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Home Capital Group Inc. net income up in Q2, 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.
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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.

Analysts surveyed by Thomson Reuters Eikon estimated a net income of $30.62 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.