The big bank-owned investment dealers continue to dominate the Canadian investment banking business, according to new research from Greenwich Associates.

The firm reports that four of the big integrated dealers — BMO Capital Markets, CIBC World Markets, RBC Capital Markets, and Scotia Capital — are deadlocked atop the Canadian investment banking market share league tables.

Greenwich’s survey of large Canadian companies found that between 58% and 61% say they have important relationships with these banks for M&A advisory services and equity capital markets. BMO and RBC are the “quality leaders” in equity capital markets, Greenwich says, while all four firms share that title in M&A advice.

“These banks provide such high levels of service and intense coverage that, when large Canadian companies rotate their business in these functions, it is generally to another provider within the Big Four,” says Greenwich Associates consultant Jay Bennett. “In equity capital markets, companies have clear opinions about who provides the best analyst research coverage, and because BMO and RBC are so highly regarded in that space, the firms get a consistent lift.”

On the debt side, Greenwich says that RBC is the clear leader, with 66% of large Canadian companies and government agencies saying they have important relationships with the firm. RBC also ranks as the “quality leader” for the debt underwriting.

“RBC stands out for across-the-board quality to corporate, financial and government issuers, but because all of these banks provide robust distribution corporate, issuers often rotate their business among them as a means of rewarding credit providers,” says Bennett.

Scotia and CIBC are tied for second place at 54%-55% market penetration on the debt side; and, BMO Capital Markets and TD Securities are tied for third with relationship penetration scores of about 50%, it says.

The firm also reports that approximately 53% of large Canadian companies use RBC Capital Markets for cash management services, ranking it first in this business too. Scotia “has also built a particularly strong presence in the upper end of this market”, Greenwich says, with 49% penetration; followed by BMO and TD, which are tied at 40%, and CIBC at 34%.

Greenwich reports that all of the big Canadian banks are investing to build out the technology platforms supporting their international cash management business in order to compete with major Wall Street firms such as Citi, HSBC and Bank of America Merrill Lynch in this business. The firm says that those firms have been making gains in the Canadian cash management market on the basis of their strong international capabilities.

“Of all the foreign competitors, HSBC also performs best in domestic Canadian cash management,” says Greenwich Associates consultant Peter Kane.