Key industry sector: Financial services
Toronto is the third largest North American financial services centre after New York and Chicago and is Canada's financial and business capital. With an employed workforce of roughly 232,000, Toronto's financial services sector is an engine of growth.
Key facts
- Home to 5 of the largest domestic banks - 3 rank among the world's top 25 based on market capitalization. Also home to 55 foreign bank subsidiaries/ branches and 119 securities firms. 89% of foreign banks have their head-offices within the Toronto CMA (80% in Toronto city).
- Headquarters for: 57% (60) of life insurance companies in Ontario - 2 of the largest 10 global life insurers, plus a third with significant operations in Toronto; 53% (130) of P&C insurers - including 3 of the 4 largest property and casualty insurers in Canada. Foreign companies are especially dominant.
- 80% of Investment Management/MF industry representing C$700 billion assets under management (AUM, includes exchange traded funds).
- 58 pension fund managers, 5 Toronto-based public pension plans with combined assets of over C$319 billion. Toronto ranks within global top 5 cities for global AUM.
- Growing host of Financial Services Operations Providers: CIBC Mellon, State Street, RBC Dexia, Citco, UBS, Northern Trust, Goldman Sachs, Merrill Lynch Technology. Employs roughly 20,000 in fund administration.
- Hedge fund assets under management estimated at $32 billion.
Engine of growth
- Between 1999 and 2009, the financial services sector added 69,000 jobs - a cumulative growth rate of 42%, or 4.2% per year on average.
- Toronto Region is home to 30% of the Canadian financial services sector's direct employment nationally.
- Financial services leads all other service-producing sectors, contributing roughly 14% to Toronto's Gross Domestic Product.
Global competitor
Toronto ranks 12th in the latest Global Financial Centres ranking (March 2010). An established banking centre, Toronto performs particularly well in the People sub-index, where it is in 6th place, and in the Asset Management and Professional Services sub-indices, where it is 9th place in both categories. Toronto is also profiled as one of the 8 "Global Leaders" based on the breadth and depth of its financial services activity and connections with other financial centres.
Talent advantage
Toronto's diversity is a prized asset. As one of the most multi-cultural cities in the world, Toronto has the international talent and experience to leverage global connections. Toronto's world-renowned business schools, its vibrant arts community and the business community at large thrive on Toronto's cultural diversity.
- Toronto has a highly educated and credentialed workforce with 79% of the financial services workforce having a post-secondary education. There is a higher incidence of financial industry-specific designations, such as financial planners, analysts and actuaries in Toronto than other financial centres.
- Toronto has the world's second highest concentration of CFA's - around 7,200 professionals.
- World-renowned educational and training institutes including 3 universities and 5 colleges support the sector.
- To continue to develop its talent advantage, Toronto is also home to the newly established Centre of Excellence in Financial Services Education.
Key companies
Top 5 Toronto-based Banks by market capitalization
| Company | 2010 Q1 ($ billions) |
|---|---|
| RBC Financial Group | $74.3 B |
| TD Bank Financial Group | $54.3 B |
| Scotiabank | $46.1 B |
| BMO Financial Group | $28.9 B |
| CIBC | $24.7 B |
Top 5 Toronto-based Banks by assets
| Company | 2010 Q1 assets ($ billions) |
|---|---|
| RBC Financial Group | $659 B |
| TD Bank Financial Group | $567 B |
| Scotiabank | $507 B |
| BMO Financial Group | $398 B |
| CIBC | $337 B |
Top life insurance companies
| Rank | Company | 2009 revenues ($ billions) |
|---|---|---|
| 1 | Manulife Financial Corp. | $40.1 B |
| 2 | Sun Life Financial Inc. | $27.5 B |
| 3 | RBC Life Insurance | $5.7 B |
| 4 | Empire Life | $0.7 B (2008) |
| 5 | Transamerica Life | $0.4 B (2008) |
Top Property and Casualty insurance firms
| Rank | Company | 2008 revenues ($ billions) |
|---|---|---|
| 1 | Intact Insurance (formerly ING Canada) |
$4.1 B |
| 2 | Aviva Canada Inc. | $3.3 B |
| 3 | State Farm Canada | $1.8 B |
| 4 | Royal & Sun Alliance Canada | $1.7 B |
| 5 | Northbridge Financial Corporation | $1.5 B |
*Source: Annual Reports and Company Websites
Top 10 Investment Companies by Retail Assets under Management ('000 of $)
| Rank | Company | AUM |
|---|---|---|
| 1 | RBC Asset Management | $100.4 B |
| 2 | IGM Financial Inc. | $98.5 B |
| Investors Group | $56.8 B | |
| Mackenzie Financial | $39.8 B | |
| Counsel Portfolio Services | $1.8 B | |
| 3 | CI Funds* |
$66.0 B |
| 4 | TD Asset Management Inc. | $55.7 B |
| 5 | CIBC Asset Management | $45.5 B |
| 6 | Fidelity Investments Canada Limited | $44.5 B |
| 7 | Manulife Investments | $39.3 B |
| 8 | BMO Financial Group | $35.4 B |
| 9 | Dynamic Funds | $31.4 B |
| 10 | Invesco Trimark Ltd. | $26.5 B |
Notes
* CI Funds data from company website, other data from the Investment Funds Institute of Canada, May 2010; RBC includes Phillips, Hager & North; IGM Financial includes Investors Group, Mackenzie Financial and Counsel Portfolio Services, BMO Financial Group includes Guardian Group of Funds.
* Assets under Management include mutual funds, segregated funds, pooled funds., ETF's, closed ended funds and labour sponsored funds.
Support systems
The Toronto Financial Services Alliance (TFSA) works closely with industry, affiliate services and government to enhance and promote the competitiveness of Toronto as a premier North American Financial centre.