EQ Bank to Acquire PC Financial in Major $800M Deal
EQ Bank Set to Transform Canadian Banking with PC Financial Deal
EQ Bank has entered into a definitive agreement to acquire PC Financial from Loblaw Companies Ltd for an estimated $800 million, subject to adjustments and regulatory approvals. The acquisition includes President’s Choice Bank, PC Financial Insurance Agency Inc., PC Financial Insurance Brokers Inc., and related affiliated entities.
Alongside the purchase, EQ Bank will enter a long-term commercial agreement with Loblaw to become the exclusive financial partner for the PC Optimum loyalty program. The deal is expected to close in 2026 and will expand EQ Bank’s scale across credit cards, retail deposits, and loyalty-linked financial services.
Key Highlights of the Regulatory-Dependent Transaction
Capital Release Conditions: Before closing and subject to regulatory approval, Loblaw will extract approximately $500 million in excess capital and other value from PC Bank, resulting in an estimated total value of $1.3 billion.
Expansion of Customer Scale: Regulatory approval will enable EQ Bank to integrate more than two million PC Mastercard accounts into its ecosystem, taking the combined customer base to nearly 3.5 million Canadians.
Asset and Deposit Transfer: The acquisition includes approximately $5.8 billion in assets and over $800 million in direct retail deposits associated with PC Financial.
Exclusive Loyalty Program Agreement: Upon approval, EQ Bank will become the exclusive financial partner of the PC Optimum loyalty program through a long-term participation agreement. PC Optimum will continue to be owned and operated by Loblaw.
Product and Distribution Integration: EQ Bank customers will gain access to PC Financial’s credit card products and retail distribution footprint across approximately 2,500 stores, 180+ in-store pavilions, and 600+ ATMs. PC Financial customers will gain access to EQ Bank’s savings, deposits, and registered products.
Brand Transition Conditions: Both brands will operate independently until regulatory approvals are complete, after which PC Financial will gradually transition into the EQ Bank brand.
Canadian Banking Competition Outlook: The combined entity is expected to increase competition in the Canadian consumer banking landscape by expanding access to digital banking and loyalty-linked financial products through a national retail network.
Transaction Highlights
The acquisition is valued at approximately $800 million based on PC Financial’s book value as of September 30, 2025. The integration of PC Financial is designed to strengthen EQ Bank’s digital banking scale, deepen its participation in everyday payments, and broaden its reach through the PC Optimum partnership.
