Market Insights Financial Corporate Finance

Investment Banking - Canada

Canada

The revenue in the Investment Banking market is projected to reach €9.65bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 2.01% resulting in a projected total amount of €10.66bn by 2029.
From a global comparison perspective, it is shown that the highest revenue is reached in the United States (€120.70bn in 2024).

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Analyst Opinion

The Investment Banking market in Canada is experiencing a shift in customer preferences, trends, and local special circumstances that are shaping its development.Customer preferences in the Canadian Investment Banking market are increasingly focused on personalized services, sustainable investing, and digital solutions.

Clients are seeking tailored financial advice and products that align with their individual goals and values. The demand for sustainable investments is also on the rise, driven by a growing awareness of environmental, social, and governance factors. Moreover, digital tools and platforms are becoming essential for clients to access real-time information, execute trades, and communicate with their advisors.

Trends in the Canadian Investment Banking market reflect global patterns but are tailored to the local landscape. Mergers and acquisitions activity is robust, driven by a desire for market consolidation and strategic partnerships. Additionally, there is a growing interest in alternative investments such as private equity and venture capital, as investors seek higher returns in a low-interest-rate environment.

Fintech innovation is also disrupting traditional banking models, leading to increased competition and collaboration within the industry.Local special circumstances in Canada, such as regulatory frameworks and cultural diversity, play a significant role in shaping the Investment Banking market. Stringent regulations aim to maintain market stability and protect investors, influencing the way financial institutions operate and offer services.

The multicultural nature of Canadian society creates opportunities for banks to cater to diverse customer needs and preferences, requiring a nuanced approach to product development and marketing strategies.Underlying macroeconomic factors, including interest rates, economic growth, and global trade dynamics, impact the Investment Banking market in Canada. Fluctuations in interest rates influence borrowing costs and investment decisions, affecting the profitability of banks and the appetite for financial services.

Economic growth prospects drive investor confidence and market activity, while trade relationships with other countries can create opportunities or challenges for Canadian banks operating on a global scale.

Methodology

Data coverage:

Figures are based on the revenue generated by the Investment Banking market, as well as the transaction value, the number of transactions, and the average transactions size of the Mergers and Acquisitions (M&As) and Initial Public Offerings (IPOs) markets.

Modeling approach / Market size:

Market sizes are determined by a bottom-up approach and are based on a specific rationale for each market. As a basis for evaluating markets, we use market research and analysis, as well as data from annual financial reports. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus, such as GDP, wealth per capita, and total investment (% of GDP). This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita and total investment (% of GDP).

Additional Notes:

The market is updated twice per year in the event that market dynamics change.