EQB’s Strategic Move: Acquiring PC Financial from Loblaw and What It Means for Canadian Banking

EQB’s Strategic Move: Acquiring PC Financial from Loblaw and What It Means for Canadian Banking

In a major development for Canada’s banking and financial services landscape, EQB Inc. — the parent company of EQ Bank and Equitable Bank — has announced its agreement to acquire PC Financial from Loblaw Companies Limited in a deal valued at approximately $800 million. Mortgage Professional

A Significant Expansion for EQB

Under the agreement, EQB will acquire:

• President’s Choice Bank (PC Bank)

• PC Financial Insurance Agency Inc.

• PC Financial Insurance Brokers Inc.

• Other affiliated financial entities previously under Loblaw’s umbrella. Newswire

This acquisition is set to significantly expand EQB’s customer base — from a primarily digital banking audience to nearly 3.5 million Canadians — while adding roughly $5.8 billion in total assets. Mortgage Professional

Why This Matters to the Financial Sector

The deal represents a major step into the credit card and loyalty rewards world for EQ Bank. PC Financial’s portfolio includes one of Canada’s largest credit card businesses, with more than two million active Mastercard accounts, giving EQB instant scale in an area it has historically lacked. Mortgage Professional

Additionally, EQB will become the exclusive financial partner of the PC Optimum loyalty program through a long-term commercial agreement with Loblaw, benefiting both customer retention and cross-product engagement in the years ahead. Newswire

A Win for Both Partners

For Loblaw, the deal allows the grocery-to-banking operator to streamline its business focus while still retaining a meaningful stake in the financial ecosystem — Loblaw is expected to hold at least a 16–17% equity interest in EQB once the transaction closes. Newswire

From EQB’s perspective, this isn’t just about scale — it’s about diversifying revenue streams. The combined business will marry EQ Bank’s digital strength and customer-friendly products with PC Financial’s established presence in credit cards and in-store distribution channels. Newswire

What This Means for Canadians

• Broader product offerings: Customers could see a wider suite of financial products that combine high-interest savings, credit cards, and loyalty rewards in one ecosystem.

• Loyalty-linked benefits: PC Optimum members may benefit from new ways to earn points through everyday banking activities.

• Stronger challenger bank presence: This acquisition reinforces the role of challenger banks in Canada’s financial landscape, offering competition to traditional big banks and more choices for consumers. Newswire

Looking Ahead

The transaction is expected to close in calendar 2026, subject to customary regulatory approvals and conditions. Over time, EQ Bank’s digital platform may absorb PC Financial’s operations, though both brands are likely to be maintained during the transition. Mortgage Professional

This landmark deal not only marks a new chapter for EQB but also signals strategic shifts in how financial services are packaged and delivered in Canada — particularly at the intersection of banking, credit cards, and loyalty programs.