EQB Acquires PC Financial: What This Major Deal Means for Canadian Banking

In one of the biggest moves in Canadian banking in years, EQB Inc.—the parent company of EQ Bank—has announced plans to acquire PC Financial, the financial arm of Loblaw Companies Limited. This strategic deal is set to reshape how millions of Canadians earn rewards, manage their money, and access digital banking services.

Here’s a breakdown of what this major transaction means and why it matters.

A New Loyalty-Linked Banking Ecosystem

With this deal, EQB and Loblaw are creating one of Canada’s largest loyalty-connected banking networks. The partnership will combine:

• EQ Bank’s award-winning digital banking platform

• PC Financial’s well-known PC Mastercard® portfolio

• The massive PC Optimum™ rewards ecosystem

Together, the newly formed ecosystem will service nearly 3.5 million banking customers—plus 17 million PC Optimum members—with more ways to earn and redeem rewards on everyday spending.

What PC Financial Customers Can Expect

PC Financial customers aren’t losing what they already love—they are gaining more.

Benefits for PC Financial users:

• Access to EQ Bank’s high-interest savings accounts

• More registered account options (TFSA, RRSP, etc.)

• A stronger digital banking experience

• Continued ability to earn PC Optimum™ points

• Long-term improvements to credit card rewards and customer experience

Retail touchpoints will remain, including PC Financial pavilions and the Loblaw store network.

What EQ Bank Customers Gain

EQ Bank customers will soon enjoy more convenient everyday banking through:

• Access to PC Mastercard® credit cards

• In-store visibility across 2,500 Loblaw locations

• 600+ nationwide ATMs

• More opportunities to earn PC Optimum rewards

• A future full-service daily banking experience under one unified brand

Over time, PC Financial will transition into the EQ Bank brand, but both will operate normally during the initial phase.

Why This Deal Is a Game-Changer

This transaction brings together two strong Canadian brands that have already influenced how Canadians bank:

• Both companies pioneered no-fee, interest-bearing accounts

• Both lead with digital-first banking models

• Both bring innovation that challenges traditional big banks

The combined scale will allow EQB to push further into the market with better products, faster innovation, and greater consumer value.

The Financial Details Behind the Deal

Here’s a simplified breakdown of the numbers:

• EQB is acquiring PC Financial for an estimated $800 million

• Loblaw will receive 7.2 million EQB shares (about 17% ownership at closing)

• Loblaw will also extract $500 million in excess capital from PC Bank prior to closing

• Total value to Loblaw: approx. $1.3 billion

• EQB expects annual cost synergies of $30 million

• The deal is expected to be accretive to earnings in year one

• Closing is expected in 2026, pending regulatory approvals

Loblaw becomes a significant minority shareholder and gains board nomination rights, while EQB grows its customer base, loan portfolio and distribution footprint dramatically.

What Happens Now?

Both companies will:

• Continue operating normally while the transaction works through regulatory approvals

• Maintain the EQ Bank and PC Financial brands during the transition period

• Begin long-term planning for integrating technology, products, and customer benefits

For customers, nothing changes right away—but major improvements are on the horizon.

Why This Matters for Canadians

This deal signals a continued shift in Canadian banking:technology, rewards, and customer experience are becoming central to financial services.

For millions of Canadians, this will mean:

• More reward opportunities on credit card spending

• Better digital banking options with lower fees

• Stronger competition against the traditional big banks

• More innovation in day-to-day financial products

As a financial services provider, our job is to keep you informed about major industry changes that could impact your daily banking, credit options, and financial planning. This deal is one to watch closely.