The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

The big six branch out for growth

Canada's six largest banks dominate their home market, so it's hardly surprising they are looking abroad for growth opportunities. But their expansion strategies could hardly be more different: while Nova Scotia is buying up Latin American banks, CIBC is becoming a player on Wall Street and Toronto Dominion is cultivating a niche as a discount broker. But what would really allow Canadian banks to become serious global players would be if the government were to allow them to merge. Richard Blackwell reports.

Canada's six biggest banks, entrenched as the dominant players in their home market, desperately want to make their presence felt elsewhere on the planet.

The six banks are often accused of holding an oligopoly within Canada's close-knit financial system. While that may be an exaggeration, they do hold about 60% of personal deposits, control just under half the mortgage business, and manage about a quarter of mutual-fund assets.

The six are led by Royal Bank of Canada, with total corporate assets of C$246 billion (US$177 billion) at July 31, a network of 1,500 branches and 51,000 employees. A close second is Canadian Imperial Bank of Commerce (CIBC) with assets of C$240 billion. Bank of Montreal, Bank of Nova Scotia and Toronto Dominion Bank fall third, fourth and fifth. National Bank of Canada is the smallest of the so-called big six, with assets of C$61 billion.

The Canadian banks are also highly profitable. After taking huge write-offs as a result of bad loans in Latin America in the mid-1980s, and another hit from soured real-estate lending in the early 1990s, they have recovered dramatically in the past few years and are well on their way to reporting record cumulative profits of more than C$7 billion in the fiscal year that ends on October 31.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree