EQB offloads its equipment leasing arm to Desjardins as it sharpens focus on core growth
Equitable Bank, the Toronto-based lender that routes its alternative mortgages exclusively through Canada’s broker channel, has agreed to sell its commercial equipment leasing subsidiary, Bennington Financial Corp., to Desjardins Group.
The deal marks another step in EQB Inc.’s deliberate exit from non-core businesses. It follows their acquisition of PC Financial, which closed in July and added nearly four million customers.
Desjardins Group will acquire 100% of Bennington’s shares at a price equivalent to an approximately 8% discount to lease receivables.
As at July 31, Bennington’s aggregate portfolio held roughly $1.1 billion in lease receivables. The transaction is expected to close in the first half of 2027.
EQB will reclassify Bennington as held for sale and record a net after-tax charge in the fourth quarter of fiscal 2026, treated as an adjusting item.
The deal is expected to be relatively neutral to Equitable Bank’s common equity Tier 1 (CET1) capital ratio at closing.
Chadwick Westlake, President and Chief Executive Officer of EQB Inc. in Toronto, Ontario, said the divestiture is a natural extension of the bank’s recalibrated priorities.
“At EQB, we’re focused on doing more of what we do best and investing where we see the greatest opportunity to win,” he said.
“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.”
A pattern of deliberate portfolio exits
The Bennington sale continues a visible pivot at EQB. Since completing the acquisition of PC Financial, EQB has moved steadily to shed businesses that no longer align with its core focus.
Canadian Mortgage Professional has followed EQB’s most profitable year on record, when annual revenue surpassed $1 billion for the first time in fiscal 2025.
The broker channel remains central to that model; as one Equitable Bank executive previously confirmed to Canadian Mortgage Professional, “We continue to believe that the best way in this country to get a mortgage is through a mortgage broker.”
A strategic fit for Desjardins
Denis Dubois, President and CEO of Desjardins Group in Lévis, Québec, said the deal complements the cooperative’s existing business financing capabilities.
“Bennington’s specialized expertise in commercial equipment leasing and financing makes it a strong strategic fit for Desjardins,” he said.
“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.”
Desjardins Group is a financial cooperative, offering personal and business banking, wealth management, and insurance services to more than 10 million members and clients, with total net revenue of $16.31 billion and total assets of $510.2 billion in fiscal 2025.
National Bank Capital Markets and McCarthy Tétrault LLP are advising EQB on the transaction. Desjardins Capital Markets and Norton Rose Fulbright Canada LLP are advising Desjardins.
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