EQB, the parent company of Equitable Bank, will acquire President’s Choice Bank, PC Financial Insurance Agency Inc., PC Financial Insurance Brokers Inc. and other affiliated entities. Reuters
EQ Bank is making a major move into Canada’s credit-card sector by acquiring PC Financial from Loblaw in a deal valued at roughly $800 million. The transaction will expand EQB Inc.’s reach, adding a significant credit-card portfolio and millions of new customers.
A Strategic Move for EQ Bank
The acquisition brings EQ Bank the seventh-largest credit-card portfolio in Canada. It includes about 2.5 million customers, $5.8 billion in assets, and over $800 million in direct retail deposits. CEO Chadwick Westlake emphasized that the bank has long sought to innovate in payments and differentiate its platform.
“Building this internally would have been slower and costlier,” Westlake said. “Partnering with Loblaw aligns with our cultural belief that there’s room for more competition and growth.”
Partnership with PC Optimum
EQB will acquire President’s Choice Bank, PC Financial Insurance Agency, and related entities. The deal also makes EQB the exclusive financial partner for Loblaw’s PC Optimum loyalty program. This includes PC Financial’s flagship no-fee Mastercard portfolio, with more than two million active accounts and $32 billion in annual transactions.
Approximately 10 percent of PC credit-card holders have deposit accounts, providing EQ Bank opportunities to offer additional products and expand its customer base. The acquisition nearly doubles EQB’s revenue and connects it to over 17 million loyalty members. PC Financial branches and ATMs will be rebranded with EQB’s yellow branding nationwide.
Why Loblaw Chose EQ Bank
Loblaw benefits from the deal by securing a banking partner to manage its loyalty-linked credit cards for the first time since splitting from CIBC in 2017. The retailer will maintain influence, with two seats on EQB’s board and continued involvement in the loyalty program.
“This transfer ensures the program grows faster while keeping our best customers engaged,” said Loblaw CFO Richard Dufresne. CEO Per Bank highlighted that the loyalty data provides a “strategic advantage,” helping Loblaw tailor store layouts and product selections to local preferences.
Deal Structure and Future Outlook
EQB will acquire PC Financial at 1.15-times book value, excluding excess capital above a 13% CET1 ratio. Loblaw is expected to receive around $500 million in excess capital, valuing its total benefit at $1.3 billion. It will also retain at least a 17% stake in EQB’s common shares. The deal is projected to close in 2026.
Westlake, appointed EQB CEO in July, previously served as CFO for 4½ years and briefly worked at Open Text Corp. The acquisition marks a defining moment for EQ Bank, positioning it as a stronger competitor in Canada’s banking and credit-card landscape.
