Canada’s brokerage industry is reporting a 21% rise in operating profits for 2003. Thanks to the revival in stock markets, the Investment Dealers Association of Canada said operating profits totalled of $3.32 billion.

Net profit rose to $1.48 billion, from $1.26 billion in 2002, for Canada’s 207 securities firms as 154 of them operated in the black and 53 posted losses. The IDA said that fourth-quarter profits — up 16% from the previous quarter to $1 billion — marked the third consecutive quarter of earnings gains for the industry.

“The return of the retail investor allowed retail firms to improve their performance for the third straight quarter,” the IDA said in a release.

“Operating profits for the (retail brokerage) group were up 72% in the quarter and, after accounting for a one-time earnings gain in 2002, were up more than four-fold over the year.”

The IDA said surging commission revenues helped propel the performance of retail firms from flat or declining profits in each of the last two years.

Operating profits of Canadian-based institutional investment firms were flat year-over year, while the profits of foreign-based institutional firms, after transfer-pricing adjustments, were lower.

“Disappointments in the quarter were largely confined to the declining revenues noted for fixed-income trading, principally reflecting difficult trading markets for fixed-income derivatives,” the IDA said.

In 2003, the Canadian securities industry had 37,262 employees, down from 37,949 in 2002.