Skip to main content
The Maple Markets

Canadian Bank Stocks Compared: The Big Six Head-to-Head

Comparing the Big Six on capital, earnings, and dividend resilience.

A clear comparison of Royal Bank, TD, Scotiabank, BMO, CIBC and National Bank across the metrics that matter most to investors.

By Hannah Kuan2 min read

A dramatic upward view of Toronto's financial district skyscrapers with blue sky and a red maple leaf accent.
A dramatic upward view of Toronto's financial district skyscrapers with blue sky and a red maple leaf accent. The Maple Markets

Typical Big Six yield range

4%-6%

fluctuates with rates and price

CET1 minimum

~11.5%+

OSFI common equity tier 1 target floor

Payout ratio range

40%-50%

earnings-based

Why the Big Six dominate Canadian portfolios

The six largest Canadian banks have compounded dividends for decades. They also make up a huge portion of the TSX. That concentration creates both opportunity and risk. Comparing them on common metrics is the first step to owning them thoughtfully.

The six contenders

  • Royal Bank (RY.TO): The largest by market cap. Diversified across retail, wealth management, and capital markets. Generally trades at a premium valuation.
  • Toronto-Dominion (TD.TO): Strong U.S. retail franchise. The acquisition history is mixed, but its Canadian retail network is deep.
  • Scotiabank (BNS.TO): The most international of the group, with meaningful exposure to Latin America and the Caribbean. That adds growth optionality and volatility.
  • Bank of Montreal (BMO.TO): Strong U.S. expansion through past acquisitions. A balanced mix of Canadian and American earnings.
  • CIBC (CM.TO): The most Canada-centric of the Big Six. Higher exposure to domestic mortgages and commercial real estate.
  • National Bank (NA.TO): The smallest of the group, with a strong Quebec base and a growing wealth management arm. Often trades at a growth premium.

The metrics that matter

  • Common Equity Tier 1 ratio: A measure of capital strength. Higher is better, but all six are comfortably above regulatory minimums.
  • Return on equity: Shows how well the bank turns shareholder capital into profit. 13% to 16% is typical.
  • Provision for credit losses: Rising PCLs signal concern about loan defaults. Falling PCLs suggest credit quality is improving.
  • Dividend yield and payout ratio: The Big Six yield between 4% and 6% most of the time. Payout ratios are usually 40% to 50% of earnings.

How to choose

If you want the most diversified bank, Royal Bank is the conventional answer. If you want U.S. exposure, TD or BMO are stronger candidates. If you want international growth, Scotiabank is the play. If you want domestic mortgage leverage, CIBC is the most concentrated. National Bank suits investors who want a smaller, faster-growing name with a strong Quebec franchise.

The risk in concentration

All six move together when credit concerns spike. Owning all of them is reasonable; owning only one bank exposes you to company-specific execution risk. A single Big Six ETF like ZEB.TO is also an option if you want the sector without picking winners.

Bottom line

The Big Six are more similar than different, but their geographic and business mixes vary. Match the bank to your view on Canada, the U.S., and international growth.

Read next

  1. BusinessCanadian Dividend Stocks: What the Yield Is Actually Telling YouA higher dividend yield can signal a bargain or a trap. Here is how to tell the difference using payout ratio, cash flow, and balance sheet clues.Marc Belzile · August 14, 2026 · 7 min
  2. Canadian MarketsHow to Find the Best Canadian Stocks on the TSXLearn how to narrow the TSX universe using a three-step filter: business quality, financial strength, and fair price.Hannah Kuan · August 11, 2026 · 8 min
  3. BusinessCanadian Bank Earnings: What PCLs and CET1 Actually Tell YouCanadian bank quarters are won and lost on one line most retail investors skip: provisions for credit losses. Under IFRS 9 that line is a forward-looking model output, and knowing how it is built changes what a beat or a miss means.Daniel Okoye · August 21, 2026 · 8 min

Follow this story

Follow RY.TO, TD.TO — the next Maple piece on these companies, plus the Maple Morning Debrief before the open.

By subscribing you agree to receive the Maple Morning Debrief and occasional editorial emails from The Maple Index Inc. Unsubscribe any time with one click.

Follow and ask

Add The Maple Markets to your Google sources

Get more of our Canadian market coverage in Google Top Stories.

Disclosure

The Maple Markets is not a registered investment advisor. This article is for information only. See the Financial Disclaimer.

Hannah KuanMarkets Reporter · 7 years covering small-cap and venture marketsMore by Hannah Kuan
Sources and references (2)
  1. Canadian Bankers Association
  2. OSFI bank capital guidelines

Cite this analysis

Please attribute The Maple Markets and link to the original page.

Hannah Kuan (August 12, 2026). Canadian Bank Stocks Compared: The Big Six Head-to-Head. The Maple Markets. https://themaplemarkets.ca/en/newsroom/canadian-bank-stocks-compared-big-six
https://themaplemarkets.ca/en/newsroom/canadian-bank-stocks-compared-big-six

Discussion

Comments are written by readers, not by The Maple Markets newsroom. They are moderated, unverified, and are not investment advice.

Join the discussion

Create a free account to comment, reply and follow the companies you care about.

We use necessary cookies to run the site and, only with your permission, analytics cookies to understand what readers use. Cookie policy