Canadian bank stocks sit at the core of many portfolios in the country. These stocks often act as anchor holdings that support income, stability, and long-term growth for your clients. As for the Canadian banking sector, it has a long history of staying profitable through many economic cycles.
This is why it often becomes a default starting point when building equity exposure. In this article, Wealth Professional Canada will explore what you need to know about Canadian bank stocks plus options that your clients can invest in!
Canadian bank stocks are shares of ownership in banks that are listed on Canadian stock exchanges. These stocks provide your clients with a way to invest directly in the country's banking sector.
When someone buys Canadian bank stocks, they become a part owner of that bank and can benefit from share price growth and dividend income over time. Many also view them as blue-chip investments because of their history of paying regular dividends and their contribution to the economy.
In practice, Canadian bank stocks can give you a focused way to express a view on the health and direction of the country's financial system. Watch this video to learn more:
Check out this guide to find the best Canadian bank stocks to invest in now!
There is no single best Canadian bank stock for all clients. The choice should follow the role of bank stocks in your clients' portfolios, such as:
A practical approach is to treat the Big Six or Big Five banks as a high‑quality peer group and choose (or blend) within that group based on mandate and valuation.
Given compliance and suitability obligations, the best choice should be framed as the best fit for this specific client's financial objectives and risk tolerance. Their existing exposure should also be considered.
The best bank is the one whose platform, service, fees, and product shelf best supports your advice model and your clients' preferences. Here are some Canadian bank stocks (and their ticker symbols) that your clients can invest in:
Market capitalization: $303.73 billion
The Royal Bank of Canada (RBC) is the largest bank in Canada in terms of market cap. RBC has more than 97,000 employees serving 17 million clients in Canada, the United States, and 27 other countries. It offers banking, wealth, insurance, and capital markets services.
Find out if Royal Bank stocks appeal to your clients' short- and long-term financial goals in this guide.
Market capitalization: $202.36 billion
Toronto-Dominion Bank (TD) offers a full range of financial products and services to more than 27 million customers globally. It is also one of the world's leading online financial services firms, serving over 17 million active online and mobile customers.
Building on its digital capabilities, TD has recently launched its Wealth Virtual Assistant. This GenAI knowledge system is designed to help TD Wealth staff quickly access internal policies and procedures.
Market capitalization: $120.94 billion
Bank of Nova Scotia or Scotiabank is another renowned Canadian bank with assets of about $1.4 trillion as of July 2025. It serves millions of clients through branches and automated banking machines (ABMs), as well as online and mobile banking. Scotiabank's services include:
Check out this comprehensive guide to Scotiabank stocks to learn more.
Market capitalization: $127.49 billion
Bank of Montreal (BMO) is one of North America's leading banks. It has over $1.4 trillion in total assets and has been serving clients for 208 years worldwide. In 2023, BMO bought Bank of the West, based in San Francisco, California. This deal doubled BMO's footprint in the US, giving it a physical presence in 32 states.
Want to know if BMO bank stocks are worth it? Find out in this article.
Market capitalization: $111.90 billion
Guided by its purpose to help make clients' ambition a reality, Canadian Imperial Bank of Commerce (CIBC) focuses on creating value for their team, clients, communities, and shareholders. CIBC's 48,000 employees provide financial products and services to 14 million clients in Canada and globally.
Learn why CIBC bank stocks can be a great addition to your clients' portfolio when you read this guide.
Market capitalization: $66.25 billion
With its business concentrated in Quebec, National Bank of Canada positions itself as a bank that takes action and puts people first. Founded in 1859, it has since progressed into one of Canada's Big Six banks.
Over its history, National Bank has pursued growth through mergers and expansion into Ontario, Western Canada, and the United States. In 2025, it acquired Canadian Western Bank to further extend its reach across the country.
Market capitalization: $5.47 billion
Canadian Western Bank (CWB) has established itself from a single Edmonton branch in 1984 into a federally regulated institution with a national presence. It offers specialty business banking which includes:
CWB also has full-service personal banking options such as:
As mentioned above, CWB was acquired by the National Bank in 2025.
Market capitalization: $1.51 billion
Laurentian Bank boasts over 175 years of history helping communities and businesses flourish. It has about 2,800 employees working across Canada and the US. Laurentian Bank focuses on Environmental, Social and Governance (ESG) practices and making sure that "everyone feels like they belong."
Laurentian Bank's strategy is an important context for those reviewing Canadian bank stocks. It aims to use its size as an advantage by staying agile and integrate ESG best practices in all interactions.
Discover if Laurentian Bank stocks fit your clients' investment needs in this guide.
Market capitalization: $550 million
VersaBank is a Schedule I Canadian chartered bank that was built as a digital only bank. Headquartered in London, Ontario, it focuses on using technology instead of bricks and mortar to grow assets and improve efficiency.
VersaBank partners with brokerages and advisory firms across Canada to raise deposits and offers specialized financing such as:
Market capitalization: $3.32 billion
Equitable Bank manages over $134 billion in assets and offers services such as:
Equitable Bank also launched its digital platform EQ Bank in 2016, the first digital bank in Canada.
Seeing how the Canadian banking system is structured can also help your clients put these investment choices in context. The video below explains why Canada has fewer banks than the US:
Please note that the figures provided here are for informational purposes only and are not meant for trading. If your clients are interested in trading Canadian bank stocks, check out this beginner's guide on how to buy stocks in Canada!
Canadian bank stocks tend to trade at relatively strong valuations over time because of a few reasons:
Check out this clip to learn more:
Dividend income is one of the primary reasons many Canadian households hold bank stocks. The large banks have long track records of paying regular dividends and, in many cases, increasing those dividends over time. This can help those who seek a mix of income and capital appreciation.
The dividend profile of Canadian bank stocks can support several types of conversations. Income-focused investors might use bank stocks as a main source of regular cash flow. Growth-oriented investors might be comfortable with reinvested dividends that have compounded over many years.
As for retirees, they might appreciate the combination of yield and the possibility of steady, moderate dividend growth that helps offset inflation.
Still, dividends are not always guaranteed. In severe stress scenarios, dividends can be frozen or reduced. There are also periods when regulatory authorities might limit dividend increases or share buybacks to preserve capital.
Building a margin of safety and making sure your clients understand the link between bank earnings, capital requirements, and dividend policy, can prevent disappointment later.
Canadian bank stocks can be the central component of many long-term wealth plans for your clients. This is because the banking sector offers a combination of stability and growth potential that is hard to match in other parts of the market. But at the same time, housing exposure and interest rate sensitivity create real risks that must be managed with care.
A critical contribution that a financial advisor can make is to set firm expectations. Make sure that your clients are aware that Canadian bank stocks experience periods of volatility, slower growth, or regulatory constraints. With this, they'll be more likely to stay committed to well-designed strategies through a full market cycle.
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