The Canadian banking industry is one of the most secure in the world. It is controlled by strict regulations than that of the United States. It has 83 banking institutions that operate across Canada, with 35 local and 48 branches and affiliates that are foreign-owned. The 5 Big Five Canadian banks include Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, BMO, and CIBC.
What are the Big Five Banks?
The Big Five Banks is a phrase that is used in Canada to refer to the five biggest banks: Royal Bank, The Bank of Montreal, Canadian Imperial Bank of Commerce, The Bank of Nova Scotia as well as Toronto-Dominion Bank.
Sometimes, the expression “Big Six Banks” is employed in conjunction with the sixth bank being the National Bank of Canada. At the time of writing, The Big Six Banks and Desjardins Group are the biggest in Canada in terms of total assets. The Five Big Banks hold over 100 billion dollars in assets, and all of them are based in Toronto.
Royal Bank of Canada
The Royal Bank of Canada is the largest Big Five bank concerning its net revenue (C$11.4 billion in 2020) and capitalization (C$132.5 billion by 2020). It is the largest of all Big Five banks. Royal Bank of Canada has more than 17 million customers worldwide, more than 86,000 full-time employees, and 1300 branches.2 Established in 1864 in Halifax, Nova Scotia, the first bank to finance the timber and lumber industries. It was initially known in the past as the Merchants Bank of Halifax.
- Toronto-Dominion Bank
The second-largest banking institution in Canada is the Toronto-Dominion Bank has the most assets, valued at C$1.7 trillion at the time of January 2021.1 The bank is home to 9.6 million customers around the world as well 25,000 employees and more than 1100 branches.3 This bank is formed as the result of a merger between Dominion Bank and the Bank of Toronto in 1955.4
- Bank of Nova Scotia
The Bank of Nova Scotia, also known as Scotiabank, is the most important in Canada, with assets of C$1.1 trillion in 2020. The revenue was C$31 billion by 2020, and the capitalization at C$67billion. Scotiabank has more than 11 million customers within Canada and 10 million customers from outside Canada and 92,000 full-time employees, and more than 900 branches across Canada. The bank allows trading in both New York and Toronto Stock Exchanges.5
Established by the city of Halifax in 1832, Nova Scotia bank moved its headquarters to Toronto in 1900 to enhance commerce across the Atlantic industry.6
- Bank of Montreal
The Bank of Montreal is the fourth-largest Canadian bank, having assets worth C$949 billion and revenues of around C$25 billion as of 2020. The bank serves more than 8 million customers across Canada and has more than 600 branches.7 The bank employs more than 42,000 employees in the world in Q2 of 2021.8 Through crises like World War I, the Great Depression, World War II, and the 2008 Global Financial Crisis, the bank has always met dividend payments.9
- Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce has assets of C$770 billion with revenues of C$18.7 billion in 2020 and a capitalization of C$44 billion.10 The bank serves more than 11 million customers with 1,100 branches across Canada and more than 44,000 full-time workers worldwide.11 This bank was established in the year 1961 when the Canadian Bank of Commerce and the Imperial Bank of Canada merged
The largest bank in Canada
Toronto-Dominion Bank
Toronto-Dominion Bank (or T.D. Bank Group) is the biggest lender in Canada in terms of assets total. It employs around 89,000 people and has approximately 1,100 retail branches and 3440 ATMs throughout Canada. The bank offers a variety of personal and corporate insurance, investment banking, and services to more than 27 million customers worldwide. According to Forbes, Toronto-Dominion Bank is the most secure institution in Canada, following Global Finance and one of Canada’s top employers. T.D. has a long-term rating of Aaa from Moody’s and A.A. in Standard & Poors and Fitch.
Royal Bank of Canada
Royal Bank of Canada (RBC), located within Toronto and Montreal, is the second-largest Canadian bank in assets and the biggest by market capitalization. RBC is also an essential Canadian bank in terms of ATMs and branches. It has nearly 17 million customers via more than 1,300 branches throughout Canada and the U.S., the Caribbean, and other nations. RBC was named the Best Bank in Canada and North America by Global Finance in 2021. The market value of RBC was $156 billion on April 1, 2022.
Bank of Nova Scotia
Bank of Nova Scotia (Scotiabank) is the third-largest bank in Canada in terms of total assets. The bank is Canada’s most international bank, with a presence in over 55 countries and 89,000 FTE workers. It offers a variety of products and services, including corporate, personal, and investment banking, including auto, home, and life insurance mobile and online banking, brokerage services, and other services. Scotiabank’s network comprises over 950 branches in its local area and is more excellent than 1300 branches in foreign countries. Scotiabank has been recognized as the Best Bank for Small Business by CFIB, Best Foreign Exchange Provider in Canada, and World’s Best Emerging Markets Bank in Barbados, Costa Rica, the U.S. Virgin Islands, Bahamas, Trinidad & Tobago, and Turks & Caicos by Global Finance.
Bank of Montreal
Bank of Montreal (known as BMO Financial Group) is the fourth largest Canadian bank regarding the number of assets and market capitalization. With 43,000 full-time equivalent staff serving customers via 3,300 ATMs and 877 branches in Canada and 1,550 ATMs and 530 branches within the United States. The company’s main divisions include Personal & Commercial Banking, Capital Markets, and Wealth Management. Within the U.S., the Bank of Montreal operates through BMO Harris Bank.
Canadian Imperial Bank of Commerce
Canadian Imperial Bank of Commerce (CIBC), founded in 1961, is the 5th largest banking institution in Canada, with more than 11 million customers, 4,400 employees, 1,020 branches, and 3,100 ATMs. The main business segments of the bank include Personal as well as Small Business Banking, Commercial Banking, Wealth Management, and Capital Markets. CIBC shares are traded on the Toronto Stock Exchange (TSX) and the New York Stock Exchange (NYSE ).
National Bank of Canada
The National Bank of Canada is the most prominent institution in Quebec and is the sixth-largest in Canada. With over 400 locations across the country, it provides retail corporate and investment banking services, including chequing accounts and high-interest savings accounts, business and personal loans and mortgages, debit cards with low rates and no annual charge, credit cards, and insurance assets management as well as online and mobile banking as well as foreign currency exchange, wire transfers online trading, and much more. The company is among Canada’s top diversity employers and Montreal’s top employers.
HSBC Bank Canada
HSBC Bank Canada is the largest foreign bank in Canada. It is a wholly controlled subsidiary owned by British banking giant HSBC Holdings Plc. Its headquarters are in Vancouver, British Columbia; it has branches across every province. In the year that ended on December 31, 2020, it had its total assets as high as C$117billion and operating earnings of C$2.0 billion. It also reported a net profit of 308 million dollars and a Tier one ratio of 16.4 percent. HSBC Canada is a member of the Canadian Bankers Association and CDIC (Canada Deposit Insurance Corporation). ).
Laurentian Bank of Canada
Laurentian Bank of Canada (LBC) is a bank that operates globally that focuses its activities located in Quebec. It employs about 3000 people and has more than 60 branches and 160 ATMs. The main business lines of the bank include Retail and Business Banking, B2B Bank, Securities and Capital Markets, and LBC Financial Services. As of July 31, 2021, Laurentian Bank had total assets of C$45 billion, a deposit of C$23 billion, and loans totaling C$33 billion, including C$16 billion of residential mortgages. Laurentian Bank shares are listed on the TSX.
Canadian Western Bank
The following is a listing of Canada’s top and most prominent institutions in terms of assets total.
Canadian Western Bank (CWB) is headquartered in Edmonton. It is a Schedule I chartered bank that has an emphasis on business as well as its proprietors. The loan book of CWB is spread throughout British Columbia, Alberta, and Ontario. CWB was formed due to the merger between Western & Pacific Bank of Canada and Bank of Alberta in 1988. The company has 40 branch locations and is home to more than 2600 employees. CWB is a member of the Canadian Bankers Association and CDIC (Canada Deposit Insurance Corporation). ).
