EQ Bank is significantly expanding its reach in Canadian consumer banking following the completion of its parent company’s acquisition of PC Financial from Loblaw.
The Toronto-based digital bank, which operates under Equitable Bank, is now positioned to reach nearly four million Canadians through the addition of PC Financial and its connection to one of the country’s largest loyalty programs.
The acquisition includes President’s Choice Bank, PC Financial Insurance Agency, PC Financial Insurance Broker and certain affiliated entities from Loblaw Companies Limited.
The deal also makes EQ Bank the exclusive financial services partner for PC Optimum, Loblaw’s loyalty program with more than 18 million active members.
“Today, as we celebrate Canada Day, we mark a turning point for Canadian banking,” said Chadwick Westlake, President and CEO of EQ Bank’s parent company. “This is about scaling growth to elevate competition — bringing more choice, better value and rewards for everyday Canadians. The next chapter of EQ Bank’s evolution as Canada’s Challenger Bank starts now.”
Under the agreement, PC Financial was acquired at 1.15 times book value. Consideration included 7.2 million common shares issued to Loblaw by EQ Bank’s parent company and $234.5 million in cash. When the transaction was first announced in December 2025, the implied purchase price was estimated at approximately $800 million.
PC Bank is now a wholly owned subsidiary of Equitable Bank. The company said its third-quarter results will include one month of earnings contribution from PC Financial.
The transaction also gives Loblaw a significant ownership position in EQ Bank’s parent company. Following completion of the deal, Loblaw beneficially owns or controls approximately 8.46 million common shares, representing 19.89 percent of issued and outstanding shares. Under an investor rights agreement, Loblaw intends to acquire additional shares up to a maximum of 25 percent.
As part of the acquisition, EQ Bank’s parent company has welcomed two Loblaw nominees to its board of directors: Galen G. Weston, Chairman and CEO of George Weston Limited and Chairman of Loblaw, and Richard Dufresne, President and CFO of George Weston Limited and CFO of Loblaw.
Mike Pedersen, Chair of the board, said the pair bring experience from one of Canada’s largest and most recognizable companies as the bank executes its growth strategy.
For PC Financial customers, there will be no immediate changes to the banking experience or to how customers earn and redeem PC Optimum points. PC Financial’s approximately 180 in-store banking pavilions and more than 600 additional ATMs at Loblaw retail locations will continue operating as usual.
The PC Optimum program will continue to be owned and operated by Loblaw, and the value of PC Optimum points remains unchanged.
In the coming months, EQ Bank and Loblaw plan to begin conversion activities, including transitioning PC Bank clients to the EQ Bank platform and introducing new ways for customers to access value across the combined platforms and PC Optimum ecosystem.
The acquisition gives EQ Bank a larger consumer banking footprint, a major retail distribution partner and a deeper connection to everyday spending through one of Canada’s largest loyalty programs. For Loblaw, the deal keeps PC Financial tied to its retail and rewards ecosystem while shifting banking ownership to a regulated Schedule I bank.
EQ Bank said the acquisition represents a “step change” in its position as Canada’s Challenger Bank, broadening its portfolio of financial services while embedding its products more directly into the daily lives of Canadian consumers.
EQ Bank operates through Equitable Bank, Canada’s seventh largest Schedule I bank by assets.
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