The Canada housing market has faced considerable turbulence since the Bank of Canada (BoC) committed to its aggressive rate tightening policy. That policy change was a reaction to soaring inflation rates. However, Toronto home prices experienced an uptick in the month of April compared to March 2023. That is why I’m looking to this promising TSX stock today.
EQB (TSX:EQB) is a Toronto-based company that provides personal and commercial banking services to retail and commercial customers in Canada. Shares of this alternative lender have climbed 5.4% month-over-month as of close on Friday, May 5. The stock is now up 10% so far in 2023.
This company released its first quarter fiscal 2023 earnings on May 2. EQB delivered adjusted net income of $101 million or $2.62 per diluted share – up 10% or 7% compared to the fourth quarter of fiscal 2022. Meanwhile, EQ Bank achieved customer growth of 26% year-over-year to 336,457. Moreover, EQ Bank’s deposits increased 12% year-over-year to $8.1 billion.
Adjusted revenue climbed 40% year-over-year to $264 million on the back of improved lending growth, net interest margin expansion, and non-interest revenue growth. Total assets under management (AUM) increased 2% quarter-over-quarter to $104 billion.
Shares of this TSX stock currently possess a very favourable price-to-earnings ratio of 8.2. Moreover, EQB stock offers a quarterly dividend of $0.37 per share. That represents a 2.3% yield. I’m looking to stack more shares of this alternative lending stock as Canada housing looks poised for a bounce back in the spring of 2023.