Despite rising interest rates, alternative lender Home Capital saw its mortgage originations jump over 40% in Q2 compared to last year.
While total loans under administration rose 17% year-over-year to $26.7 billion, the company experienced a 31.7% decrease in net income over the same period.
“We have built our business to be resilient in the face of challenging conditions,” said President and CEO Yousry Bissada. “We are better prepared than ever to manage through any market environment and deliver value.”
He added that the company is resilient and “is built to be a fortress precisely in case of challenging times.”
Net interest margin was down 64 basis points from a year ago and 21 bps from Q1.
“As lower-cost funding matures and is replaced by higher-cost funding, net interest margins may contract further before stabilizing…