Home Capital has reported its financial results which shows a third quarterly increase in residential mortgage originations.
The lender grew originations by 10% year-over-year ($112.1 million) to $1.23 billion. Q2 2018 saw a 6.1% rise in originations ($71 million) compared to Q1 2018.
The first six months of 2018 was down 31% compared to the same period of 2017, dropping $1.07 billion to $2.39 billion.
Overall performance for the 3 and 6 months ended June 30, 2018, shows continued improvement for the lender with net income of $29.6 million in Q2 2018 compared to a loss of $111.1 million in Q2 2017.
The year-ago loss included the impact of $130.6 million of interest and fees on a line of credit facility, losses of $76.9 million on the sales of securities and loans and increased professional and legal fees.
“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.
Future results for 2018 are expected to show further improvement now that the matured $2 billion line of credit from a Berkshire Hathaway subsidiary has been replaced by a $500 million credit facility from a group of Canadian banks.
“We are pleased with the progress our team has made on our journey to sustainably grow our business. 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,” added Bissada.
