Statistics Canada data shows that the industry was impacted heavily by the pandemic
The latest figures on financial statistics for Canadian enterprises further highlights the impact of the pandemic on businesses and the banking industry.
Statistics Canada reported Tuesday that Canadian corporations reported a decline of 8% in net income before taxes in the second quarter of 2020, a decrease of $4.5 billion, to $52.3 billion. Operating revenue declined 11.6%, to $940 billion.
For the non-financial sector, there was a 20% drop to $24.6 billion with transportation, postal and couriers services, and transportation support activities the hardest hit, recording a 243% drop – almost $4 billion before taxes. The grounding of airlines was a major factor.
Oil and gas extraction and support activities posted a loss of $9.2 billion in net income before taxes in the second quarter, following a loss of $24.4 billion in the first quarter.
Retailers saw net income before taxes fall $4.0 billion (-67.7%) in the second quarter and manufacturing decreased $1.3 billion (-19.3%).
Banking industry
While the financial sector posted a gain of 6.2% (+$1.6 billion) to $27.7 billion in the second quarter.
But the banking and other depository credit intermediation industry's net income before taxes declined 42.0% (-$4.2 billion) to $5.8 billion in the second quarter, due to large loan loss provisions and decreased revenues.
Canadian corporations reported a decline of 8.0% in net income before taxes—a decrease of $4.5 billion to $52.3 billion—in the first full quarter of #COVID19 related restrictions, which impacted enterprises. https://t.co/RUL4MArgWC #CdnEcon #CdnBizz pic.twitter.com/Hbd2L3Uoq6
— Statistics Canada (@StatCan_eng) August 25, 2020
