Announcing the 2014 Share and Quality Leaders in M&A, Debt & Equity Capital Markets and Cash Management
 

Canada’s biggest banks retained their tight grip on the mergers & acquisitions and equity capital markets business of the country’s largest companies last year.

Meanwhile, the Canadian Big Four looked to expand their dominant positions in corporate domestic cash management into the international arena by making big investments in cross-border technology platforms and taking aim at the foreign banks that capture a significant share of this growing business.

2014 Greenwich Leaders: Canadian Investment Banking
BMO Capital Markets, CIBC, RBC Capital Markets, and Scotiabank are deadlocked atop the Canadian investment banking market. Between 58% and 61% of large Canadian companies cite important (i.e., “Top 5”) relationships with these banks for M&A advisory services and equity capital markets. These banks are the 2014 Greenwich Share Leaders in Canadian Investment Banking.

BMO Capital Markets, CIBC, RBC Capital Markets, and Scotiabank claim the title of 2014 Greenwich Quality Leader in Canadian Mergers & Acquisitions. The 2014 Greenwich Quality Leaders in Canadian Equity Capital Markets are BMO Capital Markets and RBC Capital Markets.

“These banks provide such high levels of service and intense coverage that, when large Canadian companies rotate their business in these functions, it is generally to another provider within the Big Four,” says Greenwich Associates consultant Jay Bennett. “In equity capital markets, companies have clear opinions about who provides the best analyst research coverage, and because BMO and RBC are so highly regarded in that space, the firms get a consistent lift.”

2014 Greenwich Leaders: Canadian Debt Capital Markets
The Canadian debt capital markets business hosts a similar group of dominant banks. With important (i.e., “Top 5”) relationship penetration of 66% of large Canadian companies and governmental agencies, RBC Capital Markets is the clear leader, followed by Scotiabank and CIBC, which are tied at 54-55%, and BMO Capital Markets and TD Securities, which are tied with relationship penetration scores of about 50%. These firms are the 2014 Greenwich Share Leaders in Canadian Debt Capital Markets.

The 2014 Greenwich Quality Leader is RBC Capital Markets. “RBC stands out for across-the-board quality to corporate, financial and government issuers, but because all of these banks provide robust distribution corporate, issuers often rotate their business among them as a means of rewarding credit providers,” says Jay Bennett.

2014 Greenwich Leaders: Canadian Cash Management
Approximately 53% of large Canadian companies use RBC Capital Markets for cash management services, placing the bank atop the Canadian market. Scotiabank, has also built a particularly strong presence in the upper end of this market with a penetration of 49%, followed by BMO and TD Securities, which are tied at 40%, and CIBC at 34%. These banks are the 2014 Greenwich Share Leaders in Canadian Large Corporate Cash Management.

Canadian banks are making big investments to build out the technology platforms supporting their international cash management business. These stepped-up investments are needed for the banks to compete with the likes of Citi, HSBC and Bank of America Merrill Lynch, which have been making gains in the Canadian cash management market on the basis of their strong international capabilities.

“Of all the foreign competitors, HSBC also performs best in domestic Canadian cash management,” says Greenwich Associates consultant Peter Kane.