Why Equitable is one of the hottest bank stocks in North America

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The bank has roughly doubled in size since 2018, and now has 1,800-plus employees and 670,000 customers

Equitable Bank brands itself as “Canada’s challenger bank”—a friendly medium-size competitor to the Big Six, which hold more than 90% of the assets in the sector. The purely digital operation has been very successful recently. Equitable has roughly doubled in size since 2018, and now has 1,800-plus employees and 670,000 customers.

Moor thinks Equitable still has plenty of room to grow, however. “We’ve got 1% of the Canadian banking market,” he says. “To move to 2% would be doubling the size of the institution.” However, he acknowledges that there are still gaps in Equitable’s product line. It has no wealth management offering or credit cards, for instance. “We haven’t cracked those two, but we will,” he says.

And then there are the more obvious reasons for investing in the stock of EQB : The shares have almost doubled in value since just before the COVID-19 pandemic. EQB’s 10-year total shareholder return of 285.6% is tops in Canada for a bank and one of the highest in North America.

 

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