- Home Capital Group Inc HCG HMCBF reported first-quarter EPS of C$1.02, compared with C$1.24 in 1Q21.
- The net interest margin was 2.18%, compared with 2.46% in 4Q21 and 2.61% in 1Q21.
- Non-interest expenses were C$65 million versus C$61.7 million in 4Q21 and C$64.1 million in 1Q21.
- Home Capital' Mortgage originations were C$2.76 billion for the quarter, compared with C$2.72 billion in 4Q21 and C$1.60 billion in 1Q21.
- The total loan portfolio stood at C$19.47 billion at the end of the quarter, increasing 12.7% from the end of 1Q21.
- Loans under the administration of C$25.37 billion, up 11.4% year-over-year.
- HCG’s total deposits were C$14.39 billion at the end of the quarter vs. C$13.77 billion at 1Q21-end. Oaken deposits totaled C$4.53 billion (+11.5% Y/Y).
- The reversal of provision for credit losses was C$0.1 million vs. losses of C$12.1 million in 1Q21.
- Net write-offs as a percentage of gross loans were 0.01% in Q1 2022, compared to less than one basis point in 4Q21 and 0.01% in 1Q21.
- The management says the company is on track to achieve the near-term target capital range of 14 to 15% CET1.
- “The assets we add now will generate income well into the future. Although our net interest margin fell this quarter due to increases in our cost of funds outpacing increases in mortgage rates, we expect to benefit over time from margin increases as spreads normalize,” commented CEO Yousry Bissada.
- Dividend: Home Capital declared a common share dividend of C$0.15 per share for 2Q22, payable on June 15, 2022, to shareholders of record on May 31, 2022.
- Price Action: HCG shares closed lower by 8.87% at C$29.60 on TSX on Wednesday.
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