Company continues to see surging revenue and income, in defiance of the chilling effect of higher interest rates
First National Financial Corporation has reported strong financial results for the three months ending June 30, 2023.
During the second quarter, the company saw its mortgages under administration increase by 8% to a record level of $137.8 billion. This was a significantly higher volume compared to $127.3 billion seen at the end of June 2022.
Revenue also increased by 26% quarterly to reach $525.9 million, compared to $416.8 million a year ago. Net income was $89.2 million ($1.47 cents per share), versus $61.3 million ($1.01 per share) in June 2022.
“Second-quarter results exceeded our expectations which continue to be tempered by the ongoing impact of higher interest rates on real estate activity across Canada,” said Jason Ellis, president and chief executive officer of First National Financial.
“In light of this environment, we were pleased to note an increase in both single family and commercial MUA and a smaller than anticipated reduction in mortgage originations in both segments compared to the same period last year. The combination of higher MUA and interest rates resulted in strong growth in profitability even in an intensely competitive market.”
First National Financial expected to weather further market volatility
The company enjoyed strong results despite single-family mortgage originations (including renewals) declining by 12% annually, down to $7.4 billion in Q2.
“First National’s business model and great execution by the team in serving our customers and partners made all the difference,” Ellis said.
“Looking ahead, we anticipate challenging market conditions to persist for the next two quarters, but we will remain steadfast in delivering the advantages of our business model.”
