EQB Shares Plummet as Slowing Canadian Housing Market and Economy Hit Earnings
By Financial Desk | August 29, 2025
EQB Inc., one of Canada’s prominent challenger banks, experienced its steepest intraday stock drop since 2020 on Thursday, August 28, 2025, as a faltering Canadian economy and a sluggish housing market took a toll on its financial performance. According to Bloomberg, the bank’s shares fell by as much as 13% after it reported a 60% increase in provisions for potentially bad loans for the quarter ending July 31, 2025, reflecting heightened caution amid macroeconomic challenges.
The broader economic context has been unforgiving. Canada’s housing market, a key driver for EQB’s lending business, has been under pressure from high interest rates and rising unemployment, particularly in regions like the Greater Toronto Area, where house prices have dropped 25% to 30%, as noted by EQB’s Chief Risk Officer, Marlene Lenarduzzi, during a call with analysts. This decline has strained borrowers, contributing to weaker credit performance and a 6% year-over-year drop in EQB’s adjusted net interest income, which fell to C$254 million ($185 million).
The bank’s challenges come at a time of transition. Following the unexpected death of longtime CEO Andrew Moor, Chadwick Westlake, the former Chief Financial Officer, stepped into the CEO role on August 25, 2025. Westlake emphasized a continued focus on the Canadian market, stating, “We will not become distracted by other markets.” Meanwhile, Anilisa Sainani, previously with Royal Bank of Canada, was appointed as the new CFO.
Despite earlier resilience in areas like uninsured mortgages and CMHC-backed multi-unit lending, as reported by Canadian Mortgage Trends in June 2025, EQB has faced mounting pressures. Gross impaired loans rose 8% to $775 million, with slower resolution activity due to court delays and economic uncertainty. These factors, combined with a broader global housing market slowdown—evidenced by declining prices in two-thirds of OECD countries since 2022—have created a tough environment for lenders like EQB.
Posts on X reflect sentiment around the housing market’s struggles, with users like @StealthQE4 noting a 50% drop in investor purchases in the U.S. housing market, signaling a broader retreat in real estate activity. While EQB has previously gained market share by maintaining strict lending standards, as former CEO Moor highlighted, the current economic headwinds are testing the bank’s resilience.
As Canada navigates a cooling economy and housing market, EQB’s performance underscores the challenges facing financial institutions tied to real estate. Investors and analysts will be watching closely to see how the bank adapts under its new leadership.
For the latest updates on EQB and the housing market, follow the conversation on X.