Home Capital Group reports higher earnings but below analyst expectations

TORONTO — Home Capital Group Inc. says it earned nearly $30 million in its most recent quarter, but fell just short of analyst estimates.The Toronto-based mortgage lender’s net income for the second quarter of its 2018 financial year was $29.6 million compared to a $111.1 million loss in the same quarter the previous year.It says its diluted earnings per share were 37 cents for the quarter ended June 30, compared to a loss of $1.73 per share in the second quarter of its 2017 financial year.Home Capital receives new credit line from two Canadian banks as Buffett backing expiresEvidence of mortgage fraud in Canada raises red flag at credit rating giantAnalysts surveyed by Thomson Reuters Eikon estimated a net income of $31.16 million or 38 cents per share for the quarter.CEO Yousry Bissada says in a statement that the company experienced its third consecutive quarter of mortgage origination volume growth, up 10 per cent or $112.1 million from $1.12 billion in the second quarter of 2017 to $1.23 billion in the second quarter of this financial year.He says the company’s core residential and commercial lending business continued to show resilience amid factors like rising interest rates and a softer Canadian housing market. read more

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