The Quebec-based lender is making inroads against major banks
The Canadian banking space has seen a flurry of mergers and acquisitions over the past year – and among the most eye-catching was National Bank’s multibillion-dollar deal to acquire Canadian Western Bank (CWB), a move that could mark the emergence of a banking “Big Six” for the first time in Western Canada.
That purchase, which closed at the beginning of February, could see the Quebec-headquartered National Bank make inroads into a western banking space that’s been dominated over the decades by Royal Bank of Canada (RBC), Bank of Montreal (BMO), Bank of Nova Scotia (Scotiabank), Toronto-Dominion Bank (TD), and Canadian Imperial Bank of Commerce (CIBC), according to a new study on the commercial banking outlook for the West.
Crete Capital’s 2025 Lender Sentiment Report said the deal should bring stronger competition to the British Columbia market by combining CWB’s strength in the entrepreneurial real estate and construction spaces with National Bank’s coverage of corporate and larger entity markets.
“We’re excited about that as advisors,” Joey Tai (pictured top), Crete Capital’s managing principal, told Canadian Mortgage Professional. “Traditionally in Western Canada it’s just been the big five. Finally, we have a Big Six. National Bank has had a large presence in the East, but they haven’t been as active in the West. With the acquisition of CWB, they now have local presence, branches, a much larger deal force, and also local knowledge of the market and assets.
“When I look at the strengths of CWB and the strength of National Bank and the synergies, CWB is known for being a more entrepreneurial, creative real estate lender in BC and Alberta, and National Bank has been known for their strength in corporate banking, investment banking, larger corporate transactions. When you marry those strengths, it goes very well together.”
National Bank hitting the ground running in BC
Even in the weeks following the completion of the deal, Tai said an “open-for-business” mentality is already evident from National Bank in BC, with financing proposals and term sheets on transactions for clients emerging.
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“It’s already coming into place,” Tai said. “It was evident in their [intention] to grow in Western Canada through the acquisition, to have more presence. But we’re also seeing it translate into proposals, financing proposals and deal terms. It’s a very positive thing for Western Canada to have a major player step in and compete and participate in the market.”
Other acquisitions to close in recent times include RBC’s blockbuster deal for HSBC, a $13.5-billion transaction that got over the line in March last year.
That’s a move that removed a “unique lender” with a differentiated credit risk appetite from the market, according to Crete Capital’s report. “HSBC was known for their trade finance capabilities, focus on larger international corporate customers and for financing specialized assets such as hotels and hospitality businesses,” it said.
But while RBC seems intent on adding those specialized offerings to its existing portfolio, Crete said it would probably take some time for “cultural integration” before the benefits of that expanded platform become clear.
“Meanwhile, as with any major acquisition, we expect former HSBC clients to experience transitional adjustments and an education process to assess the benefits of a broader organization versus costs of change,” the report noted.
‘Searchers’ are returning gradually to the BC market
Tai also said a resurgent trend in the BC market is the return of so-called search funds and “searchers” – individuals looking to buy businesses, whether in an effort to get out of the corporate world and buy a business or because boomers are retiring and needing to pass on enterprises to the next generation.
“There’s going to be this exodus of private business ownership, which means there’s an opportunity for people to take over and acquire, whether it’s getting into a business platform or consolidation through existing businesses,” he said.
“That could mean a business buying out one of the competitors. It could be a business buying one of their suppliers. It could be a business buying some of their customers. I think that’s going to be something that we see more of in the coming years – not just this year.”
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