Canadian corporations reported an increase of $2.4 billion (+1.5%) in net income before taxes (NIBT) in the second quarter of 2024, reaching $163.2 billion. This gain was driven by the non-financial sector (+3.0%) and partly offset by the financial sector (-1.8%), according to a report released Friday by Statistics Canada.
The non-financial sector’s NIBT saw an increase of $3.3 billion (+3.0%) to $115.0 billion in the second quarter. Overall, NIBT was up in 32 of 39 non-financial industries, added the federal agency.
“During the second quarter, the pharmaceutical and medicine manufacturing, and soap, agricultural chemicals, paint and other chemical product manufacturing industry was the primary contributor to the gains in NIBT for the non-financial sector, up by $436 million. Higher earnings were driven by an increase in revenues from agriculture chemical products.
Statistics Canada
The publishing, motion picture and sound recording, broadcasting and information services industry saw gains in NIBT of $414 million in the second quarter. This increase was largely attributable to a rise in dividend income,” it said.
“The primary metal and fabricated metal product and machinery manufacturing industry also contributed to the gains in NIBT, up $326 million (+10.2%) in the second quarter. Operating revenue was up $327 million during the quarter, as the price of primary non-ferrous metals reached its highest level since March 2022.
“In the second quarter of 2024, NIBT for the transportation, postal and couriers services, and support activities for transportation industry rose by $323 million. Operating revenue was up $1.6 billion (+2.6%), with strong results in rail transportation, as railway freight loadings increased during the quarter.”
StatsCan said the petroleum and coal product manufacturing industry also recorded increases in NIBT, up $307 million (+7.0%) in the second quarter, on higher price of energy and petroleum products. NIBT for the oil and gas extraction and support services industry also rose, up $281 million (+3.7%). Operating revenue of this industry increased $3.5 billion (+6.7%), driven by higher price of crude energy products during the quarter.
“NIBT for the financial sector decreased by $894 million to $48.3 billion in the second quarter. Decreases were recorded in 5 of the 13 financial industries,” said the report. The banking and other depository credit intermediation industry (-14.5%) saw a decline in NIBT in the second quarter. This decrease was partly attributable to a rise in provision for credit losses.
“The life, health and medical insurance carriers industry was down $376 million in the second quarter due to an increase in expenses arising from actuarial liabilities. Partly offsetting these decreases, the NIBT for the miscellaneous intermediation industry increased by $871 million, as investment revenues rose in the second quarter.”
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Podcast. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 as one of the Top 10 Business Journalists in the World by PR News – the only Canadian to make the list. He was also named by RETHINK to its global list of Top Retail Experts 2024.
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