EQB completes acquisition of PC Financial and welcomes Galen G. Weston and Richard Dufresne to its Board of Directors

• EQB Inc. completed the acquisition of PC Financial (including PC Bank and affiliated insurance entities) from Loblaw Companies Limited on July 1, 2026.
• Transaction consideration: 1.15x book value, paid via issuance of 7.2 million common shares to Loblaw and $234.5 million in cash.
• Loblaw's ownership stake increased from ~3.46% to ~19.89%, with explicit intent to acquire up to 25% of outstanding shares via an automatic share purchase plan.
• Two Loblaw executives (Galen G. Weston and Richard Dufresne) joined EQB's Board of Directors.
• Customer base expands to nearly 4 million Canadians; EQB becomes the exclusive financial services partner for the PC Optimum™ loyalty program (18 million+ active members).
• PC Bank is consolidated as a wholly owned subsidiary; comprehensive conversion plan to transition PC Bank clients to the EQ Bank platform begins in coming months.
• Q3 2026 results will include one month of earnings contribution from PC Financial.

• The news represents the execution of a known, telegraphed catalyst. The stock's +16.6% run since the May 27 earnings print indicates the market had already priced in the successful close and near-term scale benefits.
• Fundamentally, the deal is transformative, adding $5.8B in assets, ~2M credit card accounts, and exclusive access to 18M+ PC Optimum members. However, the 1.15x book valuation is fair but not discounted, and Loblaw's ~20% stake introduces a significant strategic partner with board influence.
• The immediate market impact is likely muted or negative ("sell the news") given the prior run. Long-term materiality is positive, contingent on successful platform conversion, synergy realization ($30M annual run-rate cost synergies), and credit normalization.

EQB Inc. operates Equitable Bank, a Schedule I Canadian bank focused on challenger banking, digital platforms, and specialized lending (multi-unit residential mortgages, decumulation, reverse mortgages, and SME lending). The acquisition of PC Financial scales the combined entity to approximately $52B in assets, ~4M customers, and establishes EQB as the exclusive financial services partner for Loblaw's PC Optimum loyalty program, creating a highly integrated, data-driven banking ecosystem.