EQB Inc. reported a net loss of $127.3 million for the third quarter, compared with net income of $73.4 million during the same period last year.
That amounted to a diluted loss per share of $3.39 during the quarter, compared with diluted earnings per share of $1.90 during last year’s third quarter.
EQB says its revenue during the quarter reached $391.3 million, rising year-over-year from $306.1 million last year.
The owner of EQ Bank says it also hiked its dividend by 3% quarter-over-quarter to 63 cents per common share.
EQB’s earnings included one month of results from the acquisition of PC Financial, which was completed in July.
The bank spent $37.4 million on acquisition and integration costs for PC Financial and initially set aside a $219.1-million provision for credit losses associated with PC Financial credit cards.
Chadwick Westlake, EQB chief executive, says the closing of the PC Financial transaction has structurally shifted its customer reach, products, revenue mix and potential for growth.
PC Financial grew EQ Bank’s shelf with a credit card portfolio and increased market share in Ontario uninsured single-family mortgage lending.
Net interest margin was 2.41%, up 33 basis points quarter over quarter, reflecting a shift from the acquired credit card products. At the same time, the PC Financial credit card fee income and insurance revenue also increased non-interest revenue.