Section 1: 2013 Overview
Archived Content
Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.
Corporate operating profits in Canada reached $366.7 billion in 2013, up $22.2 billion or 6.4% from 2012. The 2013 operating profit growth follows a small increase of $0.3 billion (0.1%) registered in 2012.
The financial sector was the driver of the growth, with profits expanding by $13.7 billion (or 13.3%) compared with 2012. This was up from the 10.2% growth observed in the previous year. In the non-financial sector, operating profits increased by $8.6 billion (or 3.5%) in 2013. This increase in 2013 reversed the trend from the previous year, when the non-financial sector experienced a 3.7% decline in operating profits.
In 2013, net profit reached $276.0 billion, up 11.7% from 2012. Taxable income rose by 6.8% to $259.9 billion, after adjusting for timing, prior year tax losses and other differences. Total corporate taxes increased 6.7% to $62.9 billion. Of this amount, the federal portion of taxes payable was $38.1 billion, while the provincial portion amounted to $24.8 billion.
Note to readers
Annual financial statistics are compiled using financial information provided by enterprises as well as administrative (tax) records. Starting on January 1, 2011, Canadian publicly accountable enterprises were required to replace Canadian Generally Accepted Accounting Principles (CGAAP) with International Financial Reporting Standards (IFRS) when preparing their financial statements for fiscal years starting on or after January 1, 2011. Canadian private enterprises were required to replace CGAAP by Accounting Standards for Private Enterprises or IFRS. The adoption of new accounting standards by some enterprises since the beginning of 2011 may affect comparability with prior years.
Non-Financial Sector
Operating profits increased slightly in the non-financial sector
Operating profits of Canada’s non-financial industries were $250.3 billion in 2013, an increase of 3.5% from the previous year. Growth in operating revenue (+$117.5 billion) outpaced operating expense growth (+$108.9 billion), resulting in the operating profit margin edging upward by $8.6 billion.
In total, 36 of the 57 industries in the non-financial sector experienced growth in operating profits compared with the previous year. Over half (54.5%) of the operating profit growth in 2013 was attributable to the combined increases reported in oil and gas extraction and support activities (+$2.9 billion) and utilities (+$1.8 billion). In spite of the growth, these two industries did not reach profit levels seen in 2008, prior to the economic downturn. Real estate posted a 3.8% profit increase in 2013, marking the fourth consecutive year of profit increases for this industry.
Overall, the manufacturing industries reported operating profits of $46.0 billion in 2013. Operating profits decreased by $3.6 billion, or 7.3%, from 2012. Nearly half (10 of 22) of manufacturing industries posted declines. Operating profits fell by $3.1 billion in the computer and electronic product manufacturing industry, which experienced its second consecutive year of losses. Primary metal manufacturing had a $1.8 billion decline in operating profits compared to the prior year. A $0.9 billion decrease in profits for the air, rail and ship products and other transportation equipment industry also contributed to the overall decline in manufacturing profits.
Profit growth in a number of manufacturing industries partially offset the overall decrease. Wood product manufacturing doubled operating profits from 2012 to $1.7 billion, an increase of nearly $0.9 billion. Despite being the second consecutive year of profit growth, the 2013 profit level for this industry amounts to roughly one-third of the level seen in 2004. Profits also increased in the motor vehicle parts manufacturing industry (+$0.8 billion) and the resin, synthetic rubber, and artificial and synthetic fibres and filaments industry (+$0.6 billion). In 2013, these two industries reached their highest profit level recorded within the previous ten year period.
Operating profits in the wholesale trade industries decreased 1.3%, to $22.1 billion. The largest decline was posted by farm, construction, forestry, mining and other industrial machinery and equipment and supplies merchant wholesalers, who saw profits lowered by 10.0%, to $3.4 billion. Decreases in this industry were partially offset by other wholesale industries, including food, beverage, tobacco and farm product merchant wholesalers, who registered a 4.2% profit increase from 2012. Petroleum and petroleum products merchant wholesalers have experienced the largest growth among the wholesale trade industries in the past few years.
In the retail trade industries, profit levels remained steady at just over $20 billion, with a small increase (0.1%) from 2012. The increase was spread across three industries that reported higher profits in 2013, out of seven retail industries in total.
Financial Sector
Financial sector has growth in operating profits for fourth consecutive year
In 2013, operating profits in the financial sector reached $116.4 billion, representing an increase of $13.7 billion (13.3%) from the previous year. This is the fourth consecutive year of profit growth for the sector. Overall profit growth in this sector is a result of operating revenue gains (+$6.1 billion), coupled with lower operating expenses (-$7.6 billion) compared with 2012.
Six of the twelve financial industries reported profit gains in 2013. Much of the growth occurred in the securities, commodity exchanges and other financial investment activities industry, which posted a $9.8 billion increase, to $33.6 billion. Life, health and medical insurance carriers saw profits expand $5.8 billion to reach $10.2 billion, while property and casualty insurance carriers experienced a $0.9 billion decline, edging down to $5.6 billion. Among financial industries, the non-depository credit intermediation industry registered the largest profit decrease (-$2.5 billion).
- Date modified: