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.

Summary of EQB and Loblaw Companies Limited Conference Call Industry and Company Overview - **Industry**: Canadian Banking - **Companies Involved**: EQB (Equitable Bank) and Loblaw Companies Limited - **Transaction**: EQB announced the acquisition of PC Financial, which includes PC Bank and related entities, for CAD 800 million, representing 1.15 times book value [3][4] Core Points and Arguments 1. **Strategic Partnership**: The acquisition establishes a long-term partnership between EQB and Loblaw, making EQB the exclusive financial partner for Loblaw and the provider of the PC Optimum loyalty program [3][4][5] 2. **Customer Base Expansion**: The transaction will expand EQB's customer base to nearly 3.5 million, combining EQB's existing customers with PC Financial's 2.5 million customers [5][11] 3. **Financial Metrics**: - PC Financial reported CAD 1.1 billion in revenue for the trailing 12 months, with 53% being non-interest revenue [12] - EQB's fiscal 2025 revenue was CAD 1.26 billion, projected to nearly double to over CAD 2.3 billion post-acquisition [12][20] 4. **Transaction Structure**: Loblaw will receive approximately 7.2 million shares of EQB, representing about 17% of EQB's outstanding shares, with the remainder paid in cash [4][20] 5. **Growth Catalyst**: The acquisition is seen as a significant growth catalyst for EQB, enhancing its position as a challenger bank and diversifying its product offerings [5][9][10] Additional Important Insights 1. **Loyalty Program Integration**: EQB will administer the PC Optimum loyalty program, which is highly regarded by over 17 million Canadians, enhancing customer engagement and driving sales [6][16][41] 2. **Operational Efficiency**: The partnership is expected to create operational efficiencies and improve financial strength for both companies, with Loblaw aiming to simplify its operational structure [22][24] 3. **Cost Synergies**: Expected cost synergies are modest at 7% of the cost base, with a target of over CAD 30 million in annual pre-tax run rate cost synergies [17][18] 4. **Regulatory Approvals**: The transaction is anticipated to close in the second half of 2026, pending regulatory approvals [20] 5. **Cultural Fit**: Both companies emphasize a strong cultural alignment, which is seen as crucial for the success of the partnership [44][47] Conclusion The acquisition of PC Financial by EQB represents a transformative move in the Canadian banking sector, aiming to enhance customer offerings, drive growth, and create a robust loyalty-linked banking ecosystem. The strategic partnership with Loblaw is expected to yield significant long-term benefits for both companies and their customers.

Summary of Loblaw Companies and EQB Conference Call Company and Industry Overview - **Companies Involved**: Loblaw Companies Limited and EQB (Equitable Bank) - **Industry**: Canadian Banking and Retail Financial Services Key Points and Arguments 1. **Acquisition Announcement**: EQB announced the acquisition of PC Financial, including PC Bank and related entities, for CAD 800 million, translating to 1.15 times book value [3][4][20] 2. **Strategic Partnership**: The acquisition establishes a long-term partnership where EQB becomes the exclusive financial partner for Loblaw and the provider of the PC Optimum loyalty program [3][5][6] 3. **Customer Base Expansion**: The transaction will expand EQB's customer base to nearly 3.5 million, leveraging Loblaw's 17 million PC Optimum loyalty program members [5][11][20] 4. **Financial Metrics**: - PC Financial reported CAD 1.1 billion in revenue for the trailing 12 months, with 53% being non-interest revenue [12] - Combined revenue for EQB and PC Financial is projected to exceed CAD 2.3 billion on a pro forma basis [12][20] - PC Financial has CAD 4.4 billion in average credit card receivables and CAD 5.8 billion in total assets [6][12] 5. **Cost and Revenue Synergies**: - Expected cost synergies of 7% of the cost base, with annual pre-tax run rate cost synergies projected to exceed CAD 30 million [17][18] - Revenue synergies anticipated from cross-selling opportunities, although not required for the transaction's attractiveness [17][20] 6. **Market Positioning**: The acquisition positions EQB as a leading digital bank in Canada, enhancing its competitive edge in the market [5][13] 7. **Loyalty Program Integration**: EQB will administer the PC Optimum loyalty program, which is highly regarded by Canadians, enhancing customer engagement and driving sales [16][42][43] 8. **Regulatory Approval Timeline**: The transaction is expected to close in the second half of 2026, pending regulatory approvals [20] Additional Important Insights 1. **Cultural Fit**: The partnership is described as a cultural alignment between EQB and Loblaw, emphasizing a shared mission to improve Canadian banking [47] 2. **Operational Efficiency**: Loblaw aims to simplify its operational structure and balance sheet through this transaction, which is expected to be accretive to earnings in the first full year post-transaction [23][24] 3. **Customer Engagement**: The integration of PC Optimum points with EQB's financial products is expected to enhance customer loyalty and spending across Loblaw's network [24][43] 4. **Long-term Vision**: Both companies express a commitment to long-term growth and innovation in the Canadian banking sector, with a focus on better serving customers [5][45][50] This summary encapsulates the key points discussed during the conference call regarding the strategic acquisition and partnership between Loblaw Companies and EQB, highlighting the anticipated benefits and financial implications for both entities.