The fortunes of Home Capital continue to improve with the lender showing a strong fourth quarter.
Home’s Q4 2018 results include a massive bounceback for mortgage originations, up 85.1% compared to the same quarter of 2017. That added $742.1 million in originations to a total of $1.61 billion.
For the full year, originations were up 15.2% to $5.44 billion.
“Our 2018 results are solid evidence that we are successfully implementing our strategy for long-term sustainable growth,” said Yousry Bissada, Chief Executive Officer. “We grew our originations by 15% in a year when industry volumes faced headwinds from stricter underwriting criteria, a reduced volume of home sales and higher interest rates. Our focus on customer service, supported by our sustainable risk culture, has made us a partner of choice for qualified Canadians who want to own a home.”
Home Capital’s results reveal net income for the year was $132.6 million or $1.66 per share compared with $7.5 million or 10 cents per share in 2017.
For the full year of 2018, provisions for credit losses were $20.4 million or 0.13% of gross loans compared to $7.5 million or 0.05% for 2017. Net write-offs were $9.0 million or 0.06% of gross loans for the year 2018, compared to $9.0 million or 0.06% for 2017.
