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Best Canadian bank stocks

These are the best bank stocks to buy right now in Canada.

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No single stock or list of stocks will suit all investors, as we all have different goals and needs. What’s best for you might not be best for someone else. These 10 Canadian bank stocks are starting points for your own research and should not be taken as advice to buy any particular stock.

If you’re looking to invest in Canada’s banking sector, but you’re not sure where to start, you may want to keep an eye on this list of the 10 best bank stocks to buy right now in Canada.

What you should know before buying bank stocks

There’s no single winning strategy to finding what experts might call the best performing bank stocks in Canada, because the most important considerations are your own goals and circumstances. But that shouldn’t discourage you from doing your homework and investing.

Whether you care more about short-term capital gains or long-term dividend growth, it’s important to know whether a stock is performing well, making a profit, paying dividends or going backwards. Always remember that past performance does not guarantee future results. Investments can go up and down in value.

Investing in financial stocks

How did we pick the best Canadian bank stocks?

We used Finder’s proprietary algorithm to rate stocks listed on the TSX based on price, performance, profit, revenue and dividends. Our fundamental analysis filters stocks by taking into account historical prices, dividends, revenue growth, (low) price volatility and profit margins. This might indicate a quality stock, but we do not guarantee the performance or returns of any investment.

To avoid smaller, more speculative stocks, we only include companies with a market cap of more than CAD $200 million. In order to better compare historical data, we filtered out stocks that have been listed for less than five years.

This methodology no doubt filters out some good stocks, so our decision to include or exclude a stock from our list does not indicate whether it’s a good or bad investment. For more information about our algorithm, check out our stock ranking page.

The algorithm was last updated 27 January 2021. This list and data was compiled June 16, 2021.

Bank Stocks to watch in July 2021


BMO Logo

Bank of Montreal (BMO.TO)

Bank of Montreal provides diversified financial services primarily in North America. For individuals, the company offers chequing and savings accounts, credit cards, mortgages, financial and investment advising, wealth management services. It’s commercial offerings include business deposit accounts, commercial credit cards, business loans and commercial mortgages, cash management solutions, foreign exchange, specialized banking programs, treasury and payment solutions, and risk management products.

  • Market cap: C$83.11 billion
  • YTD performance: 32.62%
  • 1 Year performance: 68.57%
  • 5 Year performance: 119%
  • P/E Ratio: 14.09
  • Headquarters: Canada


TD Bank logo

The Toronto-Dominion Bank (TD.TO)

The Toronto-Dominion Bank, together with its subsidiaries, provides personal and commercial banking products and services in Canada and the United States. It operates through three segments: Canadian Retail, U.S. Retail, and Wholesale Banking. The company offers chequing and savings products; investment products; commercial banking, financing, investment and cash management services; and auto financing. It also provides credit cards, mortgages, point-of-sale payment solutions, wealth management products, trust services, and insurance products.

  • Market cap: C$158.92 billion
  • YTD performance: 21.54%
  • 1 Year performance: 41.12%
  • 5 Year performance: 88%
  • P/E Ratio: 13.91
  • Headquarters: Canada

Equitable Bank logo

Equitable Group Inc. (EQB.TO)

Equitable Group Inc., through its subsidiary, Equitable Bank, provides financial services to retail and commercial customers in Canada. The company accepts term deposits and guaranteed investment certificates, high interest savings accounts, tax-free savings accounts, and institutional deposit notes, as well as specialized financing solutions. Its loan products include residential mortgages such as fixed rate and adjustable rate mortgages; equipment loans; home equity, cash surrender value, and commercial equity lines of credit; and business enterprise mortgage solutions.

  • Market cap: C$2.27 billion
  • YTD performance: 21.50%
  • 1 Year performance: 41.07%
  • 5 Year performance: 1.59%
  • P/E Ratio: 8.65
  • Headquarters: Canada

National Bank Logo

National Bank of Canada (NA.TO)

National Bank of Canada provides various financial products and services to retail, commercial, corporate, and institutional clients in Canada and internationally. It operates through four segments: Personal and Commercial, Wealth Management, Financial Markets, and U.S. Specialty Finance and International. The Personal and Commercial segment offers transaction solutions; mortgage loans and home equity lines of credit; consumer loans; payment solutions; savings and investment solutions; insurance products; commercial credit; deposit and investment solutions; and other products.

  • Market cap: C$31.16 billion
  • YTD performance: 29.00%
  • 1 Year performance: 49.30%
  • 5 Year performance: 113%
  • P/E Ratio: 12.44
  • Headquarters: Canada

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Royal Bank of Canada (RY.TO)

Royal Bank of Canada operates as a diversified financial service company worldwide. The company’s Personal & Commercial Banking segment offers checking and savings accounts, home equity financing, personal lending, private banking, indirect lending, mutual funds and self-directed brokerage accounts, guaranteed investment certificates, credit cards, and payment products and solutions; and lending, leasing, deposit, investment, foreign exchange, cash management, auto dealer financing, trade products, and services to small and medium-sized commercial businesses.

  • Market cap: C$178.081 billion
  • 1 Year performance: 39.39%
  • 5 Year performance: 66.53%
  • P/E Ratio: 12.6966
  • Headquarters: Canada


VersaBank logo

VersaBank (VB.TO)

VersaBank, a schedule I chartered bank, provides banking products and services in Canada. The company offers deposit products, such as guaranteed investment certificates, registered retirement savings plans, daily interest savings accounts, and tax-free savings accounts, as well as deposit insurance; and commercial lending services, including short-term construction financing, long-term financing, and loan refinance and lease buy out to real estate developers and condominium corporations in selective niche markets.

  • Market cap: C$270.383 million
  • 1 Year performance: 116.48%
  • 5 Year performance: 194.07%
  • P/E Ratio: 15.13
  • Headquarters: Canada


Laurentian Bank logo

Laurentian Bank of Canada (LB.TO)

Laurentian Bank of Canada, together with its subsidiaries, provides various financial services to individuals, business, and institutional customers in Canada and the United States. It operates through Personal, Business Services, and Institutional segments. The company offers notice, demand, and term deposits; commercial, residential mortgage, and personal loans; equipment and inventory, and real estate financing; insurance products; investment securities; advisory services; corporate underwriting; foreign exchange; and trustee services.

  • Market cap: C$1.89 billion
  • YTD performance: 39.23%
  • 1 Year performance: 43.60%
  • 5 Year performance: 117%
  • P/E Ratio: 11.84
  • Headquarters: Canada

CIBC logo

Canadian Imperial Bank of Commerce (CM.TO)

Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S.

  • Market cap: C$64.751 billion
  • YTD performance: 33.51%
  • 1 Year performance: 62.69%
  • 5 Year performance: 103.57%
  • P/E Ratio: 12.1517
  • Headquarters: Canada


CWB Canadian Western Bank logo

Canadian Western Bank (CWB.TO)

Canadian Western Bank provides personal and business banking products and services primarily in Western Canada. The company offers current, savings, cash management, US dollar, and chequing accounts, as well as organization, strata solution/condo, general trust, trust fund investment accounts and insurance products. It also offers commercial lending and real estate, and equipment financing and leasing products; loans and mortgages; secured and unsecured lines of credit; registered retirement savings plan; consolidation, vehicle, and recreation vehicle loans; and credit cards.

  • Market cap: C$3.09 billion
  • YTD performance: 23.72%
  • 1 Year performance: 43.24%
  • 5 Year performance: 182%
  • P/E Ratio: 11.14
  • Headquarters: Canada

Scotiabank logoScotiabank international money transfers

The Bank of Nova Scotia (BNS.TO)

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Banking and Markets, and Global Wealth Management segments.

  • Market cap: C$98.117 billion
  • 1 Year performance: 50.31%
  • 5 Year performance: 65.45%
  • P/E Ratio: 13.0224
  • Headquarters: Canada


Buy bank stocks through an online broker

To invest in any of these bank stocks, you’ll need a brokerage account. Compare online stock trading platforms below and click “Go to site” to get started.

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Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

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