The Globe and Mail reports in its Thursday, Nov. 8, edition that Home Capital Group said Wednesday it plans to repurchase up to $300-million worth of its common shares.
The Globe's Tim Kiladze writes that the buyback's final terms will be set next week.
Home Capital's stock, which has sagged in 2018, surged on the news.
Home Capital's buyback plan was announced as part of its third quarter earnings. The company reported net income of $33-million, up 9 per cent from the same period a year prior. Mortgage originations continued to rebound, with $1.4-billion of new loans issued last quarter, a rise of 17 per cent since the second quarter.
"The growth in originations suggests our lending market has begun to absorb the impact of the new mortgage rules and is adjusting to a higher interest rate environment," the company said in a statement.
Home Capital is in the midst of a turnaround after the mortgage lender nearly collapsed in 2017.
It is finding its footing again in a much different mortgage market. Today there is stiffer competition for clients, slower home sales in major urban housing markets -- and rising interest rates, which make it harder for prospective homeowners to afford house purchases.
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