Canada’s Big Five Banks All Just Hit New 52-Week Highs. Up 27% YTD, This Stock Leads the Pack.

Canada’s Big Five banks all hit new 52-week highs on Tuesday. That’s indicative of how well Canadian stocks have performed in the past 12 months. 

While the S&P 500 has gained 21.2% in the past year, the S&P/TSX Composite Index is up 30.8% over the same period. All five of Canada’s big banks are among the 220 stocks that make up the composite index. In fact, they represent the 1st-, 2nd-, 4th-, 6th-, and 7th-largest weightings in the index. 

While Canadians grumble about Canada's big banks, they remain among the most popular stocks with Canadian investors, primarily because of their dividends and their appreciation potential in recent years.

For example, Royal Bank of Canada (RY), Canada’s largest bank and public company, has an annualized 5-year total return of 20.59%, 182 basis points higher than JPMorgan Chase (JPM), arguably America’s best-run bank. 

These five banks are so popular in Canada that there is a TSX-listed ETF, the Global X Equal Weight Canadian Banks Index ETF (UBNK.TO), that holds only the five plus the National Bank of Canada (NA.TO), often included as part of the Big Six. 

I’m sure Canada’s Big Five banks have all hit a new 52-week high on the same day at some point in the past. I couldn’t say when. Suffice to say, it’s somewhat rare. 

Would I recommend any of these five banks versus JPMorgan? Probably not. However, of the five, here’s how I view each, and which one or two are worth considering for non-U.S. bank exposure. 

Royal Bank of Canada (RY)

Royal Bank, as I said earlier, is Canada’s largest bank by market cap at $297.46 billion. It hit a new 52-week high of $214.48 on Tuesday, its 71st such high in the past 12 months. 

Not only is Royal Bank the largest Canadian bank, but it’s also Canada’s largest public company. It began life in Halifax, Nova Scotia (where I live) in 1864 as the Merchants Bank of Canada, went public in 1869, and changed its name to Royal Bank of Canada in 1901. 

Analysts generally like it, although it gets less coverage in the U.S. because it’s a Canadian bank. The analysts’ target price is $202.43, below its current share price. 

Royal Bank generated 63% of its revenue from its Canadian operations in fiscal 2025 (October year-end); the U.S. accounted for 26%, and the rest of the world accounted for the remaining 11%. 

If you live in the U.S., I don’t think it makes sense to invest in a Canadian bank that generates most of its revenue in the U.S. because you’ve got JPMorgan and many others to gain exposure south of the border. Royal Bank’s business in the U.S. might be the highest? By dollar amount, it’s middling relative to the percentage of overall revenue.

The bank’s diversification -- in 2025, three of its five operating businesses generated at least CAD$10 billion in revenue -- along with a healthy 30.6% net profit margin and a 13.5% CET1 ratio make it both a good investment for both growth and financial stability. 

Toronto-Dominion Bank (TD)

Toronto-Dominion Bank (TD) is Canada’s second-largest bank by market cap at $206.76 billion. It hit a new 52-week high of $122.88 on Tuesday, its 74th such high in the past 12 months. 

TD, as everyone calls it, does a lot of business in the U.S. If you live along the east coast, you’re likely familiar with its bright green logo. In fiscal 2025, it generated 44% of its revenue south of the border, 50% in Canada, and 6% from the rest of the world. 

It’s this large presence in the U.S. that got the bank in regulatory trouble in October 2024. The bank was fined $3.09 billion after pleading guilty to money-laundering charges. In addition, regulators placed an asset cap similar to the one applied to Wells Fargo (WFC) that capped its U.S. assets at $434 billion. It’s likely to stay in place until at least the end of 2027.

Analysts are lukewarm about it. Of the 12 that cover it, 8 rate it a Buy (3.92 out of 5), with a $118.17 target price,  below its current share price. 

The bank’s diversification is even more impressive than Royal Bank's -- in 2025, four of its five operating businesses generated at least CAD$10 billion in revenue -- its net profit margin is even higher at 32,5%, as is its CET1 ratio of 14.7%.

Hitting a new 52-week high, the stock appears to have moved on from its past problems. 

Bank of Montreal (BMO)

Bank of Montreal (BMO) is Canada’s third-largest bank by market cap at $127.91 billion. It hit a new 52-week high of $181.90 on Tuesday, its 69th such high in the past 12 months. 

Like TD, BMO has had a strong presence in the U.S. for many years. It became the first Canadian institution to buy a U.S. bank in 1984 when it acquired Chicago-based Harris Bank. In February 2023, it completed its $16.3 billion acquisition of Bank of the West, becoming North America’s eighth-largest bank by assets. 

In fiscal 2025, it generated 43% of its revenue south of the border, 52% in Canada, and 5% from the rest of the world. 

The bank’s 2025 annual revenue of CAD$32.66 billion is about half that of Royal Bank and TD. Its net profit margin is also much lower at 26.7%, while its CET1 ratio was 13.3%.

Like Royal and TD, the analysts’ target price of $169.59 is below the current share price.

Bank of Nova Scotia (BNS)

Bank of Nova Scotia (BNS) is Canada’s fourth-largest bank by market cap at $110.24 billion. It hit a new 52-week high of $89.72 on Tuesday, its 69th such high in the past 12 months. 

As the bank’s name suggests, it got its start in Nova Scotia in 1832. It was the province’s first chartered bank. By 1900, Scotiabank’s general manager’s office was moved to Toronto. The official head office remained in Halifax until 1978, when it was also moved west to Toronto. 

Although BNS does a significant amount of business in South America, Central America, and the Caribbean, which accounted for 27% of its 2025 revenue, Canada is the big revenue generator, accounting for 56%, with the U.S. and Mexico accounting for 8% and 9%, respectively.

CEO Scott Thomson, who took the role in 2023, announced early in 2025 that the bank would focus on Canada first, the U.S. second, Mexico third, and, where investment is justified, the rest of the world. 

Like BMO, Bank of Nova Scotia’s 2025 revenues were in the second tier, well below those of Royal Bank and TD, at CAD$33.03 billion. Its net profit margin of 23.6% is the lowest of the five banks, and its CET1 ratio was 13.2%, in line with the rest.  

It’s got the most work to do. 

Canadian Imperial Bank of Commerce (CM) 

Canadian Imperial Bank of Commerce (CM) is Canada’s fifth-largest bank by market cap at $109.36 billion. It hit a new 52-week high of $119.66 on Tuesday, its 65th such high in the past 12 months. 

CIBC, as it’s best known, was created in 1961 when the Canadian Bank of Commerce merged with the Imperial Bank of Canada. Both banks got their start around the time of Canada’s Confederation. 

The smallest of the five, it was the bank I’ve liked most over the years because of its former CEO, Victor Dodig, who led it from September 2014 through October 2025. He remained on the board until April 30, 2026. At the beginning of July he became the CEO of Telus Corp. (TU) I expect he’ll do a good job for Canada’s number three wireless business. 

Under Dodig’s leadership, the bank’s assets grew from CAD$806 billion in assets, to CAD$1.52 billion as of October 2025. In the 11 years as CEO, CM stock appreciated by 148%. That might not seem like a lot, but when you throw in dividends, and the fact that CIBC tended to be the weakest of the five, he did right by shareholders.   

In 2025, CIBC generated 65% of its revenue in Canada, followed by 21% in the U.S., 10% in the Caribbean, and 4% in the rest of the world. 

Its 2025 revenues were the lowest at CAD$26.79 billion. Its net profit margin was a healthy 31.5%, and its CET1 ratio was 13.3%, also in line with the rest.  

What Canadian Bank Stock to Buy?

Given the price appreciation of all five, none are cheap. Their dividend yields range from 3.57% for BNS down to 2.37% for RY. That gives you an idea about valuations. 

Royal Bank tends to have the highest multiples of the five because of its position as Canada’s largest bank. Bank of Nova is generally the cheapest across most financial metrics. For example, BNS’s price-to-tangible book value is 2.16x, while RY’s is 4.06, almost double. The other three fall in between them. 

As I said earlier, if you’re an American investor looking for non-U.S. bank exposure, you’ll want to go with either Royal Bank or CIBC. If you’re looking for a potential value play and future winner, BNS is your best bet. I’d stay away from TD and BMO because of their overexposure to the U.S. market.