
Non-interest expense	165,534	155,858	145,694	474,107	422,839
Pre-provision pre-tax income(1)	144,630	160,092	181,544	474,642	519,831
Provision for credit loss	33,968	30,234	19,576	77,862	57,328
Income tax expenses(3)	30,404	35,649	44,784	106,083	125,927
Net income	80,258	94,209	117,184	290,697	336,576
Net income available to common shareholders	79,678	89,190	114,258	284,530	328,154
Diluted earnings per share
Weighted average diluted common shares outstanding	38,519,991	38,662,002	38,606,268	38,654,423	38,490,651
Diluted earnings per share - reported	1.90	2.21	2.84	6.88	8.17
Diluted earnings per share - adjusted	2.07	2.31	2.96	7.36	8.53
Diluted earnings per share - adjustment impact	0.17	0.10	0.12	0.48	0.36

(1) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section of this MD&A.
(2) Includes non-recurring operational effectiveness and acquisition and integration-related costs associated with Concentra Bank and ACM.
(3) Income tax expense associated with non-GAAP adjustment was calculated based on the statutory tax rate applicable for that period.

Detailed financial summary

Income statement and earnings summary

Table 1: Income Statement highlights

($000s, except per share amounts) For the three months ended For the nine months ended
	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change	31-Jul-25	31-Jul-24	Change
Adjusted results(1)
Revenue	310,164	315,950	(2%)	327,238	(5%)	948,749	942,670	1%
Non-interest expenses	165,534	155,858	6%	145,694	14%	474,107	422,839	12%
Provision for credit losses	33,968	30,234	12%	19,576	74%	77,862	57,328	36%
Income tax expenses	30,404	35,649	(15%)	44,784	(32%)	106,083	125,927	(16%)
Net income	80,258	94,209	(15%)	117,184	(32%)	290,697	336,576	(14%)
Net income available to common shareholders	79,678	89,190	(11%)	114,258	(30%)	284,530	328,154	(13%)
Earnings per share – diluted ($)	2.07	2.31	(10%)	2.96	(30%)	7.36	8.53	(14%)
Reported results
Revenue	306,129	315,950	(3%)	327,238	(6%)	944,714	942,670	0%
Non-interest expenses	170,954	161,190	6%	150,569	14%	491,399	440,474	12%
Provision for credit losses	33,968	30,234	12%	21,274	60%	82,880	59,026	40%
Income tax expenses	27,843	34,234	(19%)	43,241	(36%)	99,069	120,918	(18%)
Net income	73,364	90,292	(19%)	112,154	(35%)	271,366	322,252	(16%)
Net income available to common shareholders	73,014	85,533	(15%)	109,538	(33%)	265,949	314,454	(15%)
Earnings per share – diluted ($)	1.90	2.21	(14%)	2.84	(33%)	6.88	8.17	(16%)

Net interest income (NII) is the main driver of EQB's revenue and profitability. The table below details EQB's NII by product and portfolio.

Table 2: Net interest income

($000s, except percentages)For the three months endedFor the nine months ended
	31-Jul-25		30-Apr-25		31-Jul-24		31-Jul-25		31-Jul-24
	Revenue/Expense	Average rate(1)	Revenue/Expense	Average rate	Revenue/Expense	Average rate	Revenue/Expense	Average rate	Revenue/Expense	Average rate
Revenues derived from:
Cash and debt securities	37,739	3.26%	32,211	3.46%	48,257	4.74%	108,631	3.52%	131,448	4.74%
Equity securities	(113)	(4.32%)	(41)	(1.16%)	385	4.52%	(65)	(0.55%)	1,257	4.87%
Single-family mortgages – insured	75,112	3.65%	75,589	3.56%	89,327	3.52%	230,945	3.58%	279,361	3.61%
Single-family mortgages – uninsured	322,522	6.18%	324,475	6.53%	355,131	7.15%	986,271	6.47%	1,010,463	6.86%
Decumulation loans	43,662	6.48%	39,614	6.58%	32,209	6.88%	121,648	6.59%	87,141	6.86%
Consumer lending	22,259	10.92%	21,659	11.06%	24,753	11.25%	67,398	11.02%	75,708	11.42%
Total Personal loans	463,555	5.69%	461,337	5.84%	501,420	6.12%	1,406,262	5.82%	1,452,673	5.96%
Commercial loans	154,101	6.94%	149,762	7.23%	190,684	8.60%	462,917	7.26%	575,996	8.84%
Equipment financing	26,979	10.06%	27,570	10.51%	30,154	9.76%	82,419	10.13%	92,460	9.78%
Insured multi-unit residential mortgages	36,129	2.87%	34,659	3.04%	35,950	2.88%	105,981	2.93%	109,055	2.91%
Total Commercial loans	217,209	5.80%	211,991	6.10%	256,788	6.81%	651,317	6.03%	777,511	6.93%
Average interest-earning assets	718,390	5.50%	705,498	5.73%	806,850	6.21%	2,166,145	5.69%	2,362,889	6.15%
Expenses related to:
Deposits	330,074	3.71%	317,391	3.80%	387,208	4.68%	995,274	3.88%	1,111,772	4.62%
Securitization liabilities	122,502	3.74%	112,213	3.44%	132,810	3.51%	360,147	3.59%	391,839	3.49%
Others	11,737	3.56%	4,835	3.74%	15,465	5.41%	22,202	3.84%	64,563	5.53%
Average interest-bearing liabilities	464,313	3.72%	434,439	3.70%	535,483	4.34%	1,377,623	3.80%	1,568,174	4.30%
Adjusted net interest income and margin(2)	254,077	1.95%	271,059	2.20%	271,367	2.09%	788,522	2.07%	794,715	2.07%
Adjustment associated with covered bond expenses	(4,035)	-	-	-	-	-	(4,035)	-	-	-
Reported net interest income and margin	250,042	1.92%	271,059	2.20%	271,367	2.09%	784,487	2.06%	794,715	2.07%

(1) Average rates are calculated based on the daily average balances outstanding during the period.
(2) Adjusted measures and ratios are Non-GAAP measures and ratios. For additional information, see Adjustments to financial results section, and Non-GAAP financial measures and ratios section of this MD&A.

Page 15

Q3 2025 v Q2 2025

Adjusted net interest income(1) (NII) decreased 6% (reported -8%) while net interest margin (NIM) declined 25 bps (reported -28) q/q. The decline primarily reflected decreases in uninsured single-family yields as Bank of Canada policy interest rates decreased over the year at a faster pace than EQB's cost of funds, asset mix shifts to lower yielding liquid assets, and some hedge ineffectiveness this quarter compared to a derivative gain on securitization liabilities in Q2.

Q3 2025 v Q3 2024

Adjusted NII(1) -6% (reported -8%) and adjusted NIM(1) -14 bps (reported -17 bps) y/y. The NII decrease was largely related to a decline in NIM associated with higher margin uninsured residential mortgages and uninsured commercial mortgages originated over the past twelve months, growth of lower yield CMHC-insured construction loans, and a planned reduction in the size of EQB's uninsured commercial book.

YTD 2025 v YTD 2024

Adjusted NIM(1) remained stable (reported -1 bp) year over year.

Non-interest revenue

Table 3: Non-interest revenue

($000s)			For the three months ended			For the nine months ended
	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change	31-Jul-25	31-Jul-24	Change
Fees and other income	24,747	22,713	9%	22,561	10%	70,380	59,740	18%
Gains on strategic investments	2,671	1,839	45%	2,250	19%	6,380	5,334	20%
Net (losses) gains on other investments	(2,150)	(810)	n.m.	3,895	n.m.	(2,526)	12,933	n.m.
Gains on sale and income from retained interests	26,468	20,090	32%	22,755	16%	71,430	65,341	9%
Net gains on securitization activities and derivatives	4,351	1,059	n.m.	4,410	n.m.	14,563	4,607	n.m.
Total non-interest revenue	56,087	44,891	25%	55,871	0%	160,227	147,955	8%

n.m. not meaningful

Q3 2025 v Q2 2025

Non-interest revenue (NIR) increased $11.2 million or 25% q/q, driven by higher revenue from insured multi-unit securitization and derecognition activities, growth in EQ Bank and Trust service fee income, net gains from securitization activities and derivative instruments, and gains from strategic investments. These gains were offset in part by higher losses on EQB's debt security investments.

Q3 2025 v Q3 2024

NIR was stable y/y (+$0.2 million), as increases in service-related fee revenue and higher gains on derecognized of insured multi-unit residential mortgages were offset by mark-to-market losses on debt security holdings compared to gains in Q3 2024.

Page 16

YTD 2025 v YTD 2024

The growth in NIR of $12.3 million (+8%) was largely attributable to strong performance across fee-based businesses including an additional 1.5-months of revenue from ACM (acquired mid-December 2024) and higher net gains from securitization activities and derivative contracts.

Provision for credit losses

Table 4: Provision for credit losses

($000s, except percentages)For the three months endedFor the nine months ended
	31-Jul-25	30-Apr-25	Change	31-Jul -24	Change	31-Jul-25	31-Jul-24	Change
Stage 1 and 2 provision (recovery)	10,001	5,761	74%	779	1,184%	20,647	(2,992)	n.m.
Stage 3 provision	23,967	24,473	(2%)	20,495	17%	62,233	62,018	0%
Total Provision for credit losses - reported	33,968	30,234	12%	21,274	60%	82,880	59,026	40%
Less: Stage 1 and 2 provision - ECL methodology change and weights	-	-	n.m.	(1,698)	n.m.	-	(1,698)	100%
Total Provision for credit losses - adjusted(1)	33,968	30,234	12%	19,576	74%	82,880	57,328	45%

n.m. not meaningful.
(1) Adjusted measures and ratios are Non-GAAP measures and ratios. For additional information, see Adjusted financial results section, and Non-GAAP financial measures section of this MD&A.

Q3 2025 v Q2 2025

Total PCL for the quarter was $34.0 million (+$3.7 million q/q), mainly attributable to an increase in Stage 1 & 2 PCL. PCL was comprised of $12.8 million in personal lending (+$3.4 million q/q), $10.8 million in commercial (+$1.3 million q/q), $9.3 million in equipment financing (-$0.8 million q/q), and $1.1 million in provisions against other accounts receivable.

Stage 1 and 2 provisions were $10.0 million for the quarter (+74% q/q) as a result of a deterioration in forward-looking indicators, in particular forecasts for GDP growth and employment levels, and credit trends within the lending portfolios.

Within Stage 3 PCL, personal lending was $9.6 million (+$3.8 million q/q) as gross impaired loans increased $30.6MM and an elevated supply of housing relative to demand continued to impact the duration of resolutions and valuations. Commercial Stage 3 provisions were $6.4 million, declining $0.5 million q/q. Equipment financing PCL was $6.9 million, $3.6 million lower q/q, and included a $1.4 million provision associated with equipment loans that were acquired from a third party.

Q3 2025 v Q3 2024

Year over year, provisions were higher by $12.7 million, including $13.6 million for personal, $9.5 million for commercial and $1.1 million associated with an account receivable, offset by an $11.5 million decrease in equipment financing.

The PCL increase in both the personal and commercial portfolios compared to Q3 2024 were attributable to higher Stage 1 & 2 provisions due to weaker forward-looking indicators in the current period and higher Stage 3 provisions tied to impaired loans in those businesses.

Page 17

Provisions on equipment financing declined from a year ago, in particular for stage 3, as impaired loans ran off the book and the reserves provided on the remaining non-performing loans were deemed sufficient, versus elevated provisions booked in Q3 2024. Within the equipment financing business, there is a purchase facility under which a $48 million exposure, net of provisions and cash reserves, for transportation equipment and related leases remained outstanding at July 31, 2025. These were acquired from a Canadian subsidiary of Pride Group Holdings Inc.

YTD 2025 v YTD 2024

Total adjusted PCL$^{(1)}$ for the period was $82.9 million (reported $82.9 million), +$25.6 million y/y (reported +$23.9 million), largely driven by $20.6 million of provisions recorded on performing loans compared to a $1.3 million recovery in the same period of last year, and $2.3 million provisions on other receivables. The higher loan provisions were largely driven by a deterioration in macroeconomic variables this period relative to more optimism a year ago. As well, a cash reserve received from a consumer lending partner offset potential losses in Q1 2024. Stage 3 provisions increased by $0.2 million y/y.

In materials filed by the Pride Group with the court in its creditor protection proceedings and in the reports to the court filed by Ernst & Young Inc., in its capacity as the monitor of the Pride Group in those proceedings, there is disclosure of irregularities in the financing and record-keeping practices, resulting in instances where multiple financiers may assert a first priority interest in the same collateral and/or situations where the underlying collateral was not, or is no longer, in the form intended by the parties. Additionally, the underlying documentation and practices relating to security registration in respect of the program with Pride Group are also contributing factors which will determine the impact on those losses. The creditor protection proceedings are ongoing and there remains uncertainty about the timing and outcome of the proceedings, including as it relates to competing entitlements to certain assets acquired.

Non-interest expenses

Table 5: Non-interest expenses and efficiency ratio

($000s, except percentages and FTE) For the three months ended For the nine months ended
	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change	31-Jul-25	31-Jul -24	Change
Compensation and benefits	79,791	74,280	7%	69,912	14%	230,005	202,242	14%
Technology and system costs	25,362	22,449	13%	21,812	16%	71,344	61,592	16%
Regulatory, legal and professional fees	14,540	12,744	14%	13,936	4%	40,158	39,799	1%
Product costs	25,343	25,297	0%	21,450	18%	74,002	66,145	12%
Marketing and corporate expenses	18,046	19,233	(6%)	19,715	(8%)	54,359	60,503	(10%)
Premises	7,872	7,187	10%	3,744	110%	21,531	10,193	111%
Total non-interest expenses – reported	170,954	161,190	6%	150,569	14%	491,399	440,474	12%
Less: expenses removed from reported results	(5,420)	(5,332)	n.m.	(4,875)	n.m.	(17,292)	(17,635)	n.m.
Total non-interest expenses – adjusted$^{(1)}$	165,534	155,858	6%	145,694	14%	474,107	422,839	12%
Efficiency ratio – reported	55.8%	51.0%	4.8%	46.0%	9.8%	52.0%	46.7%	5.3%
Efficiency ratio – adjusted$^{(1)}$	53.4%	49.3%	4.1%	44.5%	8.9%	50.0%	44.9%	5.1%
Full-time employee equivalent (FTE) – period average	1,991	1,941	3%	1,849	8%	1,942	1,831	6%

n.m. not meaningful
(1) Adjusted measures and ratios are Non-GAAP measures and ratios. For additional information, see Adjustments to financial results section, and Non-GAAP financial measures and ratios section of this MD&A.

Page 18

EQB's adjusted efficiency ratio⁽¹⁾ in Q3 was 53.4% (reported 55.8%), up q/q and y/y, as expenses grew (explained below) while revenue declined on lower NII during the relative periods.

Q3 2025 v Q2 2025

Adjusted non-interest expenses⁽¹⁾ (NIX) increased $9.8 million q/q (reported +$9.7 million), mainly attributable to staffing growth, investments in cloud-based banking system that enhance capabilities and digital capacity, higher marketing spend (offset by lower corporate expenses), and premise expenses related to EQB's new headquarters in Toronto beginning in May 2025.

⁽¹⁾ Adjusted measures and ratios are Non-GAAP measures and ratios. For additional information, see Adjusted financial results section, and Non-GAAP financial measures and other financial and banking measures and terms section of this MD&A.

Q3 2025 v Q3 2024

Adjusted NIX⁽¹⁾ +$19.8 million y/y (reported +$20.4 million), mainly due to compensation and headcount growth, technology modernization, higher product-related transaction costs tied to portfolio growth, and an increase in premise expenses beginning in Q3 2025, offset in part by a reduction in marketing and corporate spending.

YTD 2025 v YTD 2024

Adjusted NIX⁽¹⁾ grew $51.3 million y/y (reported +$50.9 million), primarily due to the same reasons cited above when comparing Q3 2025 to Q3 2024.

⁽¹⁾ Adjusted measures and ratios are Non-GAAP measures and ratios. For additional information, see Adjustments to financial results section, and Non-GAAP financial measures and ratios section of this MD&A.

Balance sheet review

Balance sheet summary

Table 6: Balance sheet highlights

($ millions, except percentages)	31-Jul -25	30-Apr-25	Change	31-Oct-24	Change	31-Jul-24	Change
Total assets	54,562	54,305	0%	53,234	2%	54,070	1%
Total assets under management (AUM)(2) and assets under administration (AUA)(2)	137,053	133,985	2%	127,038	8%	125,352	9%
Loan principal – Personal(1)	32,227	32,453	(1%)	32,211	0%	32,515	(1%)
Loan principal – Commercial(1)	14,940	14,750	1%	14,818	1%	15,404	(3%)
Total deposits principal(1)	35,835	34,429	4%	33,164	8%	32,710	10%
EQ Bank deposit principal(1)	9,725	9,393	4%	9,055	7%	8,890	9%
Total liquid assets(2) as a % of total assets	8.1%	8.5%	(0.4%)	7.5%	0.6%	7.6%	0.5%

(1) The principal numbers are reported on a consolidated basis, prior to any Concentra acquisition-related fair value adjustments that are captured in balance sheet measures.
(2) This is a Non-GAAP measure, refer to the Non-GAAP financial measures and ratios section of this MD&A.

Total AUM(2) and AUA(2) reached $137 billion, +2% q/q and +9% y/y, including $7.3 billion of year-over-year growth in CMHC insured multi-unit loans under management(2), and +7% in assets under management & administration associated with ACM alternative assets and Concentra Trust. Total deposit principal continued to grow, of which EQ Bank's deposit balance was $9.7 billion at July 31, 2025, representing an increase of 4% q/q and 9% y/y.

Total loan principal

EQB's strategy is to maintain a diverse portfolio of loans to optimize ROE while prudently managing credit risk. The table below presents EQB's loan principal by lending business, and Table 8 provides continuity schedules for the on-balance sheet loan portfolio.

Table 7: Loan principal by lending business(1)

($000s)	31-Jul -25	30-Apr-25	Change	31-Jul -24	Change
Single-family mortgages – insured	7,827,115	8,478,347	(8%)	9,831,147	(20%)
Single-family mortgages – uninsured	20,819,272	20,610,425	1%	19,847,005	5%
Decumulation loans	2,736,906	2,537,868	8%	1,940,262	41%
Consumer lending	844,111	826,444	2%	896,174	(6%)
Total Personal Lending – on balance sheet	32,227,404	32,453,084	(1%)	32,514,588	(1%)
Commercial loans	9,073,960	8,787,764	3%	9,016,169	1%
Equipment financing	1,110,312	1,118,340	(1%)	1,239,290	(10%)
Insured multi-unit residential mortgages	4,754,825	4,843,706	(2%)	5,148,625	(8%)
Total Commercial Lending – on balance sheet	14,939,097	14,749,810	1%	15,404,084	(3%)
Total Loans – on balance sheet	47,166,501	47,202,894	(0%)	47,918,672	(2%)
Insured multi-unit residential mortgages – derecognized	26,658,379	24,261,469	10%	18,959,154	41%
Total Commercial Lending – loans under management (LUM)(2)(3)	41,597,476	39,011,279	7%	34,363,238	21%
Total Loans under management (LUM)(2)	73,824,880	71,464,363	3%	66,877,826	10%

(1) The principal numbers are reported on a consolidated basis, excluding any Concentra acquisition-related fair value adjustments that are captured in balance sheet measures.
(2) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section of this MD&A.
(3) Over 80% of Commercial LUM was insured against credit loss by CMHC.

Page 20

Q3 2025 v Q2 2025

Total LUM +3% q/q, as both personal and commercial conventional lending, decumulation, and CMHC-insured multi-unit residential mortgage LUM drove steady ongoing lending growth across consecutive quarters.

Within the Personal lending portfolio, uninsured single-family mortgages grew $209 million in the quarter driven by strong renewal rates and growth in originations, while decumulation lending expanded $199 million. As planned, lower margin insured single-family mortgages continued to decline on lower origination activity compared to maturities. The consumer lending portfolio increased slightly (+$17.7 million) in the quarter and remained 3% of the total Personal portfolio.

Commercial lending LUM, including off-balance sheet insured multi-unit residential mortgages, rose 7% due to growth in insured multis LUM and CMHC-insured construction loans, offset by a decline in equipment financing.

Q3 2025 v Q3 2024

Building on lending momentum established early in the year, total LUM increased 10% y/y.

Personal lending portfolio remained stable as growth in uninsured single-family mortgages of 5% y/y was offset by the strategic and deliberate deceleration of low margin insured single-family lending activity. Uninsured single-family originations were relatively subdued a year ago by the prevailing Bank of Canada monetary policy resulting in a less active housing market. With seven Bank of Canada rate cuts since June 2024, market activity accelerated although at a slower pace than originally expected as a result of tempered broader economic uncertainty from the imposition of cross-border tariffs and higher than expected unemployment. Decumulation lending maintained its growth trajectory due to steady originations and capitalized interest through the period. Consumer lending decreased 6% y/y as EQB reduced originations in that business.

Commercial lending LUM +21% y/y, largely due to 30% growth in insured multi-unit residential LUM on strong demand in that part of the residential housing sector. Commercial loans +1% y/y as strong originations, especially CMHC-insured construction loans (+19% y/y), was offset by higher maturities and unscheduled payments. The equipment financing portfolio declined $129 million from a year ago on a deliberate tightening of credit resulting in a reduction in originations in select asset classes over the period.

Of the overall on-balance sheet portfolio, 70% is associated with multi-unit residential properties, inclusive of CMHC-insured residential apartments. "Commercial loans" in the table above include both CMHC-insured construction and other uninsured multi-unit residential lending (e.g., retirement homes, student residences, loans being readied for CMHC funding).

Table 8: On-Balance Sheet loan principal continuity schedule(1)

($000s, except percentages)	As at or for the three months ended July 31, 2025
	Personal	Commercial	Total
Q2 2025 closing balance	32,453,084	14,749,810	47,202,894
Originations	1,830,958	3,716,857	5,547,815
Derecognition	-	(2,920,211)	(2,920,211)
Net repayments(2)	(2,056,639)	(607,359)	(2,663,998)
Q3 2025 closing balance	32,227,404	14,939,097	47,166,501
% Change from Q2 2025	(1%)	1%	(0%)
Net repayments percentage(3)	6.3%	4.1%	5.6%

($ millions, except percentages)	As at or for the three months ended July 31, 2024
	Personal	Commercial	Total
Q2 2024 closing balance	32,799,087	15,103,743	47,902,830
Originations	1,485,518	3,185,632	4,671,150
Derecognition	-	(1,807,332)	(1,807,332)
Net repayments(2)	(1,770,017)	(1,077,959)	(2,847,976)
Q3 2024 closing balance	32,514,588	15,404,084	47,918,672
% Change from Q2 2024	(0.9%)	2.0%	0.03%
Net repayments percentage(3)	5.4%	7.1%	5.9%

(1) The principal numbers are reported on a consolidated basis, prior to Concentra acquisition-related fair value adjustments that are captured in balance sheet measures.
(2) Net repayments are inclusive of advancements of operating facilities and write-offs.
(3) Net repayments percentage is calculated by dividing net repayments by the previous period's closing balance.

Credit portfolio quality

Equitable Bank regularly evaluates the profile of its loan portfolio and adjusts lending decisions and activities based on a range of inputs. These include borrower behaviours and external variables, including real estate values, equipment resale values, and economic conditions. When judging that the risk associated with a particular region or product has changed, the Bank adjusts underwriting criteria to be prudent and reflective of current and expected economic conditions, thereby safeguarding the future health of the portfolio.

There are several aspects of the Bank's risk management approach and existing loan portfolios that have and will continue to help mitigate the risk of credit losses. The Bank remains appropriately reserved for credit losses given the composition of its loan portfolios and current economic forecasts. Allowances for Credit Losses, net of cash reserves, as a percentage of total loan assets equalled 33 bps at July 31, 2025 compared to 26 bps a year ago.

Equitable Bank's general approach to lending is sound and the Bank has modest exposure to higher risk lending markets:

The Bank focuses on lending in urban and suburban markets that have diversified employment bases and more liquid real estate markets. This approach results in lower risk as it reduces both the probability that borrowers will default and the loss in the event they do.
Commercial lending is diversified across industries and geographies. Commercial Banking has defined asset-class exposure limits and focuses on assets that the Bank believes will be resilient through an economic cycle, such as multi-unit residential and mixed-use properties. These segments make up $37\%$ of the Commercial loan portfolio, while categories such as shopping centres, which the Bank believes are more sensitive to economic conditions, comprise $3.0\%$ of Commercial loans or $1.0\%$ of the total loan portfolio, respectively. Approximately $1.0\%$ of the Bank's loan assets are offices, which declined $6\%$ q/q and $26\%$ y/y, and this lending is largely restricted to smaller properties located in areas outside of large downtown centres that are less impacted by work-from-home policies. As of July 31, 2025, the Bank no longer had exposure to loans on hotel properties.
In equipment financing, personal covenants and cash security deposit are required on most higher-risk leases, and in some cases additional real assets are pledged.

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Equitable Bank's loan portfolios have protection beyond a borrower's ability to repay:

Underwriting focuses foremost on a borrower's ability to repay a loan. The average credit score of the Bank's uninsured single-family residential borrowers remained steady at 711 as at July 31, 2025. Similarly, the average credit score of small business mortgage borrowers ranged between 720-730. These credit scores are indicative of a borrower's positive repayment histories and lower propensity to default.
58% of loans under management(1) are insured against credit losses, ultimately with the backing of the Government of Canada.
Approximately 97% of the Bank's uninsured loan portfolio is secured by assets. Uninsured mortgage loans are supported by first-position claims on real estate and leases by first position claims on equipment, so Equitable Bank has a real asset with tangible value behind almost every loan. While the consumer portfolio is not secured, relationships with origination partners include preferential return against lending receivables.
If the prices of the assets securing mortgage loans decline, the Bank is further protected by a portfolio with a low overall LTV ratio. The average LTV on the Bank's uninsured residential mortgage portfolio was 64%(2) as at July 31, 2025. Further to this collateral, almost all uninsured commercial mortgage borrowers and the majority of leases are backed by personal guarantees and/or personal or corporate covenants. In the mortgage business, due diligence involves assessing the financial capacity of borrowers and guarantors.

Allowance for Credit Losses

Stage 1 and 2 allowances for credit losses (ACL) increased q/q and y/y mostly due to a deterioration in macroeconomic forecast (specifically unemployment and gross domestic product given the continued tariff threats) and credit trends in the loan portfolio. There was also a change in methodology in Q3 2024 for calculating expected credit losses on all performing loans which resulted in a one-time increase in allowance of $1.7 million.

Stage 3 allowances for EQB's impaired loans are determined on a loan-by-loan basis. Management believes these allowances are adequate as at July 31, 2025. Stage 3 allowances on EQB's loan portfolio are supported by current independent property valuations or internal assessments using expert credit judgement.

Table 9: Loan credit metrics – Allowance for Credit Losses (ACL)

($000s, except percentages)	31-Jul -25	30-Apr-25	Change	31-Jul-24	Change
Stage 1 and 2 allowance for credit losses	129,960	120,019	8%	97,920	33%
Stage 3 allowance for credit losses(2)	40,439	33,909	19%	39,882	1%
Total Allowance for Credit Losses	170,399	153,928	11%	137,802	24%
Net ACL – total net of cash reserves(1)	154,057	137,840	12%	122,879	25%
Net ACL as a % of total loan assets	0.33%	0.29%	0.04%	0.26%	0.07%
Net ACL as a % of uninsured loan assets	0.49%	0.45%	0.04%	0.41%	0.08%
Net ACL as a % of gross impaired	19%	18%	1%	22%	(3%)

(1) The consumer lending portfolio is backed by guarantees of $16.3 million (April 30, 2025 – $16.1 million, July 31, 2024 – $15.7 million) provided by a third party.
(2) Exclude the $2.3 million Stage 3 allowance provided for an accounts receivable (April 30, 2025 – $1.2 million, July 31, 2024 – nil).

(1) This is a non-GAAP measure, see Non-GAAP financial measures and ratios section of this MD&A.
(2) The LTV is calculated based on property values estimated using the Teranet National Bank House Price Indices, adjusting for EQB's unique portfolio by using sub-indices corresponding to the 11 cities in Teranet-National Bank National Composite 11 to estimate property values loan by loan.

Table 10: Stage 1 and 2 Allowance for credit losses by lending business

($000s, except bps)	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change
Uninsured personal loans (excluding consumer lending) – stage 1 & 2 allowances	39,116	35,580	3,536	27,372	11,744
as a % of uninsured personal loans (excluding consumer lending) (bps)	17	15	2	13	4
Consumer lending – stage 1 & 2 allowances net of cash reserves	999	953	46	684	315
as a % of consumer lending (bps)	12	12	-	8	4
Uninsured commercial loans – stage 1 & 2 allowances	30,018	26,729	3,289	23,679	6,339
as a % of uninsured commercial loans (bps)	57	52	5	39	18
Equipment financing – stage 1 & 2 allowances	44,202	41,810	2,392	31,289	12,913
as a % of equipment financing (bps)	420	394	26	267	153
Insured personal and commercial loans – stage 1 & 2 allowances	1,646	907	739	1,133	513
as a % of insured personal and commercial loans (bps)	1.0	0.5	0.5	0.6	0.4
Total loans – stage 1 & 2 allowances net of cash reserves	115,981	105,979	10,002	84,157	31,824
as a % of total loans (bps)	25	23	2	18	7

Stage 1 and 2 allowances relative to loan assets increased across all business lines. Uninsured personal loans (excluding consumer lending) stage 1 & 2 allowances' ratio increased +2bps and +4 bps y/y while uninsured commercial loans increased 5 bps q/q and 18 bps y/y. Equipment financing increased 26 bps q/q and +153 bps y/y. The Bank leverages macroeconomic forecasts from Moody's Analytics and uses them in credit loss modelling. For a summary of key forecast assumptions for each scenario, please refer to Note 7 (d & e) to the Q3 2025 interim consolidated financial statements.

Impaired loans

Table 11: Impaired loan metrics

($000s, except percentages)	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change
Gross impaired loan assets	815,295	775,421	5%	566,518	44%
Net impaired loan assets	774,856	741,512	4%	526,636	47%
Net impaired loan assets as a % of total loan assets	1.64%	1.56%	0.08%	1.09%	0.55%

The Bank closely monitors the delinquency and impairment status of each loan, assesses each impaired loan, and takes appropriate steps to ensure optimal resolutions to minimize loss. In most cases, LTVs are within acceptable thresholds, providing a buffer for the Bank and reducing the risk of potential credit losses. Management believes the Bank is well reserved to manage credit losses that are expected to arise from impaired loans.

Q3 2025 v Q2 2025

Net impaired loans as at July 31, 2025 were $775 million or 164 bps of total loan assets, up (4\%$ q/q. Net impaired personal loans increased )25.9 million q/q to $336 million, representing 104 bps of personal loan assets. Although formations outpaced resolutions, management actions resulted in $91 million of impaired loans to resolve or discharge during the quarter. Net impaired commercial loans remained relatively flat q/q, increasing 1% or $4.1 million to $391 million (282 bps of commercial loan assets vs 283 bps the previous quarter). Net impaired equipment loans increased $3.3 million in the quarter.

Page 24

Q3 2025 v Q3 2024

Net impaired loans +$248 million y/y, including commercial loans +$154.9 million (+116 bps of commercial loan assets), personal loans +$100.2 million (+32 bps of personal loan assets). Equipment financing impaired loans were down $6.8 million to $48.5 million. Over the past twelve months, $350 million of residential mortgages and $75 million of commercial loans were discharged or returned to performing. Total realized losses in the same period were 14 bps of total loan assets.

Deposits

EQB's deposits provide a reliable and diversified base of funding that can be effectively matched against loan maturities. Term deposits contribute 77% of total funding with demand deposits representing the remainder.

EQB remains committed to introducing innovative, high value saving solutions to Canadians through EQ Bank. During the quarter, deposits grew to $9.7 billion, up 4% q/q and +9% y/y, supported by growth of EQ Bank's customer base +5% q/q and +21% y/y. EQ Bank represents an important funding source for EQB and is a strategic pillar in EQB's growth ambitions as it deepens its direct relationships with Canadians.

In the table below, EQ Bank Notice Savings deposits are included as Demand deposits – EQ Bank. The rates on these accounts are set by EQB and subject to change, similar to other demand products; however, the Notice Savings account is not 'demand' by design, as customers are required to provide notice to withdraw the balances (10 or 30 days depending on the product).

Wholesale funding, which includes deposit notes and covered bonds, is an important channel of the EQB's funding diversification strategy. It represents 13% of total funding and has risen over the past year to $4.6 billion from $3.5 billion a year ago. EQB remains active in the deposit note market and completed a three-year $350 million issuance in May, bringing its total outstanding deposit notes to $2.14 billion as at July 31, 2025, +19% q/q and +109% y/y. Subsequently, on August 1, 2025, the Bank closed a two-year $300 million deposit note offering, which demonstrates the strength of the Bank's long-term growth potential. EQB also aims to maximize its covered bond issuances in the European market within the regulatory limit (5.5% of total assets) while regularly accessing the market to maintain investor engagement. The covered bond funding program was up 16% q/q but declined 2% y/y as a result of two bond maturities. Overall, changes in wholesale funding from period to period are driven by the timing and magnitude of new issuances and maturities, as well as the impact arising from foreign exchange rate volatility on outstanding Euro-denominated covered bonds.

Table 12: Deposit principal

($000s, except percentages)	31-Jul -25	30-Apr-25	Change	31-Jul-24	Change
Term deposits:
Brokered	17,182,232	16,468,220	4%	16,198,151	6%
EQ Bank	3,841,857	4,012,122	(4%)	4,891,364	(21%)
Credit unions	1,858,926	1,998,587	(7%)	1,636,660	14%
Deposit notes	2,141,196	1,799,604	19%	1,024,357	109%
Covered bonds	2,448,735	2,114,058	16%	2,507,854	(2%)
Corporate and institutional	24,244	23,992	1%	60,433	(60%)
Total	27,497,190	26,416,583	4%	26,318,819	4%
Share of term deposits of total (%)	77%	77%		80%
Demand deposits:
Brokered	392,715	424,805	(8%)	472,067	(17%)
EQ Bank (including Notice Saving Account)	5,883,503	5,381,097	9%	3,998,882	47%
Credit unions	504,081	596,612	(16%)	529,624	(5%)
Strategic partnerships	1,342,458	1,407,409	(5%)	1,232,090	9%
Corporate and institutional	214,907	202,641	6%	158,344	36%
Total	8,337,664	8,012,564	4%	6,391,007	30%
Share of demand deposits of total (%)	23%	23%		20%
Total deposit principal	35,834,854	34,429,147	4%	32,709,826	10%
EQ Bank deposit principal (excludes accrued interest)	9,725,360	9,393,219	4%	8,890,246	9%

Liquidity investments

Equitable Bank holds a diversified portfolio of liquid assets

Equitable Bank maintains liquid assets at a level that is sufficient to meet its upcoming obligations even through periods of disruption in financial markets or challenging economic conditions. The size and composition of the liquidity portfolio at any point in time is influenced by several factors such as expected future cash needs and the availability of various funding sources. Further, the Bank applies a strategic approach to liquidity management through rigorous asset-liability matching analysis and stress testing. Even with this liquidity risk management framework, a significant or protracted disruption to funding markets could require the Bank to take further liquidity protection measures.

Please refer to the Risk Management section of this document for more details on the Bank's Liquidity and Funding Risk policies and procedures.

Table 13: Liquid assets

($000s, except percentages)	31-Jul -25	30-Apr-25	Change	31-Jul-24	Change
Eligible deposits with regulated financial institutions(1)	481,633	497,287	(3%)	493,168	(2%)
Debt securities	43,279	42,873	1%	44,564	(3%)
Debt instruments issued or guaranteed by Government of Canada or provincial governments:
Investments purchased under reverse repurchase agreements	1,949,171	2,100,037	(7%)	1,339,578	46%
Loans and investments held in the form of debt securities(2), net of obligations under repurchase agreements	1,932,287	1,979,747	(2%)	2,168,867	(11%)
Liquid assets held for regulatory purposes	4,406,370	4,619,944	(5%)	4,046,177	9%
Other deposits with regulated financial institutions(3)	4,124	3,460	19%	16,440	(75%)
Equity securities(4)	-	-	n.m.	27,589	n.m.
Total	4,410,494	4,623,404	(5%)	4,090,206	8%
Total assets held for regulatory purposes as a % of total Equitable Bank assets	8.1%	8.6%	(0.5%)	7.5%	0.6%
Total liquid assets as a % of total EQB assets	8.1%	8.5%	(0.4%)	7.6%	0.5%

n.m. not meaningful
(1) Eligible deposits with regulated financial institutions represent deposits of Equitable Bank and its subsidiaries, which are held at major Canadian financial institutions and excludes $269.1 million (April 30, 2025 – $172.4 million, July 31, 2024 – $136.6 million) of restricted cash held as collateral with third parties for Equitable Bank's derivative transactions, issuance of letters of credit, loan origination and servicing activities, BIN sponsorship and banking settlements in the normal course of business and $949.6 million (April 30, 2025 – $824.2 million, July 31, 2024 – $767.6 million) of cash held in trust accounts and deposits held with banks as collateral for Equitable Bank's securitization activities.
(2) Loans held in the form of debt securities represent loans securitized and retained by Equitable Bank and are reported in the Loans receivable balances. Investments held in the form of debt securities include MBS, CMB and provincial bonds purchased from third parties. The investments' reported values represent the fair market values associated with these securities.
(3) Other deposits with regulated financial institutions are deposits held by EQB Inc. and ACM.
(4) Equity securities are investment-grade publicly traded preferred shares.

Liquid assets $^{(1)}$ were $4.4 billion as at July 31, 2025, down $5\%$ q/q and $+8\%$ y/y. The Bank's target level of liquidity reflects cash flow forecasts that take into account deposit and other funding maturities, and anticipated future funding needs.

(1) This is a non-GAAP measures, see Non-GAAP financial measures and ratios section of this MD&A.

Page 27

Off-balance sheet arrangements

EQB engages in certain financial transactions that, for accounting purposes, are not recorded on its consolidated balance sheets. Off-balance sheet transactions are generally undertaken for risk, capital, and funding management purposes. These include certain securitization transactions, the commitments EQB makes to fund its pipeline of loan originations, and letters of credit issued in the normal course of business (see Note 25 to the consolidated financial statements in EQB's 2024 report).

Securitization of financial assets

Certain securitization transactions qualify for derecognition when EQB has transferred substantially all of the risks, rewards, and control associated with the securitized assets. The outstanding securitized loan principal that qualified for derecognition totalled $26.7 billion at July 31, 2025 (April 30, 2025 – $24.3 billion, July 31, 2024 – $19.0 billion).

The securitization liabilities associated with these transferred assets were approximately $26.7 billion at July 31, 2025 (April 30, 2025 – $24.3 billion, July 31, 2024 – $19.7 billion). The securitization retained interests recorded with respect to certain securitization transactions were $999.7 million at July 31, 2025 (April 30, 2025 – $919.9 million, July 31, 2024 – $739.0 million) and the associated servicing liability was $110.4 million at July 31, 2025 (April 30, 2025 – $104.8 million, July 31, 2024 – $96.9 million).

Commitments and letters of credit

The Bank provides commitments, including letters of credit, to extend credit to borrowers and had outstanding commitments to fund $7.2 billion (April 30, 2025 – $7.6 billion, July 31, 2024 – $6.1 billion) of loans and investments in the ordinary course of business as at July 31, 2025.

The letters of credit represent assurances that it will make payments in the event that a borrower cannot meet its obligations to a third party. The letters of credit in the amount of $45.6 million were issued and outstanding as at July 31, 2025 (April 30, 2025 – $45.6 million, July 31, 2024 – $59.6 million), none of which were claimed.

Related-party transactions

Certain of EQB's key management personnel have transacted with EQB and/or invested in EQB's deposits in the ordinary course of business. See Note 26 to the consolidated financial statements in EQB's 2024 report for further details.

Capital management

Equitable Bank manages its capital in accordance with guidelines established by OSFI, based on standards issued by the Bank for International Settlements' Basel Committee on Banking Supervision (BCBS). OSFI's Capital Adequacy Requirements (CAR) Guideline details how Basel III rules apply to Canadian banks.

OSFI mandates that all federally regulated financial institutions meet target Capital Ratios, those being a CET1 Ratio of 7.0%, a Tier 1 Capital Ratio of 8.5%, and a Total Capital Ratio of 10.5%. The Bank utilizes an Internal Capital Adequacy Assessment Process (ICAAP) to assess capital requirements based on Equitable Bank's inherent risks and set internal capital targets to support its strategic and financial planning.

Table 14: Capital measures of Equitable Bank

($000s, except percentages)	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change
Common Equity Tier 1 Capital (CET1):
Common shares	935,696	935,449	0%	932,913	0%
Contributed surplus	16,205	14,862	9%	14,190	14%
Retained earnings	1,908,993	1,855,496	3%	2,152,215	(11%)
Accumulated other comprehensive loss (AOCI)(1)	(2,717)	(3,860)	(30%)	(20,964)	(87%)
Less: Regulatory adjustments to CET1 Capital	(180,041)	(182,920)	(2%)	(187,944)	(4%)
Common Equity Tier 1 Capital(1)	2,678,136	2,619,027	2%	2,890,410	(7%)
Additional Tier 1 capital (AT1):
Non-cumulative preferred shares	-	-	n.m.	72,554	n.m.
Other qualifying Additional tier 1 instruments(2)	147,378	147,378	-%	147,823	(0%)
Additional Tier 1 capital issued by a subsidiary to third parties (amount allowed in AT1)(4)	-	-	n.m.	49,332	n.m.
Tier 1 Capital(1)	2,825,514	2,766,405	2%	3,160,119	(11%)
Tier 2 Capital:
Subordinated debt(3)	203,256	200,801	1%	-	n.m.
Eligible Stage 1 and 2 allowance	129,959	120,019	8%	97,920	33%
Additional Tier 1 capital issued by a subsidiary to third parties (amount allowed in Tier 2)(4)	-	-	n.m.	7,616	n.m.
Tier 2 Capital(1)	333,215	320,820	4%	105,536	216%
Total Capital(1)	3,158,729	3,087,225	2%	3,265,655	(3%)
Total risk-weighted assets (RWA)	20,073,231	19,802,402	1%	19,649,989	2%
Capital ratios and Leverage ratio:
CET1 ratio	13.3%	13.2%	0.1%	14.7%	(1.4%)
Tier 1 capital ratio	14.1%	14.0%	0.1%	16.1%	(2.0%)
Total capital ratio	15.7%	15.6%	0.1%	16.6%	(0.9%)
Leverage ratio	4.9%	4.8%	0.1%	5.6%	(0.7%)

n.m. not meaningful
(1) As prescribed by OSFI (under Basel III rules), AOCI is recognized as part of CET1, however, the AOCI associated with cash flow hedge reserves that relate to the hedging of items that are not fair valued is excluded.
(2) Refer to the limited recourse capital notes issued by Equitable Bank to its parent company, EQB Inc. Amount is presented net of issuance costs.
(3) Refer to the subordinated debenture issued by Equitable Bank to its parent company, EQB Inc. Amount includes accrued interests.
(4) The prior period balance associated with the preferred shares issued by Concentra Bank to third-party investors, which have been fully redeemed in Q4 2024.

Page 29

Equitable Bank's CET1 ratio at July 31, 2025 was 13.3%, +10 bps q/q, due to capital growth from net earnings in the quarter and a slower-pace of RWA increase. Relative to July 31, 2024, CET1 ratio declined by 140 bps, reflecting the impact of RWA growth and decrease in CET 1 capital driven by dividend payments totalling $579 million since July 2024, net of $350 million earnings over the past twelve months. Dividend payments were used to repay lending facilities at EQB Inc.

Equitable Bank's Tier 1 capital ratio was 14.1%, up 10 bps q/q and down 200 bps y/y, reflecting the changes in CET1 noted above and the redemption of preferred shares in Q4 2024.

Equitable Bank's Total capital ratio increased to 15.7%, +10 bps q/q and down 90 bps y/y. The sequential change was largely driven by organic CET1 capital generation and additional Stage 1 & 2 allowances for credit losses (ACL) reserved at Q3. The capital reduction from a year ago was a result of dividend distributions and share redemptions, net of the subordinated debenture issuance in April 2025 and incremental Stage 1 & 2 ACL.

Canadian banks are required to report on OSFI's Leverage Ratio based on Basel III guidelines. OSFI has established minimum Leverage Ratio targets on a confidential and institution-by-institution basis. Equitable Bank remained fully compliant with its regulatory requirements and its Leverage Ratio was 4.9% at July 31, 2025, +10 bps q/q and down 70 bps y/y, tied to Tier 1 capital movement.

Risk-weighted assets of Equitable Bank

Risk-weighted assets (RWA) for the quarter were $20.1 billion, +1% q/q, which reflected growth of uninsured lending (residential mortgages, decumulation loans and commercial loans), and higher cash and equivalents and securitization retained interest, as well as increases in RWA associated with operational risk. These increased risk exposures were mitigated by decreases in commitments and derivatives.

Compared to Q3 2024, RWA +$423 million, due to uninsured personal loan originations, increased risk associated with non-performing mortgages, and increases in non-loan assets including cash, securitization retained interests, other assets, derivatives and operational risk capital charges, which were offset by a decrease in uninsured commercial lending assets including equipment financing.

Stress test

As part of its capital management process, Equitable Bank performs stress tests to understand the potential impact of extreme but plausible adverse economic scenarios. Equitable Bank uses these tests to analyze the impact that an increase in unemployment, changing interest rates, a decline in real estate prices, and other factors could have on Equitable Bank's financial position across a range of economic scenarios. In addition to the macroeconomic stress testing scenarios, the Bank also conducts stress tests using an idiosyncratic scenario, and combination scenarios. These tests are conducted at the enterprise level to stress test the Bank's resiliency and gain insights to its risk profile.

Based on the results of the stress tests performed to date, management has determined that Equitable Bank has sufficient capital to absorb the potential losses modelled without impairing the viability of the institution or its ability to recover.

Shareholders' equity

Common shares

At July 31, 2025, EQB had 38,311,093 common shares issued and outstanding. In addition, there were 932,790 unexercised stock options, which are, or will be, exercisable to purchase common shares for maximum proceeds of $68.9 million. For additional information on outstanding stock options and their associated exercise prices, please refer to Note 15 (a) to the Q3 2025 interim consolidated financial statements.

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Normal course issuer bid (NCIB)

During the nine-months ended July 31, 2025, 292,617 common shares were purchased or cancelled through the NCIB, while no purchase or cancellation occurred during the third quarter of fiscal 2025. Please refer to Note 14 (b) to the Q3 2025 interim consolidated financial statements for more details.

Limited Recourse Capital Notes (LRCNs)

On July 16, 2024, EQB Inc. issued its first Limited Recourse Capital Notes, Series 1 (LRCNs) of $150 million with maturity on October 31, 2084. The LRCNs bear interest at 8.0% annually, payable semi-annually, for the initial period ending on, but excluding, October 31, 2029. Thereafter, the interest rate will reset every five years at a rate equal to the prevailing 5-year Government of Canada Yield plus 4.548%. Please refer to Note 14 (a) to the Q3 2025 interim consolidated financial statements for more details.

Common share dividends

EQB's dividend payment follows calendar quarter. Dividends are scheduled to pay out on the last business day of March, June, September, and December.

On August 27, 2025, EQB's Board declared a quarterly dividend of $0.55 per common share, payable on September 30, 2025, to common shareholders of record at the close of business on September 15, 2025. This dividend represents a 17% and 4% increase over dividends paid in September 2024 and June 2025, respectively.

Accounting standards and policies

Accounting policy changes

EQB's significant accounting policies are essential to an understanding of its reported results of operations and financial position. Accounting policies applied by EQB in the Q3 2025 interim consolidated financial statements are the same as those applied by EQB as at and for the fiscal year ended October 31, 2024. Refer to Note 3 to the consolidated financial statements in EQB's 2024 report for more details.

Critical accounting estimates

The preparation of the consolidated financial statements requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods. Estimates and underlying assumptions are reviewed by management on an ongoing basis. Critical estimates and judgments utilized in preparing EQB's consolidated financial statements affect the assessment of the allowance for credit losses on loans, impairment of other financial instruments, impairment of goodwill, fair values of financial assets and liabilities, put option liabilities, derecognition of financial assets transferred in securitization transactions, determination of significant influence or control over investees, effectiveness of financial hedges for accounting purposes, fair values of net identifiable assets acquired, liabilities assumed and intangible assets recognized in a business combination, and income taxes.

In making estimates and judgments, management uses external information and observable market inputs where possible, supplemented by internal analysis as required. These estimates and judgments have been made taking into consideration the economic impact of the current market volatility and uncertainty due to geopolitical unrest, the current interest rate environment, low growth, high unemployment, and uncertainty arising from ongoing United States/Canada tariff concerns. Actual results could differ materially from these estimates, in which case the impact would be recognized in the consolidated financial statements in future periods.

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Allowance for credit losses under IFRS 9

The Expected Credit Loss (ECL) model requires management to make judgments and estimates in a number of areas. Management must exercise significant experienced credit judgment in determining whether there has been a significant increase in credit risk since initial recognition and in estimating the amount of ECL. The measurement of ECL incorporates forward-looking macroeconomic variables and probability weighting macroeconomic scenarios, which requires significant judgment. Management also exercises significant experienced credit judgment in determining the amount of ECL at each reporting date by considering reasonable and supportable information that is not already incorporated in the modelling process. Changes in these inputs, assumptions, models, and judgments directly impact the measurement of ECL.

As a result of the current interest rate environment, low growth, high unemployment, uncertainty arising from ongoing United States/Canada tariff concerns, and ongoing geopolitical unrest, the macroeconomic environment continues to experience volatility and uncertainty. This has resulted in a direct impact on the forward-looking macroeconomic variables which management uses as part of its underlying assumptions for calculating ECL.

EQB determines ECL using probability-weighted forward-looking macroeconomic scenarios obtained on a periodic basis from Moody's Analytics economic forecasting services. These macroeconomic scenarios include a 'base-case' scenario which represents the most likely outcome and three additional macroeconomic scenarios representing more optimistic and more pessimistic outcomes. In establishing ECL, management attaches probability weightings to economic scenarios which are representative of management's view of the economic and market conditions.

Effective this quarter, EQB enhanced certain of its IFRS 9 models, which includes the replacement of Household Income Growth Rate with Household Total Real Income to its forward-looking macroeconomic variables in the ECL models, and eliminating the use of Canadian Equity Index, and West Texas Intermediate Oil Price forward-looking macroeconomic variables in the ECL models. The enhanced models exhibit higher sensitivity to changes in the forward-looking macroeconomic outlook.

For further information regarding critical accounting estimates, please refer to Notes 2(d) and 7(d) to (f) to the Q3 2025 interim consolidated financial statements.

Responsibilities of management and the board of directors

Management is responsible for the information disclosed in this MD&A and the accompanying interim consolidated financial statements. EQB has in place appropriate information systems and procedures to ensure that information used internally and disclosed externally is materially complete and reliable.

In addition, EQB's Audit Committee, on behalf of the Board, performs an oversight role with respect to all public financial disclosures and has reviewed and approved this MD&A and the accompanying interim consolidated financial statements and accompanying notes.

Changes in internal control over financial reporting

There were no changes to EQB's internal control over financial reporting that occurred during Q3 2025 that have materially affected, or are reasonably likely to materially affect, EQB's internal control over financial reporting.

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Risk Management

Through its wholly owned subsidiary, Equitable Bank, EQB is exposed to risks that are similar to those of other financial institutions, including the symptoms and effects of both domestic and global economic conditions and other factors that could adversely affect its business, financial condition, and operating results. These factors may also influence an investor's decision to buy, sell or hold shares in EQB. The Board plays an active role in monitoring the Bank's key risks and in determining the policies, practices, controls, and other mechanisms that are best suited to manage these risks.

For a detailed discussion of EQB's approach to risk management and the risks that affect it, please refer to the section entitled Risk Management in EQB's 2024 Fourth Quarter Report which is available on EQB's website at eqb.investorroom.com and on SEDAR+ at www.sedarplus.ca.

Credit risk

Credit Risk is defined as the risk that, if counterparties fail to honour their obligations to the Bank, whether on- or off- balance sheet, the Bank will not receive the full value of obligations, and the recovery costs owed to it. Credit risk arises primarily from the Bank's lending activities, and investment in debt and equity securities. The accountability for managing credit risk follows the three lines of defense governance framework. The Bank's exposure to credit risk is measured, monitored and reported by senior management to the Enterprise Risk Management (ERM) Committee. The Risk and Capital Committee of the Board (RCC), undertakes the approval and monitoring of the Bank's credit risk appetite. The RCC approves the Delegated Lending Authorities framework and delegates limits to the CRO. Transactions that are outside of these authorities are approved by the Credit Risk Subcommittee. To manage and support normal course business operations, the CRO can further delegate credit risk lending approval authorities to qualified individuals within the Bank, all of which is described in our policies, procedures and control frameworks.

The Bank's primary lending business is providing first mortgages on real estate located across Canada. All mortgages are individually evaluated by the Bank's or its agents' underwriters using internal and external credit risk assessment tools and are assigned risk ratings in accordance with the level of credit risk attributed to each transaction.

The Bank's underwriting approach places a strong emphasis on security evaluation and risk mitigation in the transaction. The Bank will purchase as well as originate mortgages, both insured and uninsured through third parties. As part of the Bank's risk management framework, the Bank ensures that these third-party sourced mortgages are underwritten to the standards required of both Bank originated mortgages, as well as those required by mortgage insurers, as applicable. The Bank also conducts periodic reviews of its mortgage underwriting and servicing policies, procedures, and practices vis-à-vis the applicable requirements outlined by its mortgage insurers to ensure that the Bank remains compliant with their ongoing operational requirements.

Cash and cash equivalents

The Bank held cash and cash equivalents of $485.8 million as at July 31, 2025 (October 31, 2024 - $591.6 million, July 31, 2024 - $509.6 million). The cash and cash equivalents are held with financial institutions that are rated at investment grade.

Collateral held as security

All mortgages are secured by real estate property located in Canada. Appraised values for collateral held against mortgages are obtained at the time of origination, except when a mortgage is individually assessed as impaired. For impaired mortgages, the most recent appraised value of collateral at July 31, 2025 was $961 million (October 31,

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2024 – $820 million, July 31, 2024 – $738 million). At July 31, 2025, the appraised values of collateral held for mortgages considered past due but not impaired, as determined when the mortgages were originated, was $379 million (October 31, 2024 – $582 million, July 31, 2024 – $641 million). It is the Bank's policy to pursue the orderly and timely realization of collateral.

Real estate from foreclosures that were owned and held for sale at July 31, 2025 amounted to $0.6 million (October 31, 2024 – $0.2 million, July 31, 2024 – $0.3 million) and are included in Other assets (Note 9) in the consolidated balance sheet. The Bank does not use the real estate obtained through foreclosure for its own operations.

Leases are secured by first charges against the equipment leased and may include guarantees and additional charges against other assets such as real estate. Values for the equipment securing leases are typically determined at the origination of the lease and generally not updated, except when a lease is individually assessed as impaired. For impaired leases, the value of expected realizations from charges and against equipment and other security at July 31, 2025 was $30 million (October 31, 2024 – $38 million, July 31, 2024 – $30 million).

The Bank does not hold collateral against investments in debt and equity securities, however, securities received under reverse repurchase agreements are allowed to be sold or re-pledged in the absence of default by the owner. The Bank has a commitment to return collateral to the counterparty in accordance with the terms and conditions stipulated by the master repurchase agreement. The Bank has no contractual agreement with any counterparty that required it to post increased collateral in the event of its credit rating being downgraded.

For the period ended July 31, 2025, the contractual amount outstanding on financial assets written off that are still subject to enforcement activity amounted to $76.0 million (October 31, 2024 – $55.4 million, July 31, 2024 – $41.1 million).

Credit concentration risk

Credit concentration risk results if an unduly large proportion of the Bank's lending business is connected. The ability of these counterparties to meet contractual obligations may be similarly affected by changing economic or other conditions. On a regular basis, with the approval of the Board, the Bank establishes credit limits for exposure to certain counterparties, industries or market segments, monitors these credit exposures, and prepares detailed analyses and reports assessing overall credit concentration risk within the Bank's lending exposures and investment portfolios.

Management believes that it is adequately diversified by borrower, property type and geography. At July 31, 2025, no connected group of borrowers represented more than $226 million (October 31, 2024 – $267 million, July 31, 2024 – $257 million) or 0.91% (October 31, 2024 – 1.13%, July 31, 2024 – 1.07%) of uninsured loan principal outstanding.

The table below provides a breakdown of the Bank's loan principal by insured vs uninsured and by lending business.

($000s, except percentages)	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change
Insured:
Personal	7,827,115	8,478,347	(8%)	9,831,147	(20%)
Commercial	8,256,747	8,138,478	1%	7,891,128	5%
Total loan principal outstanding	16,083,862	16,616,825	(3%)	17,722,275	(9%)
Total loan principal outstanding percentage	34%	35%	(1%)	37%	(3%)
Uninsured:
Personal	24,400,289	23,974,737	2%	22,683,441	8%
Commercial	6,682,350	6,611,332	1%	7,512,956	(11%)
Total loan principal outstanding	31,082,639	30,586,069	2%	30,196,397	3%
Total loan principal outstanding percentage	66%	65%	1%	63%	3%

The table below provides a breakdown of Equitable Bank's loan principal outstanding by geography.

Table 16: Loan principal by province

($000s)	31-Jul-25	30-Apr-25	Change	31-Jul-24	Change
Personal
Alberta, Manitoba & Saskatchewan	5,183,404	5,293,715	(2%)	5,609,892	(8%)
Atlantic provinces & Quebec	2,860,705	2,879,937	(1%)	2,863,608	(0%)
British Columbia and Territories	5,030,216	4,937,363	2%	4,629,068	9%
Ontario	19,153,079	19,342,069	(1%)	19,412,020	(1%)
	32,227,404	32,453,084	(1%)	32,514,588	(1%)
Commercial
Alberta, Manitoba & Saskatchewan	2,532,504	2,454,312	3%	2,939,732	(14%)
Atlantic provinces & Quebec	3,452,055	3,155,300	9%	2,927,483	18%
British Columbia and Territories	2,299,575	2,238,922	3%	1,885,853	22%
Ontario	6,654,963	6,901,276	(4%)	7,651,016	(13%)
	14,939,097	14,749,810	1%	15,404,084	(3%)

As part of the Bank's risk management, it often lends at lower LTVs, adding further credit loss protection to its loan portfolio. The average LTV of the Bank's uninsured residential mortgage portfolio was $64\%$ at July 31, 2025 (April 30, 2025 - $63\%$ , July 31, 2024 - $62\%$ ).

Liquidity and funding risk

The Bank defines Liquidity and Funding Risk as the risk that it may lack sufficient liquidity and funding or may not be able to secure them in a cost-effective or timely manner to fulfill its contractual and unexpected obligations as they come due. These obligations primarily stem from the maturity of deposits, mortgage-backed securities, and credit extension commitments. Additionally, funding and liquidity risk can be influenced if a significant portion of the Bank's deposit activities is concentrated with a single individual, organization or group of related entities, or within a specific geographic area.

The Bank's Liquidity and Funding Risk appetite is 'low', with limits to measure and control this risk. These limits are articulated via the Board-approved Liquidity and Funding Risk Management Policy – which is updated annually, at a minimum. This Policy requires the Bank to maintain a pool of high-quality liquid assets (HQLA) and stipulates various liquidity ratios and limits, concentration limits and, among other considerations, ongoing periodic liquidity stress testing requirements.

The Bank also adheres to OSFI's Liquidity Adequacy Requirement (LAR) Guideline, which provides a framework that OSFI uses to assess a federally regulated financial institution's liquidity adequacy. The Bank's liquidity position and adherence to the requirements are monitored daily by senior management. Key metrics are also reported monthly to the Asset Liability Committee (ALCO) and, quarterly, both to the ERM Committee and the RCC of the Board.

The Bank has access to a variety of funding sources that it uses to proactively manage its funding risk profile. Diversified funding sources include access to the direct-to-consumer EQ Bank platform, several large bank sponsored funding facilities, deposit note, and bearer deposit note programs, and securitization vehicles. The Bank raises deposits directly and through subsidiaries that are approved issuers of deposits eligible for CDIC insurance coverage. The Bank is also an issuer of Covered Bonds and has accessed the European Covered Bond market six times since 2021 raising a total of €2,200 million, of which €1,550 million is outstanding as of July 31, 2025.

The following table summarizes contractual maturities of the Bank's financial liabilities.

Table 17: Contractual obligations(1)

($000s)
	Total	Less than 1 year	1 – 3 years	4 – 5 years	After 5 years
Deposits principal and interest	38,182,387	23,855,283	10,013,099	4,284,825	29,180
Securitization liabilities principal and interest	49,273,410	10,043,361	13,771,708	13,760,952	11,697,389
Funding facilities principal and interest	1,397,634	1,397,634	-	-	-
Obligations under repurchase agreements	148,623	148,623	-	-	-
Other liabilities	469,128	380,015	38,755	25,355	25,003
Total 2025 contractual obligations	89,471,182	35,824,916	23,823,562	18,071,132	11,751,572
Total 2024 contractual obligations	75,782,615	32,763,793	21,522,336	11,561,795	9,934,691

(1) The balances for financial liabilities will not agree with those in our consolidated balance sheet as this table incorporates all on and off-balance sheet obligations, on an undiscounted basis, including both principal and interest. Prior year amounts have been adjusted accordingly.

Market risk

Market Risk is broadly defined as the risk of adverse impact on earnings or financial condition due to fluctuations in market factors such as interest rates, equity prices, credit spreads, and foreign exchange rates. Interest rate risk arises when a significant proportion of assets or liabilities have mismatched terms, rates, or attributes, including embedded optionality features in deposits or mortgages. For the interest sensitivity position of EQB at July 31, 2025, see Note 20 to the consolidated financial statements. With respect to credit spread and equity price risk, the value of the Bank's securities portfolio may be impacted by market determined variables which are beyond its control, such as equity market performance, credit and/or market spreads, implied volatilities, the possibility of credit migration and default, among others. Overall, the Bank has a 'low' appetite for Market Risk.

With respect to structural interest rate risk, EQB and the Bank both have an objective to manage and control interest rate risk exposures within acceptable parameters and the primary method of mitigating this risk involves funding Bank assets with liabilities of a similar duration. The Bank maintains a hedging program to ensure that the Bank's net sensitivity to rates is aligned with its target risk profile. The responsibility for managing the Bank's interest rate risk resides with the ALCO, which meets monthly to review and approve/endorse Treasury-related policies, to review key interest rate risk metrics, and to provide direction on the Bank's operating and funding strategy. Also, senior management continuously reviews the Bank's interest rate risk profile and monitors its ongoing funding strategy through daily interest rate-setting process.

Interest rate risk is monitored through simulated interest rate change sensitivity models to estimate the effects of various interest rate change scenarios on net interest income (NII) over a twelve-month horizon (EAR) and on the economic value of shareholders' equity (EVE). EVE is a calculation of the present value of EQB's asset cash flows, less the present value of liability cash flows on a pre-tax basis. Management considers this measure to be more comprehensive than measuring changes in NII, as it captures all interest rate mismatches across all terms. Certain assumptions that are based on actual experience are also built into the simulations, including assumptions related to the pre-maturity redemption of deposits and early payouts of mortgages.

The table below illustrates the results of EQB's sensitivity modeling to immediate and sustained interest rate increase and decrease scenarios. The models measure the impact of instantaneous interest-rate changes on EVE and NII as at July 31, 2025. The estimate of sensitivity to interest rate changes is dependent on several assumptions that could result in a different outcome in the event of an actual interest rate change.

Table 18: Net interest income shock

($ millions, except percentages)	Increase in interest rates	Decrease in interest rates(2)
100 basis point shift
Impact on net interest income	7,295	(2,135)
Impact on EVE(1)	(33,756)	2,316
EVE impact as a % of common shareholders2 equity	(1.1%)	0.1%

(1) EVE numbers are reported on a pre-tax basis.
(2) Interest rate is not allowed to decrease beyond a floor of $0\%$ and is therefore not allowed to be negative.

The management of Credit Spread risk and Equity Price risk in the Bank's liquid asset and securities portfolios is assigned to the ALCO by the RCC. With oversight from the ALCO, Treasury manages the securities portfolio in accordance with its Marketable Securities Policy and takes into consideration the following factors:

General economic conditions and the possible effect of inflation or deflation;
The expected tax consequences of investment decisions or business strategies;
The credit quality of each investment and its role within the overall portfolio;
The expected total return from income and the appreciation of capital;
The Bank's need for liquidity, available capacity, and regularity/stability of earnings; and
Each investment's special relationship or special value, if any, to the overall objectives of the portfolio.

The ALCO reviews the investment performance, composition, quality, and other pertinent characteristics of the securities portfolio at least ten times a year.

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Glossary

Book value per common share: is calculated by dividing common shareholders' equity by the number of common shares outstanding.
Capital ratios: A detailed calculation of all Capital ratios can be found in Table 14 of this MD&A.
CET1 ratio: this measure of capital strength is defined as CET1 Capital as a percentage of total risk-weighted assets. This ratio is calculated for Equitable Bank in accordance with the guidelines issued by OSFI. CET1 Capital is defined as shareholders' equity plus any qualifying other non-controlling interest in subsidiaries less preferred shares issued and outstanding, any goodwill, other intangible assets and cash flow hedge reserve components of accumulated other comprehensive income.
Tier 1 and Total Capital ratios: these adequacy ratios are calculated for Equitable Bank, in accordance with the guidelines issued by OSFI by dividing Tier 1 or Total Capital by total RWA. Tier 1 Capital is calculated by adding non-cumulative preferred shares, limited recourse capital notes, as well as additional Tier 1 capital issued by a subsidiary to third parties that is allowed in Tier 1, to CET1 capital. Tier 2 Capital is sum of Equitable Bank's subordinated debt, eligible Stage 1 and 2 allowance and additional Tier 1 capital issued by a subsidiary to third parties that is allowed in Tier 2 capital. Total Capital equals to Tier 1 plus Tier 2 Capital.
Leverage ratio: this measure is calculated by dividing Tier 1 Capital by an exposure measure. The exposure measure consists of total assets (excluding items deducted from Tier 1 Capital) and certain off-balance sheet items converted into credit exposure equivalents. Adjustments are also made to derivatives and secured financing transactions to reflect credit and other risks.
Dividend yield: is calculated on an annualized basis and is defined as dividend per common share divided by average of daily closing price per common share for the period.
Economic value of shareholders' equity (EVE): is a calculation of the present value of EQB's asset cash flows, less the present value of liability cash flows on a pre-tax basis. EVE is a comprehensive measure of exposure to interest rate changes than net interest income because it captures all interest rate mismatches across all terms.
Efficiency ratio: this measure is used to assess the efficiency of EQB's cost structure relative to revenue generation. This ratio is derived by dividing non-interest expenses by revenue. A lower efficiency ratio reflects a more efficient cost structure.
Provision for credit losses (PCL) – rate: this credit quality metric is calculated on an annualized basis and is defined as the loans' provision for credit losses as a percentage of average loan principal outstanding during the period.
Return on equity (ROE): this profitability measure is calculated on an annualized basis and is defined as net income available to common shareholders as a percentage of weighted average common shareholders' equity outstanding during the period.
Revenue per full time equivalent (FTE): is calculated as revenue for the period divided by the average number of full-time equivalent employees during that period.
Risk-weighted assets (RWA): represents Equitable Bank's assets and off-balance sheet exposures, weighted according to risk as prescribed by OSFI under the CAR Guideline.

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Non-Generally Accepted Accounting Principles (GAAP) financial measures and ratios

This section provides further discussion regarding the variety of financial measures to evaluate EQB's performance.

Non-GAAP measures

In addition to GAAP prescribed measures, EQB uses certain non-GAAP measures that management believes 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. The primary non-GAAP measures used in this MD&A are:

Adjusted results

In addition to the adjusted results that are presented in the "Adjustments to financial result" section of this MD&A, additional adjusted financial measures and ratios are described as follows:

Adjusted efficiency ratio: it is derived by dividing adjusted non-interest expenses by adjusted revenue. A lower adjusted efficiency ratio reflects a more efficient cost structure.
Adjusted return on equity (ROE): it 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.

Other non-GAAP financial measures and ratios:

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 of investors.
Conventional lending: are the total on-balance sheet loan principal excluding insured single-family mortgages and insured multi-unit residential mortgages.
Liquid assets: is a measure of EQB's cash or assets that can be readily converted into cash, which are held for the purposes of funding loans, deposit maturities, and the ability to collect other receivables and settle other obligations. A detailed calculation can be found in Table 13 of this MD&A.
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. A detailed calculation can be found in Table 7 of this MD&A.
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. A detailed calculation can be found in Table 2 of this MD&A.
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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Consolidated balance sheet (unaudited)

($000s) As at	Note	July 31, 2025	October 31, 2024	July 31, 2024
Assets:
Cash and cash equivalents		485,757	591,641	509,608
Restricted cash		1,218,685	971,987	904,196
Securities purchased under reverse repurchase agreements		1,949,171	1,260,118	1,339,578
Investments	6	1,731,462	1,627,314	1,806,413
Loans – Personal	7,8	32,297,598	32,273,551	32,584,931
Loans – Commercial	7,8	14,890,241	14,760,367	15,372,643
Securitization retained interests	8	999,729	813,719	738,986
Deferred tax assets	11	19,967	36,104	30,481
Other assets	9	969,034	899,120	782,900
Total assets		54,561,644	53,233,921	54,069,736
Liabilities and Shareholders' Equity
Liabilities:
Deposits	10	36,360,714	33,739,612	33,258,969
Securitization liabilities	8	12,498,948	14,594,304	14,919,830
Obligations under repurchase agreements	8	148,623	-	-
Deferred tax liabilities	11	204,296	177,933	161,025
Funding facilities	12	1,385,306	946,956	1,803,221
Other liabilities	13	652,199	636,931	681,213
Total liabilities		51,250,086	50,095,736	50,824,258
Shareholders' equity:
Preferred shares		-	-	181,411
Common shares	14	512,172	505,876	501,594
Other equity instruments	14	147,360	147,440	147,808
Contributed deficit		(15,034)	(17,374)	(25,801)
Retained earnings		2,656,635	2,483,309	2,432,426
Accumulated other comprehensive income (loss)		2,035	8,555	(3,964)
Total equity attributable to equity holders of EQB		3,303,168	3,127,806	3,233,474
Non-controlling interests		8,390	10,379	12,004
Total equity		3,311,558	3,138,185	3,245,478
Total liabilities and shareholders' equity		54,561,644	53,233,921	54,069,736

See accompanying notes to the consolidated financial statements.

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Consolidated statement of income (unaudited)

($000s, except per share amounts)	Three months ended			Nine months ended
	Note	July 31, 2025	July 31, 2024	July 31, 2025	July 31, 2024
Interest income:
Loans – Personal		463,555	501,420	1,406,262	1,452,673
Loans – Commercial		217,209	256,788	651,317	777,511
Investments		12,899	16,432	38,557	51,187
Other		24,727	32,210	70,009	81,518
		718,390	806,850	2,166,145	2,362,889
Interest expense:
Deposits		334,109	387,208	999,309	1,111,772
Securitization liabilities	8	122,502	132,810	360,147	391,839
Funding facilities		11,703	12,773	22,015	41,577
Other		34	2,692	187	22,986
		468,348	535,483	1,381,658	1,568,174
Net interest income		250,042	271,367	784,487	794,715
Non-interest revenue:
Fees and other income	17	24,747	22,561	70,380	59,740
Net gains on loans and investments		521	6,145	3,854	18,267
Gains on sale and income from retained interests	8	26,468	22,755	71,430	65,341
Net gains on securitization activities and derivatives		4,351	4,410	14,563	4,607
		56,087	55,871	160,227	147,955
Revenue		306,129	327,238	944,714	942,670
Provision for credit losses		33,968	21,274	82,880	59,026
Revenue after provision for credit losses		272,161	305,964	861,834	883,644
Non-interest expenses:
Compensation and benefits		79,791	69,912	230,005	202,242
Other	18	91,163	80,657	261,394	238,232
		170,954	150,569	491,399	440,474
Income before income taxes		101,207	155,395	370,435	443,170
Income taxes:	11
Current		13,455	44,083	56,412	115,351
Deferred		14,388	(842)	42,657	5,567
		27,843	43,241	99,069	120,918
Net income		73,364	112,154	271,366	322,252
Dividends on preferred shares		-	2,351	-	7,054
Distribution to LRCN holders		-	-	4,410	-
Net income available to common shareholders and non-controlling interests		73,364	109,803	266,956	315,198
Net income attributable to:
Common shareholders		73,014	109,538	265,949	314,454
Non-controlling interests		350	265	1,007	744
		73,364	109,803	266,956	315,198
Earnings per share:	16
Basic		1.91	2.86	6.93	8.24
Diluted		1.90	2.84	6.88	8.17

See accompanying notes to the consolidated financial statements.

Page 41

Consolidated statement of comprehensive income (unaudited)

($000s)	Three months ended		Nine months ended
	July 31, 2025	July 31, 2024	July 31, 2025	July 31, 2024
Net income	73,364	112,154	271,366	322,252
Other comprehensive income – items that will be reclassified subsequently to income:
Debt instruments at Fair Value through Other Comprehensive Income:
Net change in (losses) gains on fair value	(11,334)	34,658	4,693	59,979
Reclassification of net losses (gains) to income	13,075	(31,278)	1,486	(49,918)
Other comprehensive income – items that will not be reclassified subsequently to income:
Equity instruments designated at Fair Value through Other Comprehensive Income:
Net change in gains on fair value	-	534	868	2,086
Reclassification of net losses (gains) to retained earnings	-	490	(868)	490
	1,741	4,404	6,179	12,637
Income tax expense	(639)	(1,194)	(1,928)	(3,427)
	1,102	3,210	4,251	9,210
Cash flow hedges:
Net change in unrealized gains (losses) on fair value	5,501	(23,284)	(7,688)	(23,553)
Reclassification of net gains to income	(6,954)	(2,844)	(16,315)	(14,608)
	(1,453)	(26,128)	(24,003)	(38,161)
Income tax recovery	3	7,084	6,083	10,366
	(1,450)	(19,044)	(17,920)	(27,795)
Total other comprehensive loss	(348)	(15,834)	(13,669)	(18,585)
Total comprehensive income	73,016	96,320	257,697	303,667
Total comprehensive income attributable to:
Common shareholders	72,666	93,704	252,280	295,869
Other equity and preferred shareholders	-	2,351	4,410	7,054
Non-controlling interests	350	265	1,007	744
	73,016	96,320	257,697	303,667

See accompanying notes to the consolidated financial statements.

Page 42

Consolidated statement of changes in shareholders' equity (unaudited)

($000s) Three-month period ended
	Common Shares	Other equity instruments	Contributed deficit	Retained Earnings	Accumulated other comprehensive income (loss)			Attributable to equity holders	Non-controlling interests	Total
					Cash Flow Hedges	Financial Instruments at FVOCI	Total
Balance, beginning 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
Net Income	-	-	-	73,014	-	-	-	73,014	350	73,364
Transfer of AOCI losses to net income, net of tax	-	-	-	-	-	39	39	39	-	39
Other comprehensive loss, net of tax	-	-	-	-	(1,450)	1,102	(348)	(348)	-	(348)
Exercise of stock options	952	-	-	-	-	-	-	952	-	952
Common share dividends	-	-	-	(20,297)	-	-	-	(20,297)	(462)	(20,759)
Put option - non-controlling interests	-	-	(1,442)	-	-	-	-	(1,442)	-	(1,442)
Acquisition of non-controlling interests	-	-	4,242	(3,083)	-	-	-	1,159	(1,159)	-
Stock-based compensation	-	-	1,590	-	-	-	-	1,590	-	1,590
Transfer relating to the exercise of stock options	247	-	(247)	-	-	-	-	-	-	-
Balance, end of period	512,172	147,360	(15,034)	2,656,635	3,697	(1,662)	2,035	3,303,168	8,390	3,311,558

See accompanying notes to the consolidated financial statements.

Page 43

($000s) Three-month period ended											July 31, 2024
	Preferred Shares	Common Shares	Other equity instruments	Contributed deficit	Retained Earnings	Accumulated other comprehensive income (loss)			Attributable to equity holders	Non-controlling interests	Total
						Cash Flow Hedges	Financial Instruments at FVOCI	Total
Balance, beginning 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
Net Income	-	-	-	-	111,889	-	-	-	111,889	265	112,154
Realized loss on sale of shares, net of tax	-	-	-	-	(18,975)	-	-	-	(18,975)	-	(18,975)
Transfer of AOCI losses to retained earnings, net of tax	-	-	-	-	-	-	18,618	18,618	18,618	-	18,618
Transfer of AOCI losses to net income, net of tax	-	-	-	-	-	-	1,056	1,056	1,056	-	1,056
Other comprehensive loss, net of tax	-	-	-	-	-	(19,044)	3,210	(15,834)	(15,834)	-	(15,834)
Exercise of stock options	-	5,005	-	-	-	-	-	-	5,005	-	5,005
Limited recourse capital notes issued	-	-	150,000	-	-	-	-	-	150,000	-	150,000
Issuance cost, net of tax	-	-	(2,192)	-	-	-	-	-	(2,192)	-	(2,192)
Dividends:
Preferred shares	-	-	-	-	(2,351)	-	-	-	(2,351)	-	(2,351)
Common shares	-	-	-	-	(17,253)	-	-	-	(17,253)	(450)	(17,703)
Put option - non-controlling interests	-	-	-	(1,032)	-	-	-	-	(1,032)	-	(1,032)
Stock-based compensation	-	-	-	924	-	-	-	-	924	-	924
Transfer relating to the exercise of stock options	-	882	-	(882)	-	-	-	-	-	-	-
Balance, end of period	181,411	501,594	147,808	(25,801)	2,432,426	15,823	(19,787)	(3,964)	3,233,474	12,004	3,245,478

See accompanying notes to the consolidated financial statements.

Page 44

Consolidated statement of changes in shareholders' equity (unaudited)

($000s) Nine-month period ended										July 31, 2025
	Common Shares	Other equity instruments	Contributed deficit	Retained Earnings	Accumulated other comprehensive income (loss)			Attributable to equity holders	Non-controlling interests	Total
					Cash Flow Hedges	Financial Instruments at FVOCI	Total
Balance, beginning of period	505,876	147,440	(17,374)	2,483,309	21,617	(13,062)	8,555	3,127,806	10,379	3,138,185
Net Income	-	-	-	270,359	-	-	-	270,359	1,007	271,366
Realized loss on sale of shares, net of tax	-	-	-	(6,377)	-	-	-	(6,377)	-	(6,377)
Transfer of AOCI losses to retained earnings, net of tax	-	-	-	-	-	7,016	7,016	7,016	-	7,016
Transfer of AOCI losses to net income, net of tax	-	-	-	-	-	133	133	133	-	133
Other comprehensive loss, net of tax	-	-	-	-	(17,920)	4,251	(13,669)	(13,669)	-	(13,669)
Exercise of stock options	8,089	-	-	-	-	-	-	8,089	-	8,089
Common shares repurchased and cancelled	(3,740)	-	-	(24,432)	-	-	-	(28,172)	-	(28,172)
Issuance cost, net of tax	-	(80)	-	-	-	-	-	(80)	-	(80)
Limited recourse capital notes distributions, net of tax	-	-	-	(4,410)	-	-	-	(4,410)	-	(4,410)
Common share dividends	-	-	-	(58,731)	-	-	-	(58,731)	(1,837)	(60,568)
Put option - non-controlling interests	-	-	(3,776)	-	-	-	-	(3,776)	-	(3,776)
Acquisition of non-controlling interests	-	-	4,242	(3,083)	-	-	-	1,159	(1,159)	-
Stock-based compensation	-	-	3,821	-	-	-	-	3,821	-	3,821
Transfer relating to the exercise of stock options	1,947	-	(1,947)	-	-	-	-	-	-	-
Balance, end of period	512,172	147,360	(15,034)	2,656,635	3,697	(1,662)	2,035	3,303,168	8,390	3,311,558

See accompanying notes to the consolidated financial statements.

Page 45

($000s) Nine-month period ended											July 31, 2024
	Preferred Shares	Common Shares	Other equity instruments	Contributed Surplus (deficit)	Retained Earnings	Accumulated other comprehensive income (loss)			Attributable to equity holders	Non-controlling interests	Total
						Cash Flow Hedges	Financial Instruments at FVOCI	Total
Balance, beginning of period	181,411	471,014	-	12,795	2,185,480	43,618	(48,775)	(5,157)	2,845,543	-	2,845,543
NCI on acquisition	-	-	-	-	-	-	-	-	-	12,310	12,310
Net Income	-	-	-	-	321,508	-	-	-	321,508	744	322,252
Realized loss on sale of shares, net of tax	-	-	-	-	(18,975)	-	-	-	(18,975)	-	(18,975)
Transfer of AOCI losses to retained earnings, net of tax	-	-	-	-	-	-	18,618	18,618	18,618	-	18,618
Transfer of AOCI losses to net income, net of tax	-	-	-	-	-	-	1,160	1,160	1,160	-	1,160
Other comprehensive loss, net of tax	-	-	-	-	-	(27,795)	9,210	(18,585)	(18,585)	-	(18,585)
Common shares issued		11,000	-	-	-	-	-	-	11,000	-	11,000
Exercise of stock options	-	16,844	-	-	-	-	-	-	16,844	-	16,844
Limited recourse capital notes issued	-	-	150,000	-	-	-	-	-	150,000	-	150,000
Issuance cost, net of tax	-	-	(2,192)	-	-	-	-	-	(2,192)	-	(2,192)
Dividends:
Preferred shares	-	-	-	-	(7,054)	-	-	-	(7,054)	-	(7,054)
Common shares	-	-	-	-	(48,533)	-	-	-	(48,533)	(1,050)	(49,583)
Put option - non-controlling interests	-	-	-	(38,897)	-	-	-	-	(38,897)	-	(38,897)
Stock-based compensation	-	-	-	3,037	-	-	-	-	3,037	-	3,037
Transfer relating to the exercise of stock options	-	2,736	-	(2,736)	-	-	-	-	-	-	-
Balance, end of period	181,411	501,594	147,808	(25,801)	2,432,426	15,823	(19,787)	(3,964)	3,233,474	12,004	3,245,478

See accompanying notes to the consolidated financial statements.

Page 46

Consolidated statement of cash flows (unaudited)

($000s)	Three months ended		Nine months ended
	July 31, 2025	July 31, 2024	July 31, 2025	July 31, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	73,364	112,154	271,366	322,252
Adjustments for non-cash items in net income:
Financial instruments at fair value through income	110,533	(14,453)	(67,817)	(3,093)
Amortization of premiums/discount on investments	(692)	(13,393)	(6,275)	(44,422)
Amortization of capital assets and intangible costs	16,844	13,253	49,238	36,373
Provision for credit losses	33,968	21,274	82,880	59,026
Securitization gains	(18,027)	(16,656)	(48,653)	(48,658)
Stock-based compensation	1,590	924	3,821	3,037
Income taxes	27,843	43,241	99,069	120,918
Securitization retained interests	44,691	33,670	126,389	92,304
Changes in operating assets and liabilities:
Restricted cash	(222,094)	(121,048)	(246,698)	(137,001)
Securities purchased under reverse repurchase agreements	150,866	60,377	(689,053)	(430,745)
Loans receivable, net of securitizations	(176,355)	(132,856)	(442,501)	(847,878)
Other assets	(9,003)	(97,507)	(8,922)	(106,038)
Deposits	1,349,617	(924,138)	2,605,032	1,165,004
Securitization liabilities	(1,060,539)	(269,988)	(2,128,524)	407,423
Obligations under repurchase agreements	64,531	-	148,623	(1,128,238)
Funding facilities	(25,064)	963,380	438,350	71,634
Other liabilities	(27,275)	(53,946)	38,124	(12,310)
Income taxes paid	(20,287)	(21,742)	(88,046)	(71,816)
Cash flows from (used in) operating activities	314,511	(417,454)	136,403	(552,228)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common shares	952	5,005	8,089	27,844
Net proceeds from issuance of limited recourse notes	-	147,808	(80)	147,808
Common share repurchased and cancelled	-	-	(28,172)	-
Dividends paid on preferred shares	-	(2,351)	-	(7,054)
Dividends paid on common shares	(20,759)	(17,253)	(60,568)	(48,533)
Distribution to other equity holders	-	-	(4,410)	-
Cash flows (used in) from financing activities	(19,807)	133,209	(85,141)	120,065
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investments	(370,789)	(7,896)	(387,208)	(352,319)
Acquisition of subsidiary	-	-	-	(75,483)
Proceeds on sale or redemption of investments	82,864	132,370	242,337	789,016
Net change in Canada Housing Trust re-investment accounts	-	22,050	53,032	69,009
Purchase of capital assets and system development costs	(21,769)	(9,890)	(65,307)	(37,926)
Cash flows (used in) from investing activities	(309,694)	136,634	(157,146)	392,297
Net decrease in cash and cash equivalents	(14,990)	(147,611)	(105,884)	(39,866)
Cash and cash equivalents, beginning of period	500,747	657,219	591,641	549,474
Cash and cash equivalents, end of period	485,757	509,608	485,757	509,608
Supplemental statement of cash flows disclosure:
Interest received	683,755	975,954	2,062,196	2,510,358
Interest paid	(498,078)	(646,530)	(1,325,193)	(1,461,202)
Dividends received	-	521	350	1,634

See accompanying notes to the consolidated financial statements.

Page 47

Notes to consolidated financial statements

($000s, except per share amounts)

Note 1 – Reporting Entity

EQB Inc. (EQB) was formed on January 1, 2004, as the parent company of its wholly owned subsidiary, Equitable Bank. EQB is listed on the Toronto Stock Exchange (TSX) and domiciled in Canada with its registered office located at 25 Ontario Street, Suite 2200, Toronto, Ontario. Equitable Bank is a Schedule I Bank under the Bank Act (Canada) and is regulated by the Office of the Superintendent of Financial Institutions Canada (OSFI). Equitable Bank and its subsidiaries offer savings and lending products to personal and commercial customers across Canada. EQB also owns 78% of ACM Advisors (ACM).

Note 2 – Basis of Preparation

(a) Statement of compliance

These interim consolidated financial statements of EQB have been prepared in accordance with International Accounting Standards (IAS 34) Interim Financial Reporting and do not include all the information required for full annual financial statements. These interim consolidated financial statements should be read in conjunction with EQB's 2024 annual audited consolidated financial statements.

These interim consolidated financial statements were approved for issuance by EQB's Board of Directors (the Board) on August 27, 2025.

(b) Basis of measurement

The interim consolidated financial statements have been prepared on a historical cost basis except for the following items which are stated at fair value: derivative financial instruments, financial assets and liabilities that are classified or designated as fair value through profit and loss and fair value through other comprehensive income.

(c) Functional currency

The functional currency of EQB and its subsidiaries is Canadian dollars, which is also the presentation currency of the interim consolidated financial statements.

(d) Use of estimates and accounting judgments in applying accounting policies

Allowance for credit losses under IFRS 9

(e) Consolidation

The interim consolidated financial statements as at and for the three and nine months ended July 31, 2025 and July 31, 2024 include the assets, liabilities and results of operations of EQB and its subsidiaries, after the elimination of intercompany transactions and balances. EQB has control over its subsidiaries as it is exposed to and has rights to variable returns from its involvement with the subsidiaries and it can affect those returns through its power over their relevant activities.

EQB has a 100% ownership interest in Equitable Bank and a 78% ownership in ACM. Equitable Bank is the parent company of its wholly owned subsidiaries, Equitable Trust, Concentra Bank, Concentra Trust, and Bennington Financial Services. All these subsidiaries have been consolidated in the consolidated financial statements of EQB as at July 31, 2025.

EQB and its subsidiary Equitable Bank use funding and capital vehicles to facilitate cost efficient financing of its operations, including the issuance of covered bonds and Limited Recourse Capital Notes (LRCN). Activities of these funding structured entities are generally limited to holding an interest in a pool of assets generated by EQB and its subsidiaries. These structured entities include EQB Covered Bond (Legislative) GP Inc., EQB Covered Bond (Legislative) Guarantor Limited Partnership, EQB LRCN Limited Recourse Trust and Equitable Bank LRCN Limited Recourse Trust. These structured entities have been established in connection with the issuance of covered bonds and LRCN. As at July 31, 2025, all these structured entities have been consolidated in the consolidated financial statements of EQB, due to its decision-making power over the entities and ability to use that power to affect their returns.

Non-controlling interests are presented within equity on the Consolidated Balance Sheet separate from equity attributable to holders of common shares of EQB. The net income attributable to non-controlling interests is presented separately in the Consolidated Statement of Income.

Page 49

Note 3 – Material Accounting Policies

The material accounting policies applied by EQB in these interim consolidated financial statements are the same as those applied by EQB as at and for the year ended October 31, 2024, as described in Note 3 of the audited consolidated financial statements in EQB's 2024 Annual Report.

Note 4 – Risk Management

EQB, like other financial institutions, is exposed to the symptoms and effects of global economic conditions and other factors that could adversely affect its business, financial condition, and operating results, which may also influence an investor to buy, sell, or hold shares in EQB. Many of these risk factors are beyond EQB's direct control. The use of financial instruments exposes EQB to credit risk, liquidity risk, and market risk.

A discussion of EQB's risk exposures and how it manages those risks can be found in the yellow tinted sections of the Risk Management section of the Management's Discussion & Analysis of EQB's 2024 Annual Report and the 2025 third quarter report.

Note 5 – Financial Instruments

EQB's business activities result in a Consolidated Balance Sheet that consists primarily of financial instruments. The majority of EQB's net income is derived from gains, losses, income, and expenses related to these financial assets and liabilities.

(a) Valuation methods and assumptions

Valuation methods and assumptions used to estimate fair values of financial instruments are as follows:

(i) Financial instruments whose cost or amortized cost approximates fair value

The fair value of Cash and cash equivalents and Restricted cash approximate their cost due to their short-term nature.

Securities purchased under reverse repurchase agreements, obligations under repurchase agreements, bank facilities and certain other financial assets and liabilities are carried at cost or amortized cost, which approximates fair value.

(ii) Financial instruments classified as at FVOCI, Fair value through equity (FVEQ) and FVTPL

These financial assets and financial liabilities are measured on the Consolidated Balance Sheet at fair value. For financial instruments measured at fair value where active market prices are available, bid prices are used for financial assets and ask prices for financial liabilities. For those financial instruments measured at fair value that are not traded in an active market, fair value estimates are determined using valuation methods which maximize the use of observable market data and include discounted cash flow analysis and other commonly used valuation techniques.

(iii) Loans receivable

The estimated fair value of loans receivable is determined using a discounted cash flow calculation and the market interest rates offered for loans with similar terms and credit risks.

(iv) Deposits

The estimated fair value of deposits is determined by discounting expected future contractual cash flows using observed market interest rates offered for deposits with similar terms. Deposit liabilities include GICs that are measured at fair value through income and are guaranteed by Canada Deposit Insurance Corporation (CDIC). This guarantee from CDIC is reflected in the fair value measurement of the deposit liabilities.

Page 50

(v) Securitization liabilities

The estimated fair value of securitization liabilities is determined by discounting expected future contractual cash flows using market interest rates offered for similar terms.

(vi) Derivatives

Fair value estimates of derivative financial instruments are determined based on commonly used pricing methodologies (primarily discounted cash flow models) that incorporate observable market data. Frequently applied valuation techniques incorporate various inputs such as stock prices, bond prices, and interest rate curves into present value calculations.

The fair value of put option liabilities representing the right of the non-controlling interest to tender their shares have been determined using a discounted cash flow model which uses non-observable inputs to estimate the future purchase price at the settlement date.

The following tables present the carrying values for each category of financial assets and liabilities and their estimated fair values as at July 31, 2025 and July 31, 2024. The tables do not include assets and liabilities that are not financial instruments.

($000s)
July 31, 2025

	FVTPL – Mandatorily	FVOCI – Debt instruments	FVOCI – Equity instruments	FVEQ - Elected	Amortized cost	Total carrying value	Fair value
Financial assets:
Cash and cash equivalents	-	-	-	-	485,757	485,757	485,757
Restricted cash	-	-	-	-	1,218,685	1,218,685	1,218,685
Securities purchased under reverse repurchase agreements	-	-	-	-	1,949,171	1,949,171	1,949,171
Investments	87,285	1,633,792	10,385	-	-	1,731,462	1,731,462
Loans – Personal	-	-	-	-	32,297,598	32,297,598	32,249,144
Loans – Commercial(1)	864,567	-	-	-	12,967,851	13,832,418	13,810,928
Securitization retained interests	-	-	-	-	999,729	999,729	980,086
Other assets:
Derivative financial instruments(2):
Cross-currency interest rate swaps	185,743	-	-	-	-	185,743	185,743
Interest rate swaps	36,954	-	-	-	-	36,954	36,954
Bond forwards	10,472	-	-	-	-	10,472	10,472
Total return swaps	8,657	-	-	-	-	8,657	8,657
Foreign exchange forwards	4,336	-	-	-	-	4,336	4,336
Loan commitments	233	-	-	-	-	233	233
Other	-	-	-	-	97,638	97,638	97,638
Total financial assets	1,198,247	1,633,792	10,385	-	50,016,429	52,858,853	52,769,266
Financial liabilities:
Deposits	-	-	-	-	36,360,714	36,360,714	36,443,892
Securitization liabilities	-	-	-	-	12,498,948	12,498,948	12,408,251
Obligations under repurchase agreements	-	-	-	-	148,623	148,623	148,623
Funding facilities	-	-	-	-	1,396,565	1,396,565	1,396,324
Other liabilities:
Derivative financial instruments(2):
Interest rate swaps	37,378	-	-	-	-	37,378	37,378
Put options	-	-	-	30,147	-	30,147	30,147
Foreign exchange forwards	1,499	-	-	-	-	1,499	1,499
Bond forwards	888	-	-	-	-	888	888
Cross-currency interest rate swaps	577	-	-	-	-	577	577
Right-of-use liabilities	-	-	-	-	108,345	108,345	108,345
Other	-	-	-	-	467,245	467,245	467,452
Total financial liabilities	40,342	-	-	30,147	50,980,440	51,050,929	51,043,376

(1) Loans – Commercial does not include $1,057,823 (July 31, 2024 – $1,194,123) of Finance leases, as these are specifically excluded for classification and measurement under IFRS 9. (2) Derivative financial instruments are non-trading, and include derivatives held in hedge accounting relationships.

($000s)							July 31, 2024
	FVTPL – Mandatorily	FVOCI – Debt instruments	FVOCI – Equity instruments	FVEQ – Elected	Amortized cost	Total carrying value	Fair value
Financial assets:
Cash and cash equivalents	-	-	-	-	509,608	509,608	509,608
Restricted cash	-	-	-	-	904,196	904,196	904,196
Securities purchased under reverse repurchase agreements	-	-	-	-	1,339,578	1,339,578	1,339,578
Investments	215,444	1,442,122	87,973	-	60,874	1,806,413	1,798,097
Loans – Personal	-	-	-	-	32,584,931	32,584,931	32,475,527
Loans – Commercial(1)	951,213	-	-	-	13,227,307	14,178,520	14,123,207
Securitization retained interests	-	-	-	-	738,986	738,986	745,355
Other assets:
Derivative financial instruments(2):
Cross-currency interest rate swaps	109,416	-	-	-	-	109,416	109,416
Interest rate swaps	73,616	-	-	-	-	73,616	73,616
Total return swaps	13,700	-	-	-	-	13,700	13,700
Foreign exchange forwards	3,538	-	-	-	-	3,538	3,538
Bond forwards	453	-	-	-	-	453	453
Loan commitments	2,418	-	-	-	-	2,418	2,418
Other	-	-	-	-	87,038	87,038	87,038
Total financial assets	1,369,798	1,442,122	87,973	-	49,452,518	52,352,411	52,185,747
Financial liabilities:
Deposits	-	-	-	-	33,258,969	33,258,969	32,328,949
Securitization liabilities	-	-	-	-	14,919,830	14,919,830	14,657,764
Funding facilities	-	-	-	-	1,809,781	1,809,781	1,810,042
Other liabilities:
Derivative financial instruments(2):
Interest rate swaps	91,717	-	-	-	-	91,717	91,717
Put options	-	-	-	38,897	-	38,897	38,897
Bond forwards	26,433	-	-	-	-	26,433	26,433
Cross-currency interest rate swaps	6,495	-	-	-	-	6,495	6,495
Total return swaps	4,642	-	-	-	-	4,642	4,642
Foreign exchange forwards	370	-	-	-	-	370	370
Right-of-use liabilities	-	-	-	-	66,016	66,016	66,016
Other	-	-	-	-	416,309	416,309	416,592
Total financial liabilities	129,657	-	-	38,897	50,470,905	50,639,459	49,447,917

(1) Loans – Commercial does not include $1,057,823 (July 31, 2024 – $1,194,123) of equipment financing, as these are specifically excluded for classification and measurement under IFRS 9. (2) Derivative financial instruments are non-trading, and include derivatives held in hedge accounting relationships.

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(b) Fair value hierarchy

Financial instruments recorded at fair value on the interim Consolidated Balance Sheet are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

The fair value hierarchy has the following levels:

Level 1: valuation based on quoted prices (unadjusted) observed in active markets for identical assets and liabilities.

Level 2: valuation techniques based on inputs other than quoted prices included in Level 1 that are either directly or indirectly observable for the asset or liability.

Level 3: valuation techniques with significant unobservable market inputs.

The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the reporting date that would have been determined by market participants acting at arm's length. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.

The following table presents the fair value hierarchy of all financial instruments, whether or not measured at fair value in the interim Consolidated Balance Sheet, except for certain financial instruments whose carrying amount always approximates their fair values due to their short-term nature:

Page 54

($000s)	July 31, 2025	Level 1	Level 2	Level 3
Financial assets:
Investments	1,595,318	43,279	92,865	1,731,462
Loans – Personal	-	-	32,249,144	32,249,144
Loans – Commercial	-	864,567	12,946,361	13,810,928
Securitization retained interests	-	980,086	-	980,086
Other assets:
Derivative financial instruments (1):
Cross-currency interest rate swaps	-	185,743	-	185,743
Interest rate swaps	-	36,954	-	36,954
Bond forwards	-	10,472	-	10,472
Total return swaps	-	8,657	-	8,657
Foreign exchange forwards	-	4,336	-	4,336
Loan commitments	-	233	-	233
Other	-	97,638	-	97,638
Total financial assets	1,595,318	2,231,965	45,288,370	49,115,653
Financial liabilities:
Deposits	-	36,443,892	-	36,443,892
Securitization liabilities	-	9,353,061	3,055,190	12,408,251
Funding Facilities	-	1,396,324	-	1,396,324
Other liabilities:
Derivative financial instruments (1):
Interest rate swaps	-	37,378	-	37,378
Put options	-	-	30,147	30,147
Foreign exchange forwards	-	1,499	-	1,499
Bond forwards	-	888	-	888
Cross-currency interest rate swaps	-	577	-	577
Other	-	467,452	-	467,452
Total financial liabilities	-	47,701,071	3,085,337	50,786,408

(1) Derivative financial instruments are non-trading, and include derivatives held in hedge accounting relationships.

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($000s)	July 31, 2024	Level 1	Level 2	Level 3
Financial assets:
Investments	1,617,380	47,928	132,789	1,798,097
Loans – Personal	-	-	32,475,527	32,475,527
Loans – Commercial	-	951,214	13,171,993	14,123,207
Securitization retained interests	-	745,355	-	745,355
Other assets:
Derivative financial instruments (1):
Cross-currency interest rate swaps	-	109,416	-	109,416
Interest rate swaps	-	73,616	-	73,616
Total return swaps	-	9,768	3,932	13,700
Foreign exchange forwards	-	3,538	-	3,538
Bond forwards	-	453	-	453
Loan commitments	-	2,418	-	2,418
Other	-	87,038	-	87,038
Total financial assets	1,617,380	2,030,744	45,784,241	49,432,365
Financial liabilities:
Deposits	-	32,328,949	-	32,328,949
Securitization liabilities	-	11,919,272	2,738,492	14,657,764
Funding Facilities	-	1,810,042	-	1,810,042
Other liabilities:
Derivative financial instruments (1):
Interest rate swaps	-	91,717	-	91,717
Put options	-	-	38,897	38,897
Bond forwards	-	26,433	-	26,433
Cross-currency interest rate swaps	-	6,495	-	6,495
Total return swaps	-	-	4,642	4,642
Foreign exchange forwards	-	370	-	370
Other	-	416,592	-	416,592
Total financial liabilities	-	46,599,870	2,782,031	49,381,901

(1) Derivative financial instruments are non-trading, and include derivatives held in hedge accounting relationships.

Financial instruments that are carried at fair value on the Consolidated Balance Sheet and categorized at Level 3 in the fair value hierarchy comprised of investments and derivative financial instruments. The following table summarizes the changes in Level 3 instruments for the period ended July 31, 2025 and July 31, 2024:

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($000s)July 31, 2025	Fair valueNovember 1,2024	Gains/(losses)recordedin income	Gains/(losses)recordedin Otherequity	Purchases/Issuances	Sales/Settlements	Transfersinto/outof Level 3	Fair valueJuly 31, 2025	Change inunrealizedgains/(losses)recorded inincome(1)
Financial assets:
Investments	87,075	5,278	-	4,469	(3,957)	-	92,865	5,241
Derivative financialinstruments:
Total return swaps	2,368	4,267	-	-	(6,635)	-	-	-
Total financial assets	89,443	9,545	-	4,469	(10,592)	-	92,865	5,241
Financial liabilities:
Other liabilities:
Derivative financialinstruments:
Total return swaps	(3,769)	1,184	-	-	2,585	-	-	-
Put option	(30,613)	-	(3,776)	-	4,242	-	(30,147)	-
Total financial liabilities	(34,382)	1,184	(3,776)	-	6,827	-	(30,147)	-
($000s)July 31, 2024	Fair valueNovember 1,2023	Gains/(losses)recordedin income	Gains/(losses)recordedin Otherequity	Purchases/Issuances	Sales/Settlements	Transfersinto/outof Level 3	Fair valueJuly 31, 2024	Change inunrealizedgains/(losses)recorded inincome(1)
---	---	---	---	---	---	---	---	---
Financial assets:
Investments	74,365	4,415	-	57,196	(3,187)	-	132,789	4,386
Derivative financialinstruments:
Total return swaps	16,357	(3,525)	-	-	(8,900)	-	3,932	(8,432)
Total financial assets	90,722	890	-	57,196	(12,087)	-	136,721	(4,046)
Financial liabilities:
Other liabilities:
Derivative financialinstruments:
Total return swaps	(3,405)	(1,237)	-	-	-	-	(4,642)	(1,686)
Loan commitments	(3,620)	-	-	-	3,620	-	-	-
Put option	-	-	-	(38,897)	-	-	(38,897)	-
Total financial liabilities	(7,025)	(1,237)	-	(38,897)	3,620	-	(43,539)	(1,686)

(1) These amounts represent the gains and losses from fair value changes of Level 3 instruments still held at the end of the period that are recorded in the Consolidated Statements of Income.

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(d) Level 3 sensitivity analysis

($000s)
Level 3 Financial Instruments	Valuation technique	Significant unobservable inputs	Range of estimates for unobservable inputs	Changes in fair value from reasonably possible alternatives
Investments – Private Equity	Market comparables	P/E multiples	2.5x to 9.6x	(4,582) / 4582
Investments – Private Equity Funds	Partnership NAV statements	Return on investments	(40%) to 25%	(19,990) / 9,367
Derivatives – Put option	Discounted cash flows	Discount rate EBITDA forecasts	15% to 18% 80% to 120%	(438) / 1,172 5,703 / (5,704)

EQB applies judgment in determining unobservable inputs used to calculate the fair value of Level 3 instruments. The following are significant unobservable inputs for Level 3 instruments:

P/E multiples

P/E multiples are used to calculate private equity securities valuation, which is determined based on comparable companies. Higher multiples equate to higher fair values.

Return on investments

Return on investments for private equity funds are based on historical fund returns. Higher returns equate to higher fair values.

Discount rate

The discount rate for the put option is based on the estimated cost of equity for the underlying shares. Higher discount rates equate to lower fair values.

Forecasted EBITDA

The forecasted EBITDA for the share tender rights is based on management's internal business plans. Higher forecasted EBITDA equates to higher fair values.

Note 6 – Investments

Carrying value of investments is as follows:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Equity securities measured at FVOCI	10,385	25,789	87,973
Equity securities measured at FVTPL	17,105	20,845	20,662
Debt securities measured at FVOCI	1,633,792	1,415,347	1,442,122
Debt securities measured at FVTPL	70,180	112,301	194,782
Debt securities measured at AMC	-	53,032	60,874
	1,731,462	1,627,314	1,806,413

During the period EQB sold certain Debt securities measured at AMC of $24,758 (July 31, 2024 - $nil) recognizing a loss on sale of $391 (July 31, 2024 - $nil).

EQB has elected to designate certain Equity securities to be measured at FVOCI as these investments are expected to be held for the long term. For the period ended July 31, 2025, EQB earned dividends of $319 (July 31, 2024 - $1,630) on these Equity securities. During the period, equity securities with a fair value of $16,278 were redeemed/sold (July 31, 2024 - $16,623) with a loss on sale of $8,582 (July 31, 2024 - $26,089) recognized in Retained earnings.

As at July 31, 2025, EQB had a commitment to invest $12,045 (October 31, 2024 -$ 16,054, July 31, 2024 - $16,930) in certain equity securities measured at FVTPL. EQB also had a commitment to invest up to $50,000 (October 31, 2024 - $50,000, July 31, 2024 - $nil) in a climate and social fund to be launched by its subsidiary ACM, of which EQB invested $4,000 on August 11, 2025.

Net unrealized gains (losses) on investments measured at FVOCI and FVTPL, for the nine-month period ended July 31, 2025 and July 31, 2024 are as follows:

($000s)	July 31, 2025	July 31, 2024
Equity securities measured at FVOCI	-	2,577
Equity securities measured at FVTPL	60	2,586
Debt securities measured at FVOCI	5,838	13,810
Debt securities measured at FVTPL	6,439	12,168

Note 7 - Loans Receivable

(a) Loans receivable

($000s)						July 31, 2025
	Gross amount	Allowance for credit losses				Net amount
		Stage 1	Stage 2	Stage 3	Total
Loans – Personal	32,368,550	23,400	30,828	16,724	70,952	32,297,598
Loans – Commercial	14,989,688	33,443	42,289	23,715	99,447	14,890,241
	47,358,238	56,843	73,117	40,439	170,399	47,187,839
($000s)						October 31, 2024
---	---	---	---	---	---	---
	Gross amount	Allowance for credit losses				Net amount
		Stage 1	Stage 2	Stage 3	Total
Loans – Personal	32,325,379	27,242	17,371	7,215	51,828	32,273,551
Loans – Commercial	14,872,960	37,985	25,978	48,630	112,593	14,760,367
	47,198,339	65,227	43,349	55,845	164,421	47,033,918
($000s)						July 31, 2024
---	---	---	---	---	---	---
	Gross amount	Allowance for credit losses				Net amount
		Stage 1	Stage 2	Stage 3	Total
Loans – Personal	32,632,988	26,363	16,143	5,551	48,057	32,584,931
Loans – Commercial	15,462,388	30,038	25,376	34,331	89,745	15,372,643
	48,095,376	56,401	41,519	39,882	137,802	47,957,574

Loans – Personal include certain uninsured residential loans with a carrying value of $3,075,117 (October 31, 2024 -$ 2,776,775, July 31, 2024 - $2,987,120) that have been sold but are not derecognized. Equitable Bank issues Euro denominated covered bonds in Europe by securitizing uninsured residential loans on properties in Canada. These uninsured residential loans are sold and held in a separate guarantor entity i.e. EQB Covered Bond (Legislative) Guarantor Limited Partnership (Guarantor LP), established by Equitable Bank exclusively for the Covered Bonds Program (the Program). The legal title on the uninsured residential loans that are secured under the Program are held by the Guarantor LP. The residential loans sold to the Guarantor LP under the Program do not qualify for derecognition as Equitable Bank continues to be exposed to substantially all of the risks and rewards associated with the transferred assets and retains control of the assets. A key risk associated with transferred loans to which Equitable Bank remains exposed after the transfer in the Program is the risk of prepayment. As a result, the loans continue to be recognized on EQB's Consolidated Balance Sheet at amortized cost and are accounted for as collateral for the secured funding arrangement, with the corresponding liability presented under Deposits.

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Loans – Commercial include certain loans measured at FVTPL that are held for securitization activities. As at July 31, 2025, the carrying value of these loans was $863,956 (October 31, 2024 – $1,445,660, July 31, 2024 – $950,499) and included fair value adjustment of ($7,009) (October 31, 2024 – ($5,097), July 31, 2024 – $12,718).

Loans – Commercial also include certain loans that are designated and measured at FVTPL. As at July 31, 2025, the carrying amount of these loans was $611 (October 31, 2024 – $692, July 31, 2024 – $714) and included fair value adjustment of ($23) (October 31, 2024 – ($34), July 31, 2024 – ($42)).

The impact of changes in fair value for loans measured at fair value through income is as follows:

($000s)	July 31, 2025	July 31, 2024
Net (losses) gains in fair values for loans measured at FVTPL included in gains on securitization activities	(1,912)	21,332
Net gains in fair values for loans measured at FVTPL and recognized in net gains or losses on loans and investments	(1)	1

Loans – Commercial include loans of $1,079,650 (October 31, 2024 – $987,652, July 31, 2024 – $946,485) invested in certain asset-backed structured entities. EQB holds a senior position in these investments and the maximum exposure to loss is limited to the carrying value of the investment. EQB does not have the ability to direct the relevant activities of these structured entities and has no exposure to their variable returns, other than the right to receive interest income from these investments. Consequently, EQB does not control these structured entities and has not consolidated them.

Loans – Commercial also include EQB's net investment in equipment financing of $1,057,823 (October 31, 2024 – $1,135,356, July 31, 2024 – $1,194,123).

At July 31, 2025, EQB had commitments to fund a total of $7,179,829 (October 31, 2024 – $6,246,964, July 31, 2024 – $6,104,082) loans in the ordinary course of business.

(b) Impaired and past due loans

Outstanding impaired loans, net of specific allowances are as follows:

($000s)	Gross (1)	Allowance for credit losses	Net	Net	Net
Loans – Personal	352,293	16,724	335,569	298,277	235,377
Loans – Commercial – Conventional and Insured	407,806	16,989	390,817	268,747	235,950
Loans – Commercial – Equipment financing	55,196	6,726	48,470	56,659	55,309
	815,295	40,439	774,856	623,683	526,636

(1) Gross balances include insured loan balances of $35,265 (October 31, 2024 – $18,295, July 31, 2024 – $19,117).

Outstanding loans that are past due but not classified as impaired are as follows:

($000s)	30 – 59 days	60 – 89 days	90 days or more	Total
Loans – Personal	171,769	61,831	-	233,600
Loans – Commercial – Conventional and Insured	48,248	14,222	-	62,470
Loans – Commercial – Finance financing	11,386	4,747	-	16,133
	231,403	80,800	-	312,203

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($000s)				October 31, 2024
	30 – 59 days	60 – 89 days	90 days or more	Total
Loans – Personal	218,238	73,789	-	292,027
Loans – Commercial – Conventional and Insured	92,028	6,232	-	98,260
Loans – Commercial – Finance financing	18,896	10,977	-	29,873
	329,162	90,998	-	420,160
($000s)				July 31, 2024
---	---	---	---	---
	30 – 59 days	60 – 89 days	90 days or more	Total
Loans – Personal	186,816	86,461	-	273,277
Loans – Commercial – Conventional and Insured	150,404	9,930	-	160,334
Loans – Commercial – Finance financing	33,876	17,518	-	51,394
	371,096	113,909	-	485,005

($000s)				July 31, 2025
	12 months ECL	Lifetime non-credit impaired	Lifetime credit impaired
Loans – Personal	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of period	27,242	17,371	7,215	51,828
Provision for credit losses:
Transfers to (from) Stage 1	12,957	(12,913)	(44)	-
Transfers to (from) Stage 2	(9,743)	10,531	(788)	-
Transfers to (from) Stage 3	(296)	(3,814)	4,110	-
Re-measurement (1)	(10,550)	23,052	33,029	45,531
Originations	7,433	-	-	7,433
Discharges	(3,643)	(3,399)	(17,073)	(24,115)
Write-off	-	-	(10,210)	(10,210)
Recoveries	-	-	485	485
Balance, end of period	23,400	30,828	16,724	70,952
($000s)				July 31, 2025
---	---	---	---	---
	12 months ECL	Lifetime non-credit impaired	Lifetime credit impaired
Loans – Commercial	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of period	37,985	25,978	48,630	112,593
Provision for credit losses:
Transfers to (from) Stage 1	19,385	(18,529)	(856)	-
Transfers to (from) Stage 2	(8,109)	9,377	(1,268)	-
Transfers to (from) Stage 3	(974)	(10,959)	11,933	-
Re-measurement (1)	(26,901)	40,578	32,417	46,094
Originations	16,762	-	-	16,762
Discharges	(4,705)	(4,156)	(1,381)	(10,242)
Write-off	-	-	(65,796)	(65,796)
Recoveries	-	-	36	36
Balance, end of period	33,443	42,289	23,715	99,447

(1) Includes movement as a result of significant increase or decrease in credit risk and changes in credit risk due to model inputs/assumptions that did not result in a transfer between stages.

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($000s)				July 31, 2024
	12 months ECL	Lifetime non-credit impaired	Lifetime credit impaired
Loans – Personal	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of period	29,947	21,758	3,713	55,418
Provision for credit losses:
Transfers to (from) Stage 1	7,051	(6,460)	(591)	-
Transfers to (from) Stage 2	(4,728)	5,778	(1,050)	-
Transfers to (from) Stage 3	(243)	(703)	946	-
Re-measurement (1)	(9,343)	(559)	12,017	2,115
Originations	7,231	-	-	7,231
Discharges	(3,552)	(3,671)	(5,245)	(12,468)
Write-off	-	-	(1,360)	(1,360)
Realized losses	-	-	(3,435)	(3,435)
Recoveries	-	-	556	556
Balance, end of period	26,363	16,143	5,551	48,057
($000s)				July 31, 2024
---	---	---	---	---
	12 months ECL	Lifetime non-credit impaired	Lifetime credit impaired
Loans – Commercial	Stage 1	Stage 2	Stage 3	Total
Balance, beginning of period	27,503	21,953	14,281	63,737
Provision for credit losses:
Transfers to (from) Stage 1	16,640	(14,550)	(2,090)	-
Transfers to (from) Stage 2	(11,610)	13,401	(1,791)	-
Transfers to (from) Stage 3	(1,261)	(11,900)	13,161	-
Re-measurement (1)	(8,969)	21,932	49,116	62,079
Originations	12,289	-	-	12,289
Discharges	(4,554)	(5,460)	(2,100)	(12,114)
Write-off	-	-	(34,762)	(34,762)
Realized losses	-	-	(1,502)	(1,502)
Recoveries	-	-	18	18
Balance, end of period	30,038	25,376	34,331	89,745

(1) Includes movement as a result of significant increase or decrease in credit risk and changes in credit risk due to model inputs/assumptions that did not result in a transfer between stages.

The Stage 1 and 2 allowance for credit losses includes allowance on loan commitments amounting to $1,599 (October 31, 2024 – $1,689, July 31, 2024 – $1,917).

(d) Key inputs, assumptions, and model techniques

EQB's allowance for credit losses is estimated using statistical models that involve a number of inputs and assumptions. The key drivers of changes in ECL include the following:

Transfers between stages, due to significant changes in credit risk;
Changes in forward-looking macroeconomic variables, specifically the macroeconomic variables to which the ECL models are calibrated, which are closely correlated with the credit losses in the relevant portfolios; and
Changes to the probability weights assigned to each scenario.

In addition, these elements are also subject to a high degree of judgment which could have a significant impact on the level of ACL recognized. The inputs and models used for calculating ECL may not always capture all characteristics of

the market. Qualitative adjustments or overlays may be made by management for certain portfolios as temporary adjustments in circumstances where the assumptions and/or modelling techniques do not capture all relevant risk factors.

In considering the assumptions for calculating ECL, EQB has also considered the ongoing geo-political unrest, the current interest rate environment, uncertainty arising from ongoing United States/Canada tariff concerns. EQB has applied experienced credit judgment in the assessment of underlying credit deterioration and migration of balances to progressive stages.

(e) Forward-looking macroeconomic scenarios

EQB subscribes to Moody's Analytics economic forecasting services and leverages its forward-looking macroeconomic information to model ECL. Each macroeconomic scenario is assigned a probability weighting with the base-case scenario receiving the highest weight. The probability-weighted macroeconomic scenarios are incorporated into both measurement of ECL and assessment of whether the credit risk of an instrument has increased significantly since its initial recognition.

As explained in Note 2 (d) above, effective this quarter, EQB enhanced certain of its IFRS 9 models, which includes the replacement of Household Income Growth Rate with Household Total Real Income to its forward-looking macroeconomic variables in the ECL models, and eliminating the use of Canadian Equity Index, and West Texas Intermediate Oil Price forward-looking macroeconomic variables in the ECL models. The enhanced models exhibit higher sensitivity to changes in the forward-looking macroeconomic outlook.

The following table provides the primary macroeconomic variables used in models to estimate ECL on performing loans:

July 31, 2025
	Base-Case Scenario	Upside Scenario	Downside Scenarios
				Scenario 1		Scenario 2
	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years
Unemployment rate (%)	7.3	6.5	6.7	5.9	8.8	8.6	9.6	11.1
Real GDP growth rate (%)	(0.1)	1.5	1.7	1.6	(3.6)	1.4	(5.3)	0.9
Home Price Index growth rate (%) (1)	(0.3)	1.6	0.6	2.7	(2.7)	(1.6)	(3.9)	(3.9)
Commercial Property Index growth rate (%)	0.2	2.0	1.4	2.8	(2.5)	(0.3)	(4.0)	(2.1)
Household total real income growth rate (%)	(0.6)	1.1	(0.1)	1.6	(2.2)	0.3	(3.1)	(0.4)

(1) The Home Price Index growth rate % used by EQB is the Moody's Analytics Home and Land Price Index.

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October 31, 2024

	Base-Case Scenario	Upside Scenario	Downside Scenarios
				Scenario 1		Scenario 2
	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years
Unemployment rate (%)	6.8	6.3	6.5	5.8	8.3	8.2	8.7	9.9
Real GDP growth rate (%)	1.9	2.0	3.0	2.4	(0.9)	2.0	(2.0)	1.6
Home Price Index growth rate (%) (1)	(0.0)	1.5	0.3	2.0	(4.5)	(0.6)	(4.9)	(2.8)
Commercial Property Index growth rate (%)	0.2	2.1	1.0	2.6	(3.8)	0.5	(4.6)	(1.2)
Household income growth rate (%)	(2.3)	(0.2)	(2.2)	0.1	(2.3)	(0.7)	(2.3)	(1.1)
Canadian Equity index %	(2.3)	14.0	2.9	17.0	(31.8)	31.7	(42.4)	42.5
West Texas Intermediate oil price %	0.2	0.2	6.2	(1.4)	(26.4)	10.3	(39.6)	22.9

(1) The Home Price Index growth rate % used by EQB is the Moody's Analytics Home and Land Price Index

July 31, 2024

	Base-Case Scenario	Upside Scenario	Downside Scenarios
				Scenario 1		Scenario 2
	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years	Next 12 months	2 to 5 years
Unemployment rate (%)	6.5	6.2	6.2	5.8	7.9	8.1	8.4	9.9
Real GDP growth rate (%)	1.7	2.0	2.6	2.4	(1.2)	1.9	(2.4)	1.5
Home Price Index growth rate (%) (1)	0.4	1.5	0.7	2.0	(4.1)	(0.8)	(4.5)	(3.2)
Commercial Property Index growth rate (%)	1.2	1.9	1.9	2.5	(2.8)	0.2	(3.6)	(1.6)
Household income growth rate (%)	(0.2)	0.4	(0.0)	0.7	(0.3)	(0.2)	(0.3)	(0.8)
Canadian Equity index %	(0.9)	13.7	4.1	17.2	(30.8)	30.9	(42.3)	41.3
West Texas Intermediate oil price %	(8.8)	(0.1)	(5.6)	(0.2)	(32.0)	7.9	(44.5)	20.8

(1) The Home Price Index growth rate % used by EQB is the Moody's Analytics Home and Land Price Index

(f) Sensitivity of allowance for credit losses

ECL is sensitive to the inputs used in internally developed models, macroeconomic variables in the forward-looking forecasts, the probability weightings of the four macroeconomic scenarios, and other factors considered when applying experienced credit judgement. Changes in these inputs, assumptions, models, and judgements would have an impact on the assessment of credit risk and the measurement of ECLs.

Impact of probability-weighting on ACL

The following table presents a comparison of EQB's ACL using only the base-case scenario and downside scenario instead of the four probability-weighted macroeconomic scenarios for performing loans:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
ACL – Four probability-weighted macroeconomic scenarios (actual)	129,960	108,576	97,920
ACL – Base-case scenario only	111,909	84,349	75,534
ACL – Downside scenario 2 only	235,169	245,601	219,041
Difference – Actual versus base-case scenario only	18,051	24,227	22,386
Difference – Actual versus downside scenario 2 only	(105,209)	(137,025)	(121,121)

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Impact of staging on ACL

The following table illustrates the impact of staging on EQB's ACL by comparing the allowance if all performing loans were in Stage 1, with other assumptions held constant, to the actual ACL recorded:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
ACL – Loans in Stage 1 and Stage 2 (actual)	129,960	108,576	97,920
ACL – Assuming all loans in Stage 1	112,532	100,817	90,333
Lifetime ACL impact	17,428	7,759	7,587

Note 8 – Derecognition of Financial Assets

In the normal course of business, EQB enters into transactions that result in the transfer of financial assets. Transferred financial assets are recognized in their entirety or derecognized in their entirety, subject to the extent of EQB's continuing involvement. EQB transfers its financial assets through its securitization activities and sale of assets under repurchase agreements. For further details, refer to Note 11 to the audited consolidated financial statements in EQB's 2024 Annual Report.

(a) Transferred financial assets that are not derecognized in their entirety

The following table provides information on the carrying amount and the fair values related to transferred financial assets that are not derecognized in their entirety and the associated liabilities:

($000s)	July 31, 2025		October 31, 2024		July 31, 2024
	Securitized assets	Assets sold under repurchase agreements	Securitized assets	Assets sold under repurchase agreements	Securitized assets	Assets sold under repurchase agreements
Carrying amount of assets	12,776,930	148,623	15,081,453	-	15,425,102	-
Carrying amount of associated liability	12,498,948	148,623	14,594,304	-	14,919,830	-
Carrying value, net position	277,982	-	487,149	-	505,272	-
Fair value of assets	12,761,229	148,623	14,996,769	-	15,245,304	-
Fair value of associated liability	12,408,251	148,623	14,393,583	-	14,657,764	-
Fair value, net position	352,978	-	603,186	-	587,540	-

EQB's outstanding securitization liabilities are as follows:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Securitization principal	12,610,879	14,698,729	15,043,280
Deferred net discount and issuance costs	(137,660)	(136,554)	(157,238)
Accrued interest	25,729	32,129	33,788
	12,498,948	14,594,304	14,919,830

(b) Transferred financial assets that are derecognized in their entirety

The following table provides quantitative information of EQB's securitization activities and transfers that are derecognized in their entirety during the period:

($000s)	July 31, 2025	July 31, 2024
Loans securitized and sold	7,344,344	4,985,930
Carrying value of Securitization retained interests	312,101	272,381
Carrying value of Securitized loan servicing liability	26,066	29,615
Gains on loans securitized and sold	48,653	48,658
Income from securitization activities and retained interests	22,777	16,683

Page 65

Note 9 – Other Assets

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Intangible assets	189,092	198,640	211,315
Prepaid expenses and other	122,016	102,532	104,399
Goodwill	110,580	110,580	105,960
Right-of-use assets	96,171	66,705	65,186
Property and equipment	85,899	51,984	39,277
Investment in associate	49,877	50,046	-
Assets held-for-sale	30,269	38,525	30,741
Income Taxes receivable	26,066	3,756	7,171
Accrued interest and dividends on non-loan assets	11,406	12,610	12,919
Receivable relating to securitization activities	1,263	2,991	2,791
Loan commitments	233	73	2,418
Derivative financial instruments:
Interest rate swaps	222,697	228,000	183,032
Bond forwards	10,472	8,534	453
Total return swaps	8,657	16,974	13,700
Foreign exchange forwards	4,336	7,170	3,538
	969,034	899,120	782,900

Page 66

(a) Intangible assets

Intangible assets include system software development costs relating to EQB's information systems, and core customer deposits, and customer related intangibles recognized on the acquisition of subsidiaries.

($000s)
	Software	Development costs	Others	Total
Cost
Balance at November 1, 2023	20,122	212,772	23,000	255,894
Additions	13,726	20,624	-	34,350
Acquisition	-	-	62,000	62,000
Disposals/retirements	-	-	(3,200)	(3,200)
Balance at July 31, 2024	33,848	233,396	81,800	349,044
Balance at November 1, 2024	22,285	238,533	73,800	334,618
Additions	16,616	17,131	-	33,747
Disposals/retirements	(216)	(217)	-	(433)
Balance at July 31, 2025	38,685	255,447	73,800	367,932
Accumulated amortization
Balance at November 1, 2023	14,210	83,892	3,542	101,644
Amortization	12,010	20,056	7,219	39,285
Disposals/retirements	-	-	(3,200)	(3,200)
Balance at July 31, 2024	26,220	103,948	7,561	137,729
Balance at November 1, 2024	15,231	111,072	9,675	135,978
Amortization	14,487	22,684	5,906	43,077
Disposals/retirements	(215)	-	-	(215)
Balance at July 31, 2025	29,503	133,756	15,581	178,840
Net book value
Balance at July 31, 2024	7,628	129,448	74,239	211,315
Balance at July 31, 2025	9,182	121,691	58,219	189,092

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(b) Property and equipment

($000s)
	Furniture and fixtures	Computer equipment	Land and building	Leasehold improvements	Under construction	Total
Cost
Balance at November 1, 2023	10,620	28,161	14,222	14,610	15,977	83,590
Additions	181	842	68	29	8,808	9,928
Acquisition	-	26	-	2	-	28
Disposals	-	-	-	-	-	-
Balance at July 31, 2024	10,801	29,029	14,290	14,641	24,785	93,546
Balance at November 1, 2024	11,010	29,916	14,352	15,271	37,422	107,971
Additions	791	1,003	23	5,654	30,945	38,416
Transfers	4,083	4,807	62	52,592	(61,544)	-
Disposals	(287)	(1,227)	(387)	-	(461)	(2,362)
Balance at July 31, 2025	15,597	34,499	14,050	73,517	6,362	144,025
Accumulated depreciation
Balance at November 1, 2023	9,052	22,538	6,583	13,896	-	52,069
Depreciation	179	1,444	380	197	-	2,200
Disposals	-	-	-	-	-	-
Balance at July 31, 2024	9,231	23,982	6,963	14,093	-	54,269
Balance at November 1, 2024	9,458	24,996	7,087	14,446	-	55,987
Depreciation	361	1,677	372	1,630	-	4,040
Disposals	(288)	(1,226)	(387)	-	-	(1,901)
Balance at July 31, 2025	9,531	25,447	7,072	16,076	-	58,126
Net book value
Balance at July 31, 2024	1,570	5,047	7,327	548	24,785	39,277
Balance at July 31, 2025	6,066	9,052	6,978	57,441	6,362	85,899

The carrying value of EQB's investments in associate was $49,877 as at July 31, 2025 (October 31, 2024 – $50,046, July 31, 2024 – $nil). EQB exercises significant influence over the associate through its ability to participate in the financial and operating policy-making decisions through a combination of EQB's ownership and board representation. EQB's share of the net loss from its investment in associate was $169 for the period ended July 31, 2025 (July 31, 2024 – $nil). There was no unrecognized share of losses of the associate.

Page 68

Note 10 – Deposits

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Term and other deposits	35,834,854	33,163,974	32,709,826
Fair value of acquisition	(12,294)	(26,512)	(33,085)
Accrued interest	593,286	646,182	624,523
Deferred deposit agent commissions	(55,132)	(44,032)	(42,295)
	36,360,714	33,739,612	33,258,969

Deposits also include $2,465,951 (October 31, 2024 – $2,059,695, July 31, 2024 – $2,525,904) of funding from the covered bond program. This funding is secured against $3,075,117 (October 31, 2024 – $2,779,938, July 31, 2024 – $2,990,330) of Loans – Personal.

Subsequent to the period end, on August 1, 2025, EQB issued $300,000 floating rate Senior Deposit Notes at CORRA + 0.90%, due on August 3, 2027.

Note 11 – Income Taxes

(a) Income tax provision:

($000s)	July 31, 2025	July 31, 2024
Current tax expense:
Current year	69,315	114,533
Adjustments for prior years	(12,903)	818
	56,412	115,351
Deferred tax expense:
Reversal of temporary differences	33,056	6,852
Adjustments for prior years	12,050	(1,961)
Changes in tax rates	(2,449)	676
	42,657	5,567
Total income tax expense	99,069	120,918

Provision for income taxes in the Consolidated Statement of Changes in Shareholders' Equity:

($000s)	July 31, 2025	July 31, 2024
Current income year	(5,095)	(6,939)
Deferred tax	(157)	10,772
	(5,252)	3,833
Reported in:
Other comprehensive income	(4,155)	(6,939)
Retained earnings and other adjustments	522	13,357
Other equity instruments	(1,619)	(2,585)
Total provision for income taxes in the Consolidated Statement of Changes in Shareholders' Equity	(5,252)	3,833
Total provision for income taxes	93,817	124,751

The provision for income taxes shown in the Consolidated Statements of Income differs from that obtained by applying statutory income tax rates to income before provision for income taxes due to the following reasons:

(Percentages)	July 31, 2025	July 31, 2024
Canadian statutory income tax rate	26.9%	27.0%
Increase (decrease) resulting from:
Tax-exempt income	-	0.1%
Non-deductible expenses and other	0.5%	0.2%
Future tax rate changes	(0.7%)	-
Effective income tax rate	26.7%	27.3%

(b) Deferred tax:
Net deferred income tax liabilities comprise:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Deferred income tax assets:
Tax losses (1)	41,693	33,088	26,786
Leasing activities (2)	7,199	8,312	23,103
Equipment financing	4,678	23,364	-
Other	9,645	10,218	17,341
Allowance for credit losses	20,149	15,961	15,988
Share issue expenses	6,869	4,341	4,101
	90,233	95,284	87,319
Deferred income tax liabilities:
Securitization activities	239,608	195,637	176,698
Intangible costs	26,522	32,724	32,875
Deposit agent commissions	8,253	7,199	7,061
Net loan fees	179	1,553	1,229
	274,562	237,113	217,863
Net deferred income tax liabilities	184,329	141,829	130,544

(1) Deferred tax asset pertains to income tax losses of approximately $161,222 from Equitable Trust Company.(2) The deferred tax asset relating to leasing activities pertains to the temporary difference resulting from difference in accounting treatment versus tax treatment for finance lease receivables.

Certain taxable temporary differences associated with investments in subsidiaries did not result in the recognition of deferred tax liabilities as at July 31, 2025. The total amount of these temporary differences was $1,600,000 as at July 31, 2025 (October 31, 2024 -$ 1,796,000).

Deferred income tax assets and liabilities are reflected on the Consolidated Balance Sheet as follows:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Deferred tax assets	19,967	36,104	30,481
Deferred tax liabilities	204,296	177,933	161,025
Net deferred tax liabilities	184,329	141,829	130,544

The major changes to net deferred taxes were as follows:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Balance at the beginning of the period	141,829	114,206	114,206
Deferred tax expense for the year recorded in income	42,657	18,405	5,567
Deferred tax (benefit) expense for the period recorded in equity and other	(157)	9,218	10,771
Net deferred tax liabilities	184,329	141,829	130,544

Note 12 - Funding Facilities

(a) Secured funding facilities:

EQB has two credit facilities totaling $1,600,000 (October 31, 2024 -$ 1,600,000, July 31, 2024 - $1,600,000) with major Schedule I Canadian banks to finance residential loans prior to securitization. Equitable Bank also has access to liquidity facilities sponsored by the Government of Canada, namely the Bank of Canada's Standing Term Liquidity Facility and Emergency Lending Assistance program. As at July 31, 2025, EQB had an outstanding balance of $431,870 (October 31, 2024 -$ 403,138, July 31, 2024 - $950,032) on facilities from the Schedule I Canadian banks. The facilities from the Schedule I Canadian banks carry interest rates at 1-month CORRA plus 0.80% to 1.15%. These term facilities expire between September 2025 and May 2026.

Concentra Bank maintains $50,000 (October 31, 2024 -$ 50,000, July 31, 2024 - $100,000) secured line of credit with SaskCentral which is used primarily for settlement and clearing purposes. The line of credit carries interest rates at Prime less 0.50% and had an outstanding balance of $8,670 (October 31, 2024 - $nil, July 31, 2024 - $25,196).

(b) Unsecured funding facilities:

During the period, EQB entered into an amended and restated funding agreement which replaced the existing agreement with a consortium of Scheduled I banks. The amended and restated funding agreement is a fully revolving facility now. Formerly EQB had a revolving facility and a term loan facility. The facility balances are as follows:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Revolving facility limit	320,000	200,000	200,000
Term loan facility limit	-	120,000	275,000
Revolving and term facility outstanding balance	10,000	119,849	307,010
Unamortized deferred costs	-	178	256
Accrued (prepaid) interest	65	26	3,266

The amended and restated funding facility carries an interest rate at CORRA plus an applicable margin.

Equitable Bank has established Bearer Deposit Notes (BDN) program through which it issues short-term unsecured notes. As at July 31, 2025 the outstanding balance of the notes issued under BDN program was $946,000 (October 31, 2024 -$ 423,969, July 31, 2024 - 520,983) including deferred costs of $188 (October 31, 2024 - $49, July 31, 2024 - $65) and discounts of $11,111 (October 31, 2024 - $4,257, July 31, 2024 - $6,228). The interest rate on outstanding BDN issuance ranges from 2.85% to 4.13%.

EQB's other subsidiary maintains a $1,000 (October 31, 2024 -$ 1,000, July 31, 2024 - $1,000) operating line of credit to support day to day liquidity management. The line of credit carries interest at Prime plus 1.00% and there was no amount outstanding at July 31, 2025 (October 31, 2024 - $nil, July 31, 2024 - $nil).

Page 71

Note 13 – Other Liabilities

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
Accounts payable and accrued liabilities	350,388	307,435	311,820
Securitized loan servicing liability	110,393	100,503	96,906
Right-of-use liabilities	108,345	69,782	66,016
Loan realty taxes	6,674	19,998	7,099
Unearned revenue	5,330	2,486	9,568
Income taxes payable	580	15,000	21,248
Derivative financial instruments:
Interest rate swaps	37,955	84,317	98,212
Put option	30,147	30,613	38,899
Foreign exchange forwards	1,499	656	370
Bond forwards	888	2,372	26,433
Total return swaps	-	3,769	4,642
	652,199	636,931	681,213

Note 14 – Shareholder’s Equity

(a) Other equity instruments

On July 16, 2024, EQB issued $150,000, 8%, 5-year fixed rate reset Limited Recourse Capital Notes - Series 1 (LRCN or Notes), at a par value of $1,000 per Note. Interest on these Notes is non-deferrable and is paid semi-annually in arrears on April 30 and October 31 of each year, with the first interest payment on October 31, 2024.

In connection with the LRCN, EQB issued $150,000 of non-cumulative 5-year fixed rate reset preferred shares (Series 5) at $1,000 per share to EQB LRCN Limited Recourse Trust, to be held as trust assets in connection with the LRCN structure. This entire LRCN structure is replicated back-to-back with Equitable Bank (the Bank), whereby the Bank has issued the same number and amount of Notes to EQB, and same number and amount of non-cumulative 5-year fixed rate reset perpetual Non-Viability Contingent Capital (NVCC) preferred shares to Equitable Bank LRCN Limited Recourse Trust as trust assets. This back-to-back arrangement is eliminated on consolidation.

Per contractual provisions contained in EQB's LRCN offering document, EQB LRCN Limited Recourse Trust shall deliver to the investors of LRCN, all Trust assets in an event of a recourse. The following shall constitute a recourse event (a) non-payment of the principal and interest on the maturity date in cash; (b) failure to make a coupon payment in cash within five business days of the scheduled payment date; (c) failure to pay the principal and interest amount due in cash following a redemption; (d) EQB becomes bankrupt, insolvent or is liquidated; (f) Equitable Bank's LRCN experiences any of the similar recourse events as above; and/or (g) NVCC trigger event occurs for the Bank as defined in Chapter 2 of OSFI's Guideline for Capital Adequacy Requirements (CAR).

LRCN are scheduled to mature on October 31, 2084, and may be redeemed at the sole discretion of EQB in whole or in part on not less than 10 nor more than 60 days prior notice to the investors during the first interest rate reset period ending October 31, 2029, and subsequently every fifth year thereafter, subject of receipt of all necessary regulatory approvals relating to the redemption of the Bank's LRCN notes.

(b) Normal course issuer bid (NCIB):

On December 21, 2022, EQB renewed the NCIB with an approval from the Toronto Stock Exchange, pursuant to which EQB may repurchase for cancellation up to 3,025,798 of its common shares, representing 10% of its public float. On January 2, 2025, the NCIB was renewed and approved by the Toronto Stock Exchange, pursuant to which EQB may repurchase for cancellation up to 2,300,000 of its common shares, representing 8.4% of its public float of such shares.

As at July 31, 2025, EQB repurchased and canceled 292,617 common shares, at a volume weighted average price of $96.28.

Note 15 - Stock-based Compensation

(a) Stock-based compensation plan:

Under EQB's stock option plan, options on common shares are periodically granted to eligible participants for terms of seven years or ten years and vest over a four-year period. As at July 31, 2025, the maximum number of common shares available for issuance under the plan was 5,150,000. The outstanding options expire on various dates to June 2035. A summary of EQB's stock option activity and related information for the periods ended July 31, 2025 and July 31, 2024 is as follows:

($000s, except share, per share and stock option amounts)		July 31, 2025		July 31, 2024
	Number of stock options	Weighted average exercise price	Number of stock options	Weighted average exercise price
Outstanding, beginning of period	959,879	66.11	1,173,719	54.82
Granted	187,286	100.40	217,897	84.39
Exercised	(153,806)	52.60	(307,939)	38.74
Forfeited/cancelled	(60,569)	85.91	(53,566)	72.00
Outstanding, end of period	932,790	73.94	1,030,111	64.98
Exercisable, end of period	558,550	65.42	535,494	54.98

Under the fair value-based method of accounting for stock options, EQB has recorded compensation expense in the amount of $3,821 (July 31, 2024 -$ 3,039) related to grants of options under the stock option plan. This amount has been credited to Contributed deficit. The fair value of options granted during the period ended July 31, 2025 was estimated at the date of grant using the Black-Scholes valuation model, with the following assumptions:

(Percentages, except per share amount and number of years)	July 31, 2025	July 31, 2024
Risk-free rate	3.2%	3.6%
Expected option life (years)	5.5	5.5
Expected volatility	31.1%	31.0%
Expected dividends	2.2%	2.2%
Weighted average fair value of each option granted	27.10	23.36

(b) Other stock-based plans:

EQB has an Employee Share Purchase (ESP) plan, a Restricted share unit (RSU, PSU and TSU) plan for eligible employees, and a Deferred share unit (DSU) plan for Directors. For details on the plans, refer to Note 20 to the audited consolidated financial statements in EQB's 2024 Annual Report.

Under the DSU plan, the activity for the periods ended July 31, 2025 and July 31, 2024, is as follows:

	July 31, 2025	July 31, 2024
	Number of DSUs	Number of DSUs
Outstanding, beginning of period	108,839	143,789
Granted	11,334	11,216
Dividend reinvested	1,762	1,557
Paid out	-	(30,400)
Outstanding, end of period	121,935	126,162

The liability associated with DSUs outstanding as at July 31, 2025 was $12,925 (July 31, 2024 -$ 12,582). Compensation expense, including offsetting hedges, relating to DSUs outstanding during the nine months ended July 31, 2025

amounted to $1,437 (July 31, 2024 – $1,372).

Under EQB's RSU and PSU plan, the activity for the periods ended July 31, 2025 and July 31, 2024, is as follows:

	July 31, 2025	July 31, 2024
	Number of RSUs and PSUs	Number of RSUs and PSUs
Outstanding, beginning of period	292,576	251,887
Granted	124,064	121,543
Dividend reinvested	4,868	4,651
Vested and paid out	(74,516)	(50,196)
Forfeited/cancelled	(30,723)	(27,949)
Outstanding, end of period	316,269	299,936

The liability associated with RSUs and PSUs outstanding as at July 31, 2025 was $18,001 (July 31, 2024 – $13,954). Compensation expense, including offsetting hedges, relating to RSUs and PSUs outstanding during the nine months ended July 31, 2025 amounted to $6,771 (July 31, 2024 – $5,937).

The TSU plan was adopted in 2022. Effective January 1, 2023, EQB has granted Treasury Share Units (TPSUs) to eligible employees for a term of ten years. Under the plan, 50% of the TPSUs cliff vest after 3 years, and the remaining 50% cliff vest after 4 years, with number of units adjusted on the vesting date based on the performance factors up to each vesting date. Under the plan, each TPSU represents one notional common share and earns notional dividends, which are reinvested into additional TPSUs when cash dividends are paid on EQB's common shares. When the TPSUs vest, the eligible employee can elect to settle in shares issued from treasury, or in cash.

As at July 31, 2025, the maximum number of common shares available for issuance under the TSU plan was 500,000. The outstanding TPSUs expire in December 2034.

Under EQB's TSU plan, the activity for the periods ended July 31, 2025 and July 31, 2024 is as follows:

	July 31, 2025	July 31, 2024
	Number of TPSUs	Number of TPSUs
Outstanding, beginning of period	84,054	45,043
Granted	38,017	42,358
Dividend reinvested	1,517	1,272
Paid out	-	(976)
Forfeited/cancelled	(20,556)	(4,024)
Outstanding, end of period	103,032	83,673

The liability associated with TPSUs outstanding as at July 31, 2025 was $7,621 (July 31, 2024 – $2,506). Compensation expense, including offsetting hedges, relating to TPSUs outstanding during the nine months ended July 31, 2025, amounted to $3,291 (July 31, 2024 – $1,403).

Note 16 – Earnings Per Share

Diluted earnings per share is calculated based on net income available to common shareholders divided by the weighted average number of common shares outstanding during the period, considering the dilution effect of stock options using the treasury stock method.

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($000s, except share, per share and stock option amounts)	July 31, 2025	July 31, 2024
Earnings per common share – basic:
Net income available to common shareholders	265,949	314,454
Weighted average basic number of common shares outstanding	38,386,366	38,181,531
Earnings per common share – basic	6.93	8.24
Earnings per common share – diluted:
Net income available to common shareholders	265,949	314,454
Weighted average basic number of common shares outstanding	38,386,366	38,181,531
Adjustment to weighted average number of common shares outstanding:
Stock options	268,057	309,120
Weighted average diluted number of common shares outstanding	38,654,423	38,490,651
Earnings per common share – diluted	6.88	8.17

For the period ended July 31, 2025, the calculation of the diluted earnings per share excluded 149,659 (July 31, 2024 – 165,172) average options outstanding with a weighted average exercise price of $100.56 (July 31, 2024 – $83.74) as the exercise price of these options was greater than the average price of EQB's common shares.

Note 17 – Fees and other income

($000s)	July 31, 2025	July 31, 2024
Service and other fees	38,036	34,928
Portfolio management fees	16,554	12,890
Trust fees	11,192	10,349
Foreign exchange gains	4,048	1,274
Other income	550	299
	70,380	59,740

Note 18 – Non-interest Expenses – Other

($000s)	July 31, 2025	July 31, 2024
Product costs	74,002	66,145
Technology and system costs	71,344	61,591
Marketing and corporate expenses	54,359	60,504
Regulatory, legal and professional fees	40,158	39,800
Premises	21,531	10,192
	261,394	238,232

Note 19 – Capital Management

Equitable Bank manages its capital in accordance with guidelines established by OSFI, based on standards issued by the Basel Committee on Banking Supervision. OSFI's Capital Adequacy Requirements (CAR) Guideline details how Basel III rules apply to Canadian banks. OSFI has mandated that all Canadian-regulated financial institutions meet target Capital Ratios: those being a CET1 Ratio of 7.0%, a Tier 1 Capital Ratio of 8.5%, and a Total Capital Ratio of 10.5%. To govern the quantity and quality of capital necessary based on its inherent risks, Equitable Bank maintains a Capital Management Policy and utilizes an Internal Capital Adequacy Assessment Process (ICAAP).

Equitable Bank's CET1 Ratio was 13.3% as at July 31, 2025, while Tier 1 Capital and Total Capital Ratios were 14.1% and 15.7%, respectively. Equitable Bank's Capital Ratios at July 31, 2025 exceeded the regulatory minimums.

Equitable Bank maintains a Capital Management Policy and an ICAAP to govern the quality and quantity of capital utilized in its operations.

During the period, Equitable Bank complied with all internal and external capital requirements.

Regulatory capital (relating solely to Equitable Bank) is as follows:

($000s)	July 31, 2025	October 31, 2024	July 31, 2024
	Revised Basel III (1)	Basel III	Basel III
Common Equity Tier 1 Capital (CET1):
Common shares	935,696	933,749	932,913
Contributed surplus	16,205	14,330	14,190
Retained earnings	1,908,993	2,028,450	2,152,215
Accumulated other comprehensive loss (1)	(2,717)	(14,239)	(20,964)
Less: Regulatory adjustments	(180,041)	(182,039)	(187,944)
Common Equity Tier 1 Capital	2,678,136	2,780,251	2,890,410
Additional Tier 1 Capital:
Limited Recourse Capital Notes	147,378	147,458	147,823
Non-cumulative preferred shares	-	-	72,554
Additional Tier 1 capital issued by a subsidiary to third parties (amount allowed in AT1)	-	-	49,332
Tier 1 Capital	2,825,514	2,927,709	3,160,119
Tier 2 Capital:
Subordinated debt	203,256	-	-
Eligible stage 1 and 2 allowance	129,959	108,574	97,920
Additional Tier 1 capital issued by a subsidiary to third parties (amount allowed in Tier 2)	-	-	7,616
Tier 2 Capital	333,215	108,574	105,536
Total Capital	3,158,729	3,036,283	3,265,655

(1) As prescribed by OSFI (under Basel III rules), AOCI is part of CET1 in its entirety, however, the AOCI associated with cash flow hedge reserves that relates to the hedging of items that are not fair valued is excluded.

Note 20 - Interest Rate Sensitivity

The following table shows EQB's position regarding interest rate sensitivity of assets, liabilities, and equity on the date of the earlier of contractual maturity or re-pricing date, as at July 31, 2025.

($000s, except percentages) July 31, 2025
	Floating rate	0 to 3 months	4 months to 1 year	Total within 1 year	1 year to 5 years	Greater than 5 years	Non-interest sensitive(1)	Total
Total assets	16,669,263	4,330,023	10,992,988	31,992,274	17,437,472	2,131,962	2,999,936	54,561,644
Total liabilities and shareholders' equity	(4,696,280)	(11,761,216)	(14,810,240)	(31,267,736)	(17,705,197)	(637,565)	(4,951,146)	(54,561,644)
Off-balance sheet items(3)	(2,451,923)	(1,353,445)	2,486,899	(1,318,469)	1,821,906	(503,437)	-	-
Interest rate sensitivity gap	9,521,060	(8,784,638)	(1,330,353)	(593,931)	1,554,181	990,960	(1,951,210)	-
Cumulative gap(2)	9,521,060	736,422	(593,931)	(593,931)	960,250	1,951,210	-	-
Cumulative gap as a percentage of total assets	17.45%	1.35%	(1.09%)	(1.09%)	(1.76%)	3.58%	-%	-%

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($000s, except percentages)								October 31, 2024
	Floating rate	0 to 3 months	4 months to 1 year	Total within 1 year	1 year to 5 years	Greater than 5 years	Non-interest sensitive (1)	Total
Cumulative gap (2)(3)	11,280,713	(2,054,794)	(449,776)	(449,776)	1,473,667	2,073,112	-	-
Cumulative gap as a percentage of total assets	21.19%	(3.86%)	(0.84%)	(0.84%)	2.77%	3.89%	-%	-%
($000s, except percentages)								July 31, 2024
---	---	---	---	---	---	---	---	---
	Floating rate	0 to 3 months	4 months to 1 year	Total within 1 year	1 year to 5 years	Greater than 5 years	Non-interest sensitive (1)	Total
Cumulative gap (2)(3)	5,297,132	(387,028)	(767,183)	(767,183)	1,477,182	2,059,846	-	-
Cumulative gap as a percentage of total assets	9.80%	(0.72%)	(1.42%)	(1.42%)	2.73%	3.81%	-%	-%

(1) Accrued interest is included in "Non-interest sensitive" assets and liabilities. (2) Off-balance sheet items include EQB's interest rate swaps, hedges on funded assets, as well as loan rate commitments that are not specifically hedged. Loan rate commitments that are specifically hedged, along with their respective hedges, are assumed to substantially offset. (3) Cashable GIC deposits are included in the "0 to 3 months" as these are cashable by the depositor upon demand after 30 days from the date of issuance.

Page 77

Shareholder and corporate information

Corporate Head Office

EQ Bank Tower
25 Ontario Street, Suite 2200
Toronto, Ontario, Canada, M5A 0Y9

Regional Offices:

Calgary

909 – 11th Avenue S.W, Suite 1300
Calgary, Alberta, Canada, T2R 1L7

Vancouver

601 West Hastings Street, Suite 1400
Vancouver, British Columbia, Canada, V6B 1M8

Halifax

1959 Upper Water Street Suite 1300, Halifax, Nova Scotia, Canada, B3J 3N2

Montréal

1411 Peel Street, Suite 501
Montréal, Québec
Canada, H3A 1S5

Regina

4561 Parliament Avenue, Suite 300
Regina, Saskatchewan
Canada, S4W 0G3

Saskatoon

333 3rd Avenue N
Saskatoon, Saskatchewan
Canada, S7K 2M2

Websites

eqb.investorroom.com
equitablebank.ca
eqbank.ca

Toronto Stock Exchange Listing

Common Shares: EQB

Analyst Conference Call and Webcast

Thursday, August 28, 2025, 10:30 a.m. EST
Live: 416.945.7677
Replay and archive: eqb.investorroom.com

Investor Relations

Lemar Persaud
VP and Head of Investor Relations
[email protected]

More comprehensive investor information including supplemental financial reports, quarterly news releases, and investor presentations are available in the Investor Relations section at eqb.investorroom.com

Transfer Agent and Registrar

Odyssey Trust Company
Trader's Bank Building
67 Yonge Street, Suite 702
Toronto, Ontario, Canada, M5E 1J8
1.888.290.1175
Email: [email protected]

Equitable Bank's 2024 Responsibility Report and Public Accountability Statement is available at eqb.investorroom.com

Eligible Dividends

Equitable designates all common share dividends paid to Canadian residents as "eligible dividends" as defined in the Income Tax Act (Canada), unless otherwise indicated.

Online

For product, corporate, financial and shareholder information: eqb.investorroom.com

AI assistant

EQB Inc. — Interim / Quarterly Report 2025

45380_rns_2025-08-27_36bb1e66-cb37-4e51-a9cc-24420e7d1616.pdf

Table of Contents

EQB Overview

Management's Discussion and Analysis (MD&A) 10

Financial results

Caution regarding forward-looking statements

Selected financial highlights

Selected financial highlights - eight quarters

Overview and outlook

Outlook

Management's Discussion and Analysis

For the three and nine months ended July 31, 2025

Contents:

Adjustments to financial results

Adjustments impacting current and prior periods:

Q3 2025

Q2 2025

Q3 2024

Income statement and earnings summary

Q3 2025 v Q2 2025

Q3 2025 v Q3 2024

YTD 2025 v YTD 2024

Non-interest revenue

Q3 2025 v Q2 2025

Q3 2025 v Q3 2024

YTD 2025 v YTD 2024

Provision for credit losses

Q3 2025 v Q2 2025

Q3 2025 v Q3 2024

YTD 2025 v YTD 2024

Non-interest expenses

Q3 2025 v Q2 2025

Q3 2025 v Q3 2024

YTD 2025 v YTD 2024

Balance sheet summary

Total loan principal

Q3 2025 v Q2 2025

Q3 2025 v Q3 2024

Credit portfolio quality

Allowance for Credit Losses

Impaired loans

Q3 2025 v Q2 2025

Q3 2025 v Q3 2024

Deposits

Liquidity investments

Equitable Bank holds a diversified portfolio of liquid assets

Off-balance sheet arrangements

Securitization of financial assets

Commitments and letters of credit

Related-party transactions

Capital management

Risk-weighted assets of Equitable Bank

Stress test

Shareholders' equity

Common shares

Normal course issuer bid (NCIB)

Limited Recourse Capital Notes (LRCNs)

Common share dividends

Accounting standards and policies

Accounting policy changes

Critical accounting estimates

Allowance for credit losses under IFRS 9

Responsibilities of management and the board of directors

Changes in internal control over financial reporting

Risk Management

Credit risk

Cash and cash equivalents

Collateral held as security

Credit concentration risk

Liquidity and funding risk

Market risk

Glossary

Non-Generally Accepted Accounting Principles (GAAP) financial measures and ratios

Non-GAAP measures

Adjusted results

Other non-GAAP financial measures and ratios:

Consolidated balance sheet (unaudited)

Consolidated statement of income (unaudited)

EQB Inc. Interim / Quarterly Report 2025