Investing in Canada's "Big Five" Banks

Canada's "Big Five" Banks
Excerpt:

Big Five is the name colloquially given to the five largest banks that dominate the banking industry of Canada. All five banks are operationally headquartered in Toronto, Ontario. They are all classified as Schedule I banks that are domestic banks operating in Canada under government charter. The banks' shares are widely held, with any entity allowed to hold a maximum of twenty percent.

According to Bloomberg, in 2011 the big five dominate the world's ten strongest $100-billion-asset banks, with Canadian Imperial Bank of Commerce, Toronto-Dominion Bank, National Bank of Canada and Royal Bank of Canada at 3rd, 4th, 5th and 6th place, respectively, while Bank of Nova Scotia sits at 18th place

Comment: I like all 5 of these. All seem solid and pay decent dividends. All 5 trade on the NYSE. In my chart below I compare with 5 major US Banks. I personally could not recommend C or BAC. (click chart for larger view)

Yahoo Finance Links to the "Big Five":

• RY
• TD
• BNS
• BMO
• CM

Global Finance: World’s 50 Safest Banks

Global Finance: World’s 50 Safest Banks

Comment: Some highlights. Note the Canadian banks:

• Royal Bank of Canada (RY)
• Toronto-Dominion Bank (TD)
• Scotiabank (BNS)
• Bank of Montreal (BMO)
• Canadian Imperial Bank of Commerce (CM)
• JPMorgan Chase (JPM)
• U.S. Bancorp (USB)

Not on the list: Wells Fargo. I'm surprised because I regard Wells Fargo as better bank than J P Morgan. Article

Canadian Banks: Investment Safety in the Far North

Canada banks face storm clouds after good quarter

Excerpt:

Canada's banking sector is dominated by a half dozen big banks which are both protected from foreign takeovers and prevented from merging with each other. They generate billions in profits from their domestic branch-bank businesses and required no bailouts during the 2008-09 crisis.

...

Europe's banks are in the grip of a debt crisis, while U.S. banks are selling assets to build up capital.

Even Canada, which has ridden a strong housing sector to a relatively even-keel economic performance over the past two years, experienced an unexpected economic contraction in the second quarter, data this week showed.

Through it all, Canadians have kept borrowing, enticed by rock bottom interest rates that have proven a double-edged sword for the banks.

Comment: I've been investing in Canadian Banks. I regard them as financial utilities paying steady dividends. Now investing in Bank of Nova Scotia (BNS)