Summary of EQB Conference Call - January 06, 2026 Company Overview - **Company**: EQB Inc. (OTCPK: EQGP.F) - **Industry**: Banking, specifically a challenger bank in Canada Key Points and Arguments Growth Expectations - **Loans Under Management**: Expected to grow in high single digits, with a previous growth of 10% in 2025 [3][6] - **Revenue Growth**: Anticipated mid-single-digit revenue growth for 2026, with flat to slightly positive operating leverage and low single-digit expense growth [3][6] - **Operating Efficiency**: Aiming to return to a competitive advantage in efficiency, targeting a return on equity (ROE) of 15%+ [5][6] Strategic Initiatives - **PC Financial Acquisition**: The acquisition is seen as a transformative opportunity, expected to increase customer base from 800,000 to 3.5 million, enhancing distribution capabilities and brand recognition [4][29] - **Focus on Core Franchise**: Emphasis on reigniting the core business and optimizing capabilities to drive revenue growth [4][5] Financial Performance - **Earnings Growth**: Projected EPS growth of 12%-15% for 2026, with a focus on improving operating leverage [6][11] - **Expense Management**: A significant improvement in expenses is expected, with a CAD 45 million reduction anticipated in 2026 [15][27] - **Credit Quality**: The company is well-positioned for a potentially recessionary environment, with an expected improvement in the provision for credit losses (PCL) ratio in 2026 [17][25] Equipment Financing - **Risk Posture Improvement**: The risk profile of the equipment financing business has improved, with a shift from lower quality long-haul trucking to more prime customers [19][20] Cross-Selling Opportunities - **PC Optimum Integration**: Plans to leverage the PC Optimum loyalty program to enhance customer engagement and cross-sell financial products [30][35] - **Product Offerings**: Potential to offer mortgages and insurance products to new customers from the PC Financial acquisition [36][44] Capital Management - **Capital Utilization**: The company is focused on organic growth and share buybacks, with a current CET1 ratio of 13.3% [48][51] - **Share Buyback Program**: An NCIB (Normal Course Issuer Bid) has been announced to repurchase shares, indicating confidence in the company's valuation [51][52] Cultural Alignment - **Partnership with Loblaw**: The shared culture and focus on building a distinct challenger bank were key factors in the partnership with Loblaw for the PC Financial acquisition [53][54] Future Outlook - **New Era for EQB**: The leadership team expresses excitement about the future, emphasizing a commitment to being a leading challenger bank in Canada and enhancing customer offerings [58][59] Additional Important Content - **Efficiency Ratio Goals**: The company aims to improve its efficiency ratio to the high 40s or around 50% by late next year [28] - **Physical Presence Strategy**: Plans to operate device pavilions in stores to enhance customer interaction without incurring high operating costs [39][40] This summary encapsulates the key insights and strategic directions discussed during the EQB conference call, highlighting the company's growth expectations, strategic initiatives, financial performance, and future outlook.