Canadian Banks Ranking 2025 - Which Bank to Hold?

Let’s rank the Big 6 Canadian banks from worst to best!

Whether you already hold one of these financial giants or are considering adding a bank to your portfolio, this will help you understand key strengths, weaknesses, and long-term investment potential.

Here’s the good, the bad, and the boring.

Looking for other stock ideas? Download the Dividend Rock Stars List to select from the best only!

You’ll Learn

Scotiabank (BNS)

Bear Case: Volatility from international exposure, no dividend increase in 2024 (effectively a passive cut), and the highest payout ratio among peers. Dead last on most key metrics.
Mike’s Take: Better long-term opportunities exist. Unless you see a major turnaround, capital might be better placed elsewhere.

CIBC (CM)

Bull Case: Strong performance in 2024, solid focus on domestic retail and commercial banking.
Bear Case: Limited growth potential, heavy exposure to the Canadian economy, and high concentration of uninsured mortgages.
Mike’s Take: Not a bad bank, just others with stronger positioning.

TD Bank (TD)

Bull Case: Large U.S. exposure, strong capital position, potential growth from asset recycling.
Bear Case: Impact of the money laundering investigation, capped U.S. growth, and some uncertainty around regulatory resolution.
Mike’s Take: A deluxe bond with decent yield and modest growth. Good, but overshadowed by stronger peers.

Bank of Montreal (BMO)

Bull Case: Aggressive business model, strong U.S. presence, pioneer in private wealth services.
Bear Case: Higher volatility and integration risks from acquiring the Bank of the West.
Mike’s Take: Upgraded due to TD’s issues. Great option with upside potential.

National Bank (NA)

Bull Case: Top long-term performer with strong growth strategy, smart acquisitions (e.g., Canadian Western Bank), solid wealth, and capital markets business.
Bear Case: Still the smallest of the big six, concentrated exposure in Quebec, more vulnerable in a localized recession.
Mike’s Take: Still a top personal holding. Temporarily behind RBC due to macro uncertainty.

Royal Bank (RY)

Bull Case: Huge diversification, balanced revenue mix (banking, wealth, insurance), robust dividend triangle, steady performance.
Bear Case: Large mortgage loan book, highly exposed to the Canadian economy.
Mike’s Take: Best all-around performer right now. Strong foundation with size, scale, and stability.

Final Thoughts

Don’t collect all six banks like Pokémon.
Instead, choose your favorite two based on business model and metrics.
Diversify across the financial sector: Consider EQ Bank, GoEasy, Propel Holdings, TMX Group, Brookfield, Intact Financial, and life insurers like Manulife, Sun Life, and Great-West Life.

A List that Filters the Best Financial Stock for You

Now it’s time to search for the stock that perfectly fits in your portfolio.

To help you, we have created a list of dividend growers you can filter by sector and metrics.

But not only that, we believe that stocks showing growing revenue, EPS, and dividend trends are the ones showing the biggest trust in their business model and future growth. This is why we only pick among them.

Download the Dividend Rock Star List to narrow your research and focus on quality. The list is updated monthly!

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