Determinants of Profitability and the Impact of Diversification on Banks' Profitability in Canada

This paper seeks to investigate the determinants of banks’ profitability in Canada and the relationship between banks’ profitability and income diversification using a sample of 8 Canadian bank holding companies from 2000Q1-2016Q2. We divide the 66 quarters into two periods which are pre-crisis (2000Q1-2007Q2) and post-crisis (2007Q3-2016Q2) and use the ordinary least squares estimation technique to run a series of panel regressions for the whole sample and two periods, respectively.