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“It was heartbreaking… and it brings perspective”
- Chadwick Westlake returned to EQB after Andrew Moor’s sudden death, describing his late mentor as a fearless trailblazer who championed disruption and open banking in an oligopoly-dominated country.
- Stepping in just months ago amid tragedy, key vacancies, and business challenges, his first priority was to stabilize, listen across Canada, and reset focus with a “clean page” approach after 18 years of unchanged leadership.
- He took the job because “there’s no greater opportunity” — driven by deep care for Canada, EQB’s unique purpose, and belief in its legacy and potential as the only true Challenger Bank.
Buying PC Financial
“This is gamechanging… 1 plus 1 equals 3 — or in some cases 11”
- The $800M PC Financial acquisition adds 2.5 million customers, $4.4B in receivables, credit cards, in-store pavilions, ATMs, and exclusive PC Optimum partnership — more than doubling revenue and quadrupling customers.
- Creates the only omni-channel challenger bank in Canada, integrating loyalty rewards into banking products for massive cross-sell potential and scale that big banks can’t easily replicate.
- Super-prime credit card portfolio (higher payback rates than many peers) brings net-new high-quality customers with low overlap, shifting loan mix away from 95% real estate exposure.
“We’re buying back every day because the stock is also very very discounted”
- EQB has repurchased more shares since Westlake joined than in its entire prior history, viewing the stock as “very discounted” even after the rally — far below big-bank multiples and price-to-book.
- Concentrated ownership by astute long-term believers (Steven Smith passively, George Weston/Loblaws taking up to 25%) signals strong conviction in the undervalued story.
- Buybacks tighten liquidity while reinforcing belief that EQB remains a unique opportunity for Canadian investors despite recent transformation and growth trajectory.
“We have modeled for more pain”
- EQB is conservatively provisioning for continued housing pressure, higher unemployment, and slower recovery — yet sees isolated rather than systemic issues, with resilient borrowers and low historical losses.
- Optimistic on second-half 2026 pickup from pent-up demand, rate-cut effects, and life-driven transactions, plus growth in reverse mortgages, CHMC-insured affordable housing, and PC deal diversification.
- Westlake emphasizes urgency for Canada overall: end complacency, move faster on productivity and competition, be more assertive globally, and take hold of our destiny before it’s too late.
Don’t miss our next episode with one of the biggest hedge fund managers in the country!
DISCLAIMERS: This text AI generated and should be checked against actual delivery. The content provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice. The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
