EQB (EQB) CIBC Eastern Institutional Investor Conference summary

PC Financial acquisition

• Closed July 1; added 4 million customers, 5x the prior-year base, and access to an 18 million-member PC Optimum ecosystem.

• Nearly 5,000 physical brand touchpoints across Shoppers Drug Mart, Loblaw banners and partner gas stations; brand recognition was 20%-40% before the acquisition.

• Revenue mix is diversifying from 85% housing-related spread income a quarter earlier; the share shifted 400-500 bps in the first month after closing.

• PC Financial card spending totals CAD 32 billion annually; related income includes interchange, card fees and commissions on 90,000 insurance policies.

Integration, deposits and synergies

• Integration planning began after joining; an integration management office was established after the December announcement, with a July 1 “do no harm” approach and customer experience as the priority.

• Physical access expanded to 180 stores; early pop-ups supported strong first-month card acquisition and record-high insurance policy sales.

• Lowest-cost retail direct deposits rose from 27% before the acquisition to 29% at Q3; management sees further runway through PC Financial cardholder cross-selling.

• A new callable deposit note priced at tighter spreads than a comparable broker GIC; Eagle’s Credit Card Securitization Trust adds a capital-efficient funding source.

• Cost synergy target is CAD 30 million over the first few years after the deal; 50% was achieved in the first post-acquisition month.

• Customer retention, deposit stability, service levels and revenue, capital, funding and expense synergies are monitored weekly or daily; management is prepared to adjust execution.

Credit trends

• Residential real estate lending average LTVs are 65%-70%; early-stage delinquencies are generally declining, with losses concentrated in specific vintages and neighborhoods.

• Housing sales and prices show signs of stabilization; management expects conditions into 2027-2028 to reflect a cyclical rather than systemic factor, while noting the path may remain bumpy.

• Commercial lending is 85%+ insured; uninsured formations declined in Q2, with roughly two new loan formations in Q3.

• Provisions on impaired commercial properties were substantially increased; management expects smaller true-ups and, by 2027, slower formations than workouts, supporting a substantial decline in GILs.

• PC Financial cards are 70%+ super-prime; through-cycle loss rates are roughly 4.5%-5%, with quarterly variation of ±30-40 bps tied partly to seasonal spending.