You may have encountered both terms when discussing Canada’s largest financial institutions. Technically, both terms are correct, so whether you prefer the Big Five or the Big Six, there’s no need to feel embarrassed.

If you’re curious about the reasons behind the two terms, we have the answers for you.

The Big Five: Canada’s largest banks
When people talk about the Big Five, they are referring to the five largest banks in Canada.

The ranking of these banks may vary depending on the criteria used, such as earnings, total assets, or market capitalization. Nevertheless, the Big Five consistently surpass other Canadian banks in every major category. The composition of this group has remained unchanged for many years.

Here are the Big Five banks listed according to their net revenue at the end of 2021:

1. Royal Bank of Canada (RBC) — $49.69 billion
2. Toronto-Dominion Bank (TD) — $42.69 billion
3. Bank of Nova Scotia (Scotiabank) – $31.25 billion
4. Bank of Montreal (BMO) — $27.19 billion
5. Canadian Imperial Bank of Commerce (CIBC) — $20.02 billion

One noticeable aspect is that each of the Big Five banks has a significant national presence. This is not the case for the institution included in the Big Six.

The Big Six: Introducing a major regional bank
When people mention the Big Six banks in Canada, they are including the National Bank of Canada, which primarily serves Quebec and New Brunswick.

Although it is a regional player, the National Bank is technically the sixth-largest bank in the country. However, its annual revenue is only a fraction of what any of the Big Five generate.

Including the National Bank in discussions about Canada’s largest banks is accurate, but it also acknowledges the idea that a bank does not have to be headquartered in Toronto to be considered significant. The National Bank’s home base is Montreal.

So, whether you use the term “Big Five” or “Big Six” to refer to Canada’s financial giants, both are correct. The only difference is that “Big Six” is a bit more inclusive and perhaps more generous towards the National Bank.

While this knowledge may not directly impact your financial situation, knowing the reasons behind both terms can give you a slight advantage during a particularly dull trivia night.