Toronto, CNEDIA: During the first quarter of 2023, Canadian corporations reported a 5.6% decrease (or -$9.8 billion) to $165.9 billion in Net income before taxes (NIBT) impacting both in financial sector and non-financial sector, Statistics Canada report said.
NIBT for the financial sector decreases
Non-financial sectors reported a decrease of $3.9 billion (-3.1%) from the fourth quarter of 2022 to $119.3 billion in the first quarter of 2023 in NBT.
The decline of $3.4 billion (-24.9%) in NIBT in the non-financial sector was led by the Oil and gas extraction industry in the first quarter, mainly attributable to lower oil prices,
This was followed by transportation and transportation support activities with a decreased NIBT for $2.2 billion (-28.9%) in the first quarter, mainly due to lower revenues.
Motor vehicle and trailer manufacturing NIBT was down by $756 million in the first quarter of 2023, driven by higher expenses.
An increase of by $2.2 billion in NIBT for the mining and quarrying industry, mainly attributable to higher revenues due to increase of commodity prices during the quarter, was partly responsible for offseting Non-financial sector’s decline in NIBT during the first quarter,
NIBT for the financial sector decreases
NIBT for the financial sector decreased by $6.0 billion (-11.3%) in the first quarter, down in 6 of the 13 financial industries.
Securities and commodity exchanges and portfolio management and miscellaneous financial investment activity industry recorded NIBT’s decrease of $3.8 billion on lower revenues in the first quarter, due to large investment gains in the fourth quarter of 2022.
Banking and depository credit intermediation industry showed a hike of up $343 millionin its NIBT in the first quarter of 2023, partly attributable to an increase in net interest income.
Impacts of overnight rate increases on the banking and depository credit intermediation industry
The operating activities and profitability for the depository credit intermediation industry have been impacted by the overnight rate changes in the past year.
The changes in the net interest income and the balance of mortgage and consumer loan assets for the industry from the first quarter of 2020 to the first quarter of 2023 have been analyzed using the data from the Quarterly Survey of Financial Statements.
#StatisticsCanada; #NIBT: #FinancialSector, #nonFinancialSector
