Equitable Bank buys Concentra

By Staff, with files from The Canadian Press | February 8, 2022 | Last updated on February 8, 2022
2 min read

Toronto-based Equitable Group Inc. says it has agreed to acquire digital rival Concentra for $470 million, a move that will make it Canada’s seventh-largest bank.

Saskatoon-based Concentra, which rebranded as Wyth Financial in 2021, is the country’s 13th-largest schedule I bank with $11.3 billion in assets. Equitable is also purchasing Concentra Trust, known as Wyth Trust.

Equitable is buying SaskCentral’s 84% equity interest in Concentra and has support agreements from Concerta shareholders with the remaining 16%. It is paying a $35.7-million combined premium and said it has identified more than $30 million in annual cost savings.

The transaction will add $7.4 billion in personal loans and $1.6 billion in commercial loans as well as $6.3 billion in retail, credit union and commercial deposits.

The acquisition was unanimously approved by the boards of Equitable, Concentra and SaskCentral, and is expected to close in the second half of the year, subject to customary closing conditions and regulatory approval.

“This is one of the most important and consequential transactions in our 50-plus year history, and it accelerates our growth plan by several years,” Equitable CEO Andrew Moor said in a statement, adding the acquisition will serve as a catalyst for growth.

Concentra is a Canadian mid-market digital bank and the largest provider of wholesale banking and trust solutions to Canadian credit unions with roots going back to the 1950s.

It is the largest provider of wholesale banking and trust solutions for 90% of Canadian credit unions outside Quebec and their more than five million members.

Equitable also announced it was boosting its quarterly dividend by 51% to 28 cents per common share as it posted record $292.5 million net income last year and $80.1 million or $2.29 per share in the fourth quarter.

“At closing, EQ Bank will become the sole digital platform, replacing Wyth. Pairing Concentra’s digital banking and fintech strategy with EQ Bank will enhance Equitable’s position as an innovative financial services hub for Canadians,” Equitable said in a release.

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Staff, with files from The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.