Commercial Banking in Canada - Industry Market Research Report

Loaned out: Improving macroeconomic conditions are expected to boost industry revenue

Despite low interest rates and some hiccups in economic growth, commercial banks in Canada have expanded throughout 2023. Banks have done an exceptional job diversifying revenue streams, overcoming limits imposed by low interest rates, and increasing regulations. The industry primarily generates revenue through interest income sources, such as business loans and mortgages, but it also generates income through noninterest sources, which include fees on a variety of services and commissions. Industry revenue has been growing at a CAGR of 2.2% over the past five years and is expected to total $275.4 billion in 2023, when revenue will likely jump an estimated 7.2%. Consequently, profit, measured as earnings before interest and taxes, is anticipated to contract slightly throughout 2023 due to the increased provisions for credit losses (PCL), caused by uncertainty stemming from the coronavirus pandemic. Operators in the Commercial Banking industry in Canada provide financial services to retail and business clients in the form of commercial, industrial and consumer loans. Banks also accept deposits from customers, which are used as a source of funding for the loans. Banks in this industry include those that are regulated by the Office of the Superintendent of Financial Institutions. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.