Q: I owned CWB:T, now acquired by NA:T. I want to replace it with small bank such as EQB or LB. Do you think EQB:T has good long term business model and do well or your analysis prefer to stay with large banks? I do own TD, RY. It's just a replacement of CWB:T.
Thanks
Piyush
Thanks
Piyush
5i Research Answer:
We cover EQB and we have also had it in our growth model portfolio for some time now. We are quite comfortable with the name - the management team is strong, the business is expanding into new product lines, and it is overall gaining market share. It will likely be more volatile than a large Canadian bank at times, but as a high-growth peer to the large banks, which is also trading at a discount to the Big 6, we feel it can complement the large banks nicely and add a growth component.