Canadian investment banks are expanding in Europe, according to bankers and headhunters familiar with the moves, amid growing opportunities to steal market share from embattled European banks.

Firms including BMO Capital Markets, the investment and corporate banking arm of BMO Financial; Canaccord, which acquired UK broker Collins Stewart Hawkpoint at the end of 2011; and CIBC are adding selectively to their teams in London, according to people familiar with the hiring.