Market capitalization of the largest banks in Canada 2023
The Royal Bank of Canada (RBC) had the highest market capitalization in Canada in 2023. The bank's market cap reached 142 billion U.S. dollars as of December 2023. Toronto-Dominion Bank followed with a market cap of 115.9 billion U.S. dollars, well above Scotiabank, which ranked third. RBC also topped the ranking based on assets, with total assets exceeding two trillion Canadian dollars.
What is market cap?
Market cap is an estimation of a firm’s value based on the share price multiplied by the number of outstanding shares. This gives analysts an idea of how investors see the firm. If they think that the firm is undervalued, they will buy, pushing the price (and with that, the market cap) higher. Of course, responsible investors look to banks’ balance sheet data and other indicators to make their decisions. The share price of RBC decreased slightly in 2022 when compared to 2021.
Other comparisons
Many look at the total assets of a bank to determine its size. Just as total sales give an idea of a retailer’s operation size, the amount of money a bank manages can give a rough idea of its influence. More closely linked to its profitability is a bank’s revenue, simply the amount of money it earns. Finally, the most intuitive measure is the number of primary users a bank has. In that sense, TD Bank and RBC were the leading Canadian banks.
What is market cap?
Market cap is an estimation of a firm’s value based on the share price multiplied by the number of outstanding shares. This gives analysts an idea of how investors see the firm. If they think that the firm is undervalued, they will buy, pushing the price (and with that, the market cap) higher. Of course, responsible investors look to banks’ balance sheet data and other indicators to make their decisions. The share price of RBC decreased slightly in 2022 when compared to 2021.
Other comparisons
Many look at the total assets of a bank to determine its size. Just as total sales give an idea of a retailer’s operation size, the amount of money a bank manages can give a rough idea of its influence. More closely linked to its profitability is a bank’s revenue, simply the amount of money it earns. Finally, the most intuitive measure is the number of primary users a bank has. In that sense, TD Bank and RBC were the leading Canadian banks.
