Q: If I have to pick one between EQB and IFC for RRSP, long term 5 + years stable growth in financial sector, which one it would be ?
5i Research Answer:
We think both companies can do just fine over the long term. Both are classified as financial names, but the business models are quite different. While IFC is a high-quality insurance name with a decent track record of disciplined underwriting, EQB is one of the most well-managed small banks with a history of a high Return on Equity (ROE) and strong organic growth. We don’t see any issues owning both. That being said, for better upside potential, we would go for EQB, for downside protection, IFC may be a better name to own.