Equitable Bank announces agreement for the sale of Bennington Financial Corp.

• Supports EQB's evolving focus on allocating resources to core strategic growth businesses
• Simplifies the commercial portfolio and reinforces long-term shareholder value creation

TORONTO, Oct. 29, 2026 /CNW/ -- Equitable Bank ("Equitable" or "the Bank"), held by EQB Inc. (TSX: EQB) ("EQB") today announced that it has entered into a definitive agreement ("the Transaction") with Desjardins Group ("Desjardins") for the sale of Bennington Financial Corp. ("Bennington"), provider of commercial equipment leasing and financing.

The Transaction reinforces EQB's focus on high-growth opportunities with strong strategic fit and attractive long-term returns.

"At EQB, we're focused on doing more of what we do best and investing where we see the greatest opportunity to win," said Chadwick Westlake, President and CEO, EQB. "This transaction allows us to further concentrate our capital and resources on our core growth priorities, particularly following our PC Financial transaction. It also positions Bennington with an owner that is equipped to grow the business to its full potential with expertise in the sector. Consistent with other businesses and product exits over the past year, this move strengthens our ability to create value for customers and shareholders over the long term."

Bennington is a leader in the Canadian equipment leasing industry, relying on a network of brokers. As at July 31, 2026, its aggregate portfolio included approximately $1.1 billion in lease receivables. Contribution to earnings for the trailing 12 months ended July 31, 2026, was not material.

"Bennington's specialized expertise in commercial equipment leasing and financing makes it a strong strategic fit for Desjardins," said Denis Dubois, President and CEO, Desjardins Group. "This transaction brings capabilities that complement our existing business financing offering and support our growth ambitions across Canada, while providing a strong foundation for Bennington to continue building on its established business, expertise and relationships."  

Under the terms of the agreement, Desjardins will acquire 100% of the shares of Bennington at a price equivalent to a discount of approximately 8% of lease receivables. For accounting purposes, the business will be classified as held for sale, and EQB expects to record a net after-tax charge in the fourth quarter of 2026, which will be treated as an adjusting item. Upon closing, the Transaction is expected to be relatively neutral to Equitable Bank's common equity Tier 1 (CET1) ratio.

The Transaction is expected to close in the first half of 2027, subject to customary closing conditions. EQB and Desjardins will work together to ensure a smooth transition. In connection with the transaction, National Bank Capital Markets is acting as financial advisor and McCarthy Tétrault LLP is acting as legal advisors to EQB. Norton Rose Fulbright Canada LLP is acting as legal advisor to Desjardins, and Desjardins Capital Markets is acting as financial advisor to Desjardins.

About Equitable Bank 
EQB Inc. (TSX: EQB) is a leading Canadian financial services company with approximately $151 billion in combined assets under management and administration. It is the parent company of Equitable Bank, the country's seventh largest Schedule I bank by assets, which operates EQ Bank, Canada's Challenger Bank™.

Our purpose is to remake banking so every Canadian gets ahead, every day. Since 1970, we have built thoughtful financial solutions that serve more than 4 million customers, turning everyday moments into meaningful progress. As the exclusive financial partner of Loblaw Companies Limited's PC Optimum™ loyalty program – one of Canada's largest loyalty programs with more than 18 million members – EQ Bank's financial solutions are deeply embedded into the daily lives of Canadians.

We provide personal and commercial banking services to Canadian households and businesses through everyday banking, tailored lending and connected payments, while fueling competition and choice in Canadian banking. Through our subsidiaries, we also offer home and auto insurance, estate and trust services, credit union solutions and alternative asset management.

To learn more, visit eqb.investorroom.com and eqbank.ca, or connect with us on Instagram, Facebook or LinkedIn.

Investor contact:
Lemar Persaud   
SVP, Investor Relations & Enterprise Performance Management
[email protected]    

Media contact:
Danielle Mason  
Director, PR & Communications   
[email protected]

Forward Looking Information
Statements made in this news release include forward-looking statements within the meaning of applicable securities laws ("forward looking statements"). Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "guidance", "planned", "estimates", "forecasts", "outlook", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases which state that certain actions, events or results "may", "could", "would", "should", "might" or "will be taken", "occur", "be achieved", "will likely" or other similar expressions of future or conditional verbs. These statements include, but are not limited to, statements relating to EQB's objectives, strategies and initiatives; financial performance expectations, whether with respect to EQB's businesses, the Transaction or the Canadian economy; the expected impact of the Transaction, including the expected impact on EQB's size, operations, capabilities, growth drivers and opportunities, activities, attributes, profile, business services portfolio and loans, revenue and assets mix, market position, profitability, performance, and strategy; the anticipated benefits of the Transaction; the expected impact of the Transaction on EQB's financial performance; the terms and conditions of the Transaction; expectations regarding EQB's business model, plans and strategy; the impact on the Bank's CET1 ratio, capital structure and liquidity profile and changes in adjusted EPS; the anticipated timing and the various steps to be completed in connection with the Transaction; EQB's financial performance objectives, vision and strategic goals; the economic and market review and outlook, the outlook and priorities for each of EQB's business lines; and statements by EQB representatives.

Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, closing of transactions, performance or achievements of EQB to be materially different from those expressed or implied by such forward-looking statements, including but not limited to risks related to: capital markets and additional funding requirements; fluctuating interest rates and general economic conditions including, without limitation, global geopolitical risk, uncertainty arising from ongoing United States/Canada tariff concerns and related impacts; business acquisitions; legislative and regulatory developments; changes in accounting standards; the nature of EQB's customers and rates of default; the possibility that the Transaction will not be completed on the terms and conditions, or on the timing, currently contemplated, and that it may not be completed at all due to a failure to obtain or satisfy, in a timely manner or otherwise, required conditions of closing necessary to complete the Transaction or for other reasons; the possibility of adverse reactions or changes in business relationships resulting from the announcement or completion of the Transaction; as well as those factors discussed under the heading "Risk Management" in EQB's Annual MD&A and in EQB's other documents filed on SEDAR+ at www.sedarplus.ca.

All material assumptions used in making forward-looking statements are based on management's knowledge of current business conditions and expectations of future business conditions and trends, including their knowledge of the current credit, interest rate, and liquidity conditions affecting EQB and the Canadian economy. Although EQB believes the assumptions used to make such statements are reasonable at this time and has attempted to identify above and in its continuous disclosure documents important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. Certain material assumptions are applied by EQB in making forward-looking statements, including without limitation, the maintenance of or impact to the Bank's CET1 ratio; EQB's ability to execute its transformation plan and strategy;  the absence of significant undisclosed costs or liabilities associated with the Transaction; the expectation of regulatory stability; no downturn in economic conditions; sufficient liquidity and capital resources; no material changes in competition, market conditions or in government monetary, fiscal and economic policies; the maintenance of credit ratings; assumptions regarding EQB's continued ability to fund its loan business, a continuation of the current level of economic uncertainty that affects real estate market conditions including, without limitation, continued acceptance of its products in the marketplace; as well as no material changes in its operating cost structure and the current tax regime. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. EQB does not undertake to update any forward-looking statements that are contained herein, except in accordance with applicable securities laws. Additional information on items of note, reported results, risk factors and assumptions related to forward-looking statements are available in EQB's Annual MD&A and other public filings available on SEDAR+ at www.sedarplus.ca.

This news release also contains future-oriented financial information ("FOFI") and information which could be considered to be in the nature of a "financial outlook". All FOFI contained in this news release is subject to the same assumptions, risk factors, limitations and qualifications as set forth herein. FOFI contained in this news release was made as of the date hereof, based on information available to EQB as of the date hereof, and is being provided to assist investors in understanding the potential financial impact of the Transaction. Such information may not be appropriate for other purposes. The actual results of operations of EQB may vary from the amounts set forth herein and such variation may be material. EQB disclaims any intention or obligation to update or revise any FOFI in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable securities laws.

SOURCE Equitable Bank