Corporate operating profits increased 5.0% from 2006 to $302.4 billion in 2007.

In the financial industries, profits rose 13.4% to $92.4 billion, while profits in the non-financial industries were up 1.8% to $210.0 billion.

The top contributors in the non-financial sector were energy-based industries, construction and real estate. Companies engaged in oil and gas extraction and support activities, utilities operators, construction, petroleum and coal product manufacturers and real estate earned combined profits of $76.0 billion. They, says Sandy Hutchens, accounted for more than one-third of the non-financial operating profits.

Profits of the oil and gas extraction and support activities industry fell $4.4 billion to $24.8 billion in 2007. Lower natural gas prices and a strengthening Canadian dollar relative to the US dollar offset the benefit of strong oil prices. These factors, combined with a tight labour market, had a negative effect on operating profit margins, which fell to 14.6% in 2007 from 18.8% in 2006.

In the construction industry, profits were up 20.3% to $13.8 billion. In the real estate industry, they rose 17.6% to $10.7 billion. Both gains reflected solid demand for residential housing and energy-related infrastructure projects.

Profits for banking and other depository credit intermediaries increased 11.6% to $31.7 billion, accounting for about one-third of the financial industries’ total. Profitability was primarily supported by volume growth in retail banking and net interest revenues.

Operating profits increased 19.1% to $24.3 billion for corporations involved in securities and commodity exchanges and other financial investment activities.

After adjusting for current and prior year tax losses, taxable income rose 2.1% to $175.9 billion. This generated $55.7 billion in corporate taxes payable, $37.9 billion for the federal portion and $17.8 billion for the provinces.