What Are the Big Five Banks?
The Big Five Banks is a termused in Canada to describe the five largest banks: Royal Bank, Toronto-Dominion Bank, the Bank of Montreal, the Canadian Imperial Bank of Commerce, and the Bank of Nova Scotia. Occasionally, the term "Big Six Banks" is used, with the sixth bank referring to the National Bank of Canada.
Key Takeaways
- The "Big Five" refers to Canada's five largest banks, which dominate the country's financial sector.
- All five have their headquarters in Toronto's Financial District.
- The Royal Bank of Canada (RBC) is the largest of the Big Five, with about CA$1.223 trillion assets under management, as of Q2 2024.
- The term "Big Six" is sometimes used to include the National Bank of Canada.
Below, we've ranked the five largest banks in Canada based on assets under management.
1. Royal Bank of Canada
Royal Bank of Canada is the largest of the Big Five. In its 2024 second-quarter report, Royal Bank of Canada recorded total net assets under management of CA$1.223 trillion. It also reported CA$6.6 billion of net interest income and CA$7.5 billion of non-interest income. Founded in 1864 in Halifax, Nova Scotia, the bank financed thelumber and timber industries. Itwas known asthe Merchants Bank of Halifax.
2. Toronto-Dominion Bank
The second-largest bank in Canada is the Toronto-Dominion Bank. As of the second quarter of 2024, Toronto-Dominion Bank reported total assets under management of just under CA$489 billion. It reported net interest income of CA$7.5 billion and non-interest income of CA$6.3 billion.
Is the Toronto-Dominion Bank the Same As TD Canada Trust?
The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group. TD Canada Trust is TD Bank Group's customer-focused personal and small business banking business.
3. Bank of Montreal
The Bank of Montreal is the next largest Canadian bank. In the firm's 2024 second-quarter report, Bank of Montreal, or BMO, recorded total assets under management of CA$386 billion. In this period, BMO reported CA$4.5 billion of net interest income and CA$3.5 billion of non-interest income.
4. Canadian Imperial Bank of Commerce
In the second quarter of 2024, the Canadian Imperial Bank of Commercerecorded CA$349.2 billion in assets under management. CIBC reported net interest income of CA$3.2 billion and net non-interest income of CA$2.9 billion.
5. Bank of Nova Scotia
The Bank of Nova Scotia, orScotiabank, is the next largest bank in Canada. In its 2024 second-quarter report, Bank of Nova Scotia recorded CA$349 billion in total assets under management. It also reported CA$4.7 billion in net interest income and CA$3.7 billion in non-interest income.
What Is the Biggest Bank in Canada?
The biggest bank in Canada is the Royal Bank of Canada.
What Services Do Canada's Largest Banks Offer?
These largest banks listed in this article offer a wide range of services including personal and business banking, investment services, mortgages, loans, credit cards, insurance products, and more. They cater to various financial needs of individuals and businesses.
Do These Banks Have International Branches or Services?
Yes. To reach the size of these largest Canadian banks, these firms have international branches and offer international banking services. Some have partnerships with foreign banks to provide international services. Others simply seek those wishing to perform international business or carry Canadian deposits.
Why Are the Largest Banks in Canada Called the "Big Five"?
The top five Canadian banks are collectively referred to as the "Big Five" due to their dominant position and significant influence within the country's banking and financial industry. This term has been used for many years to characterize these major banks, and it highlights their substantial market share and impact on Canada's economy.
The Bottom Line
Though their financial health and positioning may vary from year to year, Canada has five largest, established banks that control the financial industry in the country. These largest banks include Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD Bank), Bank of Nova Scotia (Scotiabank), Bank of Montreal (BMO), and Canadian Imperial Bank of Commerce (CIBC).
