Banks in Canada

Article bySayantan Mukhopadhyay
Reviewed byDheeraj Vaidya, CFA, FRM

Overview of Banks in Canada

Banks in Canada signify the banking system that still runs on the old conventional way of running banks. These have remained affected by the changing financial and political situations for long and they continue to face the same due to the decline of the Government’s support and aid. As per Moody’s Investors Service, the approach of Canadian banks remained negative in 2017 as well.

Top 10 Banks in Canada

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Investigating the stance of the Government in regards to the banking system in Canada, it could be seen that there is a huge mortgage debt (which has doubled in the last ten years) that created a moderate rise in unemployment and the interest rate. Even if there’s tepid economic growth in Canada, the banks perform quite well. These highly-rated banks are also compared with the best banks in the world.

Structure of Banks in Canada

Banks in Canada run robustly (irrespective of lesser Government support), and we can classify the financial companies offering baking services into five broad categories –

  • Chartered Banks
  • The Cooperative Credit Movement
  • Life Insurance Companies
  • Trust and Loan Companies
  • Security Dealers

As per the last data (as of August 2017), it was found that there are 29 domestic banks. Twenty-four foreign banks are subsidiaries. Besides that, 27 foreign bank branches and three foreign bank lending branches offer a full gamut of respective banking services.

Around C $4.6 trillion of assets are managed by the financial institutions in Canada. The banks manage 70% of these assets. And 90% of the banking assets are controlled by the top six banks.

List of Top 10 Banks in Canada

The banks in the nation have been through a lot of struggles and have faced a lack of support from the government authorities. Still, they make up a strong system of support for finance seekers and savers. Here is a list of the top 10 banks in Canada:

  1. Toronto-Dominion Bank
  2. Royal Bank of Canada
  3. Bank of Nova Scotia
  4. Bank of Montreal
  5. CIBC
  6. Desjardins Group
  7. National Bank
  8. HSBC Bank
  9. Laurentian Bank of Canada
  10. Canadian Western Bank

As per the last report on 31st July 2017, here is a list of the top 10 banks in Canada ranked by the total assets controlled

#1. Toronto-Dominion Bank

As per the report of 31st July 2017, this is the largest (top-most) bank in Canada with controlling assets. Toronto-Dominion Bank controls around C$1.202 trillion of assets. The net income of this bank in the year 2020 was C$ 11.9 billion, and the revenue in the same year was C$29.9 billion. It was founded in 1955, and its head-quarter is in Toronto-Dominion Centre, Toronto, Ontario. It is one of the largest banks, and it was ranked 66th in 2015 on Forbes Global 2000.

#2. Royal Bank of Canada

Royal Bank of Canada is the second-largest in controlling total banking assets. It handles total assets of around C$1.201 trillion. In 2020, it earned a net income of C$11.4 billion and a revenue of C$42.8 billion. This bank has employed 78,000 people. It is one of the oldest banks and was established in 1864. The head-quarter is

#3. Bank of Nova Scotia

It is the third-largest bank in terms of controlling total assets. It handles around C$906.332 billion. It has employed around 89,214 employees as per the data of 2015. In 2020, it generated a net income of C$6.78 billion. The revenue in the same year was C$25.3 billion. This bank is pretty old. It was established in the year 1832 in Halifax, Nova Scotia. The head-quarter is situated in Toronto, Ontario.

#4. Bank of Montreal

The fourth-largest bank of Canada, in terms of toIn terms of total assets acquired, the fourth-largest bank of Canada is the Bank of Montreal. It handles around C$708.617 billion of total assets and generates revenue of C$22.2 billion in 2020. In the same year, the net income of the Bank of Montreal was C$5.10billion. It has employed around 45,234 employees. It is one of the oldest banks in Canada. It was established in 1817, more than 200 years ago. Its head-quarter is situated in Montreal, Quebec.

#5.CIBC

Canadian Imperial Bank of Commerce is the fifth in total assets acquired. It was established on 1st June 1961. As per the last report, this bank has acquired total assets of C$560.912 billion. In the year 2020, it generated revenue of C$ 16.2 billion. After paying off all the expenses in the same year, it produced a net profit of C$3.79 billion. The head-quarter of CIBC is in Commerce Court, Toronto, Ontario. Forty-three thousand two hundred thirteen employees work here.

#6. Desjardins Group

Desjardins Group isn’t a bank but the largest association of credit unions in North America. It was established in 1900 in Levis, Quebec, and the head-quarter of this group is situated in the same place. This financial institution provides a gamut of services like checking accountsChecking AccountsA checking account is a bank account that allows multiple deposits and withdrawals. Additionally, it provides superior liquidity.read more, stockbroking, insurance, asset finance, investment banking, consumer finance, etc. Around 47,655 people work here. Desjardin group is also a member of Interact and issues MasterCard and Visa credit cards. The total assets acquired by this group are C$377.0.

#7. National Bank of Canada

It has taken the seventh spot in Canada in terms of total assets acquired. The total assets acquired by the National Bank of Canada are C$343.6 billion. In 2020, it generated revenue of C$7.8 billion and a net profit of C$2.5 billion. As per the last report on 31st October 2016, it has been found that 21,770 people work in the National Bank of Canada. It was established in the year 1859. The head-quarter is situated in Montreal, Quebec.

#8. HSBC Bank Canada

In terms of total assets acquired, HSBC Bank Canada has secured its spot in the eight positions. The total assets acquired by HSBC Bank Canada are C$115.0billion. As you can understand, it is a foreign subsidiary of HSBC Bank. It was founded in 1981, and since then, it has been serving the customers of Canada. Six thousand people work in HSBC Bank Canada. The head-quarter of this bank is in Vancouver.

#9. Laurentian Bank of Canada

This bank has secured the ninth position in terms of total assets acquired. The total assets acquired by the Laurentian Bank of Canada are C$45.2billion. In 2020, this bank generated revenue of $8544.7 million. And in the same year, the net profit of this bank was $114.0 million. Three thousand six hundred people work here. It was a quite old bank, established in the year 1846. The head-quarter is situated in Montreal, Quebec.

#10. Canadian Western Bank

In tenth position, we have the Canadian Western Bank, in terms of total assets acquired. It was founded in 1988. The total assets acquired by Canadian Western Bank are C$35.3 billion. The revenue and the net income of the Canadian Western Bank in 2020 were C$270.6 million and $805.2 million, respectively. As per the report of 2013, around 2037 people (13) work here. And the head-quarter is situated in Edmonton, Alberta.

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