Creates one of Canada’s largest loyalty-linked banking ecosystems with significant benefits for millions of Canadians; Expands the benefits of PC Optimum™ and will offer more ways for Canadians to earn rewards on their everyday banking
TORONTO, ON–EQB Inc.and Loblaw Companies Limited have entered into a definitive agreement for EQB to acquire President’s Choice Bank, PC® Financial Insurance Agency Inc., PC® Financial Insurance Brokers Inc. and certain other affiliated entities of PC Bank.
In connection with the closing of the Acquisition, EQB will enter into a long-term strategic relationship with Loblaw pursuant to a commercial agreement (the “Program Participation Agreement”) to become the exclusive financial partner of the PC Optimum™ loyalty program (together with the Acquisition, the “Transaction”). The Transaction will unite two of Canada’s most innovative banking brands, redefining the sector by delivering extraordinary value, products and services to Canadians.
EQB Inc., parent company of Equitable Bank, Canada’s Challenger Bank™, announces the opening of the EQ Bank Tower at 25 Ontario Street, its new national headquarters. (CNW Group/EQB Inc.)
EQB will acquire PC Financial for 1.15x book value at closing, excluding excess capital above a 13% CET1 ratio, for consideration estimated at $800 million, subject to adjustment pursuant to the terms of the Transaction Agreement. The consideration will be satisfied by the issuance to one or more subsidiaries of Loblaw of 7.2 million common shares of EQB, representing approximately 16% of EQB’s issued and outstanding common shares as at the date hereof on a pro-forma basis, and the remainder in cash. In addition, prior to the closing of the transaction and subject to regulatory approval, Loblaw will release and receive approximately $500 million of excess capital and other value from PC Bank, for estimated total value of $1.3 billion to Loblaw. Pursuant to and subject to the terms of the Transaction Agreement, Loblaw will own a minimum of 17% of EQB’s issued and outstanding common shares on closing of the Acquisition. Closing is expected to occur within calendar 2026, subject to customary closing conditions and regulatory approvals.
Pursuant to the Acquisition, EQB will acquire PC Financial’s products and services, including the PC Mastercard™ portfolio – one of the largest and most recognizable credit card portfolios in Canada with more than two million active accounts. The Acquisition is expected to expand EQB’s total customer base to nearly 3.5 million Canadians and add $5.8 billion in assets with more than $800 million in direct retail deposits.
“Today’s announcement marks a new era for banking in Canada. By combining EQ Bank’s exceptional digital platform and product shelf with PC Financial’s spending solutions, distribution and expertise in loyalty, we’re creating a better banking ecosystem for all Canadians that prioritizes innovation and value,” said Chadwick Westlake, President and CEO, EQB. “Fueled by our combined digital strengths and new ways to connect with customers, this transaction offers a unique opportunity for Canada’s Challenger Bank to redefine what Canadians should expect from their banks. We couldn’t be more excited to bring challenger banking to more Canadians and look forward to welcoming Loblaw as a shareholder and valued long-term partner.”
“This new relationship between EQB and Loblaw will yield significant benefits to our customers, and those of EQ Bank. PC Financial’s products will be better positioned for long-term growth under EQB’s ownership, while maintaining the high level of quality and care our customers expect,” said Richard Dufresne, Chief Financial Officer of Loblaw. “Bringing together EQB’s digital platform with PC Optimum’s reach and personalization will bring more value and more rewards to Canadians.”
Combination will unlock significant benefits for millions of Canadians
The new relationship will create one of Canada’s largest loyalty-linked banking ecosystems and one of Canada’s largest digital banks by customers. The combined organization will provide end-to-end access to more products, services and, over time, more ways to earn rewards for nearly 3.5 million customers and more than 17 million active PC Optimum™ loyalty members. PC Financial customers will benefit from EQ Bank’s digital platform, expertise and everyday banking products and services, including a broader suite of savings and registered accounts, with the intent to provide future offerings that address more holistic banking.
EQ Bank customers will benefit from PC Financial’s credit card offerings for an all-in-one daily banking experience, complemented by retail touchpoints at approximately 2,500 Loblaw stores, over 180 in-store banking pavilions and a 600+ ATM network across the country. Customers will also gain exclusive access to rewards as customers of the only bank in Canada that gives them the ability to earn PC Optimum™ points.
Provides immediate scale to drive deeper change in Canadian banking
The Transaction will bring together two made-in-Canada brands to drive change in banking with a louder voice to champion consumer interests.
The unified organization gains significant scale to advance a shared track record of delivering competitive banking services that cater to diverse, dynamic financial needs – including the no-fee, interest bearing accounts that EQ Bank and PC Financial pioneered. EQ Bank and PC Financial both have lean, digital-forward operating models, with the combined organization aiming to bring globally inspired innovation to the Canadian market faster than incumbent peers.
Transaction Highlights
The Transaction presents an attractive value creation opportunity for EQB with realizable revenue opportunities. EQB anticipates attractive annual run-rate cost synergies of $30 million (pre-tax) and estimates total one-time acquisition and integration costs of $105 million. At a 1.15x multiple of book and PC Financial’s book value as of September 30, 2025, the implied purchase price is estimated to be $800 million.
Further, the Transaction is expected to be mid-single digit accretive to consensus adjusted EPS in the first full year post-closing and to enhance ROE. Equitable Bank, EQB’s wholly owned subsidiary, expects to maintain its prudent strong capital structure and liquidity profile at close.
The two banks plan to transition PC Financial into EQB’s digital EQ Bank brand over time. In the interim, both organizations will maintain the trusted and familiar EQ Bank and PC Financial brands. The PC Optimum™ program will continue to be owned and operated by Loblaw and the value of PC Optimum™ points remains unchanged. EQB will become the PC Optimum™ program’s exclusive financial partner, pursuant to the Program Participation Agreement.
RBC Capital Markets is acting as lead financial advisor to EQB in connection with the transaction, with Blake, Cassels & Graydon LLP acting as legal counsel. CIBC Capital Markets is acting as exclusive financial advisor to Loblaw, with Torys LLP acting as legal advisor.
EQB Inc. (TSX: EQB) is a leading digital financial services company with $137 billion in combined assets under management and administration (as at July 31, 2025). It offers personal and commercial banking services through Equitable Bank, a wholly owned subsidiary and Canada’s seventh largest bank by assets, and wealth management through ACM Advisors, a majority-owned subsidiary specializing in alternative assets. As Canada’s Challenger Bank™, Equitable Bank has a clear mission to drive change in Canadian banking to enrich people’s lives. It leverages technology to deliver exceptional personal and commercial banking experiences and services to nearly 761,000 customers and more than six million credit union members through its businesses. Through its digital EQ Bank platform (eqbank.ca) its customers have named it one of Canada’s top banks on the Forbes World’s Best Banks list since 2021.
PC Financial®, a trusted Canadian banking brand, provides unprecedented value to customers, simplifying financial products to help Canadians Live Life Well®. Through the PC® Mastercard® and the PC Money™ Account, its dedicated base of more than 2.5 million customers save on banking fees and have earned more than $1 billion worth of PC Optimum™ points to redeem for beauty, groceries, gas, apparel, and other products at participating stores. The company is committed to being one of Canada’s most diverse and inclusive employers and makes it a priority to reflect this in its people and culture.
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