Cheque yourself: Revenue will improve despite low interest rates

Despite certain adversity that emerged as a result of the global financial crisis, the Commercial Banking industry in Canada had an impressive performance over the five years to 2018. Banks have done an exceptional job of diversifying revenue streams and 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 generated by interest income sources depends on demand for loans by consumers and the interest banks can charge on that capital it lends more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Increasing consumer spending and low unemployment have supported industry growth
  • Despite historically low interest rates, industry profitability has increased
  • Commercial banks could experience the potential burden of increasing government regulation
  • Industry Report - Industry Analysis Chapter

    Despite the continued effect of the global financial crisis and its resulting low interest rate policies, the Commercial Banking industry in Canada has grown steadily over the five years to 2018. The Canadian banking industry has been regarded as one of the safest in the world due to its sound regulatory laws, concentration and overarching system. As a result, the effect of the global financial crisis of 2008 on the industry was much weaker than it was on the US banking industry. The six largest commercial banks in Canada, which collectively account for over 90.0% of total industry revenue, include the Royal Bank of Canada, Toronto-Dominion Bank, the Canadian Imperial Bank of Commerce, Scotiabank, Bank of Montreal and the National Bank of Canada. Whi...purchase to read more.

    Additional Insights for the Commercial Banking Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Banking Industry are

  • Having a good reputation
  • Superior financial management and debt management
  • Ability to raise revenue from additional sources
  • IBISWorld analysts also discuss how external factors such as Overnight rate and Aggregate household debt in the Commercial Banking industry impact industry performance..

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    What's in this report

    What is the Commercial Banking Industry?

    Operators in this industry 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.

    Industry Products
  • Mortgage loans
  • Consumer loans
  • Business loans
  • Industry Activities
  • Providing home equity loans and lines of credit
  • Providing automobile loans
  • Providing real estate secured lending
  • Providing personal deposit products
  • Providing business banking services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Overnight rate
  • Aggregate household debt
  • Corporate profit
  • Consumer Confidence Index
  • Regulation for the Commercial Banking industry

  • Current Performance
  • A favourable economic atmosphere for the Big Six
  • Continuing profitability
  • Shifts in industry trends
  • Chart: Revenue Growth

  • Industry Outlook
  • Household debt and moderate economic activity
  • Mounting regulation and technology
  • Table: Commercial Banking Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Banking Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Dairy Farms in Canada
  • Mineral & Phosphate Mining in Canada
  • Heavy Engineering Construction in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Commercial Leasing in Canada
  • Consumers in Canada

  • Products & Services
  • Other
  • Business loans
  • Mortgage loans
  • Consumer loans
  • Chart: Commercial Banking Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Online banking consumers
  • Corporate clients
  • Mobile banking consumers
  • ABM banking users
  • Branch banking consumers
  • Other personal clients
  • Chart: Major Market Segmentation for the Commercial Banking Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Wages
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Banking

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Banking Industry

  • Industry Globalization
    Royal Bank of Canada, Toronto-Dominion Bank, Scotiabank, Canadian Imperial Bank of Commerce, Bank of Montreal,
  • Table: Royal Bank of Canada - financial performance
  • Table: Toronto-Dominion Bank - financial performance
  • Table: Scotiabank - financial performance
  • Table: Canadian Imperial Bank of Commerce - financial performance
  • Table: Bank of Montreal - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Banking Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Commercial Banking Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Overnight rate (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Allowances For Loan Losses
  • Funds set aside as allowances for bad debts, which are debts where the customer defaults or where the terms of the loan need to be renegotiated.
  • Big Six
  • The six largest commercial banks in Canada, which include Royal Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, Scotiabank, Bank of Montreal and National Bank of Canada.
  • Loan Default
  • When a customer fails to pay back money received through a loan to the bank.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Commercial Banking market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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    This report on Commercial Banking:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Commercial Banking market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Commercial Banking, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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