This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.Here is a sample of this item:MCAN Mortgage earns $30.3-million in 2008 2009-02-13 10:41 ET - News Release Mr. Blaine Welch reports MCAN MORTGAGE CORPORATION REPORTS FOURTH QUARTER EARNINGS MCAN Mortgage Corp. had net income of $9.9-million for the fourth quarter of 2008,
up from $3.2-million a year earlier. Earnings per share for the quarter were
70 cents, compared with 23 cents last year. Net income for the year ended Dec. 31,
2008, was $30.3-million, up from $14.8-million in 2007, while earnings per
share were $2.14 compared with $1.12 in 2007.
The current turmoil in the general economy, and specifically in the
financial and real estate markets, has impacted MCAN, both positively and
negatively. In MCAN's core spread business, decreases in the prime rate that have
not been matched by corresponding decreases in the cost of the company's term deposits
have compressed the spread on its mortgage portfolio, of which over 50 per cent is
floating rate (prime based). However, the changing interest rate environment
has had a positive impact on the company's participation in the Canada Mortgage Bonds
(CMB) program. Also, the market turmoil has created opportunities for MCAN, in
conjunction with MCAP Commercial LP (MCLP), to acquire portfolios from other
lenders at favourable pricing, and the aggressive management of these
portfolios resulted in significant incremental income in the quarter. While
fourth-quarter results were significantly higher than historical results, it
must be cautioned that the primary contributing activities are significantly
more volatile than the company's core activities. The remainder is available to Stockwatch subscribers.
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