Corporate Banking in Canada

RAROC profiles and pricing benchmarks for 3 Canada banks, sourced from Pillar 3 disclosures.

Overview

OpenRAROC tracks 3 banks headquartered in Canada with a combined corporate credit exposure of EUR 1.2tn. The average Canada bank in our dataset has a cost-to-income ratio of 50.8% and an average corporate probability of default of 1.90%. On a representative BBB+ EUR 25M 5-year term loan, these banks generate an average RAROC of 7.48%.

Cheapest vs most expensive in Canada

On the standard sample deal, Royal Bank of Canada is the cheapest lender in Canada, requiring just 239bp to hit a 12% RAROC hurdle. The most expensive is Scotiabank at 261bp — a difference of 22bp on the same deal. For a EUR 25M facility, that's EUR 55,639 per year in interest expense.

All 3 banks ranked by RAROC

RAROC computed on a representative BBB+ rated, 5-year, EUR 25M term loan at 150bp spread. Click any bank for its full profile.

#	Bank	C/I	Avg PD	LGD	EAD	RAROC	Min spread
1	Royal Bank of Canada	43.0%	2.34%	37.0%	EUR 464bn	7.70%	239bp
2	TD Bank	55.0%	2.09%	32.9%	EUR 420bn	7.70%	239bp
3	Scotiabank	54.5%	1.27%	36.6%	EUR 284bn	7.06%	261bp

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