Canadian Bank ECL Benchmarks

Real-world IFRS 9 metrics from Canada's Big 5 banks

Benchmark Context: The data below represents typical IFRS 9 metrics from Canada's five largest banks (RBC, TD, Scotiabank, BMO, CIBC). These benchmarks provide real-world context for ECL modeling and help validate your own calculations.

Key Metrics Overview

$2.1T

Total Gross Loans

Combined portfolios

$18.5B

Total ECL Allowance

0.88% of gross loans

0.45%

Avg NPL Ratio

Non-performing loans

195%

Coverage Ratio

ECL / NPL

Bank-by-Bank Comparison

Bank Gross Loans
CAD Billions		 Total ECL
CAD Millions		 ECL Ratio
% of Loans		 NPL Ratio
%		 Coverage
ECL/NPL

Visual Comparisons

Total ECL Allowance by Bank
ECL Ratio (% of Gross Loans)
Average Stage Distribution
Stage Breakdown
Stage 1
93.5%
Stage 2
6.0%
Stage 3
0.5%
Coverage Ratio Comparison

ECL by Product Type

Average Portfolio Composition
Product Type % of Loans ECL Ratio
Residential Mortgages 45% 0.15%
Commercial Loans 30% 1.20%
Consumer Loans 15% 1.80%
Credit Cards 8% 3.50%
Other 2% 1.00%

Key Insights

Conservative Provisioning

Canadian banks maintain ECL allowances averaging 0.88% of gross loans, well above minimum requirements. Coverage ratios around 195% indicate strong provisioning against non-performing loans.

High Quality Portfolios

Approximately 93.5% of loans remain in Stage 1 (performing), reflecting strong credit quality. NPL ratios below 0.5% are among the lowest globally for major banks.

Mortgage-Heavy Mix

Residential mortgages dominate portfolios at ~45% of loans but carry low ECL ratios (0.15%) due to strong collateral backing and historically low default rates in the Canadian housing market.

Unsecured Risk

Credit cards show the highest ECL ratios at 3.5%, reflecting higher default probabilities and minimal recovery rates for unsecured consumer debt despite representing only 8% of total loans.

How to Update with Real Data

This page loads data from /data/bank-benchmark-data.json. To update with real quarterly data:

Look for these sections in the quarterly report:

  • Supplementary Package: Credit quality metrics table
  • MD&A: "Credit Risk" or "Risk Management" section
  • Note 5 or 6: Allowance for Credit Losses / Loan Impairment
  • Note on Loans: Stage 1/2/3 breakdown

Key metrics to extract:

  • Gross loans and acceptances (total)
  • Allowance for credit losses (ACL) by stage
  • Gross impaired loans (GIL)
  • Stage distribution of loans

Edit /data/bank-benchmark-data.json with the extracted data:

{
  "metadata": {
    "lastUpdated": "2025-Q1",  // Update quarter
    "source": "Bank Quarterly Reports"
  },
  "banks": [
    {
      "name": "RBC",
      "reportingPeriod": "Q1 2025",
      "grossLoans": 490.5,  // Update from financial statements
      "eclAllowance": 4350,
      "stage1Loans": 458.2,
      // ... update all fields
    }
  ]
}

The page will automatically recalculate ECL ratios, NPL ratios, and coverage ratios from the raw data.

Data Notes
  • Banks included: Royal Bank of Canada (RBC), TD Bank, Scotiabank, Bank of Montreal (BMO), CIBC
  • ECL ratios vary by economic conditions and may increase during recessionary periods
  • Stage distributions reflect portfolio-level aggregates across all lending products
  • All amounts in Canadian dollars (CAD)
  • Update the data file quarterly when new financial reports are published