Equitable Bank reduces prime lending rate by 25 basis points

TORONTO - Equitable Bank announced Wednesday it is cutting its prime lending rate by 25 basis points to 4.70% from 4.95%, effective September 18, 2025.

The bank’s wholly owned subsidiary, Concentra Bank, will implement the same rate reduction, also lowering its prime rate to 4.70% from 4.95% on the same date.

Equitable Bank, which describes itself as "Canada’s Challenger Bank," is the country’s seventh largest bank by assets. The financial institution operates as a subsidiary of EQB Inc. (TSX:EQB), which reports $137 billion in combined assets under management and administration as of July 31, 2025. With a market capitalization of $2.5 billion and a P/E ratio of 10.4, EQB has maintained dividend payments for 22 consecutive years, according to InvestingPro data.

The rate reduction follows the bank’s regular review of its lending rates, according to the announcement made in a press release statement.

Equitable Bank serves over 761,000 customers and provides services to more than six million credit union members through its various business operations.

In other recent news, EQB Inc reported its third-quarter 2025 earnings, which did not meet expectations. The company’s earnings per share (EPS) were $2.07, falling short of the forecasted $2.63, and its revenue was $310.16 million, below the expected $322.14 million. These results have raised concerns among investors and analysts. Jefferies has downgraded EQB’s stock rating from Buy to Hold and lowered its price target to C$107.00, citing leadership changes and operational challenges. Similarly, BMO Capital has reduced its price target for EQB to C$100.00 from C$111.00, maintaining a Market Perform rating due to concerns about the company’s growth trajectory and return on equity. Additionally, EQB’s CEO, Chadwick Westlake, is scheduled to present at the CIBC Eastern Institutional Investor Conference. This presentation may provide further insights into the company’s future plans and strategies.

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