Financial corporations far outperformed others in the fourth quarter of 2023
The last three months of 2023 produced further gains for the Canadian economy as the financial sector led the gains for corporations, according to official figures from Statistics Canada’s quarterly statistics for enterprises.
Canada’s financial sector – which saw a decline in GDP in the third quarter - saw net income grow by almost 7% in the fourth quarter of 2023, compared to just over 1% for non-financial corporations.
The figures show that net income of $47.5 billion was up $3 billion from the previous quarter. Of 13 financial industries, net income increased for seven including securities and commodity exchanges and portfolio management and miscellaneous financial investment activity industry which increased $1.5 billion due to asset revaluations.
Credit unions also performed well, gaining $1.5 billion amid higher net interest income and revaluations, but the banking and other depository credit intermediation industry posted a $617 million decline (almost 6%), mostly due to increase costs of provisions for credit losses.
Non-financial sector
The non-financial sector added $1.4 billion to its net income in the fourth quarter to a total of $118 billion, with 29 of the sector’s 38 industries gaining.
This was led by ‘other wholesalers’ which posted a $645 million rise to $7.3 billion as operating revenues increased. Telecoms’ operating revenue also produced gains, of $390 million to $2 billion, while wood and paper was up $261 million (16%).
However, among the declines in net income in the fourth quarter were motor vehicle and trailer manufacturing industry, which decreased $1 billion, recording a loss of $281 million, and petroleum and coal products manufacturing which fell $207 million (-4.1%).
Overall, Canadian corporations increased their net income by $4.4 billion or almost 3% in the last three months of 2023, to more than $165 billion.
