The banking industry of Canada is dominated by 5 banks in particular. These banks are the largest in the country, with over $100 billion in assets, and referred to as the “Big Five”. Toronto is the operational base for each of the Big Five. This articles takes a closer look at these banks.
Royal Bank Of Canada
The Royal Bank of Canada is the largest of the Big Five in terms of revenue (C$38.2 billion) and capitalization (C$130.1 billion). It provides services to over 16 million clients (10 million of which are in Canada) and employs the full time equivalent of 74,246 employees around the world. Throughout the country, the Royal Bank of Canada has 1,355 branches.
This bank was founded in Halifax, Nova Scotia in 1864 as the Merchants Bank of Halifax, a lumber and timber industry financer. Today, it provides all types of financial services, including insurance. Additionally, the Royal Bank of Canada designates 1% of its pre-tax annual net income to charitable project.
The Toronto-Dominion Bank is the second largest bank in Canada, although it has the biggest asset value at C$1,104.37 billion. It provides services to over 22 million clients (over half of which are in Canada) and employs the full time equivalent of 85,000 employees around the world. Across Canada, the Toronto-Dominion Bank has 1,165 branches.
This bank was created after the 1955 merger of the Bank of Toronto (founded in 1855) and the Dominion bank (founded in 1869). Today, its many services include: asset management, personal and commercial banking, investment banking, wealth management, credit card services, and vehicle financing.
Bank Of Nova Scotia
The Bank of Nova Scotia, also known as Scotiabank, is the third largest of the Big Five; this is true in terms of assets (C$856.49 billion), revenue (C$26.4 billion), and capitalization (C$89.6 billion). It provides services to over 23 million customers in 55 countries, employs the full time equivalent of 89,000 employees, and has 1,040 branches in Canada. This bank offers trade on both the New York and Toronto Stock Exchanges.
Scotiabank was founded in 1832 in Halifax, Nova Scotia and moved its headquarters to Toronto in 1900. Its first objective was to ease the transAtlantic trade industry. Today, however, it offers a number of financial services, including: personal and commercial banking, investment banking, and wealth management.
Bank Of Montreal
The Bank of Montreal is the fourth largest Canadian bank with C$641.88 billion worth of assets, a revenue of C$20.9 billion, and capitalization of C$57.2 billion. It provides services to over 7 million clients in Canada through 939 branches and employees the full time equivalent of 47,180 individuals. It offers a wide variety of financial services.
Founded in 1817, the Bank of Montreal is the oldest bank in the country. Since 1829, this bank has provided dividend payments without miss, including through the economic crises of World War I, the Great Depression, World War II, and the 2008 Financial Crisis.
Canadian Imperial Bank Of Commerce
The Canadian Imperial Bank of Commerce is the last of the Big Five. It has assets worth C$463.60 billion, revenue of C$14.8 billion, and capitalization of C$42.1 billion. This bank provides services to over 11 million clients throughout Canada, the US, the Caribbean, Asia, and Europe. It has 1,100 branches in Canada and employs the full time equivalent of 42,239 employees around the world.
The Canadian Imperial Bank of Commerce was created in 1961 after the merger of the Canadian Bank of Commerce (founded in 1867) and the Imperial Bank of Canada (founded in 1875). Bloomberg Markets magazine has identified this bank as the strongest in North America and the third strongest in the world.
The Big Five Banks Of Canada
|Rank||Official name||Operational head office||Assets (C$ bn)||Revenue (C$ bn)||Capitalization (C$ bn)||Branches (Canada only)||Employees (Full-time equivalent)|
|1||Royal Bank of Canada||Royal Bank Plaza, Toronto||$1074.28||$38.2||$130.1||1,355||74,246|
|2||Toronto-Dominion Bank||Toronto-Dominion Centre, Toronto||$1104.37||$34.35||$118.1||1,165||85,000|
|3||Bank of Nova Scotia||Scotia Plaza, Toronto||$856.49||$26.4||$89.6||1,040||89,000|
|4||Bank of Montreal||First Canadian Place, Toronto||$641.88||$20.9||$57.2||939||47,180|
|5||Canadian Imperial Bank of Commerce||Commerce Court, Toronto||$463.60||$14.8||$42.1||1,100||42,239|