Quarterly financial statistics for enterprises, fourth quarter 2024

Net income before taxes (NIBT) for Canadian corporations increased $3.3 billion (+2.1%) in the fourth quarter, reaching $164.5 billion. This gain was driven by the non-financial sector (+3.2%) and partly offset by the financial sector (-0.7%).

Consult the Quarterly Survey of Financial Statistics: Visualization Tool for a comprehensive overview of the quarterly changes in the financial performance of enterprises.

Chart 1: Corporate net income before taxes (seasonally adjusted)

Source: Table 33-10-0226-01.

Lower expenses drive the increase of net income before taxes in non-financial sector

The non-financial sector's NIBT increased $3.7 billion (+3.2%) to $117.4 billion in the fourth quarter. NIBT was up in 30 of the 39 non-financial industries.

In the fourth quarter, the telecommunications industry's NIBT increased by $1.6 billion, as lower impairment charges marked a recovery from the previous quarter, which had been impacted by reduced advertising demand in the television and radio markets.

NIBT for the motor vehicle and trailer manufacturing industry increased by $1.4 billion in the fourth quarter. This increase was due to higher revenues attributable to increased sales at auto assembly plants.

The mining and quarrying (except oil and gas) industry recorded a rise in NIBT in the fourth quarter, up by $837 million from the previous quarter. This increase was partly attributable to lower expenses, as large impairment charges related to operational disruptions and challenging market conditions were recorded in the third quarter. Additionally, operating revenue during the fourth quarter grew by $548 million on higher prices for metal ores, concentrates and scrap.

The pharmaceutical and medicine manufacturing, and soap, agricultural chemicals, paint and other chemical product manufacturing industry declined by $1.2 billion in the fourth quarter, moderating the increase in NIBT for the non-financial industries. This decrease in earnings was partly due to lower sales of non-metallic minerals utilized in the production of agricultural chemicals.

Additionally, NIBT for the petroleum and coal manufacturing industry saw a decline in the fourth quarter, down $1.1 billion. This was mainly due to a decrease in the price of refined petroleum products during the quarter. NIBT for the oil and gas extraction industry was down $586 million, driven by falling crude oil prices amid weaker global demand.

Financial sector records a decrease in net income before taxes

NIBT for the financial sector declined by $349 million (-0.7%) to $47.1 billion in the fourth quarter. Decreases were recorded in 6 of the 13 financial industries.

The largest decline in the financial sector in the fourth quarter was recorded in the banking and other depository credit intermediation industry. This industry's NIBT declined $1.5 billion due to a loss in the sale of assets and a rise in non-recurring expenses.

These decreases were moderated by the securities and commodity exchanges and portfolio management and miscellaneous financial investment activity industry, for which the NIBT increased $2.0 billion in the fourth quarter. This rise was partly due to gains in dividends and interest income.

NIBT for the property and casualty insurance industry recorded an increase of $531 million in the fourth quarter. This increase was partly attributable to a decrease in claim expenses compared with the third quarter of 2024, which was significantly impacted by severe weather events.