Home Capital reports $34.6M in first-quarter earnings

TORONTO – Home Capital Group Inc. reported a 40 per cent drop in its first-quarter income from the same period last year, before it was hit with allegations of misleading investors.

The Toronto-based mortgage lender said income in the three months that ended March 31 was $34.6 million, or diluted earnings of 43 cents per share.

That compares to a net income of $58 million and diluted earnings of 90 cents per share in the same quarter of last year.

The company said in a statement that the numbers reflect “the impact of reduced loan balances and lower securitization income, partially offset by lower non-interest expenses.”

It’s been a tumultuous year for Home Capital, after allegations the lender had misled shareholders prompted a run on deposits by customers last April.

By June, the company had agreed to pay $29.5 million to settle a class-action lawsuit and a matter before the Ontario Securities Commission concerning the allegations.

Companies in this story: (TSX:HCG)