EQ Bank’s Bold Move to Transform Canadian Banking
So, here’s what’s unfolding right now in the Canadian banking world, and it’s genuinely one of the biggest shakeups we’ve seen in years. EQ Bank, the digital-first challenger that’s been steadily gaining momentum, is stepping into a whole new league by striking an estimated $800-million deal to acquire PC Financial from Loblaw. This move isn’t just about buying another financial brand—it’s about EQ Bank positioning itself as a major player in everyday payments, credit cards, and loyalty rewards.
Under this agreement, EQB Inc., the parent company of Equitable Bank, will take over a huge set of PC Financial assets. That includes President’s Choice Bank itself, its insurance agencies, and a series of affiliated entities. In practical terms, EQ Bank is taking ownership of one of Canada’s largest and most recognizable no-fee credit card portfolios—the PC Mastercard line—which already has more than two million active accounts and processes around $32-billion in yearly transactions. By doing so, EQ Bank is effectively stepping into the role of a major lender overnight.
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Alongside the acquisition comes a long-term partnership with Loblaw that places EQ Bank as the exclusive financial partner for the PC Optimum loyalty program. This matters because PC Optimum has more than 17 million active members, and its insights into Canadian shopping habits are incredibly valuable. Through this deal, EQ Bank isn’t just accessing financial customers—it’s tapping directly into one of the country’s biggest loyalty ecosystems.
Once the transaction closes, EQ Bank’s total customer base will expand close to 3.5 million Canadians. It will also take on $5.8-billion in assets and over $800-million in PC Financial retail deposits. Storefront visibility will grow dramatically too, with EQ’s yellow branding expected to appear across more than 2,500 Loblaw-owned stores and around 500 ATMs nationwide. This gives EQ Bank something it has never had before: a large physical presence to complement its well-known digital platform.
From Loblaw’s perspective, partnering with a dedicated financial institution allows PC Financial’s credit card business to grow faster than if it remained fully in-house. The company will retain significant influence by owning at least 17 percent of EQB’s common shares once the deal closes. Executives at Loblaw emphasized that this arrangement keeps their most loyal customers engaged, while giving EQ Bank the scale it needs to issue more cards year after year.
EQB’s CEO, Chadwick Westlake, described the deal as a chance to “redefine what Canadians should expect from their banks.” And in many ways, that’s exactly what this acquisition signals—a reshaping of digital banking, loyalty rewards, and consumer credit under one combined ecosystem. The deal is expected to close in 2026, pending regulatory approval, and it marks the beginning of a significant new era for challenger banking in Canada.
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