Financial sector outpaces non-financial industries, according to StatCan
Canadian corporations saw a modest rise in their financial performance during the fourth quarter of 2023, as net income before taxes (NIBT) climbed 2.7% to $165.4 billion.
According to Statistics Canada, this increase was predominantly led by the 6.8% upturn in the financial sector, which surpassed the 1.2% rise observed in the non-financial sector.
In the non-financial space, NIBT rose by $1.4 billion to reach $118.0 billion, marking an improvement in 29 out of 39 industries.
The largest boost was seen in the other wholesalers’ industry, which saw NIBT surge by $645 million to $7.3 billion, thanks to a $2.4 billion hike in operating revenues.
Following closely, the telecommunications reported a $390 million increase in NIBT due to an uptick in wireless and cable services revenue.
Furthermore, after facing six consecutive quarters of decline, the wood and paper manufacturing industry turned a corner with a $261 million increase in NIBT as a result of higher sales and shipments.
On the flip side, the motor vehicle and trailer manufacturing industry saw its NIBT dip by $1.0 billion and resulted in a loss of $281 million due to the impact of production slowdowns and external factors such as strikes in the US.
Similarly, the petroleum and coal products manufacturing industry reported a $207 million decline in NIBT, attributed to lower energy prices and maintenance-induced shutdowns. The oil and gas extraction industry saw a modest decrease as well, down by $21 million.
As for the financial sector, StatCan’s data indicated a $3.0 billion increase in NIBT, spread across seven of its thirteen industries.
The securities, commodity exchanges, and portfolio management sector, along with miscellaneous financial investment activities, had a $1.5 billion increase, mainly due to higher revenues from asset revaluations.
Local credit unions also reported a $1.4 billion rise, benefiting from increased net interest income and asset revaluations.
Conversely, the banking and other depository credit intermediation industry faced a downturn, with a $619 million reduction in NIBT, largely due to higher provisions for credit losses.
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