Home Capital Group has reported its latest financial results showing improved earnings and mortgage originations volume.
The lender posted Net income of $29.6 million in the second quarter of 2018, compared to a net loss of $111.1 million in the same period of 2017 (which included the cost of its credit facility and divestment of certain assets).
“Our second quarter results were markedly improved with solid year-over-year earnings growth, taking into account last year’s liquidity event, and with a third straight quarter of mortgage origination volume growth,” said Yousry Bissada, President and Chief Executive Officer, Home Capital.
Total mortgage originations of $1.23 billion, meant an increase of 10.0% ($112.1 million) from $1.12 billion.
However, year-to-date, mortgage originations of $2.39 billion is a decrease of 31.0% or $1.07 billion, from $3.46 billion in the same period of 2017.
“We are pleased with the progress our team has made on our journey to sustainably grow our business,” added Bissada. “Our core residential and commercial lending business continued to demonstrate resilience in the face of a challenging and competitive operating environment influenced by regulatory changes, rising interest rates and a softer Canadian housing market.”
Home says that credit losses and delinquencies are expected to remain low in the second half of 2018; however, the Company is prepared for volatility in this performance that may result from uncertainty in the macroeconomic environment.
Total provision for credit losses was $6.5 million in Q2 2018 compared with $6.0 million in Q1 2018, and $2.4 million in Q2 2017.