Home Capital logs 2.1% rise in Q4 net income

Home Capital Group saw its net income rise by 2.1% to $30m during the last three months of 2017 from a quarter prior, its latest earning report revealed.

The company saw the value of total loans decline 2.4% from a quarter prior to $15.06bn. But total mortgages originated more than doubled over that same period to reach $872.1m.

Single-family residential mortgage originations stood at $566m. Multi-unit residential mortgage originations were at $194.8m, and non-residential commercial mortgage originations, which include store and apartment mortgages, reached $111.2m.

“Our improved fourth quarter performance capped an important year for Home Capital employees, customers, brokers and shareholders," said Yousry Bissada, president and CEO. "We have demonstrated progress towards growing our residential and commercial business lines to more normal and sustainable levels and our employees delivered improved service.”

On an annualised basis, fourth quarter net income is 39.6% lower than the $50.7m during the same period in 2016.

The lender faced a rough start to 2017, as it saw rapidly depleting deposits and face allegations from the Ontario Securities Commission that it misled investors in 2015. Last June, Home Capital and three of its former executives agreed to shell out over $30m to reach settlements with regulators and investors over allegations of misleading shareholders about mortgage fraud.

"We are entering 2018 with positive momentum in our business. We have turned the corner and expect to grow from here, responsibly, with sustainable risk management practices embedded in our culture," said Bissada. "We have a strong capital position and balance sheet. We will use our position of strength to seize opportunities to invest in, and grow, our business to create value."